OPINION: Many businesses have a costly lost sales problem and waste a fortune on repeat and referral sales every month.
A few years ago I had a problem with my furniture. I had two living rooms which looked tired and old. They looked shabby and probably needed to be replaced.
However, a friend referred me to a company that cleaned living rooms. They raved about how they used this business and their furniture was transformed. In fact, their old salons looked brand new.
It looked pretty good, so I spent around $ 400 with this cleaning company, and the results were amazing. My living rooms suddenly looked fresh and new.
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I didn’t have to spend a lot more money on new furniture. I could still enjoy the comfort of our old furniture which now looked new.
So what is the problem?
Problem is, I never heard from this cleaning company so for the next 12 months I forgot about it.
During that time, I could easily have passed on a dozen good references. That’s thousands of dollars in easy referral sales the company didn’t make.
Let’s be careful and say I could have given $ 800 in easy referral sales in one year and say 50 other clients could have done the same. That’s $ 40,000 in easy referral sales that this cleaning company didn’t get.
The big problem is that I don’t regularly remember this company and a lot of companies have the same problem.
They do a good job and their customers appreciate them, but their customers and key contacts don’t regularly remember their business, causing the business to lose a fortune in repeat sales and referrals.
Unfortunately, most businesses don’t even realize they have this sales problem.
So here is my first marketing recommendation
Roughly figure out how many repeat sales or easy referrals you don’t get because you’re not in regular contact with people.
Be careful and assume this is between 15-25% of your current sales.
So if your sales are $ 100,000 per year, you are probably still losing $ 15,000 to $ 25,000 in repeat sales and easy referrals.
If your sales are $ 500,000 per year, you are probably losing another $ 75,000 to $ 125,000 in repeat sales and easy referrals.
How to stop losing those repeat sales and easy referrals
AVSIT (Add Value Stay in Touch) Marketing means that you stay in touch with three groups of people on a regular basis.
The first group is made up of your past and present clients and clients.
The second group is made up of potential customers who have contacted your business but have not yet spent any money.
Group Three is made up of key âcenters of influenceâ who can potentially refer large numbers of new people to your business on a regular basis.
Now the key to AVSIT Marketing is to always add value, every time you come into contact with people from these three groups.
So your goal is to leave them looking better every time you communicate with them.
AVSIT Marketing is very simple to use and works like magic to create raving raving fans and a huge amount of repeat sales and easy referrals.
I interviewed a real estate sales professional called Tim a while back and he told me that 66% of his revenue each month comes directly from referrals.
He gets all of these referrals using a super simple (but incredibly effective) AVSIT marketing program.
It has a small database of only 250 people. And every month, he sends these people a one-page postal letter and a four-paragraph email. (He also phones each person and speaks to them briefly three times a year.)
In his one-page letter he says hello and mentions a local business he has used recently and can highly recommend. It could be a great cafe, a great shopkeeper, a helpful professional, etc. It gives the full contact details of this business and explains exactly why this business is so good.
He then sends a short email the following week which is the key to his AVSIT marketing program. The email says something like this:
âHi John, I just wanted to let you know that the XYZ company that I mentioned last week in my letter is now popular with some of my clients. Quite a few have tried it and like it very much. I also want to take a moment to personally thank Fred Smith, Jane Evans, George White, Mary Brown, and Elizabeth Green for recommending me over the past few months. I really appreciate their thoughtfulness. Have a great month and if you have any friends or colleagues interested in buying or selling a home I would be happy to help. Yours truly. Tim. ‘
He adds great value to his database by recommending a good local business every month. He then adds more value by publicly thanking in his email every person who gave him a recommendation in the past month.
And every month he does the same. He mentions a company he can recommend in a short mailing letter. And he mentions the same company and thanks everyone who gave him a recommendation in a short email.
He does this month after month and gets 66% of his turnover each month in the form of recommendation or loyalty.
You will notice that he uses both email and good old postal mail as part of his AVSIT marketing program.
And I recommend that you use different ways of communicating with the three groups of people that I recommend that you use AVSIT Marketing with.
AVSIT Marketing takes three to six months to start working consistently, so it’s not a quick sales solution.
However, once it’s set up and working well, you’ll start to make repeat sales and referrals very easy.
And you will go a long way towards eliminating your lost sales problem.
Graham McGregor is a marketing consultant. You can get his free marketing guide “The Selling Solution Plan B” at www.simplemarketinganswers.com.
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