Greetings Flooring Dealers!
I got these statistics from the late Peter Drucker. The stats are old, but relevant.
- 1:14 Chances of doing business with someone you’ve never done business with before.
- 1:4 Chances of doing business with someone you’ve had a relationship with, but stopped.
- 1:2 Chances of doing business with an existing customer.
Knowing these numbers, does it make sense to dump the lion’s share of your time, energy and money into chasing people who have never done business with you before? (i.e. cold marketing.)
Now, I’m not saying you should not do cold marketing, but over 99% of dealers spend their entire marketing budget chasing new prospects, all the while totally ignoring the only people in the known universe who have proven that they will give them money: their past clients.
Not only are the chances of doing business with your past clients exponentially better than doing business with cold prospects, but building, nurturing and protecting your herd is a big factor in recession-proofing your business.
Your past client database is the single, biggest asset your business has.
Picture your business as a tree. Your past clients are the roots of your business: roots that sink into your local market, your local community. When winds of recession, slow economy, whatever, begin to blow, it’s these roots that hold your business in place. Most business advertising is a mile wide and an inch deep. Sink the roots of your business deep by marketing to your past clients.
To Tons Of Customers!
Jim Augustus Armstrong is The “Coach”
Jim Augustus Armstrong is the President of Flooring Success Systems, a program that equips dealers to double their profits, cut their work hours in half and beat the boxes! Many dealers have totally transformed their businesses and their lives for the better after joining Flooring Success Systems.
See what real, live dealers are saying!