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How Outdoor Recreation Manufacturers Can Recruit New Dealers with Database Marketing

By Parker Stoner — Senior Vice President, Director of Database Marketing

Database marketing can be an effective tool for outdoor recreation manufacturers to use in recruiting new dealers. Database marketing enables a manufacturer to focus attention on the most promising prospective dealers and to customize messages for maximum appeal to each dealer. Database marketing is not intended to replace your company’s trade magazine advertising. In fact, trade magazine advertising can be used to generate responses from some of the best dealer prospects. This will feed names to your database.

Any dealer recruitment program should start with a thorough evaluation of your company’s current situation as well as a determination of what you want to accomplish. For example, a fishing rod/reel manufacturer might determine that it has enough fishing tackle specialty retailers as customers, but needs better penetration among general sporting goods stores. A tent manufacturer may want to obtain more dealers for its camping products in the Northeast.

The next step is to obtain a list of prospective dealers. Possible list sources include industry publications, mailing list compilers and brokers, distributors and sales representatives. Also consider the lists of retailers provided on CD-Rom and sold through computer stores and mail order companies. Some lists may be purchased for unlimited use. Other lists are available only for one-time rental. Be sure to understand what restrictions there are on the use of a list. It is almost always best to obtain a list on computer tape or diskette in whatever format your company can easily use. This increases flexibility and saves time later.

Cross–check the rented or purchased list against a list of your company’s current dealers. This assumes you have such a list. Your current dealers may think your company is foolish if they receive a mailing describing all the reasons why they should “begin” carrying your products. If you do not have a list of current dealers, it should be your first priority to obtain one. Match the rented or purchased list with your company’s list of current dealers and remove all matching names from the rented or purchased list. You may want to further reduce the names on the list to include only certain sizes or types of stores, stores in specific geographic areas or some other qualifying criteria. Now you will have a final quantity of names to work with for planning and budgeting purposes.

The next step is to develop a database marketing communications program consistent with your objectives and budget. Do not think of it as sending a one-shot mailing to prospective dealers to see what happens. Instead, think in terms of an ongoing, two-way communications program that will build a relationship between the best prospective dealers and your company. Also, be sure to involve distributors and/or sales representatives in the program if you use them.

Use a first mailing to introduce your company and briefly describe the products you offer. Include a professional, but personable, letter on your company’s letterhead. Personalize it to the store owner, manager or appropriate department manager by name if you have this information. You may want to enclose your company’s catalog or a brochure describing your products.

Emphasize your desire to learn more regarding the dealer and his or her business needs. Consider enclosing a short questionnaire that asks for some of the most important information. This should include the key contact’s name and title if you do not already have it. Try to learn what the store’s approximate annual sales are in your product categories and what brands the store currently stocks. Ask for the dealer's telephone and fax numbers and an e-mail address if they have them. Use a few additional questions to collect other important information unique to your business or situation. Consider asking dealers for their opinions on a couple of hot topics.

Do not expect all, or even a majority of, the prospective dealers to return the questionnaire. Those who do return it are likely to be some of your best prospects. There are a few things you can do to increase the number of returned questionnaires. First, pay for the postage by enclosing a business reply envelope. Second, provide some added benefit or incentive for returning the questionnaire. You could offer a free booklet on a subject likely to be of interest to dealers or a colorful poster that they might enjoy hanging up in their store or at home. A few calls to dealers in your industry should help identify some inexpensive item that will be appealing. Third, describe how you will use the information you are requesting to benefit the dealers and your company.

Enter questionnaire information in a database as you receive it from dealers. If you already have a structured database system, incorporate the new information into it. However, you do not need an expensive database set-up for this type of program. Simple database software on a personal computer should be adequate.

Begin to analyze information as you receive it. Look for clusters of dealers with similar needs. Identify those dealers who you believe represent the best opportunities for your company. You may have significant advantages over a particular competitor. If so, focus on the dealers carrying that competitor’s products.

Initiate follow-up communications based upon your objectives and what you have learned regarding the prospective dealers. Send materials to dealers explaining why they should stock your products. Include a personalized letter addressed to the key contact person. Customize the letter and other materials to the specific situations and needs they face. This is much easier to do than it sounds with the technical capabilities of computer database and desktop publishing software. Do not just talk about the quality of your products. Talk about building a strong relationship between the dealers and your company. Describe the support you provide dealers in terms of service, national and co-op advertising, merchandising, consumer referrals and so on.

Keep a steady stream of information going back and forth between your company and prospective dealers over time. Coordinate your efforts with those of distributors and sales representatives. Let dealers know about your new products, new marketing programs and developments at your company that are likely to make the dealer more interested in being affiliated with your company. It is not necessary to present your entire sales pitch each time. It is critical to keep your company’s name in front of the dealers. You never know when a dealer may become dissatisfied with one of your competitors or decide to expand his or her product offerings. Be sure to have a lot of positive impressions built up and keep your name on top of dealers’ minds so your company is the first one they consider. Finally, keep soliciting more information from prospective dealers and use it to refine your future communications.

Database marketing, when used properly, can be a great tool to recruit new outdoor recreation dealers. It requires some work, but the results can be tremendous.

Please call me at (402) 437-6458 or send e-mail to parkers@swansonrussell.com with comments or questions regarding this article. Also you may be interested in our report, Understanding the Dealer's Criteria for Selection of Product Lines and Brands, or in our other reports for outdoor recreation marketers.

For additional information regarding the use of database marketing among outdoor sports and recreation dealers or Swanson Russell's other marketing communications services, call Steve Russell at (402) 437-6400 or send e-mail to outdoors@swansonrussell.com.