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Overview Transcript Case Study Video

Build A Database. Building a database should be one of the primary components of a business owner's total business plan. It's absolutely critical that you retain key information about your customers.

Topic for Discussion: What does Carol do to reach out to her target audience?

Answer: She maintains a database that includes the name, address, phone number and purchasing history of her customers. She sends direct mail to them regarding specific items they would find interesting. She also reaches customers with print and radio advertising.

One technique Carol uses to grow her mailing list is to rent the list of a business that has customers like her customers. She told us about renting the one-time use of Bon Appetite’s mailing list for the Zip codes in and around Madison.

Everyone who responded to her mailing by using the coupon or returning the response card is now a permanent part of Orange Tree Imports’ list.

Many people dream of having thousands of customers but only a few do the work that must be done to find and win them. In the book, Good to Great, Jim Collins writes that great companies pay attention to details and no task is too tedious.

Scott and Marthalee Mooney, founders of Country Supply, used the good-to-great strategy and didn't even realize it. They wanted to build a list and no task was too small. Scott and Marthalee hand-copied the names and phone numbers of people who were selling horses or equipment from newspapers' classified ads sounds very naive. However, he was only 22 years old when he started the process of building a mailing list. Scott did what made sense to him at the time. He did what he could afford.

Eventually he thought of buying lists from magazines and over time he learned how to find qualified names with less effort.

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Key Ideas of this episode Small Business School
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1. Start Young
2. Use Money to Borrow Money
3. Stay Focused On Your TargetSmall Business School
4. Build A Database
5. Bring In The Hard-to-find
6. Encourage Employees To Take Charge
7. Turn Workforce Planning Upside Down
8. Treat Employees Like Family
9. Transform Your Entire Neighborhood
10. Be A Team Player
11. Create Event-driven Traffic
12. Love People
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(continued from other column)


Of course he was naive in 1984 -- but not now.

Scott is a perfect example of a person who eventually learns by trial and error and he is perfectly happy with this technique. In fact, he would probably argue it is the only real way to learn.

To grow your database you can try Carol's technique and/or work with a list broker. First do a profile of your existing customers and your best customers and determine their demographics and the psychographics. If possible, determine why and how they purchase from you. A good list broker will know how to find additional lists of people who look like your best customers.

You think about it: What tedious task needs to be done for you to move your business forward? We guarantee, it is something that no one wants to do.

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