Surprising Statistics Showing Why Your Customers Stop Buying

And How Follow Up Can Save Them!

Depending on the type of business or service you may not even know if or when you lose a customer. Studies show less than 4% of your customers will tell you if they are unhappy so depending on your follow up process you may never know if you have a customer on the fence.

Here are the statistics on why businesses lose customers:

1% Die

3% Move away

5% Form other relationships

9% Leave for competitive reasons

14% Due to product dissatisfaction

68% Stop buying your product or service because of an attitude or feeling of indifference towards them by one or more persons representing the company.

 

How can follow up save the 68% of the customers leaving? It’s about preventing the attitude or feeling of indifference. The following are 4 sales follow up steps to insure you don’t lose customers and avoid the 68% trap:

  1. A simple “thank you for your business” when the sale is complete.
  2. Send thank you cards to welcome new customers or sales.
  3. Create an email thanking your customer again for their business and let them know where they can go for additional service and support if needed.
  4. Determine the customer’s next need and remind them of your company or service by email, phone, or direct mail.

 

The major point of these steps is to insure your customers feel appreciated. Customers who feel appreciated will typically not fall into the 68%. And if by chance your customer had a less than satisfactory experience in their last transaction these steps will help turn the tide back in your favor.

To learn more about creating a follow up system make sure you to read Creating a Follow Up Strategy where I discuss follow up strategies for existing customers.

Shocking Sales Statistics as It Relates to Follow Up

Truly shocking sales statistics as it relates to your  follow up process:

48% of sales people never follow up with a prospect
25% of sales people make a second contact and stop
12% of sales people make more than three contacts

2% of sales are made on the first contact
3% of sales are made on the second contact
5% of sales are made on the third contact
10% of sales are made on the fourth contact
80% of sales are made on the fifth to twelfth contact

Creating and using a follow up system is a guaranteed way to grow your business.  In fact with less than 52% of all sales people following up with their prospects you will not only grow your business but you will stand out amongst your peers.  And remember 80% of sales are made in the fifth to twelfth contact if you are in a market with heavy competition you literally eliminate your competitors by simply following up.

To learn more about creating a follow up system make sure you to read Creating a Follow Up Strategy where I discuss follow up strategies for existing customers.

Sending Holiday Cards to Your Customers is a Waste of Time!

Did I get your attention?  You only have a few days left to get this task done.  Are you are one of the many business owners or sales professionals who still have this task on your list?  You may even have a stack of holiday cards sitting on your desk ready to go.  But at some point in the past month or most likely many times you decided to put it off, wait until tomorrow, or maybe take care of writing and sending your holiday greeting cards over one of the past weekends.

And now you find yourself exactly where you don’t want to be, 15 days before the big holiday, no holiday greeting Holiday-cards-assortmentcards in the mail.  You have a decision to make…  Do you stop everything and send those holiday cards out or do you just forget about it?

The answer? STOP EVERYTHING AND GET IT DONE NOW! This may seem a bit crazy or even bias because you know I am a big SendOutCards user and often promote using SendOutCards on Follow Up Success.  Card sending is an important step in your follow up process and holiday card sending is almost at the top.

Here are my top three reasons why you should stop everything and send out your holiday greeting cards now:

  1. Appreciating your customers and prospects – Every single one of your customers enjoys being appreciated and the holidays is a great time to say thank you for the past business you have received.  Prospects can easily be turned into customers by simply saying thank you for learning more about you and your business while wishing for them a great holiday with family and friends.
  2. Reestablishing the business relationship – One of my goals for 2010 is to create stronger relationships with my customers and prospects.  By sending holiday cards I will reestablish past relationships that I may have let slip through the cracks.  This is important when you reach out to past customers or prospects in the New Year as you will have recent contact.
  3. Top of Mind Awareness – This is the big one!  Creating top of mind awareness with your customers and prospects when they are surrounded by their closest friends and family is an essential step in your follow up and referral strategy.  If you are top of mind with your customer or prospect they are more likely to bring you and your business up in conversation or think about you for a potential referral.

Hopefully I have encouraged you to take action!  Maybe, you have already picked up that box of holiday cards from your desk or floor and have starting filling them out.  Possibly, you have too many cards to send and feel hopeless!  If you are feeling hopeless SendOutCards would be the best gift to give yourself this holiday season!  With my help within a few hours you can have all of your holiday cards in the mail each personalized with your message.  To learn more about SendOutCards or to set up your account visit my Follow Up Tools page or contact me.  I am more than happy to help you through this process!

Whether you use SendOutCards, go buy cards from the store, or use the cards you already have, just get it done!  Stop everything and do this now!  I promise you it’s worth the time.

Do you have great business success stories from sending cards?  Please tell us all about it by leaving a comment!

John Assaraf on the Power of Why

This week I had the great opportunity to meet will John Assaraf to discuss the Global Hug Tour, a great new cause inspired by Gail Goodwin from Inspire Me Today.  The purpose of the meeting was to discuss how John and his company One Coach might play a role in the tour.

During our meeting we had a conversation about the why behind the Global Hug Tour.  John was very passionate about having a strong why.  If your why is strong enough then the how will become clear.  The Global Hug Tour is a huge project with many moving parts which seem to be growing bigger with each day.  The important part of this project is everything is coming together.  Because the why is so strong it allows the how to truly present itself in the form of people stepping up to play a role, people buying hugs to support the tour, and both private and corporate sponsors taking a big interest in supporting the tour.

Bringing this back to follow up…  How does having a great why help you in follow up?  Follow up is one of those things we all know we should do!  Having a great why will help you take the action steps like following up to achieve your desired goal.  Your goal might be additional sales, revenue, customers, or referrals, whatever your goal is make sure you have a powerful why to keep you on track!

For anyone who may not know, John Assaraf is the founder of One Coach, was in the wildly successful movie The Secret and his current book The Answer: Grow Any Business, Achieve Financial Freedom, and Live an Extraordinary Life is a New York Times Best Seller.

LinkedIn: Great Follow Up Tool or Complete Waste of Time?

One simple question I ask every new contact at some point during our first meeting…  So are you on LinkedIn?  The answer to this question can be very surprising!  I have heard everything from “No, Yes, What is LinkedIn?, LinkedIn?  What a complete waste of time!, I think I am on LinkedIn, I get invites but just ignore them, or I am on LinkedIn but don’t know how to use it.”

So is LinkedIn one of the most powerful sales and follow up tools available or is it just a complete waste of time?  I know for myself LinkedIn has proven to be a very powerful tool for connecting to new prospects, passing referrals, and keeping top of mind with clients and prospects.

The opportunities on LinkedIn are extensive!  In fact I just wrote a post on Square Martini Media titled 7 Top Reasons LinkedIn is a Must Have for Your Business.  This is a must read article to learn why you should be using LinkedIn!

So what are you waiting for?  Set up a LinkedIn account or find your password and get ready to learn some simple ideas to help you attract more clients and increase your sales using LinkedIn!  Over the next few weeks I will going over the 7 Top Reasons LinkedIn is a Must Have for Your Business.  When you find that password or set up your new account make sure to invite me to your network!

Are you a Gary Vaynerchuk?

Have you ever met someone who is filled with passion and enthusiasm?  Passionate about their company, passionate about their job, passionate about their relationship,  or possibly passionate about their cause…  I mean real passion!  So much passion and enthusiasm you might think it’s too much!  This reminds me of one of the people I followed up with from LinkedIn this week.  Lisa Marshall a communication specialist, speaker, and at one time accused of being too passionate!  Lisa’s thoughts on this… “It is impossible to be too passionate”!  I have to agree with her!  Have you ever seen or heard Gary Vaynerchuk speak?  Did you have the thought “I wish I was as passionate as Gary Vaynerchuk”?  View a portion of this video with Gary Vaynerchuk speaking at Web 2.0 Expo this year.

Do you see the passion coming from Gary?  Do you feel his enthusiasm for what he is doing?  Are you thinking to yourself “I wish I was this passionate about something”?  The thought in your mind should not be I wish I was… It should be why not?  Why not live with the same passion and enthusiasm that Gary does?  What is stopping you from doing this?  The difference between living and believing with passion versus not is so dramatic!  People who have passion and enthusiasm are like magnets.  People want to be around passionate people!

Many times I have been told to tone down my passion and enthusiasm…  I admit at times I have thought this was some kind of flaw and for years I would always keep myself in check.  Now I realize this is one of my biggest assets.  I love to get behind something I truly believe in with passion.  Lots of passion!  You can be passionate about your job, company, product, spouse, or your favorite cause.  Find something in your life to be passionate about and then share with those around you.

So my last thought to you is if you have ever thought “I wish I could be as passionate as (fill in the blank), why not start now…  Passion is something you can turn on and turn off..  Passion is a love for what you are doing or what you believe in.  Passion is the one thing that will push you forward and keep you going, passion insures you reach your end goal.  Passion is one of the elements of those who achieve greatness and those who do not.  Passion is in you…  It’s in all of us…  We just need to recognize it, feel it, and let it run through us.

Top 10 List of Books To Help Your Clients Kickoff a Fabulous 2009

So here we find ourselves past the holiday season.   We now have a great opportunity to make a positive impression on our top clients and referral sources!  Sending books to top clients and referral sources is one of the most memorable follow up strategies I use. It’s creative, different, and is just not done enough!  The following are my Top 10 books to send to a business owner or top sales professional for 2009.  In choosing this selection I found myself thinking of the many types of clients and referral sources i have.  This selection should include a great title for any possible business owner or sales professional which may be on your list.

#1 The Greatest Salesman in the World by Og Mandino

“At last!  A book on sales and salesmanship that can be read and enjoyed by veteran and recruit alike!  I have just completed The Greatest Salesman in the World for the second time-it was too good for just one reading-and in all sincerity, I say that it is the most readable, most constructive and most useful instrument for the teaching of sales as a profession that I have ever read.” F.W.Errigo, Manager U.S. Sales Training Parke, Davis & Company

#2 Think and Grow Rich by Napoleon Hill
“At American billionaire Andrew Carnegie’s bidding, Hill studied the characteristics of these achievers and developed 15 “laws” of success intended to be applied by anybody to achieve success. Think and Grow Rich! condenses these laws further and provides the reader with 13 principles in the form of a philosophy of personal achievement.” Wikipedia

#3 Rich Dad, Poor Dad by Robert Kiyosaki
“Rich Dad Poor Dad is a starting point for anyone looking to gain control of their financial future.” USA Today

#4 The Tipping Point by Malcolm Gladwell
“Fascinating enough for the general reader, Gladwell’s work is a particular boon for businesspeople looking for inspiration on how to top their own ideas into popular crazes.” Publishers Weekly

#5 The 8th Habit by Stephen Covey
“An absolute must-read for aspiring business executives who want to significantly increase their personal effectiveness in the workplace and at home.  Covey has created a brilliant blueprint for both career and personal success in the new millennium.”  Douglas Conant, President and CEO, Campbell Soup Co.

#6 Tribes by Seth Godin

“Tribes is a must read for all of us.  It’s up to each one of us to lead in today’s new kind of world.”  Bill Bradley, Former U.S. senator  Tribes is one of my favorite reads of 2008!  It’s is truly inspiring, showing the value and simplicity of becoming a leader.  Keep an eye out for my future post on Tribes.

#7 Beach Money by Jordan Adler

“If you plan on building a large successful network, I recommend reading Beach Money.  Jordan’s stories are inspiring and each one has something that you can put to use immediately.”  Ivan Misner, NY Times Best-selling Author and Founder of BNI

#8 E-Myth by Michael Gerber
“The mythic and often disastrous assumption is that people who are experts regarding technical details of a product or service will also be experts at running that sort of business.  Many small business owners eventually realize that just as they had to learn the technical skills, they have to learn business growth and management skills.”  Wikipedia

#9 Excuse Me, Your Life is Waiting by Lynn Grabhorn

“I can’t believe it.  In the three months since reading this, I’ve almost doubled my sales and settled a couple of long-standing problem in my marriage.  I’m recommending this book to management.” O. T., Regional Sales Manager

#10 The Four Hour Work Week by Timothy Ferriss
“Stunning and amazing, from mini-retirements to outsourcing your life, it’s all here.  Whether you’re a wage slave or Fortune 500 CEO, this book will change your life!”  Phil Town, #1 New Your Times bestselling author

#11 101 Perfect Chocolate Chip Cookies by Gwen Steege
Number 11 in my top 10 just to check and see if you are still reading!  Honestly the best gift and easiest way to bribe me is with homemade chocolate chip cookies!  Who can resist that?

I could have easily listed 20 more books in this top 10 so if I am missing one you think should be on the list please leave a comment with your suggestion and why you think the book should be on the list.  The more selection and recommendations the better!

In writing this post I kept thinking back to my corporate career.  During the holidays I would receive well over 20 boxes of candies from clients and vendors.  The candy made no lasting impression due to the amount I received.  A book is completely different!  If I received a book during the first few weeks of the New Year it would stand out amongst all the previous gifts.  I would remember who sent the book to me and it would positively affect our relationship.

Do You Still Need to Send Your Holiday Cards?

You still have time to get this important follow up strategy completed!  However at this point you are a bit limited on how you can get this done.  One way is to make a mad rush to the store and buy boxes of holiday cards only to spend today and most of the weekend writing them out.  I must say the thought of you actually doing thing is making me tired!  I know as I have done this so many times in the past!  I am sure if you have not yet sent your holiday cards you know you need to and have just been procrastinating to the very last minute!

Don’t worry!  You have another option available to you which will allow you to send all of your holiday cards within a few hours.  Whether you need to send 100 or 2,000 holiday cards you still have time to get it done!  It all starts with having access to a powerful system called SendOutCards!

SendOutCards is a very simple online tool which allows you to upload all of your addresses, choose a holiday card from over 1,000 choices, type out a nice holiday message, and with a few clicks send to your entire database!  Your cards are then printed, stuffed in envelopes with a real stamp, and placed in the mail the next day! The best part is you can actually send the same holiday card to 500 customers and prospects and then go back and write additional messages to your top 25 customers and prospects to make them more personal.  This means no customer or prospect is forgotten!  SendOutCards also allows you to add gifts to your cards!  So if you should be sending a little something extra to those top clients you are covered!  To learn more about this tool visit SendOutCards and click on the top banner to send a free card and get the tour.

There is just no other service on the market that can do this with such ease!  I have used this service for the past few years for holiday cards as well as all the different business greeting card occasions with great success.  This is not just a holiday card tool!

If you happen to be one of those thinking “it’s too late to send holiday cards at this point” or “does sending holiday cards really make a difference in my business?”, I would encourage you to consider recent research by Hallmark:  Hallmark found that businesses say they use greeting cards as a “kind of investment in their business…  They’re investing in customer relationship with the hopes that it will pay back”.  The company has conducted research that found at least half of customers who received holiday cards from businesses say they are more likely to continue doing business with that company versus another one.  You can read more on this by reading the article in the Washington Post.

So the question to ask yourself is not whether you should send holiday cards or not…  The question is whether you want your current customers to continue doing business with you!

Holiday Follow Up: Greeting Cards, Postcards, and E-cards

Today you have many choices when it comes to holiday cards.  The choice of holiday greeting cards is enormous, and we cannot forget holiday letters, postcards, and e-cards.  As business owners and sales professionals what are the best practices?  In my opinion, holiday greeting cards should be your only choice!

Holiday cards: You have many options here!  Sure you can go to your local Hallmark store or grocery store to pick up your greeting cards.  In fast the top two greeting card companies Hallmark and American Greetings which print most of the greeting cards on the market would love for you to do just that!  It’s fairly simple, find a greeting card selection which will reflect your business in a good light, lock yourself in your office for the day and get to work!

Holiday letters: I have already received a few holiday letters from friends and businesses.  These are nice and typically very personal when coming from friends and family.  I would not recommend these for a business greeting.  Sending a gift with a letter is a pretty common practice but in my opinion if you are spending the time and money to send a gift why not include a greeting card as well?  Skip the basic form letter and add a personal note to a greeting card instead.

Holiday Postcards: Thinking this is a great cost saving alternative to mailing holiday cards is a big mistake. When I think of postcards the first thought that comes to mind is junk mail.  It does not matter how much time you put into your postcard design or the amazing copy you have come up with, in the end it’s just a postcard and it will leave a neutral or negative impression.

E-cards: The crazy popularity of e-cards has come and gone.  Some may say this is a great alternative to sending holiday greeting cards in the mail.  I would encourage you to consider the conversation I had with Jeff Hans real estate agent on Team-Q at Re/Max Realty.  Jeff mentioned a conversation he had with another business owner just last week.  The business owner asked if he had received his e-card.  Jeff had to think about it for a minute and then acknowledged he had received it.  The business owner asked what Jeff thought and his response was the following: “I receive over 200 emails per day so receiving your e-card was just another email”.  Jeff suggested that next year he mail holiday greeting cards instead of sending e-cards!

My last thought for your holiday cards choices.  I mentioned the top two greeting card companies Hallmark and American Greetings so I thought I should mention the greeting card company I have used for my holiday cards, birthday cards, thank you cards, and just everyday cards for the last two years.  The company is called SendOutCards and it just so happens SendOutCards is the number three greeting card company.

I think the most important thing to remember is to get your holiday cards out.  It is by far the easiest follow up touch you can do this week and with each follow up touch you do you increase the awareness your customers and prospects have with you.  This increased awareness will result in increased business and referrals!

Top 10 Do’s and Don’ts When Mailing Holiday Cards

Top 10 Do’s and Don’ts When Mailing Holiday Cards

Do’s:

1)  Do send a quality card with a nice seasonal image
This is not the time to send a naked Santa because you think it’s funny.

2)  Do hand write your cards and envelopes
There is nothing like getting hand written cards in the mail, it shows you have taken the time to really reach out to your customer

3)  Do sign your cards
Your signature on the holiday card makes it personal

4)  Do write few lines of thoughts in each card
You might say something like “I have truly enjoyed working with you this past year.  I hope you have a fantastic holiday season and a great start in 2009!”

5)  Send your cards out with an actual stamp
This is not the time to save time by running them through the meter.  Take the time to place a stamp on each card as this small step makes a big difference.

Don’ts

6)  Don’t send holiday cards with just your signature
Saying Seasons Greetings, Merry Christmas, or Happy Hanukah above your signature will not make this better.  Add a few lines to make them personal!

7)  Don’t enclose a business card with your holiday card
I find there is nothing tackier than opening a card and having a business card fall out.  It takes away all positive impact from the card.

8)  Don’t add your logo to the card
Sending holiday cards should be an opportunity to appreciate your clients.  This is not the time to promote your brand!

9)  Don’t use mailing labels on the envelope
Mailing labels take away from the personal experience of the holiday card.  Take the time to hand write the envelopes or have someone in your office do this for you.

10)  Don’t send e-cards
No matter what you believe or what someone has told you, e-cards are not the same and actually create a negative impact with most receivers.

Hopefully you will avoid some of the don’ts and remember all the do’s!  Do you have some top do’s and don’ts to add to this top 10?  Leave a comment so I can add to the list!

Where did the idea of sending holiday cards come from anyway?  If you are interested check out the history of holiday card sending.

Look for tomorrows post about e-cards vs. real printed cards, and handmade cards.