Database Equity


Summary

Think about these three questions for a moment:

  • Do you want to improve the value of your business?
  • Do you want to sell more products and services to existing clients?
  • Would you like more referrals?

If you answered “YES” to any of these questions, you must become a database marketing expert.

This video is a good place to start.

Transcript

This is Dave Lorenzo, Chairman and Founder of Valtimax Consulting and today we’re going to talk about database equity.

You may be wondering what database equity is. Well, everyone who comes into your business or who meets with you and is a potential client for your services should go into some sort of database and you should be communicating with those folks regularly. You may have heard me talk about newsletters or greeting cards, birthday cards, thank you gifts, those sorts of things.

We have all sorts of programs and systems designed to keep in touch with people and that’s one of the things we provide for our clients.

Well, the folks who we’re keeping in touch with, those are people in our database and your past clients are phenomenally valuable. When we talk about database equity, we talk about your ability to go to your database of past clients or referral sources and extract additional business from them in exchange for the value you can provide.

We’re making the assumption that all money you receive is the by-product of value creation. So you’re exchanging value for their money.

So it’s OK as long as you have something of value to go back to these folks and say, “Hey, I can solve this problem for you,” or “I can provide you with this service that’s going to give you great pleasure and I want to do that.”

Database equity is your ability to go back to the folks on your list and either sell them something new or work with them in a new way.

Everyone needs to build that database and here are the reasons why.

Number one: You can sell more products and services to those folks. So if you’ve done their will, you can do a Durable Power of Attorney later on or you can update the will later on.

If you’re a doctor and you’ve solved an issue for them in a specific area, they had pain in their knee and you’re an orthopedic surgeon. Now when they have pain in their shoulder, they can come back to you and you can continue to educate them on things that they can do to keep healthy as they get older.

Number two: It’s a phenomenal way to keep in touch with people and to sell them additional products, additional services. Also your database can provide you with referrals. As long as you keep in touch with them on a regular basis, they should be referring people to you because you provided them with a great experience.

Number three: The folks in your database should be promoting your products and services to others. Now that’s different from referrals because these people can be evangelists out there talking about you, providing you with fantastic brand recognition, fantastic word-of-mouth in the community.

Finally: Your database can be used to help you influence other people in the community toward causes. So if you have a cause that’s near and dear to your heart, you can go to your database and make the case as to why that cause should receive their time, their money or their attention.

Now the other thing you can do – and I think I touched on it but I want to make sure I’m clear – is you can introduce people in your database to other folks who have goods or services that may be valuable to them.

So if you’re a car dealer and you have a great database, you can introduce your database, the folks in your database, to a fantastic detailer; if you don’t have a service department, a fantastic mechanic. If you are a women’s clothier, you can introduce your clients to a great dry cleaner. These are services they need and your endorsement will not only help that person but you’re providing your clients, who you care about, with a great experience for another service.

Database equity is phenomenal and if you’re not keeping track of the clients or customers that come in and out through your business each and every single day, you’re missing out on an opportunity.

When you go to sell your business, those relationships will have value and they will enable you to get a higher price when your business actually comes to an end and you want to sell it.

My name is Dave Lorenzo. If you would like more great information just like this, you can visit me at Valtimax.com. I look forward to seeing you there.