Managing Your Contacts

I confess: I can be a database geek.

In my primary job, I am the Director of Data Management and Training for a local nonprofit. I work with our database and manage information on our donors, our prospects, and more and then train our staff on how to use it. I spent the majority of my time today analyzing the effectiveness of our direct mail solicitation. (I'm pleased to say our revenue in this area has grown 27% since I first started working with it!)

So, it's only natural for me to gravitate to other databases, be it for my hobbies in genealogy and knitting or my home fragrance business. My goal is to share with you today the importance of managing your contacts and information you can glean from them.

As I stated last week, I manage my inventory through Stitchlabs. I was able to begin using this platform when the basic plan was offered for free. For other Etsy sellers, Etsy offers an application with Craftybase, which seems to be most similar.

Take a minute to think about the variety of contacts in your business:

• Vendors
• Suppliers
• Customers
• Prospects

For each contact, you need to collect the following information:

• Name (individual or company)
• Contact (person at a company)
• Shipping address
• Billing address
• Phone number, including cell phone if you can get it
• Email
• Website

You may need to track additional information for each type of contact.  For vendors and suppliers you may need: 

• Tax identification number
• Resale license
• Payment terms
• Distribution agreements
• Purchase orders

For your customers and prospects, you may need to track the origin of the sale - for example, is your customer from Etsy, a craft show, or the neighborhood?

The benefit I found with Stitchlabs is the real-time sync with my Etsy shop. With every sale, a contact is created or synced, saving valuable data entry time. As you'll see in future posts, this sync also tracks your inventory and your sales.

Of course, you can track this information with a simple Excel spreadsheet or even a table in Word. Your Etsy sales are also able to be exported, which can work as long as you copy and paste current month sales and update your existing file. You'll have to be sure to clean your file for duplicates should you choose this method.

What are the benefits of managing your contacts? Here are a few benefits I have recently used:

• Invite customers to sign up for your newsletter, to follow you on Twitter, to like you on Facebook.  Be sure to check for anti-spamming laws with Twitter and Facebook, as well as with Etsy and any other online vendor.
• Create  newsletter specific to your wholesale accounts.
• Mail a "See What's New" postcard to customers, especially those who have lapsed over the past year.
• Identify your geographic spread. For example, the states I ship to the most are California, Ohio, Pennsylvania, Texas and New York. This is especially important with the recent increase in shipping rates.
• Understand the breakdown of your sales. For example, I learned 46% of my sales for 2012 came from Etsy, 28% from my wholesale accounts, 13% local customers, 11% consignment shops, and the balance from craft shows. This is great information to help me establish my 2013 sales goals and actions.
• And of course, know your best customers. I recently created a referral program to reward my best customers for their purchases.
• As my business continues to grow, I hope to be able to know just what my best customer's preferences are and to create target marketing plans for them.

Some of this does require an advanced knowledge of Excel to be able to export your file and to manipulate your data into useful information. 

What do you use to track your contacts and how do you use the information? If you don't start today, even with a simple Excel spreadsheet. You'd be surprised just what you can learn about them!

Treasury Sunday, January 27th

Every other Sunday I like to give thanks to a few of the awesome curators who have included my products in shopping collections, termed "treasuries", in the Etsy marketplace. Please take some time to shop these terrific finds and to view these other Etsy shops!

Selling Wholesale - Information Management

As my Etsy sales continued to grow and as I began to participate in craft shows, I knew I needed a better method to track my inventory. Particularly before and after craft shows, it seems I was always writing my inventory on a note pad then transferring the information to an Excel spreadsheet, let alone it seemed I had no way to track my product in consignment. As before my wholesale accounts began to place orders, I realized my inventory conundrum was going to be even bigger as my sales grew.

I began looking for an inventory management system, not quite knowing what I was looking for. In my "day" job, I manage a database for a non-profit organization, so I had some idea of the interaction and capability I needed. At that time, there was only one inventory management system that was fully integrated with Etsy, and it just so happened to be offering free access to its basic usage.

The system I chose is Stitchlabs. Please know, this post is not a paid endorsement, and since I began using Stitchlabs, other inventory management systems are now available to sync with Etsy. The thoughts I share with you here are based upon my experience, and items you need to consider before committing yourself to any system.

• Contacts - Before adding my contacts to a database, I was managing my contacts through rogue spreadsheets: one for wholesale account, one for local customers, one for Etsy customers which I downloaded.
• Inventory Management - Stitchlabs has the capability to track how many units are complete, how many are in production, and how many have been sold. As orders began to increase in quantity, I had no way to manage how many units of 12 oz candles were needed or how many different products of one fragrance were needed.
• Order tracking - Etsy is good for simple counting of number of sales. But I had nothing to integrate my local customers let alone my wholesale sales into one information system.
• Expenses - Sigh. My business is still operating on a cash accounting basis (sometimes simple cash flow basis) and aside from basic checkbook accounting, I had no method to track profit and loss or cost of goods sold (an important factor which is extremely important as your business grows).
• Reporting - I had none. No way to track my best customer, no way to track my best sales. I knew from my general observation that tea lights are my best selling product, but it caught me by complete surprise that Lavender was my best selling fragrance.
• Integration - Direct import of Etsy sales is a huge benefit! Additionally, I want a system to which my sales reps can log in to place an order, eliminating the need for them to scan an order, especially one that may include credit card payment information (a huge compliance issue in my book!).

My intent is to explore each topic on my weekly Wednesday blog posts. If you have a question or problem that you are trying to solve in your backend office that you feel can be answered in this series, please write it in your comments. Your questions really make it so much easier to look at each topic through another person's lens.

Until next week,

Happy sales!

Dorene