Operations by David McMahon

In the January/February 2009 issue of FURNITURE WORLD Magazine we looked at four techniques that are essential for the successful execution of an email marketing strategy. First, you must think of value when contacting your customers. Then, ask for your customers’ permission. Next, introduce new media partners to your marketing mix. Finally, start to reallocate your marketing budget to bring it into alignment with how today’s consumers want to be reached.

In the last two months over 12 trillion emails have been sent. About.com says that over 70% may be spam. The key is to differentiate yourself and target your customers wisely. Most businesses out there are using old media techniques on their customers. Guess what? That will not work. Old media techniques send the same message to every prospect. This produces smaller response rates than smart campaigns that use modern media techniques.

Modern techniques are targeted to a segmented and smaller portion of your database so the message is more relevant to your customers. These campaigns are proven to produce a much more significant customer reaction. In fact, The Direct Marketing Association reported that, in 2007, email marketing returned about $48 for every dollar invested, the highest of all the marketing channels out there! Here are some tips that will help you get the most out of email and strengthen the bond with your customers.

e-Marketing Tip #5 Go Beyond Email Blasts

There are three critical components with a smart e-Marketing system:

•Customer Relations Management
(CRM) software.

•Database segmentation software or tool.

•Online email publishing software.

When these components are implemented properly, in unison, they produce maximum results and build better customer relations.

Customer Relations Management (CRM) software can be used to run daily business operations and manage your follow up. Whether you are using a top industry specific system (some furniture specific software providers have ads in this issue of FURNITURE WORLD), or a general small business package like QuickBooks, you should enter all your customer information. That includes all contact data and sales and purchase history. A few of these packages can record customer opportunities for future sales and desired next purchase. Can you say, “goldmine”?

Now, one of the beauties of a computer is that it stores data in neatly organized tables in the background that you never see. Believe me, they exist. Well, it’s time to do something smart with that data and those tables. It’s time to “mine that gold”! You do this with a precision instrument, not dynamite. Dynamite is pulling all your customers out of your database and grouping them in one big bucket. This is called blasting your customers. Some in the industry refer to it as an e-blast where they email everyone the same thing without even considering their history. This method should only be used for an e-Newsletter that the customer signed up for or for general notifications that apply to all.

Precision marketing requires a precision instrument. This is what database segmentation software does. It enables you to easily pick out parts of your customer database so more relevant campaigns and messages can be sent. For example, if you know your customer likes a certain product line, such as Thomasville for example, why not access that data when Thomasville announces a new collection and email just those customers? Smart, eh? (Yes, I am Canadian.)

Finally, you import this data in the form of an Excel or .csv file to an online email publishing software such as...

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