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!