Derek Logan
Derek Logan, Director at DAC Solutions Pty Ltd

Customer acquisition and retention

How much would this be worth to your business?

If someone walked up and offered you instant access to 30.000 loyal customers that wanted to shop at your SME, how much would that be worth to your business? 

How long and at what cost would it take to build a loyal customer base of that size?

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8 Answers

Linda Reed-Enever

I would be cautious I would need to know how qualified these customers are for my market.

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James Norquay

James Norquay , Consulting Director at Prosperity Media

Depends if some one came to me with that type of sum, I would ask:

1. What percentage of the 30,000 are active shoppers/ logged into the service in the last month.

2. What percentage of the 30,000 members have made a purchase from this specific service.

3. What level of profit vs. loss over 2 year period for the business.

4. What medium do you have the 30,000 members on is it an email list, is it a Facebook page ect ect.

I guess you are making this up but with any statement you need to think about possibilities...

 

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Steve Gray

Steve Gray , Director at Gray Capital Investments

I would be overwhelmed, because I would not be able to handle that amount of traffic... It might seem like a good number but if it overwhelms prospects that's not good... :(

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Derek Logan

Derek Logan , Director at DAC Solutions Pty Ltd

I'm seeing that a national number doesn't really help anyone, especially if your SME is local or services a local area. I take that onboard. 

As far as access/exposure goes, I see a few different examples from mail outs to emails to website ads listed above. The buying group promotes to its members internally through many different forms. Blanket emails across the membership, online presence within the buying groups website with details of the business, location, and services/products offered. Social media is included as well as word of mouth recommendations from within the membership.

The SME's don't get lists or a database. Just access to the buying group community who want to buy at SME's within the group. 

This can be used by SME's facing the public and SME's facing the business community too. So it's flexible.

Is there exclusivity? Yes, first in best dressed so to speak. Only when the buying group membership is high enough in a particular area will another similar business be able to join in that geographical area. 

What have they been buying? anything and everything. It's open to anything other than real estate and the adult services/ product industry.

 

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Bridget Holland

30,000 is a good size list.  BUT:

1. If I'm the SME you're approaching, they're not MY customers and they're not loyal to ME.

2. If I'm operating in Sydney only, then I don't care how many there are nationally, I need to know how many there are in Sydney.  Or at least NSW.  You might need to include some breakdown of the numbers.

3. What kind of 'access' are you offering?  I'm guessing you're not going to hand over their contact details for me to do with as I wish!!  Do I get a single email to them, just for me and my product?  Do I get a banner in a regular email?  Do I get an ad on the relevant website?  Do I get the chance to mail them all (which has its own costs in print and postage)?

4. Is there any exclusivity for my product / service offering?  Or are you selling this to me this month and my competitor next month?  Which is fair enough to do, but I need to know, especially when you use the word 'loyal'.

5. What have they been buying?  What are the job titles / responsibilities?  If they've been buying with you, what's the average number of transactions per contact per month or year?  The average spend?  If they haven't been buying iwth you, what quantifiable information can you provide about the size of their budgets for my product / service?

 

...you just need to provide more detail!  And determine what kind of SME you are or might be targeting.  SMEs are massively varied and there's no way to make a call on whether it's of interest without knowing more...

Peter Doyle

Peter Doyle , Managing Director at ChangeXChange Consulting

Great answer - totally agree. Peter
Great answer - totally agree. Peter
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Derek Logan

Derek Logan , Director at DAC Solutions Pty Ltd

Thanks James for the response. Those are all vaild, though provoking questions. My interest is sparked by the thought that the orginial statement is that far 'out there' too be untrue?

Maybe a better way is..

30000 members of a national buying group. Sure, dependant on the service/product/ location of the SME, would determine the number of those people that the SME would attract from being involved.

From a SME's point of view, would it be something that would spark interest?

 

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Derek Logan

Derek Logan , Director at DAC Solutions Pty Ltd

Well, yes. And the number is growing. 

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John Belchamber

John Belchamber , Owner & Senior Consultant at Invoke Results

Let me guess Derek, you know someone who can do that for us????

Joshua Uebergang

Joshua Uebergang , Head of Strategy at Digital Darts

Good one.
Good one.
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