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Work your list for maximum profit
If you’ve read any of my columns,
then you already know I’m an avid fan of direct response
marketing and especially direct mail with postcards.
It’s an easy, fast, low-cost way to
see just exactly how effective an ad or promotion has been.
Best of all, it’s easily measurable so you can quickly
and accurately calculate your return on investment for any
given project or campaign.
There’s really no great mystery to
using your customer list to reach your full profit potential.
All you have to do is mail regularly and frequently and feature
a solid offer.
At the very least you should be mailing
out an offer every two months. The really successful companies
mail out once every month. I know what you’re thinking.
You’re wondering if your customers won’t get sick
of seeing your offers so frequently. The answer is,
“No.”
American Express has a powerful back-end
campaign of one or two mailings every month to its customer
base. So does Nightengale-Conant. You can be certain that
mailing this frequently is very profitable. If it wasn’t,
companies couldn’t afford to continue this practice year
after year.
A great offer is the key to increasing
back end sales and repeat business.
A great offer can make or break your
back-end campaigns. There are a number of ways to structure an
offer so it has strong appeal to your customers. Here are some
ways to induce your customers to do more business with you.
1. Make a time-limited offer.
Putting a time limit on an offer increases
the urgency to buy. Personally, I prefer short time limits of
seven to 14 days although 30 days can also be used
successfully. In general, however, the longer the time limit
is, the less urgent the appeal will seem. Also, the longer the
time limit, the easier it is for your customer to misplace your
piece or otherwise forget your offer.
Always tell your customers why the time
limit is in effect. For example, your offer may be tied to a
holiday such as New Year’s, in which case the cutoff date
would be the first of the year. Recently, cleaners have run
Short Week Specials on weeks when they lose a day of business.
In such cases, the cutoff date would be accepted as Memorial
Day or the Fourth of July.
Try your best to abide strictly to the
time limit otherwise the sense of urgency is diminished and
customers quickly learn that they can come it at any time and
their work will automatically be taken with a discount.
2. Make a limited availability offer.
If you take the time to segment your list,
you already know where the majority of your business comes
from. It comes from your big spenders. These are the people you
should be working your hardest to keep happy.
A simple way to recognize these
individuals is to regularly make offers specifically to them.
The pieces you mail out should state something to this effect:
“As a preferred customer, you are entitled
to…”
In our cleaning business, we would target
our top tier customers with a “3 for $3.33” sweater
cleaning offer. (Don’t panic… that was 20 years ago
and prices were lower then).
The approach worked because the recipients
recognized that it was a limited offer, which was not available
to everyone and, in addition to sweaters, they would bring in
large orders of regular cleaning.
Another variation on limited availability
can be tied to a specific offer or service. An Early Bird Suit
Special, for example, would limit availability from 6 a.m. to 7
a.m. while a Wild Wednesday Special on pants would be limited
to a typically slow day of the week such as Wednesday.
3. Pamper your regular customers.
Offer them special prices, special
discounts, free delivery, holiday specials and incentives,
uncompromising service, friendly advice, and anything else that
makes them feel special. That’s the key to building and
keeping a loyal base of repeat customers.
Everybody loves to feel special, including
you and me. A friend of mine, for example, has gone to the same
service station for years because of special treatment he
received. He was having his battery charged and the mechanic
put a rubber holding ring on his muffler to keep it from
rattling. The guy did it for free.
Actually, my friend was going to do the
job himself since it only takes two minutes and the rubber ring
costs about a buck but he never got around to it. Because of
that one kind gesture, however, he has given this service
station all of his business for over six years. And he’s
also recommended the business to many of his friends and
neighbors.
Treating people in a special way has
multiple positive effects. Your customer feels great, you feel
great, and it’s great for business. With all of that
going for it, this powerful tool deserves a prominent place in
your marketing plan.
4. Take the time to thank your
customers for doing business with you.
This isn’t really a technique as
much as it’s just good manners and common sense. After
all, your customers aren’t just a source to be pumped
again and again for more profits. They’re the people who
make your good fortune possible.
They deserve some thanks every once in a
while. And some sincere thanks at that. There’s nothing I
hate more than receiving a birthday card from some insurance
agent preprinted with “Dear Client,” and signed in
typeset print with the agency name. It’s cold,
uninviting, and a complete turn-off.
If you’re going to send a thank-you
note or greeting card, take a few minutes to sign it yourself.
Another way of thanking your regular
customers is to periodically give them something for free. The
method I like best is to give your customers valuable printed
information. I prefer printed information for a number of
reasons.
It demonstrates your expertise.
It’s inexpensive to produce.
It gives your customers something
to keep, refer to, and constantly remember you by.
Valuable printed information is readily
available through the IFI and NCA or you can produce your own
based on the experiences you encounter in your cleaning
business. The variations are endless. All it takes is a few
minutes to come up with a number of winning ideas.
Bill Bishop, an industry consultant with
the Golomb Group for 14 years, is now president of Mak
Marketing, Inc. He can be reached at 630-456-4195 or by e-mail
at bish8@comcast.net
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