Will I Ever See You Again?
There's no secret about it, every business owner or sales person loves the client who walks through the door ready to spend. This client has done their research, knows what they need and knows enough about your business to believe you can deliver it. Transactions like these can result in quick sales that are several times higher than the average for your organisation. Let's face it, we love them.
However, we must see these clients as exactly what they are, a rare breed that can seem like a gift from the universe. The reality of our day-to-day work is more in tune with educating prospective clients about who we are and what we do. Our days are filled with learning about their business so we can differentiate between what they may need as opposed to what they may want. Long discussions are held in the process of developing value propositions and building the trust that is required for a prospect to become a client.
One tried and tested technique is building a value proposition based on length of commitment. As with so many other things in life, with volume comes better per unit rates. However, it doesn't take Kresto the mind-reader to see the scrolling message behind the eyes of the prospective buyer. “If I sign a multi-month contract with you, I'm never going to see you again until the time comes to renew”, this is what they are thinking. And the sad fact is, that unfortunately all to often, this is the case. While it may not be an intentional act, the reality of chasing new revenue leaves us time poor to properly service the client base we already have.
So how can adding a promotional product component to your contract sale become a win-win for both the client and for your business? Firstly, the recommendation is not to include an offer of promotional products in your value proposition of the the recommended contract. This has the potential of coming across like a late night infomercial. Free gifts is not what your business is about and your value proposition must be solidly based on the core product you offer. Sell your products and services on what you do best and leave the little surprises as just that, surprises.
Let's take a look at a case study to see how a promotional products campaign can support your business, build client relationships and even more importantly continue to add dollars to both your short term and long term revenue stream.
A local media outlet relies heavily on commercial advertisers. Some advertisers are interested in promoting their annual event or are interested only in short term burst campaigns that support strong call-to-action messages. These are not the right target clients. The majority of local businesses though, are the ones working day in and day out to get the money into their tills that will allow them to open the doors once again tomorrow. These businesses require long term and consistent messaging to their potential customers about who they are and what they do. These businesses are the perfect match for longer term commitments to advertising schedules.
Once a year, the media outlet offers annual contracts at significantly reduced rates. The program is developed from careful consideration of a percentage of overall capacity that can be sold at these reduced rates in exchange for a committed and easily forecast revenue stream. The value of the program is actually quite an easy sell to both the media outlet and its potential advertising partners.
This year, by investing less than 5% of its base annual revenue generated from these contracts, the media outlet has included a promotional products gift campaign for their clients. This program consists of a monthly gift given to each contract client. The gift selection is a mix of lifestyle and business relevant products that are all branded with the media outlet's logo. Each month, the account manager delivers these gifts to the client through face-to-face follow up service calls.
What's in it for the client? In this case, the advertiser.
- A value-added extra in addition to the initial value proposition of the contract
- Regular contact with the relevant account manager
- A consistent feeling of inclusion from their service provider (the media outlet)
- A sense of valued relationship between themselves and the service provider
What's in it for your business? In this case, the media outlet.
- Ensuring consistent contact from your sales team to their contract clients
- Consistent contact leads to more successful opportunities to make add-on sales (up sell) through the course of the annual contract
- Increased brand awareness through providing a range of branded business relevant and lifestyle products which are useful to the recipient and visible to others
- Increased potential for referral based business from the existing client base
- The generation of good-will through providing value beyond the initial commitment
- Increased potential of contract renewal during the next year's program cycle
For an investment of less than 5% of contract revenue, you can increase long term relationships, increase up-sell opportunities, increase renewal prospects and increase referral based business. All of this while making your client feel included, appreciated and valued.
Use the contact tab above to ask how Raving Fan Promotions can assist you in growing your business.