This year, customer follow up will be different.

For many businesses, two things happen this time of year. One: You get a bunch of new customers. Two: Many of the new customers you acquired during this time last year “forget” to come back. The customers on the first list cost time and money to acquire. A fair amount of the people who “forget” to come back were never asked to. In other words, the business didnt invest the time / money for new customer follow up.

There is a problem with this concept. Being able to follow up requires having some contact info for your clients. These days, people are all too used to being nagged incessantly, mostly by mail and email. They’re also concerned about privacy and identity theft, which increases their reluctance to provide you with their contact info.

Why they think you’re a spammer

While it keeps the FCC and others “happy” to publish boilerplate privacy and security policies, most people either won’t read them or won’t care that you have them. Until given a reason to think otherwise, they will group your request with all the ones they’ve received before. This means that you will be thrown into the bucket with the companies who used their contact info inappropriately.

Inappropriate doesn’t necessarily mean illegal but the net impact on the business is roughly the same.

While many marketing people and business owners think otherwise, they don’t get to decide what is spam and what isn’t. The recipient does. The legal definition is irrelevant. No matter how good you think the message is, the recipient decides whether your messages are out of context, incessant, annoying or of no use. If your new customer follow up message matches any of those criteria, they will unsubscribe, opt out and might even stop doing business with you.

Even worse, they will group you with all the other spammers and be super hesitant to provide you with information in the future – even if you need it in order to serve them as they wish.

Poorly conceived customer follow up has a hard cost

Spammers are of the mind that they can send millions of emails for free. They have the luxury of not caring if they retain a “customer”. You do not. They have the luxury of not caring about the cost of a lead, much less the lifetime value of a customer. You do not.

When you send a message that feels to your customer like spam and it causes them to unsubscribe, there’s a hard cost associated with that. Think about what it cost to get that person to visit your store or website. We’re talking about labor, materials, time, consultants, employee salaries, service costs, etc. Every lead source has a cost and a ROI. The latter comes from the lifetime of that client relationship with your company.

When your message causes the client to unsubscribe, your lead cost rises and your ROI is likely to drop because the lifetime customer value of that person or business will probably stagnate.

Great, so how does my customer follow up avoid this?

Expectation management.

When they provide contact info these days, people have questions about the use of their contact info:

  • How it will be used.
  • How it will be shared (short answer: DON’T)
  • How it will be secured.

You have to be crystal clear (and succinct) when answering those questions. You have to adhere to what you said. Stepping outside the bounds of what you said you’d do, even once, breaks what little trust was granted when their contact info was shared.

Whether you feel it’s justified or not, people are hyper-sensitive to this. If you want to build a lifetime customer relationship with them, your behavior has to show it.

A suggestion

Everyone likes getting stuff on their birthday. It doesn’t have to be a (heaven forbid) 50% discount. You don’t need their birth date – which they will be protective of due to identity theft. You only need the month. During their birthday month, a simple offer or add-on that is special to them is all you need. Do you have any low cost, high perceived value services that could be given away with purchase during their birthday month? Make sure it’s clear to them that you will use this info to send them something of value during their birthday month – and stick to that.

The alternative is to keep paying more for leads. There are only so many people in your market. Nurture your clientele and show them you’re always thinking about how to help them. Win the long term game.

How to build a follow up system

Last time, we discussed why it’s important to consistently follow up with your clients. Consistency requires a system to manage the process, track the follow ups and remind you when they need to be done. Without a system, daily challenges can take over your day. Result: follow ups are forgotten.

After I posted, @BeckyMcCray suggested that I show how to build a follow up system, so let’s do that.

Identify your touch points

When you build a house, you determine a list of requirements before starting construction. You need to know how many bedrooms and bathrooms you want and whether there will be a basement and/or a garage. From there, a set of plans will guide the construction process and provide the information needed to create the materials list. A follow up system does the same for your follow ups.

To get started, make a list of all the follow up actions (ie: touch points) that you want your follow up system to manage. A touch point is an opportunity to inform, educate, placate, calm, reinforce, remind, warn, notify or advise.

Identifying touch points should be easy because you know your business. I’ll use one of my favorite examples: the small engine repair shop that sells, rents (perhaps) and services outdoor power equipment, like mowers, chain saws, leaf blowers and garden tillers.

Here’s my list:

  • Repair started
  • Repair delayed, parts ordered
  • Repair resumed, parts received
  • Repair completed
  • Repair delivery schedule needed
  • Repair delivery date/time reminder
  • Order placed
  • Order delayed
  • Order shipped
  • Order received
  • Order delivery schedule needed
  • Order delivery date/time reminder
  • Payment plan schedule – upon creation of plan
  • Payment due reminder – 10 days out, to allow for banking online bill pay processing time
  • Payment due reminder
  • Payment overdue
  • Automated payment reminder (payment will be charged to card soon)
  • Automated payment confirmation (payment charged to card)
  • Automated payment failed
  • Automated payment card expiration warning
  • Automated payment card expired
  • Rental return reminder – at beginning of rental
  • Rental return reminder – return due soon
  • Spring tune up for warm weather equipment (eg: mowers, blowers, tillers)
  • Fall tune up for cold weather equipment (eg: snowblowers, ground thawing gear)
  • Oil change reminder
  • Winter storage service offer
  • Winter storage service pickup scheduling needed (ie: in the late fall/early winter, to pick up your equipment for storage)
  • Winter storage service pickup date/time reminder
  • Winter storage delivery scheduling needed (ie: in the spring, to return your equipment to your home/business)
  • Winter storage delivery date/time reminder

My list is intentionally long to give you ideas, but don’t let it distract or discourage you. Keep your list simple by starting with the most important touch points on your list. Build the system around those, then add more over time.

Let’s build a follow up system

Now that we’ve mapped out the touch points, let’s build a system.

Group the follow ups on your list by what drives their use. For example, do they occur when acquiring a new client, when processing an order, or when selling/delivering a service? The type of activity that drives them will be reflected in the system you setup for that follow up.

For example, a service order for a mower might produce a follow up list that looks like this:

  • Repair pickup schedule needed
  • Repair pickup date/time reminder
  • Repair – Equipment picked up
  • Repair started
  • Repair delayed, parts ordered
  • Repair resumed, parts received
  • Repair completed
  • Repair delivery schedule needed
  • Repair delivery date/time reminder
  • Repair – Equipment delivered
  • Repair – Equipment picked up

Each item would have a place to mark that it was done, that a call (or some other form of contact) was made, who did it and the date/time it was done. Want more info? Add space for notes at each step.

The medium used to work and record these steps doesn’t matter at first. What matters is that you perform the steps and refine your system. As it gets more difficult to manage a low-tech system, you should seek out a technology-based solution. By that time, you’ll have a much easier time figuring out what will work for you and what won’t.

To reiterate why a system is important, look at the list of steps and consider how it makes your business look and your customer feel if a step or two never happens or if it’s delayed by days or weeks because “it fell through a crack”.

A system can all but eliminate the cracks.

A simple, high value tactic many miss

When people know that you help small businesses and you’ve had a newspaper column since 2007, everyone who has a bad (or even mildly annoying) experience at a business wants to tell you about their latest adventure in commerce.

Sometimes I hear about situations that really aren’t the fault of the business. Other times, the stories I hear make me wonder what the business owner(s), or their staff, is thinking. Of course, there are always two sides to any conflict, including the parts you never hear from either side.

Conflict isn’t number one

While you might think disagreements and conflicts are the number one think I hear about, that isn’t the case. Today’s topic isn’t really about conflict, but it can easily become a source of conflict if the affliction goes untreated.

The affliction? No follow up. Insufficient follow up often feels like no follow up. Prospects call or email and want to order something. Their call or email goes unanswered. They get frustrated. They call someone else in your market. You not only lose the sale, but you probably lose the possibility of ever having that person as a client.

Recently, I heard a story from someone who wanted to buy an item, called several vendors in that market, failed to get any follow up action or contacts by anyone in the market, then called a nationwide retailer with a local presence and didn’t even hear back from them. When they contacted the retailer, the retailer’s staff couldn’t provide any information about when the item would show up, much less if it was on its way. At this point, months have gone by without any progress, despite involving several vendors.

So, on a $500+ purchase, multiple vendors in the same market appear to be unwilling to do the work to close the sale. Normally, this situation would make me a bit suspicious of the would-be purchaser’s mood, but in this case, I know them well enough that this isn’t about the person wanting to buy.

Follow up. That’s all.

While this is a pretty unusual situation, the key for all of this is follow up. Return calls, emails, etc are a necessity to close a sale and keep a client. So why would vendors who routinely sell a $500-3000 item fail to do that? I can’t explain it. What I can do is tell you that this isn’t unusual. Lots of businesses fail to follow up enough, or fail to follow up at all.

Solo entrepreneurs fail to do it. Small companies fail to do it. Medium sized companies fail to do it. Large companies fail to do it. I can’t explain why, but I can tell you it is the number one source of frustration of the people I talk to. I hear it about salespeople, order departments, support and customer service as well as repair and service people.

Communicate. It’s that simple. It’s not a sign of weakness. It’s a sign you care about your business, much less about your clientele and their needs. It’s an incredibly easy and inexpensive way to make a client stick around and develop a loyalty to your business that’s incredibly hard to break. Think of it as an almost impregnable fence that your competition can’t get past to gain access to your customers. It’s not expensive or complicated.

Why doesn’t follow up happen?

Follow up doesn’t fail to happen because the business owner or their staff don’t want to take care of their clientele. Most of them do care. Sometimes it isn’t obvious that follow up isn’t happening, or the owners and staff don’t realize that some of the most important follow up is letting their clients know what’s going on even when nothing has changed.

The most common reason that follow up doesn’t happen is that there’s no system to manage it. Without a system to make sure it happens, today’s daily chaos takes over and those follow up tasks are soon forgotten.

When I say “system”, I mean a mechanism that makes sure that you follow up with clients, whether or not the system consists of paper, technology or something else.

The key is that you put together something that you and the staff will actually use because “I need to remember to call Joe” isn’t a system for anything other than disappointing Joe.

 

Why they don’t take your calls and don’t read your mail

The enlightened leader
Creative Commons License photo credit: seeveeaar

Do your customers and prospects let your calls go to voice mail?

Do they open your emails? If they were, you’d know (or should).

Think about why *you* let calls go to voice mail and why you ignore certain emails.

While you might be busy and decide to let calls go to voice mail, more often than not, when the caller id appears – you can’t think of a reason to bother taking the call.

Is relevance the reason?

Get relevant

Lets discuss a few examples.

I get my internet from a local cable provider. While they offer telephone and cable service, we don’t use those services. About twice a week, the “(cable vendor) Robocall department” (as the number is named on my phone) calls me to ask what TV, phone and internet service I use.

Every time they call, they ask the same question. They want to know what service I use for internet / TV / phone. Funny thing is, they’re calling to get information they already know. The caller never has any idea that I am already their customer.

It doesn’t have to be that way, even with an outside telemarketing firm. While I’d be unlikely to use one, that doesn’t mean they can’t be effective.

Most modern telemarketing firms are well beyond the stone age “dialing for dollars” mode of the past. They’re capable of taking a list you provide to them and filtering out existing customers from their call list. They are also capable – automatically, if you use a good one – of changing the script used by the caller so that they don’t seem totally uninformed.

If instead of “who do you use?” they asked something like “I see you use our internet, but not our cable…” and started the conversation there – that would at least be in context. Someone experienced enough to run a huge cable firm’s marketing and sales department should know this.

On the other hand, if you’re a small business owner, this makes perfect sense, but you might never have considered its impact.

If you send email or make cold (or even warm) calls, are the conversations pertinent to those customers? If they were, you might get a better response.

Share

I have a 401K plan. The vendor regularly emails me…..to sell me their 401K plan.

These emails are personalized – they know I have multiple accounts with them. Yet they send emails that talk as if they have no clue about our business relationship.

These things make your company (and you) look inept, or at the least, like the left hand has no idea what the right’s doing. It tells me your systems and the people running them are just going through the motions, wasting money that impacts other people’s livelihoods and perhaps driving up your prices.

Doing things this way:

  • Starts the conversation in the wrong direction. You have just seconds to get enough attention to get peoples’ attention. Don’t waste it by talking out of context.
  • Makes you look like you have no idea who I am. Not in the “Do you know who I am?” way, but the “Do you know / care that I’m already your customer?” way.
  • Leaves money on the table. Instead of trying to sell me the thing that clients like me buy after buying the last thing I bought from you, you’re trying to resell the thing I already have.
  • Wastes the opportunity to discuss something customers care about – the thing they already bought. IE: Rather than discussing how to get the most out of my 401K, they’re trying to sell one.

Your marketing systems should know your paying customers and engage them in THEIR context with you – not as total strangers.

Newsy

Recently a 79 year old national magazine announced they will become digital-only as of January 2013. This couldn’t have been a rash decision, given the contracts in place for printing and distribution, much less the internal changes/considerations necessary to make a change like this.

Yet a subscriber tells me she just got a renewal offer in the mail – and it didn’t say a word about the fact that it wouldn’t be in print.

When you communicate with your customers, be in context.  If 10% more people responded positively, what’s that worth?

Stop worrying about your commissions

Recently I was doing a little business with a large Microsoft distributor – a sale that required a license agreement.

Initially, the deal couldn’t be finalized because I use a PO Box for my business address. Trouble is, they “don’t allow” license agreements with a business that uses a PO Box.

Irony: That I can easily send money directly from my bank to the Caymans (or pretty much anywhere) from my iPhone, but heaven forbid that I receive paper business mail to a PO Box housed in a United States government building. But I digress.

When I provided a street address (one that cannot receive USPS mail – which the distributor/manufacturer will likely attempt to use for mail if history repeats), the salesperson’s autoresponder email came back to say he would be out for the next four days. It’s always nice to know when my rep is not going to be around and I appreciate the effort to inform, but it has absolutely nothing to do with the fulfillment of my order. We’ll get back to that.

Follow up

My reply included the requested info and a comment about PO Box use by rural businesses. The response? An automated order fulfillment email from the manufacturer. I received nothing from the distributor who fulfilled the sale or the salesperson. Salespeople – This is a missed opportunity to follow up and learn more about your new customer. It is not me encouraging you to deliver a prefab sales pitch.

The PO Box thing annoys both because my business uses one and because it’s patently stupid to decline to accept them. A fair number of businesses that I’ve interacted with over the years have claimed they can’t accept a PO Box as my company’s official business address.

Their party line is “companies who use a PO Box are more likely to commit fraud and PO Boxes are not secure“.

When I give them my “suite number” at the local UPS Store as my physical business address, I can see how that completely eliminates the possibility of fraud. As for “not secure”, given that a PO Box is in a Federal building under multiple locks and keys, it’s probably less secure than a street-side box that you can drive up to and whack with a ball bat.

Sarcasm aside, this isn’t about PO Boxes. They’re simply a good example of an excuse.

Excuse vs. Reason – What’s the difference?

The words uttered by a salesperson that most frustrate a customer tend to be excuses rather than reasons.

“Your salesperson is out of town till Tuesday” may be true, but it’s an excuse because that absence has nothing to do with order fulfillment/delivery. Fulfillment is a process owned by the business (not the salesperson) and is completed for the customer’s benefit, not the salesperson’s.

Can the salesperson pay attention/follow up to make sure nothing goes wrong? If they’re smart, yes. Should the process be dependent on the salesperson not being out of town? No way.

Some might say that “It’s his order, his relationship, he has to personally handle anything related to the sale in order to earn his commission.”

They’re wrong because they’re worried about the wrong thing. While you may not get the commission from Mary’s sale by helping her client when they call or email, the commission from her sale helps your employer as much as your sales do. Not helping that customer doesn’t hurt Mary, it hurts your employer.

Stop worrying about ownership and commission. Notice that I didn’t say stop worrying about commissions (plural) – I mean stop worrying about each individual one as if they are some combination of birthright and sovereignty.

Worry about the right thing

So what should you worry about? Helping your customers eliminate their worries. Make their lives easier.

Do so and you’ll have more and better customers who stick around. You’ll get more referrals. You might end up training/managing a group and get a commission from their sales. Then you get to focus on training them to take better care of the customer.

Never forget that the reason to make the sale is to get/keep a customer. Not the reverse.

Get customers and ignore them? No. Get, cultivate, care for and keep them.

Did You Know…That You Should Follow Up?

misty
Creative Commons License photo credit: antaean

If you look at the path a prospect follows on the way to becoming a customer and then, at their path as a new customer; youâ??ll see plenty of places where it would be valuable for them to receive an occasional tap on the shoulder.

With that tap comes just a little bit of info, but it won’t/shouldn’t always be a sales message, at least not explicitly.

Consider these 3 little words: â??Did you know?â?

They start sentences like these:

  • Did you knowâ?¦ that if you get stuck, we have 24 x 7 customer support lines?
  • Did you knowâ?¦ that 90% of businesses fail after a fire destroys their business – and much of that is because they are underinsured. Those who might have made it often donâ??t because they donâ??t have their current customer/order data backed up, which means that on fire day + 1, they have no idea who needs a follow up, who placed an order yesterday, etc. Using the automated backup feature in our software can save your business. Weâ??ll be happy to show you how it works.
  • Did you knowâ?¦ that many of our customers find our software’s dashboard feature motivational to them and their staff? Here’s a link to a video showing you how to turn it on.
  • Did you knowâ?¦ that we offer a 180 day money back guarantee? Thereâ??s simply no risk to putting our product/service to work for you.
  • Did you knowâ?¦ that we offer free online training videos that are broken down by function and only last 2-3 minutes? You can take a brief break, learn what you need to know right now and get back to work.

You get the idea.

Look at the typical timeline for a prospect.

Where do YOUR prospects need a little bit of assistance, a hand on the shoulder or a Did You Know?

After theyâ??ve bought, when do they need a little help? For customers youâ??ve had for months or years, are there new features or new things you do for your customers? Put each of these items in your follow up system and let them know when it is appropriate for each customer.

They can be emailed and blogged, but they should also go out in your printed newsletter.

You *do* have a printed monthly customers-only newsletter, right? 4 pages is enough. Seems like a little thing but itâ??ll never get ignored if itâ??s good.

All of these things put together will start to build a follow up system that no competitor will duplicate. And thatâ??s exactly what we want.

Literacy of a different sort

One of the things I’m always pushing clients to do is expand their education.

Naturally, that includes the education of their staff, if they have one.

This education expands well beyond your line of business, because there are valuable lessons from every industry.

Likewise, there are processes in almost every industry that you can learn from, modify to fit your needs and thus use in a completely unrelated business.

What I seldom mention is that you can’t let yourself think you’re so smart that you let your guard down.

While it was more than a decade ago, we’ve seen the same sort of situation lately.

While the Fool has a point, neither they nor I would suggest that literacy on any topic is a bad idea. Financial literacy is their reason to exist.

The bad stuff occurs when you stop doing what got you to the point of being literacy, or even highly literate.

Dancing with “who brung ya”

Another thing to watch out for as you educate yourself is that deciding (or just “forgetting”) to stop doing the stuff to communicate, support and enthrall customers.

No matter how smart you think you are, or really become, you still have to take care of customers. No matter how far ahead of the second place player you are, you still have to follow up and do the other things that got you to number one.

If you aren’t yet number one, you’ve gotta keep doing the things that keep you climbing, much less the things that the current number one is too lazy or sleepy to do.

Lazy? Sleepy? “Too smart?”

We’ve talked about lazy and sleepy plenty of times. I won’t belabor them.

When you get too smart… correction, when you THINK you’ve become too smart, bad things are almost certain to start happening. Even worse, if you really think you’re that smart, you might ignore a failure as an aberration rather than you losing your business mojo.

You make assumptions rather than testing the market, your software, your marketing, or that formula for Flubber.

You think that you’re “Too big to fail”.

Getting better

Focus on getting smarter, but also on getting better.

It’s not worth the time to get smarter if you don’t use what you learn. Think back over your year.

How many things have you done to make your business better? To make yourself better?

Not just reading what will make you better, but DOING it…

Look, even Tom Peters and Dan Kennedy have their bad days. Just the other day, Dan commented in his newsletter (hint…) that he had a bad day because he “only completed 11 of the 12 tasks he’d scheduled for the day.”

He called his day “Unsatisfactory.”

I hold myself to a pretty high standard, and like you, Tom and Dan, I fail myself as well.

The difference between most people and Dan is that 11 of 12 is a great day for most people. For that matter, 6 of 12 is probably a great day for most.

Looking at 11 of 12 as unsatisfactory from a “this was my plan, but this is what happened” point of view is what keeps someone as amazingly smart as Dan from getting sleepy about his business.

Overconfidence

The gist of the Motley Fool article is this, and I quote:

“In 1998, the hedge fund Long Term Capital Management, staffed thick with Ph.D.s and two Nobel laureates, exploded amid an almost incomprehensible amount of leverage. Behind the failure was raging overconfidence. “The young geniuses from academe felt they could do no wrong,” wrote Roger Lowenstein in the book When Genius Failed.”

Berkshire Hathaway CEO Warren Buffett said this about the firm profiled in the Motley Fool article:

“They probably have as high an average IQ as any sixteen people working together in one business in the country … just an incredible amount of intellect in that group. Now you combine that with the fact that those sixteen had extensive experience in the field they were operating in … in aggregate, the sixteen probably had 350 or 400 years of experience doing exactly what they were doing. And then you throw in the third factor: that most of them had virtually all of their very substantial net worths in the business … And essentially they went broke. That to me is absolutely fascinating.”

The EASY thing to do would be to dismiss anyone who is smart, or trying to get smarter, simply because this group of people royally screwed up. Of course, if you’re the type to think that way, you probably aren’t reading this.

I suggest you re-read that Buffett commet.

A final quote from the Fool article:

“LTCM is an example of financial education being overridden by a swamp of overconfidence, hubris, and a lack of common sense. Wall Street in general is another. The folks who ran Citigroup (NYSE: C) and AIG (NYSE: AIG) had plenty of financial education. But in general, they lacked the humility to realize the danger of what they were doing. One has to assume their top-notch pedigrees and financial educations contributed to that lack of humility.”

Like I said when we got started here…continue to educate yourself.

That *always* includes learning from someone else’s mistakes.

Make your automation personal, not just automatic

Automatic Caution Door
Creative Commons License photo credit: Zesmerelda

After requesting a beta invitation to a web-based service, I received the activation email.

*ONE* minute later, I got an email from the CEO asking how I liked the service. 

Careful there, Sparky. 

While I’d be the first to encourage such emails, you have to think about how – and particularly, when – you send them. 

It doesn’t make sense to send them 1 minute after sending an activation email unless you want to send the wrong signals.

IE: “I’m sending everyone the same email even though my email is worded otherwise” and “I don’t really want your feedback since you couldn’t possibly have any yet”. 

Neither one is really what the sender wants. 

It doesn’t make sense to send the emails until some period of time after the activation email has been clicked on, since they couldn’t have any feedback for you until they’ve activated the service and had at least a little bit of time to use it and see what it’s really like. 

You see the same thing in blogs where you can generate emails automatically the first time someone comments. Sounds great in theory, but if the email comes 20 seconds after you post the comment, it isn’t personal.

Instead of doing that – what if the automated email was sent to the blog owner, giving them time to check the commenter’s website, find out a little about them, much less actually read their comment – then a personal touch can be applied to the partly pre-written email thanking someone for their comment. 

That’s the kind of personal follow up that is appreciated – and it’s still mostly automatic.

There are some hacks to existing tools that auto-email first time commenters. If you use those tools, I suggest using the hacks. Keep it personal.

The value of follow up

Previously, we’ve talked about how my old software company did every-30-day follow ups with clients and why it was so valuable. If nothing else, it made up for things that we maybe didn’t do so well.

When I have conversations with business owners about following up, it often comes up that these things are a lot of work. They don’t mean the follow up itself, but the act of getting their staff to actually do it, much less getting them to remember to do it, and so on.

First of all, a follow up system has to become part of your system for doing business, just like the bubble wrap that you insist must be wrapped around that expensive English bone china egg coddler before shipment.

Your staff wouldn’t dream of shipping a fragile piece of china without bubble wrap, and if you train them properly and make it part of the way you do business – they also won’t dream of blowing off the follow up.

The other side of this is that it isn’t rocket science. You don’t need an expensive system to make this stuff happen. A system could be an extra, documented, managed step that you insert into your paper-driven process.

So what about the value?

As I mentioned yesterday, I had some suspension work done on the Suburban. This is the same place where I bought the tires that are on it.

In the 13 months since I bought those tires, I have yet to receive a phone call, postcard or email offering to check those tires for uneven wear (a sure sign that something else needs to be repaired, or that I’m too stupid to inflate my tires properly).

Likewise, I have yet to receive any sort of contact to check alignment, brakes, or even to rotate my tires.

I don’t receive a contact in the early winter when lots of car owners change out regular tires for studded ones (I don’t, but many people do). I don’t receive a contact in the spring when the studded ones come off and are replaced by regular ones.

Not only are these things that naturally bring people to that store, but they also are ideal inspection times. Swap out time is an ideal time to determine that the other tires you are switching to might need to be replaced.

All this non-contact despite the fact that this store rotates and does flat fixes for free (they appear to understand Cialdini). It’s fairly clear to me (because of other things they do and how they do them) that they want me to come back and buy tires there again.

There is a pile of opportunity to offer a little care for those tires, and while showing they are trying to help me get the most from them, possibly earn a little extra cash by finding something during various inspections. And maybe sell me new ones.

Doing the math

For my rig, new tires are a $500+ expense. If you have 1000 customers (and they probably do), at any one time, research shows that about 3% of them have an immediate need for whatever you sell.

That’s 30 sets of tires waiting to be bought any any one time. $15 grand. Is that worth a little follow up effort?

We also talked yesterday about the batteries and how a free inspection routine for ANY vehicle would increase sales as well as improve the relationship. You see this in quick lube shops, sometimes to the wrong extreme. That isn’t what I’m proposing.

If you see 12 people an hour in a 10 hour day, that’s 720 clients through the door per 6 day work week (remember, it’s a tire store). If only 1 client per day needs a new battery (for example), and they buy a $45 battery, the free inspection will result in $14,040 in battery sales.

And that’s just batteries. Who knows what other sales you’ll make and what safety issues you’ll find.

Sure, maybe most of those people will buy a battery from you anyhow, but your inspections will have them buying before they are stranded somewhere, late for work, late for an appointment, stuck in bad winter weather, unable to drive their pregnant wife to the hospital and so on.

And you were the one who caught the fact that the battery was about to fail.

Look at your numbers like we did here and put a value on them. I suspect you’ll find a nice green reason to make it a part of your way of doing business.

It doesn’t matter if you don’t sell tires and batteries. You can use this too.