Capture, Communicate, Offer
Capture the name of a prospect, communicate with them and make them an offer. The three basic steps of every follow-up system – and something that almost every business can implement – but for some reason, many do not.
The problem is that many businesses simply just focus on getting more people in the door. Of course this is the more expensive way to try and grow your business but that is all some people know.
What you want to do is make better use of the traffic that is already comig in your door before you invite more in. If 100 prospects come in contact with your business and 50 people buy, what are you doing with the other 50? There are many reasons that a person does not buy right now. Of course, these reasons will be different for different businesses and in different industries but I bet if you ask some people why they didn’t buy and if you check around, then you can find out. Sometimes it can be a silly reason you aren’t even aware of and by following up with those prospects, you may be sitting on a goldmine of potential business.
First, let’s change our viewpoint a bit and let’s put everyone who comes in to your business into one of two categories. They either buy today and are a customer, or they do not buy today and they are a prospect – someone we expect to buy in the future. If you can first view everyone who doesn’t buy as a future customer, you will treat them differently and begin to view them as ann asset which will gain value in the future. So get their contact information and begin to follow up with them.
People buy from people they know, like and trust. Once you start to build a relationship with a prospect, you greatly increase your chances of moving them along your sales process. Many business owners don’t think of building a relationship with their prospects but once people get to know who you are and what your business is about, you will start to see repeat buyers.
The last part of the equation is to make these people an offer they can’t refuse. If you have a list of prospects and are in regular contact with them, make them a special offer. Give them a discount that no one else is getting, add in some personal touch and make them feel a bit special, turn your prospects into an elite little club and make them feel special and privileged to be there.
Once you learn how to take people who are not purchasing from you and follow up with them by communicating and makeing them a special offer, you will grow your business larger and at much less cost than you could just by inviting more people in the front door.
Leverage Your Database Of Customers And Prospects
The database is one of my favourite leverage points in a business. For a couple of reasons. First off, it is something that keeps growing with each new contact and sale. Second, you can leverage this asset over and over again. It is not just a one-time deal. Third, there are a number of different things you can do here.
Ok, let’s start at the beginning. You do have a database, don’t you? Believe it or not, this is one of the biggest hidden marketing assets that we find with clients! They either don’t collect contact information of buyers or prospects and if they do, they don’t do anything with it. People, people, people, if you have a list of clients who have bought from you before – trusted you with their hard-earned money and you made that a happy experience. Don’t you think they would buy from you again? It only makes sense. You see, basically there are only 3 ways to increase your business. You can get more clients, sell more often and increase the size of the transaction. That is it. And it is cheaper to sell more often to someone (repeat sales) than it is to get more clients.
So, what can you do with your database?
Well, first off, let’s do a reactivation of lost customers. Remind them that you are here, ask them to do business with you again. Make them a special offer that gets them excited. Send them an email or a letter directed straight to them that let’s them know you are thinking of them and would appreciate their business (people like to be appreciated).
You could set up a follow up program. Sure, start with the customer reactivation but then continue to follow through and send them relevant information and/or offers. This can also be done with brand new contact and customers which is why I like to distinguish it from the customer reactivation concept. Someone comes in your door and purchases, plug them in to your follow up program. Have you got a monthly newsletter you are sending out? Are there tips and ideas you can offer them that will help them with (or to use) their purchase? Someone comes in your door but does not purchase, are you following up with them? Are they being exposed to you on a regular basis?
Oh, that is a good one. The unconverted lead. Someone who showed interest in your product, service or offer but did not purchase. Did you get their contact info? Are you following up with them? Or did you just let that opportunity turn around and walk out your door for good? How can you get their information? Well, think a little and use your imagination. You could offer them a “free subscription” to your monthly newsletter. Ha, what an idea! Just ask them for their information. You could set up some kind of a draw for a free something or a discount on your service or product. Offer them a coupon in exchange for their information. There are a number of ways you can get this information from prospects.
Ok, back to the list of buyers. Can you set up a referral program? Can you recommend other, complimentary products – either that you sell yourself or from another business? Is your product or service consumable? Will they need more in a month, two months? Be in front of them when they need it again.
I mentioned about a referral program. The idea here is that, no, better yet, let’s just look at an example… Let’s say for instance you have a moving company and offer a moving service. You may be the first point of contact when a family moves to a new city. You know when someone is moving, that means they will need a few things, both before and after that move. They likely need the services of various trade workers – plumber for the new sink, painter to redo the bedroom, new carpet in the den, etc. They may even need to know where to eat out for the first few days in your town and where to shop. So that puts your business in a great position to be able to offer referrals to a host of other services. The trick here is to think of what other services or products someone might need if they just bought yours. Partner up with other businesses and offer to promote them for a fee or at the very least in exchange for them promoting you. It is a win-win for everyone!
Back to ideas for using your database, have you just released a new version of whatever your clients bought last time? Is there an advanced version that you can upsell them to later on? Have you just released a new product all together that they could make use of?
This all comes back to the idea that if you have a database of prospects and clients, you are in a great position to generate repeat business. Create a system and implement some strategies to make use of your database. Once you set it up, you can make it almost automatic. Ideally, you would integrate some of this with your website and follow up with a simple email follow up system for maximum returns.
Follow Through With Your Follow Up!
Following up with clients can be a very important part of doing business, yet I am always surprised at how few businesses actually do it.
You see, basically, there are only 3 ways to increase your business…
- Increase the number of customers
- Get your current customers to buy more often
- Get your current customers to spend more money (larger purchases)
Most advertising just focusses on #1 and then they stop. Newspaper, radio, TV, print ads, etc all just focus on getting people in the door. Let’s say for example that a business owner know that for every 10 people that come in his door, he will sell 1 item. So when he needs to make more sames, generate more business, what does he do? He buys advertising. So now he gets 100 new people in the door and makes 10 more sales (hypothetically speaking). Not bad. But what about the other people who didn’t buy?
See, I am going to wager that with a good follow up system in place, he could easily double the number of sales per 10 visitors up to 2 and definitely increase the odds of turning a customer who purchased into a repeat customer. Getting them to purchase more often.
So, what do we mean by a follow up system?
Well, basically, any kind of mechanism that you purposely put into place which will allow you to collect contact information from your clients or prospects and then allow you to contact them again in the future. Some ideas for this might be to offer your customers a monthly newsletter. You can put articles in there that relate to your industry, products or services. You might offer a coupon for a special deal or annouce upcomming events relating to your business.
Why? The point here is to build and nurture a relationship with your contacts. You see, people are more likely to spend money with someone they know. So, get to know them. Invite them to take part in special discounts or put on a customer appreciation event for your regulars.
How do you set this up? Well some of it will depend on the nature of your business. Some businesses have no problem getting contaact info from their clients because they need it for their records. We spoke once to a massage parlour who automatically takes mailing information for each client who visits. “Great,” we said, “then what do you send them?”. “Oh, nothing” was the reply! “we just need it for our records” Of course, I am off to the side banging my head against the wall 
Why not send them a note thanking them for coming out today? When was the last time you purchased a product or service and got thanked by the vendor? If it has ever happened, you probably remember it – that is the point!
What can you send out as part of your follow up system? Here are some ideas:
- A newsletter
- Product offerings
- Coupons
- Updates on the business or industry
- Invitation to special events at the business
- Anything to make the people feel special and appreciated
How do you send this out? The point here is not necessarily to make way more work for yourself so you have to do what you are comfortable with. I am going to suggest that you send out emails that link back to a page on your website that contains that issue of the newsletter. If you are not comfortable with that, you can just send out plain emails. Actual mail can work too – though a bit more expensive. People still appreciate getting something in the mail and they are less likely to discard it than they are to delete your email. Also, if they leave it laying around (which they are more inclined to do if there is valuable information on it), then others are likely to see it and ask questions or come by your store or office.
How to collect the contact info? Well, you could just ask for it. That will get you more than not asking When someone is checking out, ask them to write down their email address or soemthing. Better yet is to offer them something right there in return. Offer them the opportunity to receive updates or a newsletter, offer them “access to VIP discounts”. Give them a card with their receipt that invites them to go to your website to sign up for great offers. Ask for their business card – if you are a restaurant, maybe hold a draw every week for a free dinner – get people to put their business cards in for the draw. I have seen that a time or two. There are a number of different things you can do – again it will depend on the nature of your business and what you are comfortable with.
The main thing is that you do follow up – and on a regular basis. Maintain the relationship and develop yoru customer. Then you will have no problem getting them to spend more money and make larger purchases.
