Your Marketing Audience: Better To Rent or Own?
The Case: Repeat Customers Spend More
With reports showing repeat customers spending more than first time customers, getting repeat business is a profitable venture. Owning a list and using it wisely is an effective way to grow repeat business.
In marketing, the methods you use to communicate your message are often referred to as channels. The channels you utilize throughout the year can be for audiences you rent (paid advertising) vs audiences you own (a marketing list).
Renting – Using Someone Else’s List
If you pay to use a channel, you’re essentially renting access to that audience. When you stop paying, the messaging stops and the audience is no longer accessible to you. Television or radio advertising is example of renting and audience. You pay for spots and your commercials run When you stop paying, the commercials stop.
Owning – Capturing Information For Future Use
When you collect email addresses, build a following on social media and other similar actions, you are building an audience that you own. For the sake of simplicity, these are audiences you can communicate and connect with without paying to do so.
Converting Rent to Own
Email is the most common list to build though text messaging can be equally as effective, depending on the nature of your business. Capturing physical addresses for direct mail or phone numbers for direct outreach can be effective as well.
One of the key advantages to growing your own list of existing and potential customers is the ability to nurture deeper relationships. This helps them better understand and see the value of what you provide for a product or service. So if you’re going to pay to use someone else’s list or reach then build in ways of capturing the customer’s information that come from those efforts so you can build your own list.
Financial Benefits Of Your Own List
We’ve had clients see returning customers spend as much as 3 times more on average than first time customers. Marketing to your own list on a regular basis is not only great way to keep top of mind awareness but a great way to grow sales and profits.
When you create a marketing plan, be sure you’re building in ways to build your list.
Common Ways Of Growing Your Own List
Some common ways of growing a business list:
- Your own customers
- Capturing emails at speaking engagements, networking events and trade shows
- Inquiries and quote requests from your website
- Conducting workshops or seminars
- Speaking engagements
- Posting advice, answers and valuable information on social media
- Contests, trivia and giveaways
- Newsletter lists
- Offering a coupon in return for an email address
It may cost you money to get the customer information the first time but collecting an email allows you to continue communicating to that same person without having to spend additional money to do so.