How!To!Get!Back!Your!Lost! …

1 Lesson # 26 How To Get Back Your lost Customers A High Profit Strategy Almost Certain To Put Money In Your Pockets By Scott J Bywater Copywriting That SELLS NOTICE: You Do NOT Have the Right to Reprint or Resell this Report! You Also MAY NOT Give Away, Sell Or Share The Content Herein If you obtained this report anywhere other than , you have a pirated copy. Please help stop Internet crime by reporting this to: Copyright 2008 Scott J. Bywater ALL RIGHTS RESERVED. No part of this report may be reproduced or transmitted in any form whatsoever, electronic, or mechanical, including photocopying, recording, or by any informational storage or retrieval system without permission in writing from the publisher.

2 Requests for permission for further information should be addressed to Henesco Enterprises Pty Ltd, Suite 21, Seabridge House, 377 Kent Street, Sydney, NSW, 2000, Australia DISCLAIMER AND/OR LEGAL NOTICES: While all attempts have been made to verify information provided in this publication, neither the author nor the publisher assumes any responsibility for errors, omissions or contrary interpretation of the subject matter herein. This publication is not intended for use as a source of legal or accounting advice. The publisher wants to stress that the information contained herein may be subject to varying state and/or local laws or regulations. All users are advised to retain competent legal counsel to determine what state and/or local laws or regulations may apply to their particular business.

3 The purchaser or reader of this publication assumes responsibility for the use of these materials and information. Adherence to all applicable laws and regulations, federal, state and local, governing professional licensing, business practices, advertising and all other aspects of doing business in Australia, or any other jurisdiction, is the sole responsibility of the purchaser or reader. The author and publisher assume no responsibility or liability whatsoever on behalf of any purchaser or reader of these materials. We do not guarantee any results you may or may not get as a result of following our recommendations. It is your responsibility to test every strategy for yourself.

4 Any perceived slight or criticism of specific people or organisations is to Get Back Your lost Customers A High Profit Strategy Almost Certain To Put Money In Your Pockets Summary: Picture this. One day two business owners, both going through a quiet period in their business, decide to run a promotion to boost their sales. Both business owners are smart enough to realize that direct mail offers one of the biggest returns on investment and decide to run a direct mail campaign. The first business owner mails out a letter to a list of targeted prospects in his market. As predicted, he enjoys a good return on investment and is happy with the campaign results.

5 The second business owner is smarter however, and instead of mailing out to a list of cold prospects, decides to mail out a letter to a list of previous customers whom he had lost contact with over time. Despite, mailing out the same offer to the same number of people, the second business owner enjoys ten- times the response from his promotion than his colleague. Thanks to this simple ' lost customer letter', he enjoys one of the busiest months in his business's history! The above story is not fictional, but based on the true story from one of my clients. You see when I, as a marketing consultant, first sit down with a client to discuss ways in which we can boost their sales, one of the first things I often recommend is to send an offer out to old customers whom they haven't heard from for a while.

6 I recommend this because it is one of the easiest and most profitable campaigns a business can ever run. On average, you can expect a response rate of between double, and as much as ten- times (yes 10 times), more than what you would expect sending the same letter out to a list of cold prospects. For example, one of my clients sent out such a letter for his jewellery store and enjoyed a whopping 30% response rate, along with one of his store's busiest months on record. Another got a response of over 15%. In fact, I've heard of response rates as high as 50% from such a strategy! These sorts of numbers are almost unheard of to cold lists.

7 In today's lesson, you'll discover how to use the ' lost customer' strategy to bring in a stampede of sales in your business with little or no effort. Just think, while your competitors are forking out thousands in paid advertising this month to attract business, you can enjoy ten- times the response for a small fraction of the investment. Why Target lost Customers? lost customers are one the most profitable, yet often underutilized assets any business has. There are five basic types of lost customers: 1. Customers who you push away because they suck the life out of your business, 2. Customers who jump ship any time they find a lower price, 3.

8 Customers who physically or demographically move out of your marketplace, 4. Customers who you unintentionally pushed away because of an unforeseen problem such as bad delivery, billing or service problems, 5. Customers who left for no other reason than to try out your competition. The first three probably aren't the type of customers you want to attract back into your business. The last two however are definitely customers you should try to win back. Here's why. REASON #1 - You Protect Your Reputation When you unintentionally push away a customer because of an unforeseen problem such as bad delivery, billing or service problems, they not only leave your business, they share their discontent with their friends.

9 According to research by Technical Assistance Research Programs, the average unhappy customer not only defects to a competitor, they also tell 11 other people about their bad experience. These 11 people then tell an average of 5 other people. That's a total of 55 people who now think poorly of your business because of just one customer's unfortunate experience! By following up with those unhappy customers, you not only win them back and profit from the extra business they bring you, you help save your reputation from being trashed. REASON # 2 - It's Highly Profitable Research by Marketing Metrics in the US has found your chances of successfully selling to a former customer are 20- 40%, compared to just a 5- 20% chance when trying to sell to a new customer.

10 This is because former customers already know your business and what you can do for them. lost customers also tend to be big spenders. British Airways for example have reportedly found "recovered" customers give them more business than anyone else. As I've already mentioned, my experience with lost customer promotions is they typically produce 2- 10 times greater response than promotions to cold prospects. In fact, it costs a fraction of the cost to win back an old customer as it does to get a new one. I've personally seen this strategy create tens, sometimes even hundreds, of thousands of dollars in new business for a company. And that's business these companies would never have had otherwise, just by going back to old customers who haven't bought for a while.