The goldmine hiding in your database

Companies are always chasing new leads for more business but maybe they should be chasing their tails. Colin Sinclair McDermott, aka The Online Print Coach, explains how looking inward at dormant databases could find the leads you’re looking for.

Colin Sinclair McDermott

Most garment decoration and promotional products businesses are sitting on a goldmine. They just don’t know it.

In a recent one-to-one coaching session, we uncovered more than 3,500 contacts in one client’s database. Not all of them were customers, but quite a few had bought at some point. When we asked, “How many have actually bought from you this year?” no one knew.

That’s not a criticism. It’s normal. Businesses are often so focused on chasing new leads and keeping the machines running that they forget about the contacts already in their system. What’s not normal is letting that opportunity sit untouched.

The dormant account problem

Here’s what typically happens. You win a customer, deliver excellent work, and they’re happy. Then they go quiet. Perhaps they’ve moved on, forgotten about you, or found someone cheaper. You assume they’re gone and move on to the next job.

But here’s the thing. They’re still in your database. They already know you, they’ve already trusted you with their money, and they’ve already experienced your work. That’s a warm lead, not a cold one.

Our analysis of the client’s database revealed three distinct groups: active customers who had purchased within the last six months, occasional customers who had bought in the past year or two, and dormant accounts that had not placed an order for over two years.

The dormant group of former customers was by far the largest. In there were a lot of people who already knew the business, had already purchased, and were now being completely ignored.

We asked, what if you could reactivate just 5% of that group? Even a modest order from each could significantly impact your revenue. The answer was significant. And it didn’t require a single cold call.

Segmenting your database

The first step is understanding who you’re dealing with. You can’t reactivate customers if you don’t know who they are or when they last made a purchase. Begin by segmenting your database into three groups: Active, Occasional, and Dormant. Use your CRM or accounting software to extract the data. If you don’t have this set up properly, start now. This is essential.

Once you’ve segmented, the opportunity becomes clear. You’ll know exactly how many dormant accounts you have and what they previously purchased from you.

Surveying to understand why

Before you start sending sales emails, it is important to understand why those customers went quiet. Did they move? Did they have a negative experience? Did they simply forget about you? Are they still purchasing products, just from someone else?

A simple survey can provide all the information you need. Keep it short. Three or four questions maximum. Ask if they’re still in business, if they’re still in the market for your products, and if there’s anything you could have done better.

You’ll receive some responses that hurt. That’s okay. You’ll also get responses that say, “We just forgot about you,” or “We didn’t know you did that.” Those are the responses you can win back immediately.

Reactivating with a clear offer

Once you identify who remains relevant, you can re-engage them with a targeted offer. Not a generic “we miss you” email. A specific offer based on what they used to buy.

If they used to order branded workwear, offer them a discount on their next purchase. If they used to buy promotional products, send them a catalogue of new items. Make it easy for them to say yes.

The key is consistency. One email won’t do it. You need a sequence. Email one reminds them you exist. Email two offers value. Email three gives them a reason to act now.

You don’t need to reactivate everyone. Just reactivate 5%. That’s achievable. That’s realistic, and it’s enough to make a real difference to your bottom line.

Segmenting, surveying, and reactivating even a small percentage of dormant accounts could transform your sales pipeline. The customers are already there. You just need to remind them why they chose you in the first place.