This document discusses strategies for retaining customers and increasing sales to existing customers. It recommends identifying a sustainable competitive advantage (SCA) that differentiates your product or service and using that to help customers move past the evaluation stage into becoming satisfied customers. The document also suggests focusing marketing efforts like a contact program on existing customers, especially advocates and clients, in order to increase sales and customer retention over time. Guarding your energy by maintaining control is also presented as important.

1. RETAINING YOUR BEST CUSTOMERS

2. KEY CONCEPTS Understanding Sales Demand Cycle Identifying your SCA Increasing sales to existing customers Guarding your energy

3. Most companies sell here - explicit needs are obvious! It’s crowded here – price competitive, low margins, low value. The Satisfaction Stage Purchase Satisfied Dissatisfied The Buy Stage The Evaluation/Risk Stage Only 10% of customers are in this stage at any one time. 90% of customers in this stage at any one time. Change SALES DEMAND CYCLE

4. JUMP THE ‘BUY STAGE’ Help customer discover DISSATISFACTION 2. Get them to work with YOU through evaluation stage 3. Help them minimize purchase risk (emphasize your product’s ‘SOLUTION’ ) 4. This is new world of CREATING DEMAND

5. SUSTAINABLE COMPETITIVE ADVANTAGE (SCA) WHAT IS SCA? That feature about your product or service that sets you apart from your competitors. WHY IS IT IMPORTANT? Your SCA should drive your marketing strategy & become key in helping you ‘jump’ the Buy Stage.

6. SUSTAINABLE COMPETITIVE ADVANTAGE (SCA) Key Success Factor (A) Value To Customer (B) Current Ability To Beat Competitor (C) Impact on Business (D) Total (E) SERVICE 7 PRICE 6 QUALITY 7 RESPONSE TIME 9 7 9 18 PEOPLE 9 6 7 16 RATE OF CHANGE 8 6 5 13

7. INCREASING SALES Increase average $ sale Increase transaction frequency Increase customer retention Gain new customers

8. INCREASING SALES DESCRIPTION Current Projected Change AVG $ SALE AVG TRANS $2,000 12.0 CUSTOMERS ANNL $ SALES 250 $6,000,000 $2,010 $10 12.5 .5 255** 5 $6,406,875 $406,875 ** Increased customer retention Existing customers are your greatest opportunity for growth

9. CUSTOMER-CENTERED MARKETING Loyalty Ladder: A way to segment your customers Contact Program: An essential sales tool

10. ADVOCATES CLIENTS PROSPECTS SUSPECTS CHAMPION YOUR NEEDS BY SAYING HOW GOOD YOU ARE. EXCLUSIVELY YOURS. PURCHASED AT LEAST ONCE, BUT ALSO DO BUSINESS WITH OTHERS. INFLUENCED IN ADVANCE AND HAVE SELF-MOTIVATION. EVERYONE IN THE MARKET PLACE. LOYALTY LADDER CUSTOMERS Use ‘Loyalty Ladder’ to develop your Call Program.

11. SAMPLE CALL PROGRAM Pareto Rule (80/20) still applies CATEGORY TIMING ACTION Advocates Monthly Personal visit / Special invites / Phone calls Clients Quarterly Phone calls / Gifts Customers On purchase Thank you note / Phone call Prospects Limited time Send catalogs / Phone call Suspects Minimal time Raise awareness (sponsorships / adv)

12. The goal of your call program is to gain more CLIENTS & ADVOCATES!

13. CUSTOMERS COMPETITION SALES FORCE ECONOMY Guard your energy! LOCUS OF CONTROL

14. SUMMARY Jump the ‘Buy Stage’ Leverage your SCA Concentrate on existing customers Guard your energy

15. “ We were born to succeed, not to fail.” Henry David Thoreau

16. “ The way to get started is to stop talking and begin doing.” Walt Disney

17. Growth & Profit Solutions (GPS) A division of Cain Ellsworth & Co., LLP Mark J. Ellsworth, CPA Matthew R. Heemstra, CPA