by Bernie Meineke, Georgia SBDC Every once in a while, we all hear someone recalling the "good old days." Let's think for a minute about the good old days of personalized service. When shopkeepers in those days waited on customers, they saw individuals: someone they knew. They didn't see a collection of demographics: 40 to 45-year-old married female with 2.3 children who works outside the home. They saw Mrs. Jones and remembered she wears a size 8, dresses conservatively, and shops late in the evening because she works late. Thinking about customers as similar groups is the basis for Target Marketing, one of the foundations of modern marketing theory. Successful large and small companies have used these concepts for years. They split the total market into groups with similar characteristics and common needs. Then they deliver a customized message that will appeal to each group. The down side of thinking about customers as groups is that the face of the individual gets lost. But don't throw out the concept of target marketing—just take it a step further. Successful small businesses of the future will use a more personal approach to set themselves apart. Start this personal approach by getting to know your existing customers better. This approach may seem strange because they already buy from you. But that's the point. These are your best prospects for more sales because they know who you are and they need what you sell. And they are less expensive to reach. An often-cited study estimates it's up to 5 times more expensive to get a new customer than to keep an existing one. Next, sharpen your focus from groups of customers to individuals. Target marketing will then give way to the more personal Relationship Marketing. Think of it as getting to know your customers and building personal, profitable relationships with them. Frequent flyer programs are the most common example of relationship marketing. These programs allow companies to identify their best customers, reward them, and encourage their loyalty. But relationship marketing also reveals more about your customers' likes and preferences so you can personally tailor new sales offers to them. When a business begins, it has only a few customers. As the business and the businessperson get older, it gets harder to keep that personal relationship with the customer. Writing down customer information in files or index cards is a start. But for the best results, computerize the customer information. With today's inexpensive technology, this powerful tool is within the reach of everyone. To start your own relationship marketing system, follow these steps:  Get computerized.
All this talk about the "good old days" doesn't mean you throw out your computer—just the opposite. Today's technology, if properly used, means learning your customers better.
Develop a mailing list.
Capture names, addresses, and telephone numbers of customers and prospects. If you don't have your computer set up yet, use index cards. Select a good database program and learn how to use it.
Some contact management programs like ACT!® and SHARKWARE® are already set up for your marketing needs and are very easy to use. Capture important information about your customers, like what they buy and when.
Deciding what information you need is the first step; then find the most cost-effective way to get that information into your system. Use this information to guide you in your marketing efforts.
Step 5 is where you get creative and where the fun starts. For example, a bookstore owner may sort his database for customers who buy lots of mysteries. These customers could be sent special invitations for the first copies of a hard-to-get new mystery. Most small businesses shouldn't compete just on price. They should take advantage of the personal touch. High-touch, personalized marketing will keep your customers coming back. For further assistance, contact a consultant at a Small Business DevelopmentCenter near you. > See also: Marketing, Advertising and Sales > Archive of previous articles can be found here | 
