The pitch: Remember customers are first and foremost people

By DMITRI STERN

Australian marketing guru Peter Sun says no matter what you are selling, remember you are selling to people.

Your customers all eat, sleep and have problems with their kids, wife or husband.

They probably want to work less, look younger, need to lose a bit of weight and exercise more.

In other words they are human like you and I. Human nature doesn't change. That's why the following rules for successful selling apply as well today as they did 10, 30 or even 80 years ago.

It has been proven that it is five times easier to sell something new to an existing customer than it is to get a new customer.

The easiest way to sell something else to your existing customers is over the phone or by sending them a letter.

I've been accused of having a bias towards direct mail, but it is by far the most efficient way to generate more business.

Your existing clients are your "hot buyers" list. All you have to do is ask them to buy something else.

And it doesn't even have to be your product. An accountant can offer financial services.

A restaurant can send invitations to a clothing sale. A muffler shop can promote a motor mechanic. A plumber can refer an electrician. And so on.

If you have an established business, 70 per cent of your advertising dollars should be spent on re-selling to your existing customers. Why? Again, because its five times easier and cheaper than to acquire new ones.

And yet I see most businesses spend thousands of dollars in the media trying to get new business - only to forget all about those people after they buy.

If you were to send out thank you letters instead, or call your customers and ask them to buy again, you would see an almost magic increase to your bottom line.

Done correctly, this always works better than chasing new customers.

Next time you are going to run a full page ad in the newspapers promoting a sale or whatever, try this.

Reproduce the ad and send it to your existing clients. Attach a note saying: "I thought you may want to see this. Come in the day before to get your best pick of the bargains."

This approach will work wonders if your sale has a genuine appeal.

Where possible sell only to "players" - people who want what you sell and have the money to afford it. It is far easier to make money by selling half as much but at double the price.

I advise most of my clients to increase their prices and improve their marketing and customer service, rather than lowering their prices and having no profit margin left for good marketing and customer service.

Usually this strategy results in less work and more profit for the business.

The "players" don't usually ask "how much?" as much as "will it work and can I trust you?" or "do I like dealing with this person and the business?".

* Dmitri Stern is the founder of Outstanding Results Company (ORCO).

* The Pitch is a forum for those working in advertising, marketing, public relations and communications. We welcome lively and topical 500-word contributions.
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