The week of March 17, 2003
Direct Marketing For More Business
by Tom Franklin
"He who walks a crooked path takes many wasted steps."
-- Native American Saying
The implications of this ancient adage are many: Wasted steps result in doing production the hard way; Wasted effort approaching a project in a round-about way; Beating around the bush when a direct statement is called for; Whenever it's possible, a direct line is always the most efficient.
In marketing, oblique advertising is perhaps the most wasteful of all. Marketing guru Jay Abraham says, "Institutional advertising, the practice of running ads that are designed simply to keep your name in front of the public, is folly." He says these ads are ineffective, non-trackable, and a waste of your money. He suggests the best ad is one that stimulates immediate action with a result that can be objectively tracked. Make a specific offer. Provide a coupon that can be brought in. If all you want to do is get your name in front of people, a far cheaper and more effective approach is to go after free publicity. Sponsor a team. Put on an event. Get free press.
FROM INDIRECT TO MOST DIRECT
DRP directors and coordinators are bombarded with calls, letters, brochures and portfolios all the time from shops wanting to get on their programs. Most of this promotional effort is wasted because it is not sufficiently direct.
In direct mail, the least effective mail is addressed to "occupant."
From that lowest point on, effectiveness increases from "Unknown sender to known recipient" to "Known sender to known recipient." Or, someone may know you or your company by name. Better still, they may have been to your shop and met you in person. Then a letter signed by you, sent to them, will have a fair chance of being read.
Phone calls are generally more direct and more effective than mail -- unless they're from a telemarketer. At that point we're back to "a message from an unknown sender to an unknown recipient" -- like the telemarketer, the lowest form possible.
Next up will be a call from a caller who is not known personally but is calling from a known business. Your estimator calls a prior customer, but identifies him or herself as a representative of your shop. Your customer is likely to take the call and listen to your estimator. If it's a customer the estimator knows personally, the call will be doubly effective. If you're the one calling and your customer knows (and hopefully likes) you, you have reached the top of the phone call effectiveness scale.
GETTING QUANTITY REFERRAL BUSINESS
What can possibly be better? A live visit, of course. Obviously this isn't a possible approach to contacting prior customers, but it is by far the best way to communicate to insurance executives, dealership principals, fleet managers and other major sources of referral business.
One of the best P.R. guys I've ever known had his own golden rule of marketing: NEVER LUNCH ALONE. I've watched one shop owner who followed this rule whenever possible, even to the point of inviting appraisers and adjusters to lunch. He would even go to lunch with sales people who would stop by-- paint company reps., software salesmen and more. But his most effective lunch dates were insurance agents, claims managers, and DRP coordinators.
Many of these luncheon engagements required much detective work and many phone calls to arrange, but they paid off handsomely in the end. Often just finding out whom to take to lunch is a major task, but it is by far the most direct approach to getting referral business. After a live contact, personal phone calls and even letters will be more effective.
GOING STRAIGHT FOR REPEAT BUSINESS
Most shop owners tell me their best source of business is still prior customers, but customers generally only come back when they've had another accident. How can a shop owner or manager bring them back without wishing they will have an accident again?
Mailing holiday greeting cards and occasional postcards keep your shop name in front of your customer, but if there is no call to action the message will have little or no effect. A letter with the following message would be more likely to bring in an occasional job:
Dear (Prior Customer):
We haven't seen you in quite a while. We hope that means you haven't had an accident or needed repairs on your car. We wouldn't want you to have an accident just to come in and see us, but we know that many cars get minor dents and dings from inconsiderate drivers in parking places. You might be surprised at the low cost of fixing those dents and dings at our shop.
Also today's acid rain can harm the fine paint finish on our cars. Ordinary car washes may fail to remove oxidation and contaminants from a car, but by using our professional buff and polish equipment we can do the job. Keeping you car in good condition will maintain the resale value of it and will give you greater pleasure from seeing it look like new.
So it may be beneficial for you to stop by for a brief estimate, and to meet some of our new personnel. Give us a call and we'll arrange an estimate at a time that is convenient for you.
Sincerely,
ADDING DIRECTNESS TO PRIOR CUSTOMER CONTACT
If the above letter were sent out as a form letter, it would not be likely to generate much of a return, but if personalized the result will be much better. Today's computers all come with word-processing software, if only in an abbreviated form like WordPad. With this letter filed under "My Documents," any estimator or office person who has a few minutes, can call up the file, enter a prior customer name and address, sign it, print it out and mail it. Now it has become a personal letter.
Ten such letters a day, five days a week, will add up to fifty prior customer contacts per week at a cost of less than $20 for postage. Kept up for a full year, 2500 prior customers would be contacted. A simple five percent return would bring in 125 customers a year, about 10 a month. A ten percent return would bring in 250 customers a year, more than 20 a month -- not a bad return for less than $100 in postage each month.
But best of all is the directness of the communication with a request for immediate action and an easy way to track the effectiveness of the promotional effort.
Tom Franklin has been a sales and marketing representative and consultant for forty years and is the author of the books, "Business Battlefield Marketing for Body Shops," "Tom Franklin's Top 40 Marketing Tactics for Body Shops," and "Strategies for Greater Body Shop Growth." His marketing company now provides marketing solutions and services for body shops and other businesses. He can be reached for questions or comments at (323) 871-6862, by fax at (323) 465-2228, or by E-Mail: tbfranklin@aol.com.
NOTE: This editorial expresses the opinions of its sole author only and does not necessarily reflect the opinions of Autobodyonline, or any of its subsidiary companies, clients, or supporters.