Embed Size (px)
Citation preview
Lesson # 26
How To Get Back Your Lost Customers – A High Profit Strategy Almost Certain To Put Money In Your
Pockets
By Scott J Bywater Copywriting That SELLS
www.morecustomersmadeeasy.com
NOTICE: You Do NOT Have the Right to Reprint or Resell this Report! You Also MAY NOT Give Away, Sell Or Share The Content Herein If you obtained this report anywhere other than http://www.morecustomersmadeeasy.com, you have a pirated copy. Please help stop Internet crime by reporting this to: [email protected] Copyright 2008 Scott J. Bywater ALL RIGHTS RESERVED. No part of this report may be reproduced or transmitted in any form whatsoever, electronic, or mechanical, including photocopying, recording, or by any informational storage or retrieval system without permission in writing from the publisher. Requests for permission for further information should be addressed to Henesco Enterprises Pty Ltd, Suite 21, Seabridge House, 377 Kent Street, Sydney, NSW, 2000, Australia DISCLAIMER AND/OR LEGAL NOTICES: While all attempts have been made to verify information provided in this publication, neither the author nor the publisher assumes any responsibility for errors, omissions or contrary interpretation of the subject matter herein. This publication is not intended for use as a source of legal or accounting advice. The publisher wants to stress that the information contained herein may be subject to varying state and/or local laws or regulations. All users are advised to retain competent legal counsel to determine what state and/or local laws or regulations may apply to their particular business. The purchaser or reader of this publication assumes responsibility for the use of these materials and information. Adherence to all applicable laws and regulations, federal, state and local, governing professional licensing, business practices, advertising and all other aspects of doing business in Australia, or any other jurisdiction, is the sole responsibility of the purchaser or reader. The author and publisher assume no responsibility or liability whatsoever on behalf of any purchaser or reader of these materials. We do not guarantee any results you may or may not get as a result of following our recommendations. It is your responsibility to test every strategy for yourself. Any perceived slight or criticism of specific people or organisations is
unintentional.
How to Get Back Your Lost Customers – A High Profit Strategy Almost Certain To Put Money In
Your Pockets
Summary: Picture this. One day two business owners, both going through a quiet period in their
business, decide to run a promotion to boost their sales. Both business owners are smart enough to realize that direct mail offers one of the biggest returns on investment and decide to run a direct mail campaign.
The first business owner mails out a letter to a list of targeted prospects in his market. As predicted,
he enjoys a good return on investment and is happy with the campaign results.
The second business owner is smarter however, and instead of mailing out to a list of cold prospects, decides to mail out a letter to a list of previous customers whom he had lost contact with over time. Despite, mailing out the same offer to the same number of people, the second business owner
enjoys ten-‐times the response from his promotion than his colleague. Thanks to this simple 'lost customer letter', he enjoys one of the busiest months in his business's history!
The above story is not fictional, but based on the true story from one of my clients.
You see when I, as a marketing consultant, first sit down with a client to discuss ways in which we
can boost their sales, one of the first things I often recommend is to send an offer out to old customers whom they haven't heard from for a while.
I recommend this because it is one of the easiest and most profitable campaigns a business can ever run. On average, you can expect a response rate of between double, and as much as ten-‐times (yes
10 times), more than what you would expect sending the same letter out to a list of cold prospects.
For example, one of my clients sent out such a letter for his jewellery store and enjoyed a whopping 30% response rate, along with one of his store's busiest months on record. Another got a response of over 15%. In fact, I've heard of response rates as high as 50% from such a strategy! These sorts of
numbers are almost unheard of to cold lists.
In today's lesson, you'll discover how to use the 'lost customer' strategy to bring in a stampede of sales in your business with little or no effort. Just think, while your competitors are forking out thousands in paid advertising this month to attract business, you can enjoy ten-‐times the response
for a small fraction of the investment.
Why Target Lost Customers?
Lost customers are one the most profitable, yet often underutilized assets any business has. There are five basic types of lost customers:
1. Customers who you push away because they suck the life out of your business,
2. Customers who jump ship any time they find a lower price,
3. Customers who physically or demographically move out of your marketplace,
4. Customers who you unintentionally pushed away because of an unforeseen problem such as bad delivery, billing or service problems, and...
5. Customers who left for no other reason than to try out your competition.
The first three probably aren't the type of customers you want to attract back into your business.
The last two however are definitely customers you should try to win back. Here's why.
REASON #1 -‐ You Protect Your Reputation
When you unintentionally push away a customer because of an unforeseen problem such as bad delivery, billing or service problems, they not only leave your business, they share their discontent with their friends.
According to research by Technical Assistance Research Programs, the average unhappy customer
not only defects to a competitor, they also tell 11 other people about their bad experience. These 11 people then tell an average of 5 other people. That's a total of 55 people who now think poorly of your business because of just one customer's unfortunate experience!
By following up with those unhappy customers, you not only win them back and profit from the
extra business they bring you, you help save your reputation from being trashed.
REASON # 2 -‐ It's Highly Profitable
Research by Marketing Metrics in the US has found your chances of successfully selling to a former customer are 20-‐40%, compared to just a 5-‐20% chance when trying to sell to a new customer. This is because former customers already know your business and what you can do for them.
Lost customers also tend to be big spenders. British Airways for example have reportedly found
"recovered" customers give them more business than anyone else.
As I've already mentioned, my experience with lost customer promotions is they typically produce 2-‐10 times greater response than promotions to cold prospects. In fact, it costs a fraction of the cost to
win back an old customer as it does to get a new one.
I've personally seen this strategy create tens, sometimes even hundreds, of thousands of dollars in new business for a company. And that's business these companies would never have had otherwise, just by going back to old customers who haven't bought for a while.
REASON # 3 -‐ It Helps Your Business Grow
The wireless telephone industry on average loses between 1 to 3 percent of its customers a month.
This might not sound very consequential as how big a problem can losing a few subscribers be?
But when you do the math, an average churn rate of 2.5% a month works out to a whopping 30 percent a year, or a turnover of a company's entire customer base every 3 years! No wonder the telecommunications industry makes such a strong effort to win back their lost customers.
But they are not alone. Research shows the average business loses between 20 to 40 percent of its customers every year. Left unmanaged, this will adversely affect your profits and growth, and
jeopardizes your business's overall success.
Let's face it, if your customer base represents your business, you need to do everything you can to protect it. Just as it's hard to fill a leaking bucket without plugging the holes, it is extremely hard to grow your business if 20-‐40 percent of your customers are leaving every year.
3 Things You Must Do To Win Back Lost Customers
Remember, there are two basic types of customers you want to win back: 1) customers who left
after experiencing a problem with your business, and 2) customers who left to try out your competition.
With this in mind, studies show there are three basic things you need to do to win your old customers back.
1. You need to contact them, ask them why they left and if appropriate, offer an apology,
2. You need to make them a strong offer to come back to you, and
3. You should also follow up with them after they accept to make them feel special again.
How To Run A 'Lost Customer' Campaign
Running a 'lost customer' campaign can be very simple and easy to put together.
# 1 -‐ Start by going through your customer database and pulling out names of old customers whom
you haven't heard from or done business with for a while. Obviously, you want to filter out any bad customers whom you do not want to win back.
# 2 -‐ Create a powerful offer to lure them back. A. gift certificate, coupon or free offer usually works well. If you are in business-‐to-‐business, a free business check-‐up, consultation or information report
may also work.
# 3 -‐ Contact these customers and ask them why they left. If applicable, offer an apology for any mistakes you have made and make them your special offer to come back.
If you only have a small list, or if you are targeting a high value client who may be worth thousands
to your business, it makes sense to phone the customer. You will enjoy a higher response than a letter because it is more personal and you can also tailor your offer to their unique needs.
If you have a large list of customers to contact and phoning them all is not cost effective, then mail them a 'lost customer letter' instead. It is often one of the most profitable and cost effective
campaigns you'll ever run.
The letters below are based on real letters which have enjoyed phenomenal success. Use them as a template for your own letter or telephone script.
SAMPLE LETTER 1
This letter was used very successfully by a health food company to reactivate old customers and generate a stampede of new sales in their business. You can easily adapt this to any business.
From the desk of [CEO NAME]
FREE GIFT! I’m sending you a package of Testosterone X because I believe it’s the fastest way to boost your energy levels, increase your strength and reverse the ageing process. Will you do me a favour and try out the enclosed package FREE! Good morning [NAME], As you can see, I have enclosed a free sample of Testosterone X with this letter with my compliments. Why have I done this? Simply because I would like to say...
“Thank You & Sorry” Firstly, I'd like to say thank you for being one of our customers. It’s people like you who make my business what it is today and I really appreciate it. And sorry because since your last purchase, I haven’t done enough to show you what a truly valued customer you are. So I thought I would send you this free sample of Testosterone X, the world’s leading natural testosterone booster, made from natural plant extracts which help you restore low hormone levels naturally. This is my way of attempting to make it up to you in order to see if I can win you back as a loyal customer. So...
Will You Do Me a Favour and Put My X Day “Testosterone X Challenge” to the Test?
The challenge is quite a simple one. All you need to do is take X of the enclosed capsules, X times a day, with my compliments. If you do this, based on past experience here’s what I believe is about to happen...
• You will experience more energy because you will be restoring your hormone levels to higher levels,
• You will feel stronger and more powerful again,
• You will boost your sex drive to new highs,
Photo of CEO
• And ultimately, you will feel ten years younger again.
And don't stress, Testosterone X is made from Tibullus Terrestris, a flowering plant used for centuries in Eastern medicine as a herbal aphrodisiac. It's 100% safe and legal. You enjoy all these benefits and more because as a natural testosterone booster, it helps you restore your hormones to that when you were in your 20's. This is important because as you age, your hormone levels slowly decrease causing you to lose strength, energy and more. By naturally restoring your hormone levels, you get to turn back the clock and feel young again. That's why many call Testosterone X as the "fountain of youth". But I must warn you – there is a side effect. Testosterone X increases your muscle mass and boosts your metabolism. So it...
May Cause Some of Your Excess
Weight to Naturally Melt Away However, I think that’s a problem most of us can live with. Don’t you ;-) If you take me up on my challenge it will make a fast and fabulous change in you – a change that can get you started into a positive, healthy routine that can last forever. Listen, you’ve purchased from us before so you are someone who obviously values your health. And I consider you a very important person – the kind of person who will really appreciate the value you get from Testosterone X when taken in the required amounts. That’s why I am so determined to get you to truly experience the benefits of this product. So take X of the enclosed capsules, X times a day for the next 7 days and I honestly believe – I know...
You’ll Experience a Difference in Yourself You Never Thought Possible
The other reason I am making this offer to you is self serving. You see, I know those people who truly experience the benefits of Testosterone X become customers for life. And if I can get you “hooked” on the natural benefits of this incredible natural supplement, I’ll also reap the financial benefits in the years to come. Thousands of my clients already swear by the benefits they receive from Testosterone X. And I believe you will too. What have you got to lose? If you’ve been wanting to boost your energy levels... wanting to burn off those extra kilos... and wanting to detoxify & cleanse your body while boosting your immune system... take the first step right now! Just crack open the package and take your first dose of Testosterone X immediately. And I’ll look forward to getting you feeling your best very SOON.
Warmly, [CEO NAME] P.S. If you’d like to know more about Testosterone X... what ingredients it includes... and how it can help you, simply turn to page XX of the enclosed catalogue. P.P.S. If you notice a difference in how you feel and want to know what else we can do to help you boost your energy levels... beat stress... relieve pain... improve your memory... boost your immune system and feel ten years younger again, I’ve included a $10 gift voucher that’s valid for the next 14 days which you can use towards any of our products in the enclosed catalogue or online at [WEBSITE URL]. For instance... If you’re stressed and tired, turn to [PAGE WITH ADRENAL SUPPORT] If you’re experiencing back pain or arthritis, check out [MSM or JOINT SUPPORT PAGE] And if you want to improve your memory, focus, recall and reasoning, head on over to [FISH OIL PAGE] Anyway, enjoy your free sample of Testosterone X. And please send an email to [INSERT EMAIL ADDRESS] to let me know what your experience is. I’d really love to hear your feedback.
SAMPLE LETTER 2
Here's another sample letter...
COMPANY LETTERHEAD
Name,
Street Address,
City, State, Postcode
Have We Done Something To Offend You?
Dear [NAME],
We were going through our records the other day and realized you haven’t purchased from us in
over 6 months.
Have we done something to offend… or… displease you in any way?
If so, I’d like to know. Our clients are the most valuable asset we have in our business, and it’s important to me you’re happy.
If you had a problem which we didn't handle right… or found the manner of my staff offensive in any
way... I would like to talk with you about it. I want to make sure you only get the highest standard of service possible and that you are always satisfied with our printing.
My direct phone number is XXXX-‐XXXX. Please call me.
You know, I’d really like to see you again, and that’s why I’m writing to you today with a special one-‐time offer:
If you need any printing whatsoever… flyers, leaflets, brochures, business cards, letterheads, invoice
books… anything at all, we’ll print them for you at a…
30% Discount On Our Normal Prices!
As you know, we already offer some of the best prices in the industry… so these prices, you truly will not find anywhere else.
You see, if you do need some printing, I couldn’t think of a better way to help you than offer a steep discount on our normal prices.
In addition, if you’re in a state of urgency and need your printing back quickly, we’ll have it
complete… and ready for delivery within 4 working days… otherwise…
It’s Free!
That’s right; you won’t have to pay a cent for our tardiness. We pride ourselves on our
organizational abilities and meticulous attention to detail.
To give you a little ‘incentive’ I’m only making this offer available for the next 17 days. If I don’t hear from you by then, I’ll take it your printing requirements are satisfied.
Kind regards,
Joe Bloggs
P.S. Don’t put this off. If you need printing, then why not accept my offer? Our prices may never be
this low again.
SAMPLE LETTER 3
What do you do if your industry has customers who only buy from you once? Why not leverage the positive relationship you have with these customers and send them a referral letter instead? Here is an example letter from a bridal dress store.
Our Accountant Said We Were Crazy To Write You This Letter, But We Decided To Write It Anyway...
Dear [NAME],
I know it’s been a while since you heard from us, but we are writing you this letter because we have two important things to tell you.
Firstly, we’d like to say... “Thank You”!
Thanks again for being our customer and trusting us with your wedding dress. We first got into the bridal business because we just loved the excitement of a wedding and feel blessed that we were
able to share in the excitement of yours.
It's great to be able to write and tell you that again.
Secondly, as you can see we have attached a $100 gift voucher to the top of this letter. Why have we done this? Actually, the reason is very simple.
You see, this time of year is typically slow in the bridal industry. So we usually have to run a few
promotions to try and get more customers into our business during this quiet time.
We've looked at the usual options – advertising in the paper and on the radio – but these options are relatively expensive and with no guarantees of success.
... So we thought, rather than fork out thousands of dollars on advertising this year, we’d do something crazy and take what we’d normally spend on advertising and
pass the savings on to our best customers in the form of this gift voucher.
Maybe you have a special event coming up like a friend’s wedding or a ball. If so, you can spend this gift voucher on any dress in our store.
Or maybe you have a friend who has a wedding or school ball coming up. If so, feel free to give it on to them and let them enjoy the savings instead.
Either way, we both win. You get to save money or give a friend a valuable gift, and we get to say
thank you once again for being our customer and hopefully generate some extra sales during this
Cut here
$100 Gift Certificate
This gift certificate is for [NAME] and friends to spend on any dress at [STORE NAME] before [DATE].
[INSERT LOGO HERE] [INSERT PHONE AND ADDRESS]
quiet period.
We still have our enormously popular range of Allure Bridal, Mori Lee, Demetrios, Cosmobella, OreaSposa, Dessy, Bari Jay, Landa Designs, Evenings by Allure, Precious Formals, Nightmoves and
Paparazzi, as well as mother of the bride, flower girl, some beautiful silk flowers and more in our store.
Not to mention, we never look down our nose at you like some of the other so-‐called “exclusive” stores do. We treat you like we would want to be treated and promise to will only give friendly
smiles and exceptional customer service when you walk into our store.
There is just one catch however: You need to spend your gift voucher before [Date]. This gives you an incentive to come in soon and lets us plan for other promotions later in the year.
So if you or a loved one has a special event, ball or even a wedding coming up in the near future,
why not take advantage of this free gift and spend it in our store before [DATE].
It comes with no strings attached and no minimum purchases. Plus you get to choose from one of the best ranges in Perth.
Also if possible, please phone ahead and book a fitting time to make sure we can give you our full attention when you come in. Our phone number is [PHONE] and our address is [ADDRESS]. We’re
open between 10 am to 4 pm, Monday to Saturday.
We have just received a number of gorgeous new ball gowns, evening dress and wedding gowns from Venus Bridal which I am sure you and your friends will just love. Why not come in and check them out?
We look forward to hopefully seeing you (or your friend) in our store again soon.
Best wishes
Signature
[Name]
PS. If our accountant has anything to do with it, you may never get a crazy like this from us again. So if you or a friend has a special event coming up, please make sure you pop into see us before [DATE].
This Fortnight's Assignment
1. Go through your customer database and pull out a list of inactive customers whom you haven't heard from for a while. Make sure to screen out the bad customers you don't want back.
2. Create a special offer for them to entice them back into your business. As mentioned, a gift
certificate, coupon or free offer usually works well. If you are in business-‐to-‐business, a free business check-‐up, consultation or information report may also work.
3. Use the attached sample letters to create your own 'lost customer letter' or telephone sales script.
4. Post the letter to the list and/or begin phoning your lost customers on the phone. If you have a
large list, you may want to test small before rolling out. And always test and measure response.
5. Create a system to review your customer database every 3-‐4 months (or a period relevant to your business) and to reactivate old customers who haven't ordered from you for a while. I guarantee you won't regret it!
Best of luck!
Scott Bywater
Copywriting That SELLS http://www.copywritingthatsells.com.au
Final Note...
This is the final lesson of your 'More Customers Made Easy' membership course. I want to congratulate you for GRADUATING this program. The knowledge you have acquired over the past 12
months will keep you in good stead for the rest of your business life, I am sure.
I promised you a grand "graduation bonus" when you first started which would be worth far more than the full year's subscription... and here’s what you’re about to get:
• 6 back issues of my Bronze More Time at the Beach Newsletter & MP3’s ($67 per month -‐ valued at $402)
• Internet Marketing Secrets with Scott Bywater & James Schramko (valued at $47.00)
The total value of all this is $449.00 – more than you have paid for the entire More Customers Made
Easy course.
Congratulations for hanging in there and completing the program. All you need to do to get your hands on these bonuses is fill out the very simple questionnaire at: http://morecustomersmadeeasy.com/graduates/
