May 12, 2009
Follow up is crucial in creating relationships with your clients and prospects. The number one reason business owners and sales people give me when I ask them why they don’t follow up is “I don’t have time”. When I hear this I think to myself you can’t afford not to have time! I also think the excuse of “I don’t have time” is really the business owner or sales professional self sabotaging their own success. I have discussed many systems and follow up tools to help you automate the follow up process which makes the excuse of not having time seem crazy.
Think about this… If you are a business owner or sales professional how many new clients did you receive last year? Is it 10, 50, or 100 new clients? Now approximate the total sales or commissions you received from each client and divide this by the total number of new clients from last year. What is the number or average value of each client? Is it $200, $2,000, $20,000, or $200,000 in sales or commissions?
It does not matter what the number is. What is important is that you understand what the value of one client or prospect is to you. For example let’s say the value of one client is $2,000. The next time you think to yourself I don’t have the time to follow up realize this thought can be a potential loss of $2,000! If you retain your average client for 5 years this would be $10,000!
The number one reason you will lose a customer is not from price or a competitor knocking on their door every week. The number one reason is the feeling of indifference. Clients start looking elsewhere when they feel unappreciated. This can easily be solved by having a simple follow up system in place. Imagine if you implemented a system that could not only insure your clients felt appreciated but would also increase the lifetime value of each customer. Increasing the life of your customers by just one year or more could make a huge difference in your business.
I encourage you to leave a comment and let me know what your follow up system is. Are you following up with email, newsletters, post cards, greeting cards, phone calls? What are you doing to keep strong relationships with your customers and clients? If you need help creating a follow up system or just would like me to evaluate your follow up system please contact me.