Paying attention to your client list is a vital strategy to boost your bottom line. Small businesses can benefit from this information in several ways. First, you can offer special discounts or rewards to frequent customers. Some companies reward frequent fliers with extra rewards such as birthday discounts or freebies after a certain number of purchases. Client lists can also help you gauge the types of services your customers want. You can use this information to better understand your customers’ needs and tailor your services and products accordingly.
Second, it opens a direct line of communication with your customers. Sometimes, these conversations lead to product breakthroughs or even reveal new customer segments. For example, Rogaine was originally designed to lower blood pressure but later discovered to be a hair-regrowth product. This type of customer feedback is rare, but it can improve your marketing efforts. For example, a recent survey of hair loss sufferers found that a third of those surveyed were women.
Third, small businesses can reach local markets more effectively than larger companies. While big companies base their advertising investments on national trends, small businesses know what their customers need. By segmenting your target audience, you can increase your online presence and attract new customers. You can even target your audience using lookalikes to increase your sales. And, because small businesses are so local, they will be more likely to remember your business.