The Simplest Formula for Success: Keep the Customers You’ve Already Got

Your company’s current customers are the absolute #1 source of your future sales.  When you lose customers, you lose all of their future business and all of their referrals to your competition.  When you keep customers, you keep that pool of sales for yourself. 

The fact is, loyal customers spend 33% more than non-loyal customers.  And referrals among loyal customers are 107% greater than among non-loyal customers.  If the business that wins a customer stays in touch, treats him fairly, remains valuable and continues to build the relationship, that customer can’t help but use and refer the business!

How does this happen?  It begins with a relationship between you and your customer.  The relationship is strengthened by your good service and the company’s quality products.

With these elements in place, a solid marketing program makes the relationships between you and your customers even stronger.  And as a part of your marketing, a well-designed “customer retention program” will make a significant difference.  It can pay huge dividends in loyalty, upsells, resells, backend sales and referrals.

You must keep your company’s name in front of your customers.  With 4,000 ad messages a day, you can see how quickly an un-contacted customer can forget your company’s name.  Let’s look at a few tools that can keep a customer’s memory fresh…

§  A “thank you” note after a service or installation call is not just being “polite.”  It’s a part of a smart customer retention program that reinforces appreciation for their business.  The thank-you should come from the tech and/or the company owner/president.

§  Refrigerator magnets with your company’s name on them aren’t just “freebies” from your company.  They serve a dual purpose.  They hold little Jimmy’s artwork on the refrigerator gallery – while also keeping the name of your company in the customer’s home 24/7 where visitors can also see your company’s name.   

§  Low-cost Holiday Cards can be sent from Thanksgiving to New Year’s.  This retention effort is especially important during this time because any sales message sent between December 10 and January 12 is a waste of money.  Yet you don’t want to forget your customers during the holidays, and you don’t want them to forget you.  After all, these are the people who will enable you to be in business next year. 

Plus, with all the family gatherings going on, you certainly want your name to be at the top of your customers’ minds when a repair call is made.   Tip: Send them first class to clean your list during this annual effort.

§  Newsletters are the most profitable retention tool of all.  The most economical and efficient way to package “helpful, insider information” is through a good, strong Customer Retention newsletter program. 

Your newsletters should have information that is not solely about the business. This is because you must – repeat “must” – retain customers’ interest… and 2500 words on sump pumps will not do it.  In order to be effective and interesting, maintain a 60/40 split of “general interest” to “specific field interest” in your editorial split.  Call 1-800-489-9099, email freestuff@hudsonink.com or fax

334-262-1115 with your address or click here and request for a free sample.

The best newsletter campaigns give customers rich, interesting information that helps customers run their households safely and cost-efficiently.  Plus, they bring your company name and logo right into your customers’ homes.  It keeps them informed about new products and services while proving customer benefits.

All of these are worthwhile, because as you now surely know, your company’s current customers are the absolute #1 source of your future sales. 

How Simon Moves Eleven Million Dollars of Product

There are 9 automobile dealerships in the United States that sell McLarens. So don’t feel bad if you have never heard of them.

Yet how and how many of these $280,000 cars are sold is remarkable. It’ll make you wonder if the manufacturer or their customers ever heard of a recession.

I walked into the Dallas McLaren dealership as a fan, not a prospect. A salesman walks over and has an opening line like none I’ve ever heard. You may rethink the way you sell after this encounter.

A little background

Most “cottage industry” cars would use an existing engine, then fit their body and interior accordingly. Yet this 2-seater, largely hand-fitted in England, sports a 610 horsepower twin-turbo V8 of their own design. Its gearbox, unique suspension and carbon fiber tube can withstand a 140 mph force. The car is a living tribute to out-of-the-box thinking, near comical specifications (217 mph anybody?) and what man can produce with few limitations.

The first McLaren road cars, introduced in the 90’s were an instant sellout at $880,000. Now, this many years later, with owners like Jay Leno and Ralph Lauren, a used one is a million two.

Simon, the English-accented, impeccably dressed “McLaren Product Specialist” walked over casually as I was in the midst of pure automotive lust. I mentioned I was purely a fan, and hadn’t a grain’s pretense of purchasing. He smiled casually and said,

“That makes both of us fans, which is the first step toward ownership. Welcome to McLaren Dallas” as he extended his hand.

Simon understands that the first thing a prospect needs to feel is inclusion, not exclusion. As you read, look for at least one sales principle per paragraph. (There are 7, maybe 8.) Note them on the way to a stunning result.

Though I’ve expressed my unworthiness, within moments, I’m sitting in this sumptuous cockpit, resisting the temptation to moan as I fondled the carbon fiber console.

During my visit, we talked cars, adrenaline, horsepower and other man stuff while my impossibly-patient wife feigned interest. Simon never pressured, never looked at his watch, yet prodded the proximity of prospecthood.

Very deftly and knowing my lack of intent, Simon invited me to consider a test drive. I declined, but began to entertain the thought of it. (NOTE: All purchases, all decisions, all physical components begin as thought.)

“We don’t ever sell these on the first visit. So why don’t you come back every day while you’re visiting and maybe you’ll have it by week’s end!” he joked. Then he got serious…

“We’d love to have you as a customer at any level. That could be for a great referral, or staying in touch through email, or just allowing us to help you find your next car… whatever that may be.”

Simon wisely considers selling relational over transactional.

True to his word, when I returned, there was a voice mail thanking me for the visit. He also sent an email thanking me (note doubling up on the kindness and professionalism).

After my response to him, he included a link to a car I had mentioned on our visit that he’d located, though I hated the color and told him. “Duly noted!” he laughed and assured me of a follow-up. I have complete confidence that he’ll do it.

He also re-invited me when I return to Dallas to visit my daughter in school nearby.

Some of you may think this approach is too smooth, too soft, too elitist. Maybe you wonder if this could be effective, or if he’s just going through the motions.

In our last follow-up email, I jokingly asked him, “So, how’s my McLaren doing?”

“Oh, I sold that one yesterday to a man I’d been in touch with for a few months.”

“Wow. Glad you got that done! That’ll make a month!” I say, assuming that at 10 times the price of a ‘normal’ car, selling even 5 or 6 a year would be monumental.

Simon respectfully paused. “We’re on track to sell 64 cars this year, 40 of them by me.” If you’re wondering, that’s $11,200,000 worth of cars sold by one guy, earning roughly 2% of the gross, or $224,000. I gulped loud enough to have been heard from Alabama to Texas.

I probed the question of “How” with Simon, and his answer was shockingly similar to last week’s editorial about Nick Saban and his 3 National Championships.

“It’s a process” he said. “I love people. Love the product. Yet the process marries the passion between the two. I follow the same steps every time, regardless. Though you were not ever a prospect for the
McLaren, I know you are for something.”

Today, he sent me an email with a link to another car on the list. I made an offer. The process in action.

How Would Nick Saban Coach Your Company? Exactly Like This...

Let’s get this out of the way first: I live in Alabama (and yes, I am wearing shoes!). We take college football seriously, in a “I’d trade a lung for a ticket to the LSU game” kind of serious. I mean heck, we all have two lungs.

I went to The University of Alabama, as did my brother, sister and wife. The entire family bleeds Crimson. Can’t help it. It’s what we do.

Along comes Nick Saban. Okay, so we pay him a rather handsome $5.985M a year to coach. But he’s helped pack stadiums, build exposure (some estimate that value negates his salary) and advance the methodology of “winning” in a very clear and decisive way.

It doesn’t hurt that he’s won 2 of the last 4 National titles, and a 3rd one in 2003. His coaching philosophy goes far beyond the football field – as it should – to create “whole people,” not just football players.

There is ONE WORD that Summarizes How Nick Saban Wins.

First, be comforted to know that Nick ignores fads. He doesn’t do the latest whiz-bang offense. He doesn’t chase showboat players, nor put any value in “star power.” (Keep this in mind for your business.)

Instead, Nick Saban’s single word about coaching is: “Process.”

• External Score
• Internal Score
• Score

He “scores” players using very specific criteria in weight training, practicing, preparation versus opponent and academics.

Score well and advance (or keep your job); score poorly and get the attention to do better. There are generally 3-5 numbers that will give you the vital signs of any position, any team member, at any time. Ignoring these welcomes failure.

Do you score your players? What are your “3-5 numbers per position?” Is your CSR scored on politeness? Number of rings it takes to answer the phone? Score from the ‘Secret Shopper’? Are Techs scored on the number of Positive Reviews? How many Agreements sold per number of calls? Are your ads and media “scored” on lead generation?

Nick knows he and his staff don’t have all of the answers. He feels his role is to extract leadership out of every player. Every person must at times rely on themselves to be their own leader. Nick hires top trainers in leadership, accountability and ethics to solidify his mission.

Do you invite training from outside your company? Do you hire speakers or trainers on soft and hard skills? Is it regular or sporadic? Make it part of the system.

At Hudson, Ink, I long ago instituted a “Training Budget” for the company and the individual. This includes offsite seminars, webinars, books, and even the very rare “Self Study” (alone time) that I’ve encouraged only twice. (It was accepted once.)

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Nick holds players and assistants Accountable to the Process. “Everybody says, ‘Be accountable,’ but sometimes nobody ever tells you exactly what the expectation is,” says Saban. He has written goals and measurements for each. The players review, agree and sign. If/when they fall short, they can’t say they didn’t know. People appreciate guidelines instead of not knowing where they stand until you blow up.

Do you have written expectations for your team? Do they review, agree and sign? Just imagine the reduced stress and babysitting time while getting an increase in goal achievement!

Nick believes the “Process” brings him the best coaches, players, training and results. It is automated, not left to be forgotten. It is part of the system, not a separate event. It is expected to be followed and revered. And it grows champions. Hard to argue with that.

Sports Illustrated recently wrote an article that summarizes Saban’s philosophy: “You have to pay the price for success up front. Everybody wants to do it. Not everybody is willing to do what they have to do to do it.”

Where could you MOST benefit from a Process? Is it in sales, recruiting, lead generation? What is YOUR biggest challenge? Check out our Panel of Experts for help with any weakness in your organization.

Build your process. Build your business and your people into champions.

Adams Hudson

P.S. Here is the link to the recent Sports Illustrated article on Nick Saban: http://bit.ly/Sabanization.