Database: a four-letter word?

Published 5:00 pm Saturday, September 30, 2006

Did you know that most business people consider the word “database” to be a four letter word?

That word isn’t CASH but it should be. A database has two key characteristics that can make every business rich or poor.

Characteristic #1: Assuming you offer a product or service that people need, want and can afford the quality of your database is generally viewed as being 60 percent to 70 percent responsible for the success of any marketing effort.

Characteristic #2: In 30 years I have never seen a database that represented more than 30 percent of a company’s target market often it is as little as 5 percent. Also, I have never seen a company not make significantly more profit when they increased the percentage of their market represented in their database (often just a spreadsheet).

What to do? Ask everybody for first name and email at a minimum. You might be surprised how many people want to hear from you. A little trouble and a great deal more profit.

Once you have a list of 20, 40 or more, start finding beneficial things to talk to your customers about. Be yourself. Put yourself in their shoes and make them win-win offers you and your friends would like. Most people are amazed at what happens.

Do this for the next 12 months and watch your profits grow.

List size obviously matters. I was born in Myrtle Point, Ore just inland from Coos Bay. For most people doing business on the coast, business can be tough from a market size standpoint. Fewer customers often equal fewer profits.

Next time we are going to cover how ANY business on the Oregon or Washington Coast can grow the size of its list and get a steady flow of business from the region, the nation and the world.

Eric Albertson is the president of Albertson Performance Group, Inc., in Portland, and can be reached at eric@albertsonperformancegroup.com or (503) 635-2319.