PULL PROFITABLE BUSINESS FROM YOUR LOST CAUSES
By: Dave Clossey / T.J. Tedesco
For: The Binding Edge
Published: Spring, 2003

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.

Guess what: There’s no better time than the present to give these guys another shot! I know what you’re thinking: “No way! Not these prospects! Not after what happened last time…” It may sound painful, but it’s time to wipe the dust from these files and rap on those doors once more. Here are five rules to keep in mind as you call on these prospects, hat in hand:

Rule No. 1 – Forget price concessions: There are probably more than a few prospects on your “lost cause” list that left only because a competitor stole them from you with rock-bottom pricing. It’s only natural, then, to capitulate to market pressure and offer them the price they’re looking for, right? Wrong! You’re above that. Lower prices may have made them leave, but there’s no guarantee that lower prices will bring them back.

You have much more to offer than a lower price. You don’t sell widgets; you sell post press services. Your focus should be on how your company can help each prospect win more customers. That’s a heck of a lot stronger than a 20% discount.

Rule No.2 – Be honest and be creative: Calling on your lost causes may seem like a grim task, but you really have nothing to lose and everything to gain. After all, your company has improved in the past year or two, right? You aren’t the same evil, incompetent company these folks remember. You’re smarter, faster, (hopefully) nicer and, gosh darn it, people like doing business with you!

When you’re trying to revive long-dead relationships, it’s worth it to take a chance and be a little creative. Try sending them “we’ve changed” letter – complete with a list of your prior shortcomings and the steps you’ve taken to correct them. Is it risky? Sure. But a self-deprecating approach may be just the ice-breaker you need. Regardless of what you say and how you say it, remember that honesty may be the biggest factor in whittling down your “lost causes” file.

Rule No. 3 – Time and numbers are on your side: Before you get too frantic about the prospect of calling on your lost causes, take a close look at your “lost causes”. You probably haven’t contacted most of them in many months, if not years. In that time, it’s a good bet that some of the people you jilted have left their jobs. Of those that remain, more than a few may have dim memories of the exact circumstances. Although you should never assume that these prospects don’t remember why they don’t do business with you, the numbers bear out that the going may be a little easier than you think.

A few years ago, one of my clients had built a list of about a dozen customers that he was sure would never do business with him again. He hadn’t contacted most of them in more than a year as he opted to focus his prospecting efforts on more promising customers. On a lark, we decided to send a letter to these “never-agains” that was simple and honest: We screwed up in the past, and we want to earn back your business.

The results were alarming. Half of these “never-agains” returned as customers. In many of those cases, the person holding the grudge had either moved on or simply forgotten what the beef was about, making it much easier for them to bury the hatchet.

Rule No. 4 – Ask for a meeting, not a debate: Once you’ve sent a communication or two to get the ball rolling, follow it up with a phone call. Ask the prospect if they would be willing to discuss the circumstances surrounding your falling-out. And ask them to agree to give you a shot at their business, provided you can demonstrate that you’ve improved the problem areas the prospect has outlined.

If the prospect grants you an audience, don’t go in with guns blazing. Instead, go in with a pen and paper and an open mind. Remember, this is a fact-finding mission, not a debate.

Once you have your list of gripes and complaints, take a good look at it. What do they have in common? All of them are fixable! In fact, many of the problem areas may have already been improved. Were sluggish turnarounds a major complaint? Bingo! You’ve rearranged the equipment layout in your plant for faster throughput, and overhauled the shipping department for greater efficiency. Was sloppy customer service enough to make the prospect’s blood boil? Let them know that you’ve implemented regular training and review for all personnel in the last few months.

Contact the prospect again with a plan of how you have – or will – address their specific concerns. Don’t forget the most important part: Start talking to them about upcoming jobs you may be able to help them land.

Rule No. 5 – It’s not just for “lost causes”: Once you’ve won back a few customers you never thought you would, don’t stop there. Apply these same principles to prospects you just haven’t had any luck reeling in the past. Let’s say these are your “almost lost causes”. These are the prospects you know you should be working with, but who simply haven’t responded favorably to your previous marketing attempts. A different approach may be just the tonic that gets these prospects into your portfolio.

Don’t be intimidated; selling to your “lost causes” is truly a win-only situation. These are the folks who you believe can’t think anything less of you. Have fun with it, and see if you can’t drum up some profitable business while you’re at it.

T.J. Tedesco is a “hands-on” marketing, sales, coaching and training consultant to the post press industry. He is the author of Binding, Finishing & Mailing: The Final Word, and Win Top-of-Mind Positioning, both published by GATFPress and available at Amazon.com. T.J. can be reached at (301) 294-9900 or tj@growsales.com.