Weekly Edge

How to BOOST Your Cash Flow

Heather Frame - Thursday, October 17, 2013

Let’s face it, business is getting tougher.  To survive and thrive in the new economy, you need to be smarter than the rest.

You need to be able to market your business effectively.

So here’s a little secret.

The best way to make money in business is by making sure you stop losing any of the customers you’ve got.

If you’re in business, you’re probably losing customers right now, right this very minute. For whatever reason, customers are lost and you never see them again.

This is what we call “holes in your bucket.” The BIGGEST profit breakthrough for you is to plug those holes.

Here are 3 critical areas to focus on to plug those holes.

1: Reinforce (Stick)

When you get a new customer, make sure the sale sticks and give them good reasons to shop with you again. We’ve got clients who send out BIG welcome packs.  However, even a simple “Thank You” card is a lot better than nothing.  When was the last time someone sent you a thank you card for shopping with them?  Our guess is never or very rarely.

2: Retain (Keep)

Retaining your customers comes down to staying in contact with them.  Direct Mail your customers with new promotions, products etc.

The best strategy here is to provide a free, monthly newsletter mailed to your customers door.  Nothing beats it.

3: Re-activate (Rescue)

This has to be the quickest and easiest way to bring cash into your business.  (It’s so simple, you may dismiss it. It may seem too good to be true.  But that’s NOT the case.)

The BIGGEST bang for your buck is number 3, re-activating old customers. And it’s so easy to do.

Let us explain.

If you’re in an established business, chances are you’ve got customers that have bought from you a few times but have moved on.  This strategy involves contacting these past customers with an irresistible offer to come back.

You simply write a letter to your customers and make them an offer to get them to purchase again. (Direct Mail is best. Email is cheaper, faster, but less effective.)

The success of Re-activation Campaigns depends largely on the kind of relationship you have with you customers.  If you have never mailed, don’t keep in contact, then you’re job is tougher than a business that keeps in contact with their customers.  When it comes down to it, business is all about how your customers feel about you.

Anyway, we like to keep Re-activation Letters simple.

We don’t confuse the reader. We state our case, make an offer, and then we’re out of there.

There are five important elements we like to cover. They are:

1: We include a headline that gets their attention.

2: We tell them we appreciate their past business.

3: We explain why we are writing.

4: We update the customer on any changes of products or services since their last purchase that they may be unaware of.

5: We make an offer to come back. (Put a limit on the offer)

There are other elements you may wish to include, but as we’ve said, we like to keep it short, sharp and simple.

Time to start re-activating your old customers….

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