Use Your Customer List
One of dozens of strategies listed and linked to here:
How to Make More Money
from Your Business
By Steve Gillman
Before you can use it of course, you have to have a customer
list. Fortunately both compiling and using such a list has become
easier than ever in the last couple decades, thanks to easy-to-use
computer programs. But what makes a list of your customers so
valuable, and how do you use it to increase your revenue and
profits? Read on...
One way you can directly use your customer list is to sell
it. Renting one is more common, actually, You agree to give your
list to another business for a mailing they want to do (preferably
to promote a product or service that is complementary to your
own--to make it of value to your customers--but not directly
competing with what you offer). For more on that, read the page:
Sell Customers to Other Businesses.
But there is a potentially more profitable use of your customer
list. It is contacting previous customers to remind them of your
products or services. This is a way to increase the frequency
of sales to existing clients.
The ways in which you implement this strategy will vary according
to the nature of what you sell. If, for example, you have a garbage
collection business, you might offer a spring clean-up of larger
items to existing customers. If you clean offices, you could
look at your list of customers who are not on a regular schedule,
and call those who have not used your service in more than a
few months, to offer a discount for cleaning jobs done this month.
Something as simple as that can generate thousands of dollars
in additional sales from a few hours on the phone--but only if
you have a list with phone numbers.
Let's look briefly at examples from online marketing. many
sellers of e-books have found that traffic generated by paid
advertising only converts at a 1% rate, meaning only one in 100
visitors to the sales page buys the e-book. On the other hand,
those who have already bought their product may convert at 10%
for the next e-book they write--and it costs them nothing to
get these customers. All they have to do is mail a promotion
to them--if they have that list.
If you don't have a customer list, start one. Collect whatever
information you need to effectively market to those customers.
Online, that means getting email addresses. Offline it can mean
phone numbers or home addresses. Once you have the list, start
using it. Remind your customers of the value of what you offer.
If a carpet cleaner averages a gross profit of $100 per job,
and he can increase the frequency of visits from once-every-two-years
to once-per-year for 100 customers by using his list, he nets
an extra $10,000 in annual profits--something to think about.
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