It's been said that it costs five times more to attract a new customer than to keep an old one. Despite this, most businesses spend an enormous amount of time and effort chasing after new customers.
 
Why do things the hard way? It is far more lucrative to reward good customers by simply encouraging them to remain loyal to your business. The first step to achieving this; is to build a good database and stay in contact with your customers and potential customers.
 
Here are some no-cost/low-cost marketing tips that almost any business can use to add customers to a database and put dollars in the bank.
 
One idea is to build your customer database by offering a prize draw. As an incentive, you could give away a product or a special discount.
 
If you are running a retail store or office, you could place a jar or fishbowl on the counter or reception desk for business cards. Then at the end of each week or month, draw a winner.
 
Some customers won't have a business card. So, it's a good idea to have a stock of plain cards on hand for those people. Use brightly colored cards as they will add to the excitment and attract attention to the fishbowl. A local printing company will probably have some free off-cuts to use.
 
Another idea applies to when you offer specials to your customers. Whenever possible, take a note of their name, phone number and/or email address. The following month you can make these people another offer as a reward for taking up the original offer. You'll find you get a high percentage of successful sales.
 
If you are operating over the internet, offer a free report to build your database. Another idea is to offer a free mini-course or newsletter ezine. Thanks to the wonders of technology, these can be delivered instantly over the internet using an autoresponder.
 
I use an autoresponder company called Get Response. They have proven to be extremely reliable. You can choose from their totally free autoresponder service or their paid Smart Responder Pro service. http://www.getresponse.com - Both are good - which one you choose really depends on your needs.
 
Building a database doesn't need to be difficult. The key is to be organized and to be proactive!
 
When you sell to a new customer add them to your database immediately. Then simply keep in touch with them, or list a date to contact them. This might be for a car service check, a haircut, a carpet clean, a pet's injection or whatever makes sense in your business. On the contact date send a reminder letter, email or phone or call them to offer an appointment.
 
It's easy and a lot cheaper than continually chasing after new customers. Build your database and you'll build your profits!
 

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© Noel Peebles - author of "Sell Your Business The Easy Way"