Past Customer Re-Activation EXPLAINED! (highly newbie friendly)

Welcome everyone,

This post is in response to a couple of PM’s I received last week. Included are word-for-word templates that you can copy and paste to make more money. I thought it would help everyone if I just made a new thread about it. This is going to be an introduction to Past Customer Re-Activation and how I’d start an off line business if I was doing it all over again. I must concede, I now do things differently as you can leverage this to make things more potent but don’t fret this will be comprehensive.

Strategy Summary –

You will be helping other local service providers to make them more money by showing them how to ‘re-activate’ their old customers and share in the generated profits. This strategy is so easy and profitable – I actually think you could build a very lucrative business around this strategy alone.

How Lucrative Can This Be? –

My first client was an Acupuncturist, who’s average customer value was £125 ($193). I drew up a letter which she sent out with a 20% discount for each acupuncture treatment they booked. She sent it to 255 people and through various degrees of appointment setting I got 40% of profits which translated to £2240.


Doctors, Dentists, Chiropractors, Personal Trainers, health Clubs, Life Coaches, Massage Therapists, Acupuncturists, Hair Salons, Dog Groomers, Financial Agents, Insurance Agents, Car maintenance Garages, etc. *Please Note: These are service providers, product/goods vendors will have a lower profit margin so stick with service providers.

What To Do First –

Write down all the names of the people or companies YOU visit that provide you with a service. If you are struggling, ask your friends to think through their network of service providers. With this list we will target the one you have the best relationship with first. * Please Note: It will be easier to get more business once you show people results from previous clients. So go after people you know first as they are most likely to work with you.

Client Attraction –

Let’s get this straight: cold calling sucks and you don’t have to do it. I use it a lot and my business would not be as profitable without cold calling but for this method it is not a MUST. Using your personal network is advised for first starts and those new to the game. Previous clients are going to love this if you have worked successfully with them before. So those of you who have a past client list should definitely use that to its full. And if are struggling down those avenues, then you can send a ‘magic approach letter’. Only after you have fully explored your network and that of your friends, is it time for the magic approach letter.

Magic Approach letter –

First things first you need to know who you are sending it to. If you don’t know the business owners name then you should strive to find it out. The chances of your letter getting opened explode 10x if you know the decision makers name and put it on your letter. DO NOT SEND THIS LETTER BY EMAIL. The only purpose of your direct mail piece is to get the decision maker to phone you or happily accept your call to them.
************************************************** ***********************
(YourLetterhead)
(firstName, lastname, title)
Company Name
Address
Date

Dear (Salutation, last name),

I’ve hand-written this letter just for you because there is a uniques marketing strategy that has been proven to increase the profits – by 30% or more – for companies who are aware of it and most importantly – implement it.

It it not a new method of advertising or some unproven and complicated gimmick that only works “some of the time” instead, this works every time, (yes, even in your business) hence this personal letter.

In fact businesses have found that this strategy, although very simple, produces exceptional results, direct to YOUR bottom line. One company reported an increase in monthly sales by 200% and another client realized a 40% increase in profits on a project that took less than one hour to map out and complete.

I spent time reviewing your web site and I am confident it can produce similar results for your business, if not better.

Most IMPORTANTLY – this strategy is only available to a limited number of companies at this time and to maximise results for those who take advantage, I will only be working with ONE (insert service here, eg, massage therapist) in (insert area here, eg, Edinburgh, Scotland)

If you lend me your ear and request more details on how this strategy works, I guarantee you won’t be disappointed.

I’ll call you on (insert date, day and time) to schedule a short phone meeting with you either directly or the appropriate representative from your company. Or if you’d prefer to call me sooner, I can be reached at (phone number)

Sincerely,
(Your Name), title
************************************************** *********************

How/When To Send The Letter –

Hand-written envelope is imperative. FedEx envelope ideal. Does this make it a little more expensive? Yes, but close one client and you’ll be in the money. Send it on Monday so they receive it on Tuesday or Wednesday.

Follow Up Call –

Deep voice, speak with confidence and authority. It is important you follow through and do as you said in the letter. Once you get the client on the phone, set a time for 20 minutes, uninterrupted with the decision maker.

To get past the gate keeper, you must send her back and forth as many times as possible between you and the decision maker. Keep control of the conversation by directing it where you want it to go. If she asks who you are, say, “Go tell (decision makers name) it’s (your name) from (Company name)” Notice you are taking control of the convo by telling the gate keeper what to do.

To describe the service on the call you can say something along these lines:

“I use a strategy that’s simple, effective and proven to see immediate sales for your business with minimal effort, cost and zero risk. It’s a well known fact that it’s easier to get past customers to buy from yo again that to get new customers buying from you for the first time, Right?
Well, many (insert service here) ‘massage therapists get so focused on getting new customers that they forget there is money hiding in plain view, there with their customers who haven’t made a recent purchase.
Sometimes, and I must concede, that’s because they may have been irritated by something the company has done, is that likely with your customers? (No, I’m good with my customers)
Excellent, in that case it’s simply because they haven’t been invited back in a way they found irresistible. The brilliance of this strategy is that it doesn’t matter Why they haven’t done business with you.
I will give you all the details but first let me ask you about your current marketing efforts with past customers…What have you been doing to get them coming back more often?”
(Most likely, the answer to that question will be “nothing”…You then follow up with more questions about their average customer value and how many past customers they have mailing addresses for.
The Presentation –
Have a mind map or slide show that you can follow during the meeting. This way you can plan how you are going to sell them on this this service. Don’t over complicate this part. It is not nearly as difficult as it may appear. Use the information from the phone call to show the potential of that particular business.

Critical stages of the presentation include: Detailing how the re-activation works > Proof of results > Story (optional) > Benefits > Price > Scarcity > Bonues > Guarantee > Call To Action

What YOU will do for the client –

Write the reactivation letter, Assist with mailing house requests, assist with best mailing date + explicit consulting and guidance that’s needed.
What You expect in return –
Compile a list of past customers, detail free gift or best discount possible, be available throughout process, pay for mailing, track results, pay you agreed upon percentage.

Sign Contract –

I’m not a lawyer so I can’t share this step with you. You should not listen to this section as it is for your entertainment only…I suggest you look at generic contract templates online and mould it to fit.

Client Reactivation Letter –

************************************************** ************************
(Client Letter head)
(Client Name)
Address
Date

Dear (first name of person)

This letter may catch you by surprise. (the last paragraph certainly should)

This is (business owners first name) from (business) I’m confident you’re well. I’m writing to thank you for the business you’ve done with me/us in the past and also because I realised I/we haven’t heard from you in a while.

As you know, I/we enjoyed working with you and (insert massive benefit of company, eg, were glad to give you 14% of your taxes back, a grand total of £12,873)

As you’d expect, I’m a bit surprised I/we haven’t heard from you and If I/we may have caused your discontinued business with us, I’d/We’d greatly appreciate you letting me/us know and I’ll do anything to make it up to you.

I/we really appreciate your business and would like to keep you as a satisfied customer/client. In fact, If you’d like to book an appointment for (insert service) I’d be happy to share the expense and cover (biggest discount here) 30% of your tab if you do so in the next 60 days.

If not, I understand, but want to let you know I was thinking of you and look forward to hearing from you soon.

Pay 30% less that Everyone Else by calling (Phone number) to book an appointment

Sincerely,
(name, address, company)
************************************************** *************************

How To Do The Mailing –

Some business owners may choose to do it themselves. Some may ask you to do it. You can alter percentage of profits if that is the case. My advice, don’t do it. I’d even go as far as to re-structure the agreement so they give you as little as 20% just so they handle the mailing. Especially if you’re just starting out.

Although this will be a big step to many just starting out, I must stress you will soon become tired of the hassles that come with the mailing for clients. Plus, you have more important things to do, like getting more clients.
Google “mailing service (local area)” and you’ll get everything you need to know.

Tracking Sales –

The honor system is the easiest to implement and best for the connection further down the line. It’s important to remember a key marketing lesson of ‘lifetime value’. Even if they ‘cheat’ you out of a couple of sales, you will be able to sell more services down the line if you keep them happy. YES, thay might take advantage, but in my experience, I’ve never been let down by a client and been disappointed.
Another thing that will limit their skimming of payments is if you sign a contract as that just makes the whole thing more erious. And finally, if you tell them you will introduce them to a local mastermind group, then they definitely have something to lose.

Looking Professional –

One of the biggest EXCUSES for inaction with this method is that they don’t feel professional or believable. This is an UNJUSTIFIED fear…but easy to solve.

First of all you only need one happy client and then you have a satisfied client testimonial. If you get two, then you’ll have multiple satisfied clients. The biggest thing you can take from this section is the fact that you can make things look more professional without ever lying. You can set up a website for less than $150 or do it yourself for less than a tenner.

Strategy Recap –

What YOU Do: You help other local service providers find hidden money by reactivating their past customers using a proven and exclusive campaign. Mpst importantly, you only get paid for your success so everyone wins.
How YOU do it: By sending a proven letter to past customers thanking them for their past business, apologising for having lost it, and making it up to them through an incentive to return

Step-By-Step –

Approach letter/call to service provider in your network > follow up call to set appointment > 20-30 minute presentation > Agree on term > sign contract > Gather customer names and addresses > customise re-activation template > have local mailing service fulfil mailings > track new business > collect commission > ASK for referrals > repeat.

Taking it to the next level…easily –

As you collect testimonials and satisfied clients you should be looking to catch that big fish corporation that can pay you BIG money. It is so much easier than you might expect to get big clients, for example, a lot of high end clients have the same lawyers or accountants. If you do this for a service provider like that, show them the power and offer to share in the profits if they tell their high end clients, then that is more than possible to land a big client.

Wrapping this all up –

So everyone, I hope you got a lot of value out of that. There are many things that can be done differently and are more complex and more potent, but this is more than enough to get started and the same templates I used for months.
I encourage you to ask question and share your alterations so that everyone benefits.

Best of Success, Michael