How to Create Repeat Business

Hi,

One of the most important secrets I can share with you is to give you the tools to building a business with residual benefits.

Editorial by
Phillip R Smith  FAICD AII AIM CD
Founding Director of Central Insurance Brokers Perth West Australia
http://www.centralins.com.au/    more about me at http://www.ps.austhai.biz/

Residual means “the constant, reoccurring stream of income that is a direct result of a system that you set in place, and that creates the environment for the Customer to continually revisit and purchase from your place of business.”

The systems I’m going to give you over the next few weeks, when implemented, will accomplish this for you.

You may think this is about getting new customers or clients, but your wrong.  It’s about keeping clients and making them more and more profitable. 

The process actually starts with the mentality you have about your very first customer.
Most businesses are constantly trying to get new customers and forgetting about how profitable an existing customer is to their bottom line.  They function as though every day is the process of getting that “first” customer. 

Image by rjs1322 via Flickr

Retail, service, or manufacturing, it really doesn’t matter, the problem is the same.  They are constantly thinking, “How do we get more customers.”  And day after day, they go through the motions of advertising, marketing, and hoping for new customers.


What I’m trying to say is that your attitude regarding that first customer must change.  Ask yourself a few questions about that first customer, like:  

·         How did you treat them? What did you think about that first customer?

·         What happened the moment they walked out of your place of business?

·         What did they do? 

·         What did you do? 

·         Did you do the necessary follow-up that is necessary to create a life-time customer?

Whatever happened with that first customer is likely what has happened with every first customer since then.   Let’s say that you’re a Dry Cleaner.  I take my shirt, pants, or coat into your cleaners for the first time.  You greet me pleasantly, take my garments, and I am pretty sure they will be done professionally and ready to pick up in four days.  Then I leave while you go to work on them.

What’s wrong with this picture?  Opportunity is always lost on the initial visit of a first time customer.

Let me give you a list of what should have been done:

1. Why didn’t you have a good reason to collect my name, address and phone number? It would have been very easy.  You could have done any one of many things.  Here’s one…

You could have asked me if I would like to enter the drawing for $50 worth of free dry cleaning, and handed me the entry ticket, along with a pen, to complete. If you’re a bit above average, and most of you are because you’ve subscribed to this newsletter, you will have already figured out that it would also be nice to have some more information for that customer to add on the form.

How about the names of the other family members, especially the spouse’s name. In other words, the form can include lines for the wife’s favorite color, number of children, anniversary date, birth date, and many other questions that can help you in the future.

You could have asked them most anything and because you were offering them a nice
prize, they most likely will respond.  If not, what did you lose?

2. When your business is slow, you can input the data you are collecting and put it into the computer, or you can hire a part time high school student to do it.  If you are still using a shoebox with dividers, that’s ok also.  Just make sure you have a system that lets you get to the customer when it’s important.  A computer is so much easier and there are software programs that help you immensely.

3. But, before the customer got out the door, you should have given them a coupon for any of their family members to use.

I think you get the idea.  The way you treated your first customer very likely set the tone for every other customer who walked into your business.  Perhaps it is time to review the way you do it now and change it.

Your client list is the single most valuable asset you own, when used the right way.
I’ll go over that in the next issue, but for now, let’s continue about the process of how to treat your customer.

4. Always give the customer an opportunity to add to their purchase before the transaction is completed.  This is as simple as you asking the customer, “John, this fine suit is a very expensive type of cloth.  We’ve found this fabric really gains back its luster and crisp look if you do (whatever).  I’d be happy to treat your suit that way for only $1.95.

The five-dollar-an-hour part timer at McDonalds is taught to do this every time---“And would you like fries with that sandwich, sir?”

Not only would you increase your cash flow, but also your profits soar unbelievably.  Let’s do some Math.  If it cost you an average of $5.00 to get a new client (the cost of advertising divided by the number of responses), and if the cost of your service or product is $5.00, then you would have to do $10.00 worth of dry cleaning just to break even.

At that point you haven’t made a single cent of profit.  Now, if you can add on a $2.00 up-sell prior to delivery, you have just increased profits 20%.

The Math proves it.  You didn’t make a cent on the original $10, but on $12, you make a profit of $2.00.  That’s 20% more than you would have had.

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I can tell you with confidence the team at "Central Insurance Brokers" are very focused about Customer "Value added" measurements. The client team system is focused and moulded around Customer priorities and the evidence of it's success is consistent growth of repeat business, since 1980.

It's one thing getting a customer but it's a whole new ball game keeping them and crew at Central do it well! It's why they are leading the way and watched by so many.

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The secret to getting an immediate response

It never fails to astound me that when I’m looking through a magazine or newspaper and reading the ads, that not only do they all look alike and are boring, but almost none of them ask for a response.


By Aaron Wilson, Associate Partner 
Central Insurance Brokers, Perth WA (West Australia)




Go grab a magazine right now and look through the display ads.  You’ll see ads saying things like: “Open an account”; “Apply now”; “Get started”.  But there is no direct-response mechanism.


Most of the ads are just institutional ones that just tout the company and end with the telephone number, the website address, or the name of the company.  They are not direct-response ads that encourage the reader to contact the company to get something the reader wants and by which the company can create a lead or customer.



The ads merely talk about how great the company is. The ad designer then hopes that the ad copy and images are so great that people hop on the phone, or whatever, and contact the company.


If your prospect sets your ad or sales letter aside to “deal with it later”, you have probably lost them as a customer.  What I suggest is that you should do everything you can think of to induce and create an immediate response from them.


First, make sure that you offer a free report, a free sample, a free service or whatever with each ad you create.


Then along with that, include deadlines of some sort to make the reader think twice about not acting NOW.


  Here are some examples:

1. Penalty pricing.  Let them know that the prices will go up on a certain date.
2. Have your offer expire by a certain date.
3. Have a “Mystery Bonus” if they respond within the next 24 hours.
4. Let them know there is a limited supply and that you may run out.  Even if you do not have a limited supply, you can create an illusion that there is.  You can say, “We will return your check uncashed if we run out of the item.”  This suggests that there is a limited supply without you even saying there is.

You notice that the smart Insurance companies apply such lures in their Domestic sales compaigns offering special discounts on Car and Home Insurance.

As a Professional Insurance Brokers such methods are not the tools of our trade, our main focus is Commercial and Business Insurance clients but we realise the need for "response" and gaining stance with our clients and we offer gifts and treats which makes the dreaded Insurance topic have a zing.

I’m sure you get the idea.  The first thing I’d like you to do is to get out your ads and promotions. Review them with the thought of what you can add that will motivate the prospect to immediately respond.