A couple of years ago I told you my story of trying to find the company that had done a phenomenal job cleaning the rug that has been in our family for more than 50 years. Initially they didn’t include any way to get in touch with them – no business card, no ongoing email, nothing. I finally found them again through a Google Review search!
I told the owner this story and he started putting a laminated card on the back of the rug…and now I have it. Something really simple that doesn’t interfere with the rug on my floor.
Here are the next two ways to increase profitability – and they relate to my story.
#12 – Communicate with your customers
You might think this is an expense rather than an increase to profitability. Yes, you have to expend some time and dollars to constantly communicate with your customers.
This could be as easy as an email once a month or quarter. It might be a postcard every few months. It might be a 2- or 4-page newsletter every six months.
It also might be as easy as leaving refrigerator magnets or a jar opener or a laminated business card on the back of the rug. Customers don’t always remember that you left a sticker on their equipment. Have your name somewhere in the kitchen where a customer is likely to see it.
Track the results of your communications. You’ll find that your communications increase revenues. And, assuming you’ve priced your products correctly, profits will increase too.
#13 – Reactivate inactive customers
Go through your customer data base and find all customers who have not done business with your company in the past 18 months.
However, find out why they haven’t used your company’s services. This means calling! Yes, the old-fashioned telephone.
Assuming there are thousands of customers, you might want to segment the list into customers who have spent over $500 with you, over $1,000, over $5,000, etc. Those that have spent the least might get a postcard with an offer to get them back.
Those that have spent over $5,000 probably should get a telephone call.
Do it in a humorous way to put the inactive customer at ease:
Mrs. Customer, I am NAME, the CEO of COMPANY NAME. I probably don’t want to know the answer to this question…but I need to know the answer to this question.
Usually you’ll get a laugh. At the very least you will put the customer at ease.
I noticed that we hadn’t done business with you in the past 18 months, two years, etc. What did we do to screw up (or what did we do to cause you not to use our company’s services)?
Listen to the answer.
Then ask: How can we get you back?
Listen to the answer.
Don’t offer anything until you hear the answer.
Don’t be surprised if the answer is “I thought you went out of business because I hadn’t heard from your company.” This is, unfortunately, a very common response.
Reactivating customer is one of the easiest ways to increase revenues and profits.
Next post: More ways to increase profitability.
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Ruth King is well known as “The Profitability Master.” She is passionate about helping small business owners become profitable and stay profitable. For over 40 years she has coached, trained, and helped contractors and others achieve the business growth and goals they wanted to achieve.
Contact Ruth by emailing ruthking@hvacchannel.tv.
