Pushing The Envelope

There are numerous variables in mail order, but the one constant is that running a mail order business means finding a way to manage a multitude of names and addresses. Smart, consistent database management from the outset is a crucial ingredient for success. That's one reason the Buffintons decided to outsource Brown Wrapper's database management duties.

John Schulte, chairman of the National Mail Order Association, believes the Buffintons made the right choice. He says a lot of small to midsized companies hire a service bureau when their list gets beyond 5,000 names because at that point, managing a database becomes too complex.

"When you're developing a database from scratch, deal with a professional," says Schulte. "From the beginning, all your information has to be standardized so it's consistent." This includes uniformity of basic information, like address abbreviations, as well as knowing what additional information you want to collect regarding the people on your lists. As Schulte points out, such decisions require careful, deliberate planning at the outset.

"To determine what data they want to capture now, [mail order entrepreneurs] have to think about what they want to do in the future," says Schulte. When, what and how much a customer has bought are important tidbits to cull; date and purchase details of their first inquiry or order are also helpful. However, the most powerful piece of information you need is the source of the inquiry or purchase (which mailing list did the name come from or what advertisement did they respond to?).

All this can be somewhat mind-boggling if database management isn't your forte-and most mail order entrepreneurs start their businesses out of a love for their concept, not because they're dying to contend with humongous databases. "There are so many other things for an entrepreneur to think about," says Schulte, "it's best to have professionals helping you in certain areas."

This article was originally published in the February 1996 print edition of Entrepreneur with the headline: Pushing The Envelope.