Copyright 2003 by Gerry Foster

In other words:  You either get new clients, or get your existing clients to spend more often and/or to spend more money.

However, it seems as if most service providers focus on getting new clients.  Not that there is anything wrong with that.  But the cost of acquiring a new client can be quite substantial, while the cost of getting an existing client to spend more often or spend more is much, much less in comparison.

Now, if you’ve been reading most of the articles I’ve written that appear on my website, you’ll notice that my focus has been on getting new clients.  This time, I want to specifically address the second and third ways to increase your bottom line because they offer less risk, significant savings, and greater leverage for future growth.

Increasing The Number of Times Each Client Uses Your Services

Here your strategy is simple:  Offer economic incentives to retain your best clients and encourage them to use your services more often.  The airlines are masters at this approach with their frequent flyer “loyalty” programs.   So are packaged goods and food manufacturers that make free offers where consumers can receive a gift by mail in exchange for proofs of purchase plus cash (e.g. receive a “widget” for 4 proofs such as a box bottom plus $1.00).

Service businesses can generate repeat purchases as well.  For example, you could offer quantity discounts:  the more the client uses your services, the lower per use price.  The client ends up thinking there is no reason to give some of their business to a competitor if it means losing the best price they receive from working with only one service provider.   If, for instance, a dentist treats the husband or wife, he (or she) could offer a special deal for them as a couple, or for the entire family if there are children.

You also could run a frequency promotion like a punch card where clients receive a reward for buying a certain number of items.  A dry cleaners, for example, could offer “dry clean your clothes five times and the sixth time is free” during a specific promotion period.  Or, a video store could promote, “rent 3 videos and get one free … offer expires in 30 days.”  An auto mechanic could offer “$5 off the regular price on your fourth oil change.”

Special events, “closed door” sales, “members only” hours, and preferred client offers also are effective.  This is because people like to feel pampered, special and appreciated.  You see these types of things done all the time in the retail clothing industry with chain stores such as The Men’s Wearhouse, Victoria’s Secret, and The Limited.

Of course, after all is said and done, the best way to keep clients coming back is to do the best job you can for them.  Service them to death.  Then, keep in touch by phone, email, or snail mail to cultivate a strong, positive relationship.  Let them know it was a pleasure serving them and that you are always available should they require your services in the future.  If you don’t think great service can impact the profitability of a company, just ask Nordstrom.

Increase The Amount of Money Each Client Spends On Your Services

Your challenge here is to get clients to write a bigger check by, what we call in the marketing field, “up-selling” them.

With this strategy, you combine services and/or products together, and offer them at the initial sale.  You know what I mean:  Wax with the car wash, fries with a hamburger, a shirt and tie with a suit, rust proofing with the car sale, three tubes of toothpaste with a toothbrush, and so on.

Product manufacturers often look for ways to increase consumption by offering what are known as container packs.  For example, offer coffee in a carafe, a powdered beverage drink in a pitcher, or a gingerbread cookie cutter on two gingerbread mix packages.

While I was with Procter and Gamble, I had great success with on-packs.  On Era liquid laundry detergent (now called Era Plus), I once shrink wrapped an empty 6 oz. “pretreater bottle” onto a 64 oz. bottle.  This was designed to get more Era users to pretreat and wash their laundry with just one laundry product (versus having to purchase Era and a separate spray pretreater product like Shout).  I even attached a “pump” dispenser onto the gallon size bottle to encourage consumers to trade up to our most profitable size (with the “pump,” consumers could accurately dispense Era directly into the wash without having to lift the heavy bottle and pour the product into a measuring cup).

On Cascade automatic dishwasher detergent (another brand I co-managed) we told consumers to also use the product to clean floors.  In the fruit juice industry, we proclaimed “orange juice isn’t just for breakfast anymore.”  Petroleum jelly was first promoted as a gel to heal burns or damaged skin, and later it was touted as a skin conditioner and a make-up remover.  A.1. Steak Sauce is promoted as also being great on hamburgers and in marinades.

Heck, Arm & Hammer baking soda has evolved into many uses over the years.  It has been promoted as a refrigerator deodorant, carpet cleaner, dentifrice, and aid for your cat’s litter box!

My point is:  Find a way to increase usage or consumption during one transaction and watch your cash register soar!  There’s no need to wait and hope the client returns to use each individual service you offer.  Always look for other services (or products) you can provide or things you can do to boost the size of your average dollar value transaction with each client.

Basically, you want to give your clients a reason to use your services more.  If you own a health club, you can get your weight lifting members to take an aerobics class, or your aerobics class members to take a spinning class.  If you’re an interior designer, offer to accompany clients to the furniture store and help select furnishings.  If you’re a business consultant, encourage clients to use the copywriting skills and attend the seminars you offer.  See if there are ways to bundle those offerings together.

I also recommend offering larger “doses of service.”  If most people use your services on an “as needed basis,” offer them a three-month, six-month, or annual service contract at an attractive price.

A computer network design firm I know of utilizes this strategy quite effectively.  They offer one low fee that covers service, parts and labor.  Some people wait for their computers, printers or networks to break down before they call in a service technician.  Their hardware contract customers get semi-annual preventive maintenance and four-hour emergency response for one low fee.  Now, that’s what I call smart marketing!

Special gifts are also effective.  A mortgage broker client of mine once found out that a real estate broker he had done business with loved the Los Angeles Dodgers.  So much so, autographed pictures of Hall of Fame Dodger players adorned his wall (Jackie Robinson, Don Drysdale, etc.).  But what he always wanted was an autographed picture of Sandy Koufax.

The mortgage broker heard his plea.  He found an authentic, autographed picture of Koufax and gave it to the broker.  The fellow appreciated it so much that he doubled the amount of business he did with him the next year.

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Please contact me directly by phone at 949.499.1174 or by email at gerry@masterymarketing.com if you would like to discuss ways to apply any of the ideas, strategies, and approaches contained in this article to your business.