Advice from America’s most expensive business consultant, Jay Abraham, who has advised such companies as Sears, AT&T, Weight Watchers, Federal Express and hundreds more. . .

Part II — The Surprising Reasons Customers Stop Buying From You and How To Change That In a Hurry

In Part I of this topic, Jay revealed that the biggest reason customers stop buying from you is not what you would typically think. It’s: Inertia.

However, Jay reassured you that all is not lost — You can win your customers back.

I left off with the idea of using a simple letter. Here’s a favorite of Jay’s written over 30 years ago and considered a classic. (Don’t let the age fool you. People emotions are still the same.)

This letter was written for New York’s famous Plaza Hotel. It went out to former frequent guests who hadn’t stayed there in a while. The 1-page letter was printed on the letterhead of the general manager, and reads as follows:

Dear Mr. Harris:

We looked in the Palm Court and the Oak Bar and behind the piano in the Edwardian Room. We even sent our best chambermaid to search the closets of all the guest rooms.

You aren’t here.

If fact, we haven’t seen you this year at all. And frankly, we’re worried. Several disastrous things could have happened to keep you from our doors. Perhaps our laundry starched out your handkerchiefs on your last visit [Remember, this is 30 years ago] . . . it actually happened twice last year! Or maybe the Persian Room was unable to supply your favorite champagne . . . there’s such a demand for the very good years. Worst yet, you may have been lured into another hotel and they’ve lost your IBM card and you can’t check out. A prisoner! We shudder. You can understand our concern.

Seriously though, you may not have returned to the Plaza simply because you haven’t returned to New York. If this is the case, don’t hesitate another day. There are lots of new things to do here.

The theatre this year is superb. Philharmonic Hall is open at Lincoln Center. And, of course, the Plaza has added something since your last visit. You may have heard about the Plaza 9. It’s a new supper club under the aegis of Julius Monk. He’s presenting his latest after-dinner review, “Dime a Dozen.” I hope you read the reviews. They were wonderful. Don’t miss it!

Please hurry back to New York and The Plaza. Or at least tell us how you are. We hate to lose touch with our friends.

Very sincerely your,

(signed)

Paul Sonnabend
#########

Q: It’s a great letter, but would I have to write so eloquently?

A: The eloquence fit the hotel. But, no, the only requirement for writing an effective letter to old customers is that it be, sincere — even humble — yet passionate salesmanship.

How to do it: Sit across from your spouse or a close friend and pretend they are an inactive client you just ran into and invited to sit down for a drink and a chat. Turn on a tape recorder to capture your words; talk to them conversationally, like an old friend you are worried about and whose business is valued. You might even tell of a $20 certificate or voucher that they can spend with you, just to get them interested in becoming an active customer again.

Explain specifically why now is a perfect time to come back to the fold. And, again, use plain talk. Then deliver a passionate “close,” as if this were going to be your last chance ever to sell them. Translate your tape and look at the material you have. With minimum editing, you’ve written 90% of your sales letter!

Q: You’ve mentioned a “voucher” approach — how does that pay out for me?

A: A retail store I consult sends a $20 no-strings-attached voucher at my suggestion to any customer who does not purchase something from them within a nine-month period. Few people can turn down a free $20 buying opportunity and still fewer ONLY spend the $20. If they spend at least $40 (the average purchase of reactivated retail customers is $60) my client makes half and breaks even on that first renewed purchase. This is terrific because we’ve found that out of every ten inactive customers we bring back with vouchers, four continue repurchasing for years.

Q: How have you advised some of your other clients to win back business?

A: A phone call, as simple as it sounds, can works wonders. A chiropractor I work with has his assistant call any patients who haven’t scheduled at least a routine check-up in eight months and check into their condition. The assistant says, “The doctor would like to know how you’re feeling and if there are any problems or concerns he can help you with.” About 60% of the people contacted schedule an appointment within two weeks.

Free tune-ups: A heating and air conditioning company took my suggestion to call and offer free “tune ups” to people who hadn’t used the firm’s services for a year. Forty percent took advantage, and, of those, 65% became active customers again.

Calling all clients: A hair salon owner I advised added a low-cost series of one-hour lectures by a medical doctor on the subject of “sane dieting” to win back old “regulars.” It worked. She added more cash to her business and got to “schmooze” and win back inactive clients. The doctor, who only wanted exposure, added five new clients to his practice.

An invitation to lunch: A restaurant my wife and I used to frequent was aware of my customer reactivating ideas and decided to try it out on yours truly.

They mailed us a certificate to be their guest for lunch any day of the week. We used the Certificate and went back many times that year — and we still go there. If they hadn’t asked us to come back, we probably wouldn’t have.

Indeed, reclaimed customers can bring in tens and hundreds of thousands to your bank account with no risk, negligible expense and only a little bit of salesmanship.

EASY REMINDERS

– Most customers who haven’t done business with you lately haven’t really “left” you, they’ve merely become inactive

– Inertia is the likely reason old customers aren’t coming in, so it may be your biggest “competitor”

– Sending inactive customers a small gift can make them feel an obligation to reconnect with you. Or, just a sincere letter can do the job

– Sending vouchers redeemable for merchandise is a very effective way to get people back in the door

Next time, let’s look at how you can become a bona fide marketing genius . . .

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