Increase Frequency of Purchase
A dry cleaner is generally seen as a commodity. Therefore, can offer a 50% discount to new customers for the first 30 days they use them.
The goal in this case is to condition them. People are creatures of habit, once they go to a particular business a few times they will often
continue to be loyal until the business treats them poorly.
This brings up an important consideration. How can this cleaner afford to give so great of a discount? Won’t some people switch just to get the
discount and then leave?
• First, they could afford to give each new customer a year’s free dry cleaning and still make a handsome profit.
• Second, some people will certainly take the discount and run. But the vast majority will become creatures of habit and therefore customers
for the long run.
If you remember the section on Lifetime Value of a Customer (from “The 10 Fundamentals of Marketing that Every Business Must Understand
to Succeed” tape) you will recall this very example. The cleaner’s average customer will remain loyal for 6.6 years. They will spend $3,300 and
generate $1,650 in profit. So if a few prospects take the discount and run, so what! The cleaner broke even with the 50% discount and gained
5-10 Lifetime Customers for every one that “takes the discount and runs”.
Referrals
Another example is a dry cleaner that picks up and delivers to various customers. They could use the Neighborhood Program by offering to
pick-up other neighbors’ laundry as well. The additional costs are insignificant since the original customer is already absorbing the cost of
going to the neighborhood. Incidentally, will the neighbors call your customer to discuss your service? Absolutely. This increases the power 10
fold!
Laser Marketing
Re: Testing: For example, if you offer free dry cleaning for a month to new residents and 10% take you up on it and 75% become $1,500
Lifetime Value Customers then it is a safe assumption that a roll out would be justified.
Compelling Incentives
If you offer free dry cleaning for a month to new residents and 10% take you up on it and 75% become $1,500 Lifetime Value customers then it
is a safe assumption that a roll out will probably be justified.
Alternately ...
At the counter, hold a drawing for "Free Dry Cleaning For a Year -- A $250 Value". On the drawing card, have each prospect write in their
name, email address and telephone number. They can also write special instructions or preferences. One prospect will win first prize. The key
is that everyone wins second prize (though you don't tell everyone that). It might be 20% off their order for the whole year. Now you have a
customer database. You know your gross margin, so you know what you can afford to give away (20%?) and still make a handsome profit.
Furthermore, you can give the customer such a positive experience that you can leverage them for referrals forever.
Script: Send this sample email script to your 2nd place winners and see what happens. "Dear Susie, Congratulations. You have won second
prize at ABC Cleaners. I'm sorry you didn't win first prize -- that went to Mrs. Jane D. of Colorado Springs. However, your valuable second
prize earns you 20% all dry cleaning over the next twelve months. Please bring in this letter when you come and we'll instantly apply your
discount to any purchase you make. See you soon."
When you run a special, you can send them an email about 10 days in advance and remind them of their 20% discount. Follow up the email
with a call to increase conversions about 30%. Any staff person can do this because the email is cut and paste, and the phone call is a basic
script.
Package Synergistic Products/Services
Offer “Up to X hours or Visits per Year” for a discounted price.
Dry Cleaner