Transcript Every Small Business Needs a Great Database

MULTI-MILLION-DOLLAR
SALES FUNNELS
(A.K.A. SMALL BUSINESS
MARKETING DONE RIGHT)
Reid Wilson
Quintify Database Solutions, Inc.
[email protected]
MY BACKGROUND
When it comes to marketing, Fred Meyers
taught me about 90% of everything I
know. (I.e., old-school catalog direct
marketing applied to modern technology.
WHAT QUINTIFY DOES
We build highly customized web-based
database software systems for “small”
multi-million dollar companies and
franchisors
Three main uses
of databases
in business
THREE MAIN USES OF DATABASES IN
BUSINESS
1.
Information Store / Data
Warehouse
THREE MAIN USES OF DATABASES IN
BUSINESS
1.
2.
Information Store / Data
Warehouse
Process Management /
Transactional
THREE MAIN USES OF DATABASES IN
BUSINESS
1.
2.
3.
Information Store / Data
Warehouse
Process Management /
Transactional
Actionable Reporting / Analytical
Inadequate
data management
leads to poor
marketing
(unless you are just lucky)
COMMON MISTAKES IN
SMALL BUSINESS DATA
MANAGEMENT

MS Excel
COMMON MISTAKES IN
SMALL BUSINESS DATA
MANAGEMENT
File Folders
 Your customer info is
only accessible by one
person at a time in a
particular place.
 Regarding marketing,
data is very tedious to
accumulate and
analyze
COMMON MISTAKES IN
SMALL BUSINESS DATA
MANAGEMENT
Sticky Notes or
Random Pieces
of Paper
Little pieces of
paper fly away
when the wind
blows.
Big pieces of
paper get stacked
and put in boxes
when guests come.
COMMON MISTAKES IN
SMALL BUSINESS DATA
MANAGEMENT
Sticking with a legacy system that no longer
meets your needs
COMMON MISTAKES IN
SMALL BUSINESS DATA
MANAGEMENT
Ignorance
(Direct) Marketing
Is Math
Applied to Data
The Million Dollar
Question:
Where do I spend my
marketing dollars?
The Direct Marketing
Approach:
Test and measure!
1.
(and let analytics tell you what you should do)
KEY METRICS
 Cost
per lead acquisition per
channel/promotion
 Conversion Rate
 How many “touches” does it take to convert?
 Retention / Reorder Rate
 Reactivation
 Lifetime Value / Profitability
 RFM (recency/frequency/monetary) cell
analysis
COST PER LEAD ACQUISITION
Source
Count
Cost
CPA
Google Adwords
547
$4,732
$8.65
Affiliate Program
120
$625
$5.00
LeadSource
259
$3,147
$12.15
THREE-MONTH CONVERSION RATE
Source
Count
Conversion
Revenue
$/Lead
Google
Adwords
547
15%
$4,512
$8.28
Affiliate
Program
120
22%
$1,716
$14.30
LeadSource
259
27%
$4,247
$16.40
LIFETIME REORDER % OVER TIME FOR 1X
CUSTOMERS
NEW CUSTOMER REORDER RATES BY
INITIAL ORDER SIZE
LIFETIME SALES PER CUSTOMER
LIFETIME SALES FROM INITIAL ORDER
SIZE
WHEN SHOULD WE TRY TO REACTIVATE?
MARKETING DATA TO CAPTURE IN YOUR
DB
 Track
the source of each prospect / new
customer – source type and source detail
and any promotion they first responded to
 Segment your customer into various
groups, e.g. by industry, size, location
 Track lifetime sales per customer (and
carry that over to lifetime sales per
segment and lifetime sales per source)
MORE DATA TO CAPTURE
 If
your business has many
customers/orders, track “RFM” – recency,
frequency, monetary – and incorporate it
into decisions on who to send promotions to
 Track costs (COGS, fulfilment costs,
advertising costs) to each order and each
customer, so that profitability can be
watched
TEST AND MEASURE REDUX




Test and Measure
Put more focus and money into what’s
working
Stop what’s not
But realize that long-term results are
most useful when making decisions (e.g.
three month payoff as opposed to
immediate payoff when evaluating a lead
generation promotion)
EXAMPLE RFM REPORT (FILE COUNTS
OVER TIME BY CELL)
QUESTIONS?
Reid Wilson
Quintify Database
Solutions
[email protected]
www.quintify.com