National Clothesline

In his book, The 7 Habits of Highly Successful People, Stephen Covey captures the essence of strategic thinking in business: “Begin with the end in mind.”

It all boils down to knowing what you want and then following a plan to go out and get it.

Many drycleaners think the only way to increase revenue is to attract new customers into their stores.

This is true, considering 15 to 20 percent of the U.S. population moves every year and if you don’t attract new customers on a regular basis you’ll slowly lose a large share of your customer base.

There are actually two more ways to increase revenue in your business, aside from reducing the cost of doing business, which is not really a marketing function.

Before I expand on the three ways to increase your business, I want you to take heed of Stephen Covey’s advice and realize that if you’re going to attract new customers, you should have a system in place to keep them coming back.

And this system includes who you hire at your front counter, how your stores look, the quality of your service and your skill in marketing.

This new customer welcome system should introduce your cleaners to the new customer in a way that sets you apart from your competitors. What are the special items you clean? What are your hours? Do you offer pick up and delivery service? How about a drop off box? Do you guarantee satisfaction?

Face the facts. You can’t be everything to everybody. You should decide once and for all who is your ideal customer. If you’re an upscale cleaner, your image, positioning and service should scream quality. If you’re a discounter, you’ll probably stress price.

Whatever your “end in mind” is, when you analyze your present customer’s demographic makeup you’ll know who your ideal customers are and can then target them accurately.

The three ways to increase your drycleaning business:

1. Attract more customers. Targeted, measurable communication to residents by income within your target market is an ideal way to reach new customers effectively. Bensinger’s Fine Cleaners in Memphis, TN, attracted 80 new pick-up and delivery customers with a mailing to 5,000 residents.

If you calculate that the average customer spends $750 to $1,000 per year, this promotion yielded annual sales of $80,000. Even if they kept only half of these new customers, the revenue increase would be $40,000.

Retail ad studies show that 45 percent of new customers come from discounted sales advertising. So it’s critical that you give prospects some incentive to do business with you initially. Then gradually taper off the discounts.

2. Get customers to spend more money with you. McDonalds Restaurants perfected this technique when they asked customers “Would you like fries with that?”

Do your customers know all of the specialty items you clean? Do they take advantage of your pick up and delivery service? What other services do you offer? Shoe repair, suede and leather, draperies, formal wear?

Give incentives to your employees to upsell your customers with added services.

In this marketplace, where customers send their expensive, spotted clothes to “high end” cleaners and their casual wear to discounters, it presents a unique challenge and opportunity to bundle your services together to attract more business from casual wearers.

3. Get customers to shop more often. Give new customers an incentive to return the first time they shop. Once they become regular customers, develop a rewards program like Royalty Rewards to keep them coming back. Airline miles programs, where cleaners give away one mile for every dollar spent are becoming increasingly popular and effective in keeping customers loyal.

Give new customers something to show them you’re different. My checklist of 23 ways to show you’re different is available by e-mail.

Here are a few: Different chemicals, delivery, cleaning method, store hours and guarantees.

Your job from now on is to forget about the cheapskates who won’t pay your prices and find more who will and appreciate you for what you do well.

Make first-time customers feel wanted, appreciated and rewarded. This is how you keep them loyal and coming back… despite discounters.