January 2011

Pull Profitable Business from Your Lost Causes

The “lost causes” file. You know you have one. It’s filled with the customers you’re sure will never do business with you again. You’re so sure, you haven’t even bothered contacting them in over a year. Each one represents a dark moment for your company, an unkept promise. This file is filled with blown deadlines on critical jobs; incorrect billings you didn’t own up to; rude delivery personnel, and more. Regardless of the reasons, the result is the same: You aren’t getting their business.

You could shut your “Lost Causes ” file and never look back again. Or you could find a way to turn the situation around and get these customers back. If you poll the top 100 salespeople in any industry, can you guess the course of action most would take in this scenario? Yep. Best intentions and perseverance aside, however, you're not getting any business from these former customers until you develop a plan to win them back.

Here are three rules to remember when contacting former clients:

Rule No. 1 — Forget Price Concessions Even if your former customer claims to have left for a lower-priced competitor, slashing your current prices won't bring him or her back into the fold - it'll only promote a race-to-the-bottom in which your customer wins and you and the competitor both lose. Instead, concentrate on how your company can help your customer win more business. This is a more attractive long-term solution for both parties than handing out 20% off coupons.

Rule No. 2 –- Honesty is Still the Best Policy Once your former client has granted you a meeting, walk in ready to admit all your company's transgressions. Preparing a list of mistakes made during your former business relationship will help you appear conciliatory and understanding. Following this airing of grievances, be sure to let your lost customer know exactly what steps you've taken to resolve these past issues. This demonstrated humility and willingness to change could be the deciding factor in whether ex-clients give you another chance.

Rule No. 3 – Learn from the Past. A second chance at a customer's business is not a second chance to make the same mistakes. Customers that take you back into their good graces are expecting you to stick to your word and improve on the problem areas you discussed. Every three months, ask your customer "How much progress do you think I've made on x, y and z issues?" Good communication, honesty and continual adjustments are necessary to ensure you don’t lose these customers a second time.

By revisiting the “Lost Clients” file as a source of new business, you’ve turned a lost cause into one that will pay dividends for years to come.

What Can Grow Sales Do for You?
Charting a course for aggressive, intelligent growth can be difficult. Grow Sales, Inc., has been helping printing and other graphic arts companies handle their growing pains with ease since 1996. Whether your company is in transition, the middle of an upswing or seeking help to get there, let us put our sales and marketing leadership to work for you.

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