Get a return on investment
So, how can sending handwritten cards get you a return on investment?
You'll be pleased to hear there are many ways.
This same strategy and concept works for 99% of businesses. But for this example, to make things easy, let's say you are an Estate Agent. You charge 1% and your average house sells for £400k, so you take £4,000 in fees.
If you've been in business for a few years, you're likely to have around 100+ customers in your database.
Now, let's say that currently, without sending cards, you get on average 5 referrals per year, from those 100 customers.
If you start sending two cards a year (e.g. a birthday card and a Christmas card) to every single customer who has sold a house with you... that would cost you about £8 per customer, per year.
For 100 customers, that costs you £800 per year.
If doing this, gets you just 2 extra referrals a year, from those 100 customers, you now have two more customers, for just £400 each. With an average sale commission of £4,000... that's pretty good.
And the chances are, you're more likely to get around 5 extra referrals for every 100 customers you do this for. Which makes it less than £200 to get a new customer.
But how does sending cards mean your customers will give you more referrals?
Because it shows them you care. Which makes them like you. And want to help you. Combine that with the fact that you're constantly reminding you that you exist.. they are going to think of you every single time someone they know needs what you offer. You, instead of your competitors.
And this doesn't just work for businesses charging high fees, like Estate Agents, Marketing Agencies, or tech companies... even if you're a restaurant, gym, or clothing store with low fees, this strategy will work for you. How? Because these lower fee businesses are more likely to generate more referrals, more frequently than higher fee businesses, so the return is made up in increased volume.
Did you know it is more than 6x CHEAPER to do with business with existing customers than to get new ones?
Using the same card strategy - focusing on building relationships - will lead to your customers buying from you more frequently.
Think about it.
If you're not investing money marketing to your customers... who do you think is?
And if your customers think your competitors care about them more than you do, then of course they're going to leave you and go to them!
I know it's not nice to hear, but it's true. 68% of lost business, is because customers don't feel like you care enough.
Which means it's so important to invest in building relationships with them, to make sure that they stay with you (if you're on a retainer), and come back to you when they next need your product/service.
Let's use some numbers to explain.
Let's say you work on monthly retainers. And your customers pay you on average £100/month. And your average customer stays with you for 12 months. That means each customer brings in £1200 in revenue, and if you have 200 customers, that is £240,000 in revenue.
By sending two cards a year, e.g. a welcome on board card, and a birthday card, costing you about £8 per customer per year... that's going to cost you £1600 per year.
If as a result of that, your average customer stays for just 1 extra month... that means each customer brings in an extra £100, and so 200 customers brings in an extra £20,000!
If you could turn £1600 into £20,000, would you?
Of course you would.
And even if you're an Estate Agent, and your customers aren't going to buy from you again for another 8 years (on average), then as long as you're in business for the long run, this works the same.
After sending a birthday card and a Christmas card every year or 8 years... pretty much every single one of your clients is going to sell with you again. Because HOW could they NOT?!
And I'm sure you'll agree, spending £64 (£8/year for 8 years) for a £4,000 commission is a dream. Even if only 1 in 5 sold with you again, that would be just £320 for a sale.
Increasing sales conversion
We all want to convert more prospects into customers. By doing so we waste less time in meetings that lead to nothing, and make the most of our investments to get those leads in the first place.
So, how can we increase conversion rate using handwritten cards?
Let's say that currently, for every 20 leads you get, you convert 8 of them. A solid 40% conversion rate.
Now, before your sales meeting, those prospects receive a personal, handwritten card to say that you're really looking forward to meeting them - a creative little wow moment that no one else is doing...
If you get just one extra client for every 20 leads... that will cost you just £80 (£4 per card to 20 people) to get an extra client.
If you'd like to try this out, with no need to make a long-term commitment, test this out. Get a box of our cards at the quantity you need using the "GOALS" link in our navigation bar. Why not?