Managing customers

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Managing customers
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Downsizer Forum Index -> Small Business Questions, Ideas and Advice

This is how I look after previous customers

They're gone, let's look for a new one

[ 1 ]

I have records, but don't really use them much

15%

[ 3 ]

I contact them all with the same information and offers

[ 0 ]

I have plenty of information and use it cunningly, tailoring offers to select groups or individuals

47%

[ 9 ]

I hadn't thought about this. Wonder if I should?

10%

[ 2 ]

Oh, shut up. Have a weasel.

21%

[ 4 ]

Total Votes : 19

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RichardW

Joined: 24 Aug 2006
Posts: 8443
Location: Llyn Peninsular North Wales

Posted: Sat Mar 15, 14 8:03 am Post subject:

This thread is very timely for me as I am just about to launch a new venture.

Our customers will in the main be very time limited as once they have used our service it is very unlikely they will need it again.

One of our plans is similar to the offer Nick mentioned to Ty Gwyn, IE give existing customer free stuff if they bring in a new customer that stays long enough.

The free stuff could at its worst cost us 20% of the initial new order but research says that if the new customer stays long enough to hit the level of giving the free stuff away then they will stay for the duration of their need & then the cost will be more like 2.5%.

That looks much better than the industry standard way of gaining new customers by giving a big intro discount (over 50%) on a new customers first orders. With that model lots walk after the deal ends to find new deals with other suppliers.

In the end this cost the customer as they need much much longer to not need the service.

Cathryn

Joined: 16 Jul 2005
Posts: 19856
Location: Ceredigion

Posted: Sat Mar 15, 14 8:23 am Post subject:

Rob R wrote:

Bodrighy wrote:

Selling food products can be relatively easy I would have thought as far as getting repeat orders from satisfied customers is concerned.

Yes, it can be, but it is adouble edged sword. There is a lot of competition out there and as soon as you produce it the clock starts ticking away, after which it can't be sold so planning how much you will sell in three years time is the hard bit. If you produce too much it's worthless, if you produce too little the customer will be forced to go elsewhere and there's always a chance that they won't come back, just out of habit.

Please can I have some of your worthless beef? Has there ever been a glut of beef? Do you mean selling it to a different, commodity market is unethical and doesn't fit with your business aims?

Nick

Joined: 02 Nov 2004
Posts: 34535
Location: Hereford

Posted: Sat Mar 15, 14 8:31 am Post subject:

RichardW wrote:

Your customers will be one shot guys, obviously, but the vast majority of them will be 17/18 and everyone they know will be looking for the same service. Manage and incentivise them right, and you're made of gold; but get it wrong, and bad news spreads, I guess. So, what's a lesson, £20 or so? Half price lesson for every friend you introduce? Only you know the figures, but I'd guess its a no brainer to attempt to network through your clients.

Rob R

Joined: 28 Oct 2004
Posts: 31902
Location: York

Posted: Sat Mar 15, 14 9:05 am Post subject:

Cathryn wrote:

Rob R wrote:

Bodrighy wrote:

Selling food products can be relatively easy I would have thought as far as getting repeat orders from satisfied customers is concerned.

Please can I have some of your worthless beef? Has there ever been a glut of beef? Do you mean selling it to a different, commodity market is unethical and doesn't fit with your business aims?

No, because I'm good at my job

But I produce Dexter beef, which has next to no value in a commodity market.

Nick

Joined: 02 Nov 2004
Posts: 34535
Location: Hereford

Posted: Sat Mar 15, 14 9:20 am Post subject:

Rob R wrote:

earthyvirgo wrote:

Personal, individual contact makes a huge difference.

EV

As does remembering someone when they ring up.

Do you rely on your brain for this, or have you notes you can find instantly? Clearly, out in the field, it's harder, but with a smart phone it's easy enough.

earthyvirgo

Joined: 24 Aug 2007
Posts: 7972
Location: creating prints in the loft, Gerlan

Posted: Sat Mar 15, 14 10:20 am Post subject:

Nick wrote:

Rob R wrote:

earthyvirgo wrote:

Personal, individual contact makes a huge difference.

EV

As does remembering someone when they ring up.

Do you rely on your brain for this, or have you notes you can find instantly? Clearly, out in the field, it's harder, but with a smart phone it's easy enough.

Me, or RobR?
I seem to have a memory for people who have bought

I surprised myself and a previous buyer the second year I did the N Wales Art Trail when I remembered a couple who'd bought the year previously.

I was able to greet her by name and knew what print she'd bought.

In the studio, I have a book with all the relevant info in date order.
No spreadsheet/DB -maybe one day

EV

Rob R

Joined: 28 Oct 2004
Posts: 31902
Location: York

Posted: Sat Mar 15, 14 10:38 am Post subject:

Nick wrote:

Rob R wrote:

earthyvirgo wrote:

Personal, individual contact makes a huge difference.

EV

As does remembering someone when they ring up.

Do you rely on your brain for this, or have you notes you can find instantly? Clearly, out in the field, it's harder, but with a smart phone it's easy enough.

Most of the time I use my brain, sometimes I use Quickbooks & call up the info when I answer the phone. I don't take calls out in the field because the signal is so rubbish, I'm usually working in either a noisy or mucky environment and I don't have access to any form of records. They either leave a message with someone in the office or on the answerphone. I try to use e-mail for this reason & as I'm sometimes away from the office for the day the smartphone has been invaluable for accessing e-mails. It also processes CC payments.

chez

Joined: 13 Aug 2006
Posts: 35934
Location: The Hive of the Uberbee, Quantock Hills, Somerset

Posted: Sat Mar 15, 14 12:47 pm Post subject:

A lot of my sales are through facebook or twitter and it's easy to track correspondence. For the phone, I have a Book Of All Things that people's names, phone number and what they want goes in to.

I also try to keep a diary, with hatches, orders and sales, which makes it easy to look back. That doesn't come naturally to me though.

I think it's easier to stay memorable when you are selling livestock; I'm always going to be 'the lady with those nice araucanas' or 'the woman who had the rat in her feed bin' and people will come back to me when/if they want new birds.

I think a genuine desire to help, even if it doesn't result in a sale; and a friendly attitude to both customers and competitors is essential. My mother is brilliant at the 'symbiosis with competitors' thing and I've learned a lot from watching her.

RichardW

Joined: 24 Aug 2006
Posts: 8443
Location: Llyn Peninsular North Wales

Posted: Sat Mar 15, 14 1:47 pm Post subject:

Nick wrote:

Locally the base price for 1 lesson is £23-25 then you get the block booking discounts that reduce that to about £22 on average.

As you say word of mouth (or FB) is key. I am looking at one lesson free if the introducee takes 5 lessons or more.

Will look at the implications of doing half price for every person introduced & see how that pans out.

I have been told that actual "cash back" is a great one for them too. Get nice new tenners or twenties depending on the level its set at.

I have a few customers already lined up. Longer term I have a 14 year old, so in 3 years her & all her mates will be wanting to learn. As she is at the older end of the year group she could be passed before they all turn 17.

chez

Joined: 13 Aug 2006
Posts: 35934
Location: The Hive of the Uberbee, Quantock Hills, Somerset

Posted: Sat Mar 15, 14 2:04 pm Post subject:

RichardW wrote:

I have been told that actual "cash back" is a great one for them too. Get nice new tenners or twenties depending on the level its set at.

Parents pay, the kids get the cash back

RichardW

Joined: 24 Aug 2006
Posts: 8443
Location: Llyn Peninsular North Wales

Posted: Sat Mar 15, 14 2:34 pm Post subject:

Chez wrote:

Parents pay, the kids get the cash back

Yep lol so better than free lessons.

But then it is their mates they are selling.

Thinking about it you have a very good point.

I could offer either a free lesson or a lesser amount as cash back.

The kids will take the money & older pupils will take the lesson.

Rob R

Joined: 28 Oct 2004
Posts: 31902
Location: York

Posted: Sat Mar 15, 14 2:50 pm Post subject:
On the subject of getting new customers, your service seems very personal, given the name, but the first thing I look for is an 'about me' page to say why I should use you that seems to be missing? Not even a photo. I feel like I know the car intimately (which is fantastic) but the person could be anyone.

RichardW

Joined: 24 Aug 2006
Posts: 8443
Location: Llyn Peninsular North Wales

Posted: Sat Mar 15, 14 4:56 pm Post subject:

Rob R wrote:

On the subject of getting new customers, your service seems very personal, given the name, but the first thing I look for is an 'about me' page to say why I should use you that seems to be missing? Not even a photo. I feel like I know the car intimately (which is fantastic) but the person could be anyone.

Its on the list of things to add.

Rob R

Joined: 28 Oct 2004
Posts: 31902
Location: York

Posted: Sat Mar 15, 14 5:22 pm Post subject:
Oh good, otherwise it looks good & good luck with it all.

RichardW

Joined: 24 Aug 2006
Posts: 8443
Location: Llyn Peninsular North Wales

Posted: Sat Mar 15, 14 5:24 pm Post subject:

Rob R wrote:

Oh good, otherwise it looks good & good luck with it all.

Thanks.

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