Safety margin ratios

When you develop an advertising program you need to look at the safety margin ratio. The safety margin is a factor that looks at the minimal return needed for profitability. The higher the safety
margin, the more likely the success of the program.

In the case of the Jon-Don newsletter program, you can have a 99% non-response ratio and still make a profit(though you’ll likely see responses of 3 to 7%). By taking an advertising program with a high safety margin and fine-tuning it to the point that it yields a response rate 2 to 7 times that safety margin, you’ll guarantee success.

Utilizing your house list

Your number one asset (yet the most underutilized one) is your house list. After all, your existing customers are the ones who have the power to refer your company to others within their circle of influence. These customers already have a relationship with you, so reselling to them is far easier and cheaper than acquiring new customers. You’ve got to insure that your customers don’t forget about you and that they refer you every chance they get.

But Jon-Don’s newsletter program is not just about keeping your existing customers, it’s also designed to dramatically increase the referrals from these customers year round. Most cleaners get the majority of referral jobs within 30 days of cleaning. Why? Because the customer remembers the cleaner and the positive experience. After 30 days referrals fall off to virtually none. Some cleaners find that getting customers to remember them is more difficult than they first realized. Customers who have to ask
“Who do I make the check out to?” are very unlikely to remember the company the next time they need their carpets cleaned.

Carpet cleaning customers have no reason to keep the cleaner’s name handy, and having quick access to their phone number is even more unlikely. The newsletter program handles both of these issues with ease.

Monthly newsletters vs. quarterly postcards

Quarterly postcard mailings rely on timing to work. There’s a short message, normally a reminder or a special offer. If your customer’s not in the buying mode at that precise moment, they’re likely to toss the postcard right into the trash. And postcards do a poor job at ingraining your company’s name in the customer’s mind. Ask yourself what postcards you got three months ago? You probably can’t remember, and neither can your customer.

On the other hand, a well-designed newsletter can provide the same quick message delivery typical of a postcard with the additional benefit of better name retention and recognition. Each month the customer receives a newsletter filled with articles designed to interest their demographic profile – articles on children, family life, gardening, travel and cooking – all designed to increase the shelf life of the newsletter and improve the relationship between customer and provider. Building that relationship each an every month has a huge impact on your position in your customers minds. Keep in mind that opting to send your newsletter out only six times a year can dramatically lower the overall effectiveness. The tried and true format requires montly contact via the One to One newsletter.

Many companies spend millions to keep their brand in the minds of their target customers, but carpet cleaners using a newsletter program can do the same for pennies. In fact, they can even work it so the program is absolutely FREE (more on this later)!

Creating interest with personalization

Marketing studies have shown response rates for personalized marketing pieces to be 2 to 7 times higher than the same message without the personalization. That means personalization marketing improves results as much as 700%. Jon-Don’s One-to-One newsletter program goes beyond name and address – we create a unique newsletter for each and every customer. The customer’s name is carefully added to key areas throughout the newsletter to increase readership and relationship value.

Cashing in with referrals

Each newsletter provides a monthly promotion for the customer to use themselves or give to a friend. This personalization draws customers in, involving them even more in the newsletter.Astatement like “This offer is for Jenny Richards or a good friend” is included on every coupon, encouraging the customer to give it away. When Jenny Richards hands over the coupon she is making the statement to that she cares and considers them a good friend. It goes beyond the referral – the giver feels she is giving her friend a gift, one that can save her friend some money. It’s a win-win scenario.

For the refered, the fact that Jenny Richards suggested this cleaner is an endorsement that the company does a good job. Referrals and testimonials have been proven to stop the shopping process. Most consumers don’t want to do the research so they are more than willing to accept a friend’s referral over any printed advertisement. In fact, a survey among women asking how they selected a carpet cleaner showed that 40% of decisions hinged on a referral from a friend or family member. Referral work will also command a higher price, which takes the service from a commodity position to a premium level. “They do good work for a good price” translates to better value, not cheap prices. With a newsletter and coupon arriving in the customer’s mailbox each month, you’re dramatically improving your referral ratio year round. You own the carpet cleaning position in your customer's mind. And by using the newsletter program, you’re not competing side by side with your competition - remember that the Yellow Pages is the last place you want your target customers going!

Dramatically adding new customers

Trackability is the heart of any loyalty program, which is why we incorporate your customer’s name into the coupon as part of our One-to-One newsletter program. When a new customer hands you the coupon, the name of the customer who referred them is right there on the coupon. Trackability becomes a snap!

One coupon idea is to offer your customer free carpet cleaning. Instead of offering your customer 10% off, offer them a free carpet cleaning if they refer 10 paying customers. Once you’ve collected 10 coupons with the same customer’s name on them, a call is made and a free cleaning is scheduled. The customer can even give their free cleaning to a friend or family member if they want to. Instead of 10% off (a $15 discount) you’ve generated 10 more sales. That same customer value increases 10 fold, from generating only $150 each year, to a whopping $1,500!

If 20 customers take you up on the offer you have the potential to gain over 200 new customers. That’s 20 sales reps working for your company and they’re not even on your payroll. With 200 customers at an average of $150.00 per job, you’ve generated an additional $30,000 in revenue.

Not only did you gain in sales, you also added more people to your referral program. This is where the snowball effect takes over – soon your house list is filled with referring customers and advertising in other medias becomes a thing of the past. The free cleaning is just one idea. You could come up with a number of programs based on collecting these trackable coupons.

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