Insight: Growing your customer list

First published in IT@Work, The Sun, Mon, 27 August 2001

The biggest question I get these days is where do I get an email database? Many businesses today are not sure where to start when considering an email marketing program. The chief concern being the lack of a customer database, or a lack of email addresses in their current database. Without an email list, many businesses are unwilling to invest in a long-term program, despite its benefits.

This is a classic example of the chicken and egg story – which comes first? The email marketing program without the database or wait for the database before starting an email marketing program? Unfortunately, if you don’t start either, neither will get done. Nobody will sign up if there isn’t a program in place and to start a program with no individuals on your database means sinking some costs at the beginning.

The best solution is actually making a commitment to sow the first seed. Then work quickly to grow your list to a size where the cost will begin to justify the means.

Your Interaction Points

The best place to start is actually at your point-of-sale. If you run a retail store, it is where you meet your customers. If you run a hotel chain, your guest check-in point is the best place to start. At any point where you interact with your current or potential customers, that is where you are given the opportunity to say, “hey, would you like to sign up?”

Borders Inc, a bookstore chain in the United States, runs an email marketing program called “The Borders Store Exclusives” mailing list that has more than 1 million unique subscribers. Borders built this database by asking customers at the point of sale whether they wanted to sign up for the newsletters and store exclusives. Then, when they give their address, within 48 hours they receive a welcome, letting them know that they are signed up for a particular newsletter. With that database at hand, Borders email marketing campaign brought in double-digit response rates for the company’s best-seller list.

Ask people in your company for the email addresses of customers. Your sales and marketing team have probably collected large amounts of customer contact details. Do not overlook your customer service people and those who are in the “front lines”. They handle most of the incoming requests for information whether over the phone, in person or via your online forms or suggestion boxes.

Last week, I walked into a small boutique bookshop and the first thing they did (it was my first time) was greeting me and saying hello. Imagine what opportunity lies in taking advantage of that first initial rapport by asking me “would you like to stay on our mailing list, and be the first to know if anything interesting comes in?” The opportunity could not be sweeter if I actually bought something (which I did).

Other areas that you should also include a sign-up form is on your company website, your guest book (some businesses have those funky things you place by the door), on sales invoices, brochures, customer surveys, feedback forms, even at special events.

Advertising Materials

One great area you can place invitations to join your list is through advertising copy. Your advertising probably reaches thousands of your target audience and you may solicit response by placing a strong call-to-action.

Taking a chapter out of direct marketing textbooks, encouraging your customers to take action can yield desired results. For example, you may include a response card, fax-back coupon, or an instruction (or a click if it is an online ad) to visit your website where your form resides.

Create an incentive

Sometimes, just asking may not be enough to entice potential customers to sign up to your mailing list. This is when hanging a carrot over them might prove effective. Some ideas to throw around is offering your mailing list members “exclusive privileges” that may range from private members-only sales, special discounts or admission to special events. If the lure of private sales or promotions isn’t enough, customer sign-up success can be achieved with contests, sweepstakes or the likes.

Take Borders again, the company sends a promotional email blast called “Borders Store Exclusives” once or twice a month to its brick-and-mortar customers, offering exclusive promotions, specials and discounts. The goal of each email campaign is to drive customers back to the stores and at the same time give their store customers special offers and sales information that they are not giving to the rest of the country at the same time.

For businesses targeting corporate audience, a method that has worked well for many companies is offering information. This could be in a form of a newsletter filled with tips and secrets, access to industry white-papers or reports that contains valuable information.

Make sure your incentive is closely related to your brand, product or service. That way, you’ll end up with an audience interested in you, not just the latest gadget.

Buying or Renting Lists

Another way to build your database is to rent a list from a list provider. There are two ways to go about it. You can either source from individual websites or via a list provider.

Sourcing individual websites may be time consuming and takes a lot of effort. You may also miss out on potential gems that could perfectly fit your audience profile. List providers can help you save time by searching for the audience you want and help you monitor and execute the placement. Their entire role is to keep a lookout for potential lists and connect you with them.

Ask how your message will be placed in the email messages. Some list owners will allow you only advertisements in the form of banners or text messages, while others allow exclusive emails dedicated to your interest. There are pros and cons to both approaches but remember to ask before you commit. Bear in mind that the lists do not belong to you and in most cases you will never see the names of the recipients to protect their privacy.

In the end

A good lesson to imprint here is to focus efforts on active mediums; methods that proactively go and get the result you want, rather than passively waiting for people to come. When collecting email database via your website, understand that unless your website itself carries a lot of traffic, you may see slow registrations there. A friend at a local dotcom on the other hand drove registrations for her company by the thousands just by standing at a PC Fair and asking people who is entering the fair to sign up.

Finally, remember that the key to successful database building is being consistent. Gather email addresses every day and in every way. Make it part of your daily routine. It is never too early to start building your database. You will be pleasantly surprised at the size of the list you are able to compile and how quickly it can grow.

[Written by Jui Hong Teoh, Managing Director, BRANDTHINK Malaysia. First published in IT@Work, The Sun, Mon, 27 August 2001]