| May | 2010 Memorial Weekend Edition
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Successful Contractors Today
Greetings!
Just did a dealer meeting and met a couple of contractors
who have done a good job this last
year. In fact, their business is up
significantly from last year. I asked
them both what they did differently this last year, how did they improve sales
and profits this in this sort of economy.
In a state that has been hit by real estate problems (like who hasn't?),
they got new business from new customers and new business from old
customers. So how did they do it?
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First up,One dealer had started doing newsletters to his
existing customers. He actually brought
it all in house, got a printing system that would allow him to input a mailing
list, send out letters to any list he wants.
So he sent out letters to his existing customers several times a year,
and he got responses almost immediately.
In fact, he said he would get calls from customers telling him it was a
great newsletter. He would ask how he
could be of service, they would say they
didn't need anything, just really liked the newsletter. OK, so did not happen that much, many would call in to schedule service, ask
questions about new systems, accessories, all kinds of stuff.
Second thing he did was commit to a training program for every
employee. Install, service, sales, even
the office staff got regular sessions on how to work with customers, what to
say, not to say. He replaced his yellow
pages advertising with pay-per-click through his web site. He also spent some money to improve the
website presence, made it interactive, made it user friendly. Put in coupons, FAQs, videos, things that
people want to see.
He also worked on system pricing, putting together system
pricing on entry level systems as well as the highest efficiency units they
wanted to sell. Gave the customers more
options, and did not cannibalize the high end sales, just added entry
level. So business grew, profits are up,
everyone is happy. Second dealer, Same meeting, had great results, sales were
up 25% over 2008. He credited it to
several ideas. First, he had put
together a set of procedures for every part of the business. Dispatch, installs, sales, service calls,
everything. He micro-managed each
customer transaction, to improve the results and try to avoid the mistakes that
happen when they are doing what they do on a daily basis.
He spent lots of time working on referrals, gave them his
full attention last year. His installers
started a program where they set a hand-written note to each install customer,
thanking them for the chance to be involved.
That worked so well, he now sends a hand-written note to each service
customer over a certain amount, started at $1000, then moved to $750. Referrals are at an all time high, techs are
setting leads at record rates. Possibly
due to the twice weekly training sessions he conducts. Maintenance agreements are also getting a new
focus, paying attention to one of the most important sales opportunities on the
planet. He also tracks each aspect of
the customer experience: close rate, average ticket, call-backs, leads set and
sold, everything. Posts the results
where everybody can see them, an open book.
He does
a newsletter, quarterly, to each of his customers. He sends them out via e-mail, gets a e-mail
address for each customer, keeps in touch the electronic way. He calls random customers just to see how
everything went, be sure the company did what they were supposed to do. He is not sure what he will do different this
year, but is working on several things today.
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Third example,
A company that has taken electronic
communication with customers to a new level.
They have just about stopped all yellow page advertising, and have paid
a lot of attention to the internet. They
are on Twitter, You-tube, FaceBook, all kinds of social media. They have posted their commercials on these
sites, as well as testimonials, photos of jobs and customers, anything a person
would like to see concerning a company they are thinking of doing business
with. The good news about social media,
it costs almost nothing. The son of the
president is doing the FaceBook pages, they are free. Yup, free.
They are using pay-per-click as well, paying for clicks on their website
when they want, customized for the neighborhoods they want. It can be turned on or off almost instantly.
As an aside, they have ordered advertising on FaceBook, and
it can be customized for pay for results only.
You pay nothing until they click on your page. Lots of options, and more coming.
On Facebook, you set up your company page and ask people to "like" you. The old way was to "be a fan", now it is
"like". Once you have people who like
you (any number) , any posts that you make to your wall, the general posting
area on your Facebook page, appears on their wall too. So you have instant communication with the
people who like your company. You could
offer service specials, discount on the next 40 people who call in for service,
all kinds of things.
So my point, quit doing the same old stuff, trying to get
different results. Do something new this
year, maybe something that you have never done before. The fun thing about social networking is that
it is easy to get into and easy to get out of, low cost, and almost instant
results. And that is where a bunch of
folks are camping out this year. So you
should too. Contact me if you want some
social networking ideas, I see a lot that work, some that don't.
Thanks
for listening, we'll talk later. --------------------------------------------------------------- JIM HINSHAW  President Sales Improvement Professionals Inc. Phone: (602) 369-8097 Email: JimHinshaw@SipTraining.com Web: www.SipTraining.com
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Memorial Day
The day we set
aside to remember US men and women who died while in military service.
I just read an article in Time magazine about T.A.P.S., Tragedy Assistance Program for Survivors. I learned what the founder, Bonnie
Carroll says: death ends a life, not a relationship. How do you handle
the grief? Honor the life, and learn to make a new one. She founded
TAPS in 1994 after her husband Brigadier General Tom Carroll died in a plane
crash. The group offers peer mentoring, grief counseling, social support,
and for five days over Memorial Day weekend, there is a gathering in
Washington, DC. Families attend workshops, kids go to a Good Grief camp,
where they are paired up with counselors and mentors, take tours, write in
journals, lots of activities. They visit the Tomb of the Unknowns where
they lay wreaths made of their handprints, it is a weekend they will remember
all their lives. This Memorial Day weekend, flags will be flying all across the
land. Most of us have not had the experience of someone handing us a
folded flag, but if you know someone close who has had to bear that
presentation. Remember them this weekend.
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