To avoid the commercial nightmare of low prices and high trade discounts, you need to get back to basics – deal direct with your customers, learn what they want, and provide it – at a mutually agreeable price.

You need to build a database of customers so you can regain some control of your business before it disintegrates into a business focused on cost-cutting rather than revenue building.

What is a marketing database?

A database can comprise two key groups: Prospects (people who have not bought from you) and Customers (people who have and are either current or lapsed/cancelled).

From this basic standpoint you can then look at subgroups: prospects broken down into different interest areas; past buyers who need to renew; lapsed/cancelled customers who you want to get back; buyers of products who might buy other products; people you can upsell to, etc.

You can also use a database to show you who is buying your products so you can search for lists of similar individuals in similar organisations.

The starting point in building a database is a good prospect list, who then convert to customers – building into a substantial list over time

Some simple guidelines for publishers looking to build a database

Assuming you are starting from scratch, here are some tried and tested ways to build and maintain you database:

Insert cards into all your products and/or your email messages, directing them to other products they can order. The building of an in-house list of book buyers will be your hottest list for future growth – out performing any other list.

List rental/swapping. Talk with your peers at other publishers about list rental or swapping. Do NOT fear that you are giving away “your” customers, you’re not. Mutual trust between publishers leads to greater commerce over time. Swapping is cheaper than rental but many publishers retail their lists through brokers.

Targeted mailings to the demographics you are seeking. You are publishing a directory world wines and want to reach wealthy ABs? As well as going to wine magazines you can also make assumptions about the demographic and do targeted mailings to other people in your area such as lawyers, managing directors etc. Think laterally!

Wherever possible, however, aim to rent lists of people known to order via direct mail. This means they are “DM responsive” so that your pack is likely to succeed as well (provided of course it is well-written and designed).

Affiliate marketing offers additional ways to grow data: inserts into relevant mailings of related organisations; special deals with organisations so members can get products cheaper; offer targeted individuals certain products at lower prices

When you need to rent lists from brokers, ask the broker for lists which have buyers who appear on other lists. These merge/purge lists offer even greater promise given the higher potential fail rate of a prospect list.

A final option is to build your own list – research using the web, directories etc. The problem with this approach is that you are relying on data which is potentially obsolescent (if not obsolete) and you have no knowledge of whether they have bought something.

Some simple ways for publishers to manage their database

Many publishers report to me that they have a database but it “could be better”. In truth, most databases “could be better”. But half the battle is having top level support for the database from the MD downwards. If there is a belief in the data at the top, then the quality of the database will be questioned more frequently.

Some guidelines for managing a database include:

Managing “gone-aways”. In the old days, you could say that 10% of your database would change in a year. These days, in recessionary times, this change figure could be double or even treble that figure. It is important therefore for your envelopes, order forms and websites to give the capability for people to add their change of address.

Managing data fields. Are all your fields filled in? Job title? First name, second name, post code etc? Produce regular reports (monthly) showing deficiencies in the database so that corrections can be made/plans agreed for correction

Competitions/Freebies/Premia mailings to encourage response so that records can be corrected.

Ensuring codes are captured showing the source of the order – not just from a particular campaign but also whether the customer originated from a prospect list or your in-house buyer list

Why publishers should care about databases

If you don’t know your readers, you cannot create for your readers and your future lies in the cloudy mist of ignorance and hearsay/received wisdom from the sales force and the trade. These groups are not forecasters, they are only commentators.

If you always do what you have always done, you will always get what you’ve always got. So data is important so you can see who is buying your books and so you can contact them about similar products/conduct customer surveys.

Publishers who do not care about data, or who are lax in its management, will ultimately end up on the treadmill of endless creation of random titles, hoping desperately that one will hit the big time and produce some money from somewhere.

Having a good database also means you can sell your products direct to the end reader at the value/price ratio you prefer – rather than a random price charged by retailers fighting their own high street battles.

Conclusions

Data, therefore, is the key to selling well, gathering information, and responding with knowledge to customers future demands. While it is true that many publishers survive without databases, it is equally true that those who manage data correctly are stronger and more financially robust. Today, for brands to survive, the link between end user and product provider has never been more relevant. Data is the key to long term, profitable customer relationships.

Very best,

Michael Smith
Red Page Marketing

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