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Recycling Of Contacts

Written By Rynhardt de Witt

Recycling Your Assets

In simple terms…the purpose of marketing is to get more business that hopefully translates into more money and profits. Obvious, I know!

But where do you focus your marketing efforts? New or existing customers? 

We believe, by using what you have is the best place to start. Your asset called “my existing customer list”. 

Why? Stats show that selling to your existing customers is 5 times cheaper than getting new customers.

If you don’t have a list, we suggest you create one immediately! While you at it, also create a list of potential customers (people who has shown interest but did not buy yet) and a list of customers that you want to target. 

Once you have your lists, we would recommend you go about it as follows:

  1. Encourage your current customers to utilize your services more frequently.
  2. Encourage your current customers to spend more on average. Get your average sale price up.
  3. Entice your potential customers to become paying customers. 
  4. Then, market your services to new customers and encourage them to spend more.

Customer communication is always key. People like doing business with people they like. We recommended implementing a CRM system in your company. This way you have all your customer’s details in one place, you know when you last your customer had his car detailed and what type of package he selected. You also are able to rank your customers from good to bad. Always focus on the good ones.

As a side note: I read this story once and it resonated with me instantly. Thought this is a good story to share.

It is about an overworked business owner that was fed up working so hard and not making a real profit. One morning, he woke up around 3am and could not go back to sleep, worrying about his business. After rolling around in his bed for a while, he decided to go the office and tried to determine why his business was struggling to make money. He ended up looking at his client list and decided to do the following:

He ranked every client either as an A, B. or C client.
The ‘A’ client was his best clients. The one’s who pay well, appreciated him and didn’t bother him too much. 

He decided to send each of the group of clients a letter.

The ‘A’ clients he thanked for being such great clients and reiterated his loyalty towards them. The ‘B’ clients he wrote a letter stating that they are on his ‘B’ list of clients. He said in the letter that he wanted to still continue doing business with them, provided that they change certain behaviors in order to become ‘A’ clients. The ‘C’ clients, he sent a letter of regret stated that he no longer wants to do business with them and he terminated the agreement.

Some of the ‘B’ clients took offence and terminated the agreement, but some of them apologized and changed the behavior to become an ‘A’ client.
The ‘C’ clients obviously were very upset and continued annoying other service providers. Business took a knock for the next 3 to six months, but given the fact that he only had ‘A’ clients to deal with, his business thrived as he could spend more time focusing on them and getting more clients like them.

The funny thing is that this exercise revealed that he spent 80% of his time on the C clients, which worked out to about 20% of his business revenue. This was before he wrote the letters.

In this story, the businessman made a bold move that could have possibly gone either way. I think you would agree that when selecting your clients, select them carefully. It is important, and for sanity’s sake, to determine who your ideal clients are. Your ‘A’ and possible your ‘B’ list. That person you want to do business with and who appreciates you. That person you like and the feeling is mutual.

Encourage your current customers to make use of your service more frequently

Pick up those conversations with the good customers and get in contact with them. Ask them where you can improve and tell them about all the services your company offer. You will be surprised that a lot of them didn’t even know about all the services you offer. You will definitely get a lot of business out of this exercise.

Forms of communication to your existing customers are:

Get a mobile app with a loyalty program where you can send them push notifications about promotions and specials. Hook them with an exclusive offer that is only available on the mobile app. Your app on their phones essentially means, your business in their pockets.

Also, send out newsletters and promotions via email. These are called broadcast emails. Be selective here. Be careful when sending out random emails. 

Others are, posting your offers with clear call to actions on your Facebook page, SMS, Whatsapp, etc.

Encourage customers to spend more.

When sending out promotions, coupons and specials to your customers, let those promotions link the customer to a sales funnel. As soon as the customer takes up your offer, continue to up-sell relevant offers to those customers in subsequent pages until they say NO. This will increase your average sales price per customer.

If you ever bought an item on Amazon. They always have these “Frequently Bought Together” items which they would like you to buy extra. You should do something similar on your sales funnel.

Entice your potential customers to become paying customers.

Here is where it gets a bit tricky. If you have a potential customer list, with contact details, you should be able to send them communication with offers to entice them to buy your services. However…  

What if you don’t know who they are. They may have landed on your website, but you don’t have their contact information.

We have good and bad news. There are tools called re-targeting tags that you can install on your website or sales funnel that you can use to send specific targeted ads (Google or Facebook) to those visitors who have landed or interacted with your online pages, including your Facebook Page, but did not submit their details. These tools are called the Google Ads Remarketing Tag and the Facebook Pixel.

The catch is that you are only able to benefit from the use of these tools from the date you have installed them. All visitors who landed on your website before then and did not submit their details, are unfortunately lost.

So go check and make sure these are installed.

Market your products to potentially new customers.

Newspapers, magazines and TV ads as we know it are at the end of their lifespan. Think about it, how often do you watch TV ads? We record everything and forward through the ads, or we watch streaming services like Netflix.

Today, the most cost effective marketing platforms are your social media and search engine platforms like Facebook, Linked-in and Google.

We found that when marketing to new customers, one must remember the following:

Understand your ideal customer and create an avatar that profiles him.

Create a value ladder with various services that your company offers, starting from the least expensive to the mother service that your ideal customer would typically buy.

Build a sales funnel, starting with the least expensive service, that entry level one, and make it a jaw dropping offer. Sell it at no to very little profit to get the prospect in the door. Don’t try to make money in the first offer. Continue upselling to the prospect, making them aware about your other related services and continue selling until they reach the mother service or when they say no.

If you can, try selling something that generates retainer income. This way, one sale gives you money every month. A 3 month detailing maintenance wash is a great example of this.

Depending on the marketing platform you use, you can use your current database and the future contacts you collect through various marketing campaigns and recycle those on a continuous basis. Without stalking them.

For example:

On Facebook, you can create lookalike audiences with your current customer list. This way Facebook will look for customers similar to your current customers and only target them for your services.

You can go even further and categorize your customers who, for example, only bought a specific product or range of products and target similar customers with that range of products. This is possible with the use of the Facebook Pixel as mentioned above.

You are able to create audiences of only your website visitors in the past 30 days or who have watched 75% of your video on YouTube. The options are endless. Again, possible with the use of re-targeting tags

In closing

The key factor with marketing though, is that you have to have a strategy! Without a strategy you are lost.

So, start with your existing list of customers and get a boost in sales.

Remember, building great marketing campaigns takes time and effort and if you spend quality time in your marketing, you would reap the rewards. Keep at it!

By the way: If you need help implementing this into your detailing business, click here and schedule a quick no-obligation meeting with us. Even if you just want some advice or a quick demo.

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