Driving Sales with Data: How to Profit from Information You Already Have

When it's time to drum up new customers, some business owners or managers may start putting pressure on the sales team or turn to pricey consultants to cook up a new marketing strategy.

However, those companies who keep detailed sales and customer records for billing, customer service and tax purposes may already have a significant competitive advantage, says Lyn Knopf, a partner at marketing agency Alcott Whitney in Franklin, Tennessee. That data can be mined for everything from selling trends to cross-promotion opportunities to customer purchasing patterns.

The challenge for some time- and staff-challenged technology companies, like Solution Providers, is that they fail to employ the best practices in using the technology they sell, says Dan Hess, founder of Thought Motor, a Chicago-based marketing strategy firm. "They usually have the data right under their noses, and there are big opportunities hiding in there," he says.

The data mining process doesn't have to be onerous, Hess reassures. The key to harnessing the power of information already available to you includes asking some key questions and finding a way to capture the answers.

• Where is the customer data? Before you can best utilize information, you need to find it, says Hess. First, check billing files or bookkeeping programs. This is where you'll often find detailed contact information and records about transactions. The sales or customer service departments will often have information about customer preferences, decision-makers and impending needs. Sales or marketing departments may have prospecting databases that include potential customers to be targeted.
• Where did you come from? Tracking referrals and successful marketing techniques can be important for building stronger marketing efforts in the future, says Alcott..
• What's next? Include insights from sales, technical support, customer service departments and technology and software vendors about the customer's challenges or needs. Hess says that type of information can help you create customer segments and focus programs. For example, when rolling out a new peripheral, you can target customers based on those that have the most significant need, those that may be due for an upgrade or those with systems that are easily compatible with the new offering.

Hess emphasizes that Solution Providers don't need to invest in expensive customer relationship management (CRM) programs right away. While such software can be helpful, he advises starting with a simple database or spreadsheet. Alcott suggests that contact management software — such as Goldmine, ACT! or Outlook — can be useful tools for capturing customer data.

 
For more information about data mining, check out "Data Mining: An Introduction," The Data Mine Wiki and "The Data Mining Resources Blog."