Pest Management Professional, April 2012

marketing matters Winning back customers W hat would reclaiming lost accounts mean to your bottom line A 5 percent increase of client recovery can increase profits almost 100 percent according to the Harvard Business Review which also concluded cutting defections in half can more than double a companys growth rate Growth starts with embracing a positive attitude about client recapture and acknowledging a lost customer isnt necessarily a lost cause Many lost clients are pleasantly surprised when a company takes the initiative to reconnect with them recognizes past patronage and invites them to return Another Harvard Business Review study reveals companies on average lose half of their customers every five years Its not uncommon for a business to lose 15 to 40 percent of its customers annually In the book The Virtual Corporation Structuring and Revitalizing the Corporation for the 21st Century authors William Davidow and Michael Malone reveal retaining an additional two percent of customers has the same effect as cutting costs 10 percent Another reason to implement a well structured and executed customer recapture program is the 20 to 40 percent chance of winning back lost customers It takes time timing analysis smart decision making and skill to bring back a customer and regain his her trust Whenever your reputation or credibility is tarnished theres no quick fix just the commitment to stem and reverse the stream of exiting business Its difficult work The win back sales team needs special training and compensation to bring customers back Its critical the reps are knowledgeable and empowered to take quick action Customers will have a different reaction and acceptance rate based on the channel used to make the win back pitch Traditionally four methods have been used to regain lost accounts phone mail email and face to face interaction The lack of customer contact information might dictate the method used Depending on the pitch and audience different success rates will be realized through different channels Its important to test the variations to ensure the most effective cost to winback ratio method is used before ramping up the effort from a pilot to a full scale program Tips for creating your customer win back program include Establish a measurement system for tracking losses and win backs Create a strategy for recapturing lost customers The sales manager must be the driving force for the win back program Find out exactly why the customer left Be patient with the customer remember some wounds heal slowly Assure the customer if he she defected because of dissatisfaction that it wont happen again and if the individual has a problem in the future he she can contact you directly Ask lost customers what you can do to win back their business Be ready to make specials offer to win them back Stay in touch with the lost customer The offer plays a huge role in determining your success rate It needs to address the reason why the customer left as well as offer him her something not traditionally given to a typical customer Based on data its best to reach out to the lost client within three months of the customers cancellation Regarding frequency the customer might reject the initial offer so follow up a few months later If the customer rejects three offers to return the company should end its pursuit The win back program goes into effect after all initial attempts to save the customer have failed Lastly I remind you of a poignant anonymous quote If we dont take care of our customers our competitors will pmp Goldglantz president of Pest Control Marketing Co and author of Marketing Matters can be reached at hgpcmincinc@ aol com By Harvey F Goldglantz Columnist Buy Marketing Matters by Harvey F Goldglantz from the PMP bookstore at mypmp net 66 April 2012 Pest Management Professional mypmp net