Thursday, July 3, 2008

Long Forgotten Stir Old Accounts Back To Life

Writen by Ron Kaufman

An award-winning contractor in Savannah, Georgia (who also happens to be my award-winning brother) wrote:

'In my business (home construction and remodeling), I have many accounts with different suppliers supporting the construction industry. Sometimes I use their services and then will not see them again for 8 to 12 months or whenever my next project requires. When I do return to order new supplies, some companies have let my account "run out", and I have to apply for a new account with them all over again.

'I ask why they don't send a card letting me know that my account has become dormant, and is about to be closed? Perhaps they could offer me an incentive to return and make a purchase instead of just "letting me go". After all, they already have me as a good customer, just not very frequent. I just thought this might be happening in other industries as well.'

***

This is a great question, and a terrific point for anyone seeking to grow their business. Once a company has the benefit of receiving a customer's business, it makes no sense to close the account simply because the customer has not ordered from you in a while...even a long while. Unless there is substantial cost to keeping an account open, you should allow the customer to return at anytime, and welcome them back with enthusiasm.

Remember, once a customer has purchased from you, they will have become familiar with your products, your location, your ordering system and the way you do business. If they have opened an account, then additional time has been invested in completing paperwork and going through the new-account approval process. This person has now in vested time, energy and money in becoming your customer. Why in the world would you be in a hurry to close their account?

Instead of closing the account, take my brother's advice and move in a positive direction. Send dormant accounts a letter asking, 'How are you? We haven't heard from you in a while and we miss you!' Provide an incentive, a discount or other special offer to get these customers back into your business. Put a reasonable expiration date on the offer to encourage prompt response. Let them know you want them back, and that you will appreciate and value their business.

Note: If you must, tell customers their account will go on dormant status by a certain date. But also tell them that reactivating the account will be easy to do whenever they are ready.

You will be amazed at the profitability of your efforts. Customers will be delighted by your show of concern, generosity and attention. Don't assume your customers are 'dead'. Stir them back to life!

Key Learning Point
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When accounts go quiet, don't assume the customer is going away. They may be waiting, occupied with something else, or have simply forgotten where you are or how to reach you! One effort at reactivation can make the difference between a customer who comes once and disappears forever, and a customer who comes once, is invited back and stays with you forever.

Action Steps
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Identify customers you have not heard from in a while, long enough to be considered dormant, decidedly dull or dead. Now create a simple process to contact these customers and tell them you want them back. Give them an incentive to do business with you in the very near future.

Ron Kaufman is an internationally acclaimed educator and motivator for partnerships and quality customer service. He is author of the bestselling "UP Your Service!" and founder of "UP Your Service College". Visit http://www.UpYourService.com for more such Customer Service articles, subscribe to his Newsletter, or to buy his bestselling Books, Videos, Audio CDs on Customer Service from his secure Online Store. You can also watch Ron live or listen to him at http://www.RonKaufman.com.

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