Connecting with past clients in new ways
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Transcript of Connecting with past clients in new ways
© 2011 Harvest Consulting LLC
Wyoming Business Association Glendale Chamber
"Connecting with Past Clients in New Ways"
June 8, 2011
Drew McLandrich Principal
McLandrich Consulting
Scott Jacobs,CEO
Harvest Consulting
© 2011 Harvest Consulting LLC
Enjoy lunch
Have some fun
Objectives for today
Practical and tactical ideas for recovering lost customers
Discover how to recover lost customers
© 2011 Harvest Consulting LLC
Customer Analysis
What does it cost you to get a new customer?
What does it cost to keep a customer?
© 2011 Harvest Consulting LLC
Customer Analysis
Gain more than you lose!
Identify # of lost customers.
What’s their value?
How long have they been lost?
What do we know about them?
© 2011 Harvest Consulting LLC
What’s their value?
Customer Analysis
Source: http://www.1st2c.com/PDF/What_is_the_True_Value_of_a_Lost_Customer.pdf
the customer defects to a competing firm
or
disadopts the product category altogether.
the value of a lost customer depends on:
© 2011 Harvest Consulting LLC
How’d we lose them in the first place?
They had a bad experience.
Corrective feedback for your business.
Experienced poor service or broken promises.
Thank them.
Offer to win-back to re-earn their business.
© 2011 Harvest Consulting LLC
You simply lost touch.
How’d we lose them in the first place?
What is the customer buying cycle for your business?
When do your customers go 'dead‘?
Sooner you contact them the greater your chance of getting them back.
© 2011 Harvest Consulting LLC
Industry Defection Rates
ANNUAL CUSTOMER DEFECTION RATES
U.S. long distance (telephone)
Internet service providers
German mobile telephone market
Source: Adapted from Griffin and Lowenstein (2001).
Clothing catalogs
Residential tree and lawn careNewspaper subscriptions
© 2011 Harvest Consulting LLC
Industry Defection Rates
ANNUAL CUSTOMER DEFECTION RATES
U.S. long distance (telephone)
Internet service providers
German mobile telephone market
Source: Adapted from Griffin and Lowenstein (2001).
Clothing catalogs
Residential tree and lawn careNewspaper subscriptions
22%
30%
25%
25%
32%66%
Decided to recover lost customers?
© 2011 Harvest Consulting LLC
Here’s four possible approaches:
Do nothing
Mass appeal
Personal appeal
Mix of mass and personal Let’s explore the four approaches…
© 2011 Harvest Consulting LLC
Personal Appeal
© 2011 Harvest Consulting LLC
Handwritten note. Personal appeal – perhaps a note first (not an email) followed then with a phone call, then lunch, golf and/or a personal visit.
Send flowers/ gift basket, a card and then call. Ask them why they left and what would it take from you to get them back as customers.
Set aside an hour or two a week for telephoning past customers. It's better to contact five or ten former customers each week, every week because this brings the task down to manageable proportions.
The numbers soon build up if you stick to the routine.
© 2011 Harvest Consulting LLC
Telephone call…
"Good morning , this is Drew from Acme Anvils. Do you have a minute or two to talk with me now? I’ve been remiss about staying in touch with you, so I thought I'd give you a call, to find out if there's anything I can help you with. I really value your business. What can I do to get you back as a customer?"
Personal Appeal
Now – shut up and listen!
Connecting with Past Clients in New Ways
© 2011 Harvest Consulting LLC
Reward for complainingOffer them a 'welcome back' discount on their first order.
Possibly,“Next time you come in, please ask for me. I'd like to thank you in person for your assistance and make sure you get top- quality service from us and our best possible price."
Mass Appeal
© 2011 Harvest Consulting LLC
Flat direct mail with an offer. E-blast with an offer, ASI mailed.
A survey via postal mail, email or telephone.
New menu, product, catalogue, service. Social networking.
Surveying/Research With Lost Customers
© 2011 Harvest Consulting LLC
Lost Customer Analysis Project
Goal: Learn why InsightBusiness high speed internet services were not chosen over the local telephone company provider or other IT companies/providers
• Conducted a total of 65-75 telephone interviews with decision-makers
for companies that chose a competitive service
• Uncovered key drivers for purchase choice, with forced rankings
Surveying/Research With Lost Customers
© 2011 Harvest Consulting LLC
Lost Customer Analysis Project
Collected firmographics including:
• Type of business (e.g. industry/vertical market) • # of employees • # of computers • New to location? If not new, how long at location. • How long in business• Gathered sources of awareness for InsightBusiness and competitors• Determined measures of satisfaction and competitor loyalty• Defined quantifiable measures of sales performance and experience
with InsightBusiness’ sales force• Determined likelihood to switch services
Connecting with Past Clients in New Ways
© 2011 Harvest Consulting LLC
http://youtu.be/lKfBUUhFueI
Connecting with Past Clients in New Ways
© 2011 Harvest Consulting LLC
Time For Questions
Connecting with Past Clients in New Ways
© 2011 Harvest Consulting LLC
Thank You!