Are You Neglecting The Most Valuable Asset In Your Business?

Most Valuable Asset In Your Business

Your most valuable asset in your business is your database, period.

Surprising, but true. And the reason is simple.

It’s because your database holds the key to build your business’ reputation, attract more customers and make more sales.

Let me explain...

The contacts on your database have already shown an interest in you and what you have to offer. Whether they’ve subscribed to your newsletter, phoned in an enquiry or actually brought something.

Make a customer, not a sale.

I’ve noticed many small businesses get seduced by the rush of the immediate sale and forget the longer-term prospects. This approach is insane!

That’s because if your focus is to get someone to “buy now”, your desperation will simply turn that prospect off - especially if they’re not yet ready to buy. And the result? That customer will simply run into the distance leaving you disappointed.

In comparison, if your focus in on building a relationship instead of trying to sell, your chances of selling at some future point suddenly increase significantly.

Most prospects that you speak to simply are not ready to buy at that moment, so think about the next step rather than the sale.

People first...

Human nature means we have a tendency to do business with people we know, like and trust and getting to that place requires time and a concerted effort on your part to create that relationship.

And this is where your database becomes so valuable.

People are unlikely to buy from you on their first encounter (spontaneous impulse purchases are an exception). Which means you need to do something to stay on their radar and keep them interested. You could do that by:

  • Sending email or printed newsletters
  • Setting up an auto responder sequence
  • Posting handwritten cards & postcards
  • Speaking on the phone, during a hangout or at a face-to-face event
  • Networking & interact through social media
  • Mailing some interesting direct mail etc.

BUT, here’s the catch. To do any of these things, you need contact details.

And herein lies the power of your database.

Now you might be thinking “it’s easy to get contact details, I’ll just buy a list”. And that’s true, you could. But consider this statistic from the Direct Marketing Association:
A mailing to an in-house list will generate an 18% response and the other list will
produce less than 2%, even if the demographic fit is spot on.

Now that’s a phenomenal difference, and the reason is simple. You are already on the radar of the in-house list. They have some connection with your business and a relationship (at some level) has been established. In comparison, the people on the external list are completely cold. And as you know cold calling is a turn off.

Time for DIY

Whilst it will take time and effort, it’s a smart move to start build your own database immediately. Here’s how...

Option 1:

By far the simplest way is to create a signup form on your website. Ask visitors to share their email address (and even their name) in return for a freebie. You can then integrate this list with an email provider such as MailChimp and build a relationship by emailing regular communication to your subscribers.

I use this method. Subscribers get a free copy of Understand And Take Control Of The Most Valuable Asset In Your Business. It’s a nifty, comprehensive guide that explains the importance of your database in far more detail than this post. It will help you decide what information to collect, how you’ll manage the data and how you’ll use it. If you’re keen to exploit the potential of an in-house database it’s well worth signing up now. Just add your details to the box on the right.

Option 2:

For a more sophisticated approach you’ll want to collect additional information such as a phone number, mailing address and full name. These extra details open up additional lines of communication (not just email) as well as allowing you to be more personal. You could start with an address book or a simple excel spreadsheet, but due to its limitations you may want to consider a Customer Relationship Management tool. SpinLessPlates has this functionality (along with stacks more). To discover how Spin can help your micro business grow, click here.

Unlock the hidden profit in your micro business

If you’re really serious about working less and earning more, you have to become “the one to go to” in your niche. And to do that you need to nurture your relationships to help you increase the lifetime value of your customers.

Here’s the crux. Is your database setup to help you achieve that?

If not, what do you need to do to make it happen? Please tell me in the comments below.

Leave A Response