The dilemma of many companies these days is whether to invest more on developing new customers or in building stronger relationships with existing clients. Both are critical to the success of any business but what should be your emphasis? The answer is not that simple as the question is nearly impossible to answer but let’s quickly explore the topic on a top-line basis.

Retention is obviously critical to the success of any business. Historically, businesses that have a “churn and burn” mentality will not last long, but it does beg the question: what should be your focus? If your focus is on stronger profits and you have a large customer base than it would make sense to invest in building better customer relationships. And if targeting customers or businesses where there is an established relationship, direct marketing tools are well positioned to be utilized and successful in this endeavor. Results tend to be significantly greater, and profits higher, when customers are better targeted. Even former purchasers or users will respond better than individuals who have no experience with your organization.

However, even if your company’s focus is on creating better profits and retaining customers, developing new customers is also critical to the viability and growth for any company. Attrition is inevitable and even the most established businesses need new prospects to replenish their customer base. The most successful customer retention programs don’t keep 100% of their customer base. Maintaining a balance between customer retention and prospect marketing efforts is one of the keys to becoming a successful business.

So whether it is to promote a new venture, product, service, and/or to simply thrive in the growth stage of a business, an organization still needs to prospect for new customers. A business mailing list is the most effective means to reach this goal. It allows companies to broaden their reach and help with the prospecting/acquisition of new customers, patients, members, etc. Business mailing lists allows companies to broaden their reach but also to target their audience better, sell a product or service, generate a lead, drive traffic sell subscriptions or memberships, etc. Direct marketing being a proven medium, many organizations rely upon direct mail for their main marketing tool or as a support mechanism for their prospecting efforts. In short, simply talking to your current or in-active customers will not suffice. Businesses need to continue to broaden their reach for new prospects. Therefore a key to success will likely hinge on the use a mailing list to supplement your own in-house list. Now how to go about purchasing a business list is whole other topic entirely. A quick consultation with the folks here at Instant Business List may be the beginning to the continued success of your business.

I was speaking with a friend the other day, a small business owner in NY, about his sales and marketing strategy and what he should do in these tough economic times. We discussed it thoroughly and interestingly enough came out with some new ideas and focus. Below is a general overview of the principals, ideas and strategies that came out of that conversation which helped transform his sales and marketing plan moving into 2009. Perhaps you are already using some, if not all, of the following in your own sales and marketing plan. If not, maybe it will at least get you thinking and perhaps even gets you to reevaluate your plan so as to ensure it is properly focused and getting the most bang for its buck.

1. Retention: Customer retention should be #1 on any business owners’ priority list. However many businesses seem to neglect this market segment perhaps thinking that they have their business already and their customers are loyal. Right? Wrong! Competition is fierce, and in this day in age where everyone is vying for attention and the economy is tight, you need to be actively communicating with this audience so that they are not “distracted” by other companies and go elsewhere. Remind them of why it benefits them to buy from you and remain as a customer.

2. Reacquire/Reactivate Customers: The most overlooked yet an easy and perhaps the most cost effective revenue generating avenue a business can pursue is to simply reengage and try to “reactivate” previous customers. Perhaps refresh their memory of who you are, why it would benefit them to do business with you and get creative with an offer. Or get them engaged somehow. Offer them something free with no obligation.

3. Direct Mailings: Now is a time perhaps to mail a little less and get smarter, more strategic about it. Make sure your list is up-to-date and addresses are accurate. Don’t waste money by sending mailings that will be undeliverable. Verify addresses. It’s worth the upfront expense. You may also seek alternative solutions and buy a business mailing list to help supplement your sales and marketing campaign so as to reach a wider and more targeted audience.

4. Email Marketing: The cheapest way to communicate, market your goods/services and gain instant results. This is a technology driven world and most everyone has an email address. As with direct mail, obviously your customer or prospecting database will be the most effective and the cheapest. Otherwise, and again, research other means by which to obtain business email lists. With the click of a mouse you could be sending out thousands upon thousands of emails.

5. Online Marketing: Many companies in 2009 are focusing their marketing dollars online with tools such as banner ads, adword campaigns, online videos and social media outlets. Online marketing has seen the greatest increase in spending during the last few months as it cost less than traditional media and you can track results. They key is to test and re-test. Make sure you are sending the right message and targeting the right audience before initiating any big campaigns.

6. Be Really Creative: Whether it is direct mail, email or banner ad, all communications can be improved upon and every offer can be more inviting/tempting. This goes back to my earlier point with respect to talking to your customers and potential customers alike about why your products and services are better and how they will benefit by purchasing them. And great creative with the offers as well. Be bold and enticing!

7. Competition: Be sure you are paying attention to your competition and what they are doing with their marketing. What offers are they presenting? Who are they targeting? What marketing vehicles and mediums are they using? They may have a good idea that you could copy and/or use to your advantage. Don’t be too proud and not use someone else’s ideas. If it is good, use it. Why reinvent the wheel?

Sounds simple yet so many businesses and marketers alike overlook the process of verifying addresses of their mailing list. Whether you are buying a business list or utilizing your own customer data, it good business to verifying addresses.

Each year millions upon millions of pieces of direct mail get undelivered because of inaccurate mailing addresses. Imagine how much money could be saved by simply running the data through the National Change of Address (NCOA) directory database to verify the mailing address.  It can cost the average company thousands of dollars a year for failing to verify addresses. Think about the cost to create a direct mail piece (materials & labor) plus the cost of postage. Imagine the money you can save simply not sending something that will be undeliverable!? What if the money saved could be allocated to acquiring another customer or spent elsewhere for that matter?

There are a lot of factors that go into the success of direct mail campaign. I’m not suggesting that verifying mailing addresses are the panacea to having a successful direct mail campaign or the cost cutting cure all. Obviously many businesses expect some direct mail to be ignored and even some addresses to fall through the proverbial cracks. And it will. However failing to do so is almost irresponsible given the cost benefit ratio. Having your data NCOA validated doesn’t have to be a significant expense, but could save you thousands. Be careful though and do your research as many companies will outsource this process and pass the cost on to you. InstantBusinessList.com offers a solution using its proprietary software for a nominal fee.  To learn more about Instant Business List NCOA validation solutions and verify your mailing addresses call us at   888-474-6021  .

The other day I was speaking with a friend, who happens to be a successful Business Development/Marketing Manager, about generating sales leads and discussing ways to increase revenue. During the course of our conversation, direct mail was brought up as a tactic to which he proclaimed “direct mail is DEAD”!  WOW! Dead? Really!? He must have had some sort of traumatic experience or something to make such a statement. This of course sparked a little debate and got me thinking: is direct mail dead?

With the advent of the internet and electronic marketing coming on roughly 20 years, it has become for most the advertising medium of record, but is direct mail dead?  There are many people out there who share this sentiment and believe this to be true. These are perhaps some of the same people who thought brick-and-mortar companies would be a thing of the past by now, obsolete, if you will and that everyone would buying their goods online. I for one still go to the grocery store to select my goods and yes, I still like to actually touch and feel certain products prior to purchasing them. Call me crazy!

Well, I am reminded everyday when I go out to my mailbox, especially this time of year; this statement of direct mail being dead is certainly not true. Now don’t get me wrong, I’m not saying that there are tons in the way of what I will term “junk mail.” There is quite of bit of stuff being mailed that is making its way straight to the recycling bin (if we are lucky) or otherwise in the trash can. However, and again especially this time of year, I’m reminded of the fact that I enjoy opening things as well. With the caveat of course being that it must present itself as interesting, cool looking or perhaps something worthwhile or of value to me. Yes, there is a point in all of this and the key to it all, if you will, is whatever you send must be interesting or present value to your target audience. Cut through the clutter as “they” say. Send me something that really stands-out….and it doesn’t necessarily have to be an expensive, colorful or a music playing box of sorts wrapped in exotic materials. It could be as simple as a postcard with a clear and easy call to action or offer.

There is a lot to direct mail/marketing and there are certain tried and true rules to follow when you are developing a direct marketing campaign. One; make sure you have a clear understanding of who your target audience is and make sure the data (business list, email list, consumer list) is as accurate as possible. Two; create something that is going to stand-out. Remember there are lots of things in the world vying for everyone’s attention so you have to make sure your piece is different. It must stand out. Three; Make an offer or include a clear call to action. Four; and this is something people always fail to realize and is overlooked or not often discussed, but you must speak to your audience more than once. So follow up. It usually takes multiple communications before a person acts.

Thus I will now pronounce that direct mail is very much alive and well!!