The Top Line: Old Friends

Past customers can lead to future business.

4 MIN READ

Clients who already know you, have bought from you, and trust you—let’s call them friendly customers—are some of your most valuable and cost-effective marketing resources. Surveys of businesses show that it takes anywhere from 10 to 20 times more cash to develop one new customer than it does to sell to an existing one. Think about it. You have already invested time, energy, and plenty of customer service to get this person to be your fan, so you would do well to continue the relationship.

This requires that you keep a constant presence in front of your customers. If you have a plan that puts your company in front of past customers at least once a quarter then you are ahead of most of the business population. If you really want to solidify your position in front of your customers, stay in touch with them at least once every 30 days.

Here are 10 easy, inexpensive strategies that you can use to stay at the forefront of your customer’s mind.

Send a quarterly newsletter

A newsletter can have tremendous impact. It can be as simple as the front and back of one sheet. It can be black and white, two-color, or full-color. It might include a profile of a project or client of the quarter and some home maintenance tips. It must include all of your contact information and a special offer of some type.

Send an e-mail newsletter

This strategy is the simplest and most cost-effective way I know to stay in front of your clients. If you link your company Web site to the newsletter so customers can visit your site, you get additional exposure. This will require you to collect e-mail addresses from your clients and ask for permission to send a newsletter. Again, if they are your fans, they will grant you permission and look forward to reading your letter.

Send photocopies of newspaper articles

Any article that you have written or that has been written about your company is an endorsement of your professionalism and commitment to the community. To get the most publicity from these articles, send copies of them to your friendly customers.

Pick up the phone and call

It may not be possible to call every client you have, but you probably have 10 or 15 loyal customers who deserve to hear your voice once every 30 days. The call should be friendly and about them. They will ask you about your business when the time is right.

Create a phone tree

Divide up your customer list into groups and assign a group to different employees in your business. The workload of calling existing customers gets lightened when the list is divided up.

Send a thank you card

Say thanks for their business and thanks for the relationship. A simple expression of gratitude will go a long way. People do business with those they like and trust. When you show the caring, gentler side of yourself, your clients will continue to place their trust in you.

Offer a discount

Offer existing customers a discount for any additional services that you offer, such as remodeling or handyman services. Encourage them to take advantage of your discount by placing a time limit on it. Even if your customer only needs a small amount of work, you remain in front of them, which can lead to larger projects and referrals.

Send an evaluation form with a discount offer

Though your customer may have already completed your standard evaluation form, ask for additional “special feedback.” This advanced strategy requires that you ask your customers for more specific information about their experience with you, such as during the selection process or warranty period. When doing this, offer an incentive in the form of cash or discounts on additional services.

Stop in and say hello

This suggestion sounds so elementary that you may tend to overlook it. As you travel around town on your daily routine, make time to stop at a customer’s home or business and just say hello. You will be surprised how many referrals you’ll get when you do this, not to mention additional business from your customer.

Send a Web-card

Have a postcard printed of your Web site home page and mail this card to your customer database (you do have a master database, right?). Encourage your customers to visit your Web site by making a special offer on your services.

Most of these ideas can be employed for little or no actual cash out of pocket. With each of these strategies, or any strategy that you implement, consistency is the key. I would also recommend that you have several strategies that you can rotate. It will keep it interesting for you and for your clients.

Paul Montelongo has been a builder for more than 23 years and is a nationally recognized speaker and consultant to the construction industry. Visit Paul at www.contractorofchoice.com.

About the Author

Upcoming Events

  • Build-to-Rent Conference

    JW Marriott Phoenix Desert Ridge

    Register Now
  • Builder 100

    Dana Point, CA

    Register Now
  • Protecto Wall VP Standard Installation Video

    Webinar

    Register for Free
All Events