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Increase your profits by up to 100% through database marketing

December 10th, 2001 by  Rachel Alexander 
It's much more cost-effective to increase sales by marketing to existing customers than it is to keep finding new ones. Rachel Alexander gives some hands-on pointers.
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It\'s in your interests to keep customers because their value to the business increases dramatically over time with a corresponding impact on profits. Indeed, Harvard studies show that you increase profits on average by up to 100% if you keep just 5% more of your customers. Building a database is a fundamental direct marketing tool which enables you to retain your customers, especially to: increase your customers\' frequency of purchase increase the total number of customers through referrals increase the average dollar amount of purchase through stimulating extra sales measure client behaviour in order to minimise wasted spend, and to retain clients that might be thinking of \"straying\".

Think about it

- if a customer buys one pie for $1, and you are so friendly that you convince her to come in twice a week... then you convince her to buy a $1 packet of chips each time too, and then she tells a friend about it - your sales end up being $1 x 2 x 2 x 2 = $8.00 - an 800% increase in sales.

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About the author

 Rachel Alexander 's picture
 Rachel Alexander 


Rachel Alexander is the WISE Self-Employed Woman of the Year 2000 for the South Island (ASB Bank Women Business Leaders Awards). She started her business, Alexanders Advertising in early 1997 offering sound marketing advice to accelerate their sales. The company’s services have now expanded to include a full design studio, specialising in tourism, brochures, web sites, direct and e-mail marketing, letterbox advertising and marketing coaching.