Never Forget a Customer
A Year Round Promotion
Idea
If you have attended a Jack
Rice seminar at the SHOT show in the past few years, you have
undoubtedly heard Jack remind you, "Never forget a customer,
never let a customer forget you." Jack will then tell you
the story of his years in retailing in which they had a unique
job assignment for each new sales person as they joined the Rice
family staff.
The new sales person was given
a list of customers, none of which had shopped in the store in the
past six months. The assignment given was to contact ten of these
past customers every day. The conversation would go something like
this, "Hello,
Mr. Smith. This is John Doe calling from the Rice Retail Store.
I have recently joined the staff here at Rice Retail Store, and
noticed from our files that you had not shopped with us in the
last six months. My purpose in calling today was to first ask
how the item you bought from us last winter is working for you.
My other purpose is to introduce myself and invite you to stop
by and introduce yourself the next time you are near our store.
I look forward to meeting you."
What good did this conversation
do? Jack reports that within two weeks the new employee has introduced
himself to 100 people that have previously shopped at the Rice
Retail Store. Of the 100 people, Jack reports one or two will
let you know they are an unhappy customer. While no one likes
to have an unhappy customer, this situation allows you the opportunity to
resolve any previous problems and win back the customer. Of
the remaining 98 customers, Jack reports about 16 will be in your
store within the next two weeks.
Is this a good promotion? Compare
it to your traditional advertising in the media. If your local
newspaper goes to 25,000 homes, and 16% of the readers would respond,
you would have 4,000 people in your store within a few days; not
a likely scenario.
What makes this promotion of
Jack's into a great promotion is the prequalifier - all of the people
called have already shopped in the Rice Retail Store. Other studies
provide supporting
evidence to what Jack and his family already knew; it will cost
a business approximately $20 to gain a new customer,
while it will cost only $4 to retain a current customer.
How
can you and your business utilize what Jack and others have already
learned? It begins with tracking all of the customers you do business
with. Because you are selling products that require customers
to provide identification, you already have access to their information
that can help you retain these customers.
One of the best time
investments you could make, in addition to the one already utilized
by Jack Rice, would be to track the name, address, phone, birth
date and information about their purchase. In a business owned
by this writer, we tracked the sizeable purchases by customers
for more than 30 years. With this information, which we were tracking
for warranty purposes, we were able to create a mailing list for
our newsletter.
We also gained new names for
our mailing list by offering a birthday special. With a large sign
hung in the middle of the store, any customer producing identification
showing the day they were in our store as their birthday would receive
a special gift. As we then added their information to our list,
we then would send a birthday card to them each following year as
a reminder to stop in for their birthday gift.
If you were to duplicate
our newsletter effort, you could be telling them about new products,
changes in the hunting and fishing laws, information about what
your customers had caught or killed, and stories about each of the
employees working in your shop. Having a newsletter today is even
easier to create as you can find high school students with the creative
skills, and necessary computers to complete the job in only a couple
of hours.
Your newsletter also provides
you the opportunity to create "newsletter only
coupons" so that customers are asking to be added to your
mailing list. As our list grew, and response increased, we were
able to have our vendors underwrite the cost of the newsletter
and provide us with great promotional prices for our coupons.
While we are not suggesting
you discontinue your traditional forms of advertising, promoting
to your current base of customers should produce the greatest return
on your advertising dollar. There are many other ways you can promote
to this group. Some of the best require your efforts to be thinking
and acting ahead of the traditional time frame.
Look on the calendar
to see when you traditionally sell the most fishing equipment, or
when the hunting season first opens. Shortly before these days,
your customers will be taking their equipment from the storage area
and making sure it is ready for usage. This is an opportune time
to send your customers a card promoting a pre-season cleaning and
calibration.
Consider holding a preseason
event in your business one evening, inviting representatives from
your vendors to be present. Have some refreshments and unadvertised
specials, and you have the making for a great sale. Of course, every
person attending this event should be on your mailing list by the
end of the evening.
What else can you do? Take a
look at these unique ways of year round promoting offered by other
dealers around the country.
Our first dealer strives to
make a walking billboard out of every customer. Each day he has
a drawing for a free t-shirt which has information about his business
imprinted on the back and "It's
a shooting sport thing, we'll help you understand" on the
front. The humorous saying on the t-shirt makes it a desirable
item. By emptying the barrel containing names each week, customers
must return to the business each week to reregister.
Another
dealer is often enjoying a free meal with the local Optimists,
Kiwanis, Rotary, or other service groups. While not a professional
speaker, he is provided with a 15 minute opportunity to speak
on the sport of shooting and hunting. As this is a controversial
subject, he receives many invitations to speak. During his presentations,
he talks of education and gun safety. While he does not promote
his store, he does leave each attendee with his business card
an invitation to contact him to answer questions, and a free round of target shooting at his range. Many people accept these
offers, and from this he has even had the opportunity to be interviewed
on local radio and television shows. Now the local media considers
him to be a source of knowledge and information.
Another dealer
starts with young customers by participating in the school system
where there are two events each year utilizing volunteers. Each
November there is the annual teach-in day when he volunteers to
spend a day in a local middle or high school. During his classes,
he speaks not only on gun safety, but also on the operation of
a retail store.
The second event, held on Ground
Hog day, allows students participating in the distributive education
program (DECA) to shadow the owner and other key employees for a
day.
Perhaps one of the most unique,
and free promotions, is the dealer who utilizes the Susan B. Anthony
coin dollar and a two dollar bill. When applicable, these two unique
currencies are given as change to a customer.
The dealer knew his
promotion was working as he stood in line at a local grocery store
and heard the cashier say to the customer in front of him, "I see you shop at Bobby's
Gun Shop since you have one of those two dollar bills".
Another dealer, knowing he had
many frugal customers, made arrangements with the local utility
companies to become a bill payment center. Now his customers can
save their 33 cent stamp by paying their electric, water, gas, sewer
and trash pickup bills at his business. Of course the drop off point
for these payments is in the rear of his store, so customers have
to walk through the store seeing all his merchandise before they
drop off their payment.
One last unique promotion is
mentioned. One which eventually became a very profitable department
for the dealer. On the opening week of hunting season, the dealer
made a deal with a local grocery store to create a small delicatessen
in his store. As he opened at 4am every day this week, he drew a
sizeable crowd who came in for last minute supplies and a hot cup
of coffee.
With the temporary addition
of fresh sandwiches, he increased his sales substantially for the
week. From this small beginning, he decided to add the deli on a
full time basis. Sales were strong, and often the profit from a
food order was more than the profit on a box of shells.
Each of
the dealers we have mentioned have taken Jack's words to heart and
found ways to apply them to their business. By creating promotions,
these dealers also prove another business adage to be true: "If you are unique, you have no competition".
It is this type of year round
promoting, and attention to the customers that will provide other
dealers with the opportunity to hear of strong and profitable dealers
such as yourself at the next SHOT show.