Why He With the Biggest Database Always Wins!

This is a fact most business owners are not really very happy about since the total sum of their data collection efforts over the last 20 years amounts to 750 names and addresses and the 113 emails they collected this year but haven’t yet gotten into the computer!

This may not be you but — trust me on this — I talk to hundreds of business owners a month and this example is better than average!

The size and quality of your database is your foundation for the long-term success of any marketing campaign yet the simplicity of this fact is lost on many. When I ask seminar audiences full of business owners and marketing executives what’s the first thing they would do to market a new business, buying a database of people who have an interest in that product is rarely, if ever, mentioned. When it is, it comes way down the list of suggestions after running ads, going to trade shows, and even renting billboards.

A Tale of Two Corvette Stores

Imagine two businesses in Los Angeles that sell parts and accessories for Corvette sports cars. One has a database of 600 Corvette owners while the other has a database of 6,000.

Who do you think is in the position of strength?

One can market to a large enough database to maintain a healthy business while the other must run his business while constantly searching for more prospects.

It does not matter what business you are in. You need a large enough database of people who have put their hands up as qualified prospects so you can sort through them to find an adequate number of actual customers. Most businesses do a terrible job of building their databases. Golf courses that have seen 50,000 people a year play their course for two decades have email lists that total 750 names (honestly, that’s the average!). Car dealerships selling hundreds of cars a month can’t find 1,000 good addresses to mail to.

Local electrical, air conditioning, water purification, and lawn services do hundreds of transactions but never collect data on their customers. They are forced instead to run endless coupon ads looking for new customers when everyone they ever needed was already in their grasp!

If you are selling coffins, build a list of very old people. If you are selling video games, build a list of teenagers and young adults. If you are selling homes in Florida, build a list of affluent people who are about to retire. If you sell cigars, build a list of people who smoke them. If you sell stuff for weddings, build a list of people about to get married. NOTHING is more important than building your database!

He with the biggest database of prospects wins! Not occasionally, not some of the time, but all of the time, every time!

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