Word to the wise
How can textile clothing and footwear retailers use simple database marketing to improve their profitability? Shannon Curtis, from Profitable Clothing Retailer, shares his secrets.
Clothing retailers should be looking for low cost, high impact marketing activities to drive business to their stores. One of the most effective and cost-efficient ways to add profits to the bottom line is through the use of database marketing, which uses information collected at the point-of-purchase. The recent increases in technological sophistication and the corresponding decrease in its price, has made life much easier for today's clothing retailer, to identify and market to their best and most responsive customer segments. Enter database marketing.
Using personal data, purchasing data and contact information from a customer database, a clothing retailer can make offers to customers for complementary products and services, and engage in loyalty marketing activities. Database marketing has four key elements: gathering customer data, building a customer database, creating targeted offers for specific customer groups and tracking results to improve responses.
Gather customer data
The easiest way to begin this process is to develop a simple form for customers and sales people to fill out every time a customer purchases a product or service. Include personal information such as contact details, names of spouses, children, profession, and birthdays, as well as, product information such as the item(s) purchased, size, brand preferences and any other specifics relevant to the sale.
Build a database
Start simple using off-the-shelf software such as Microsoft Access or ACT. Later on you can begin to modify the database to either include different types of information or to print special reports.
Targeted offers
Start sending offers and personal messages to your customers. Do not wait until you have a large mailing list. Begin sending notes to customers right away thanking them for their purchase, to celebrate birthdays, share holiday messages, and inviting them to come in and take advantage of special offers.
There is an old saying that goes, "Business goes where business is invited, and stays where it is appreciated." A personalised invitation to drop by the store to take advantage of a specific incentive, new range or special preview is sometimes all that is needed to keep your customers coming back into the store.
Track your database marketing results
By knowing who you sent offers to and who responded will help you identify your best customers, allow you to more effectively allocate your marketing dollars, and help you tweak your marketing pieces to get better response rates.
What information do I collect?
It is important to determine in advance the type of information to collect. To do this, make a list of complementary special offers you might be presenting to your customer. For instance, if many of your customers are purchasing corporate attire, you may want to send them regular communications on complementary items such as shirts, ties, belts, suits, jackets, shoes etc. If this is the case you will need to capture details regarding size, height, style, brand preferences etc to ensure you can effectively send them information that is specific to their needs.
If your customer has a partner, consider presenting follow-up offers for products targeted for him or her. Imagine being a customer and receiving a letter from your favourite fashion retailer with an enclosed birthday card for your husband with a discount offer for hot air balloon ride or a ride in a V8 Supercar. This is the power of database marketing.
Collecting accurate and consistent information
Database marketing all starts at the point of purchase. Without accurate, complete, and consistent data this type of pinpoint target marketing cannot be done. To ensure that your information is accurate and consistent, help your customers fill out the data collection form and review it for completeness.
Some customers might feel a little uneasy about giving out their personal information. However, after explaining that the information is completely confidential and will only be used to send out special offers during important events, you will find that most of your customers concerns will be resolved.
Cost-effective loyal customers
Marketing to your current customers is one of the most effective and cost-efficient strategies you can do to reduce your marketing costs, enhance your customer/retailer relationships, and produce long-term loyal customers who, over a period of months or years, become your biggest source of referrals.