Profit Fix #9: How Many Work Orders Are Buried in Your List of Inactive Customers?
Reactivating dormant accounts can lead to added revenue for the company
If you've got a list of more than 10,000 inactive client accounts, let's have a bit of fun. If you're like me, you may not have Ferrari or Lambo tastes. I drive a family sedan, and we’re happy as clams.
But how fun would it be to explore?
What kind of ride could your INACTIVE clients put in your driveway? Can’t know for sure without knowing your numbers?
Take our Profit Score Quiz
But here are some early results from a reactivation campaign that we’re running for one of our partners.
We started out targeting one market segment of inactive clients who haven’t placed a work order in over 6 months.
We made 2,100 phone dials and won back 13 accounts.
Those accounts brought in over 90 work orders over three months.
Total? Over $100,000 (and counting) in newfound revenue.
Assuming a profit margin of 40 percent—that could come up to $40,000 in gross profits. Factor in that this was achieved in one quarter, going after only one segment.
Now I must say that this is not a promise or guarantee of results and I can’t claim this will happen for everyone. I’m only sharing the results we’ve achieved so far running this campaign. But we could be talking about a potential six to seven figures in newfound profits this year for the partner, after expenses.
So now you can see, even if we slash that number down to a fourth, there may be a fun new car in there. I wouldn’t be too surprised if it makes for a Tesla Model S, even after Uncle Sam takes his bite out of the sandwich.
But, hey, let me rub some shine off…
...Sometimes it doesn’t work that well.
Especially after COVID, some segments are particularly hard to reactivate. One of our recent “failures” brought only a couple of grand so far, from more than 500 dials and some emails going after another segment.
Not enough for a decent used car, but still enough for a nice car rental for a day or two?
I’d categorize this under “Beta” as I can’t say we’ve got this down to a science yet and we’re still experimenting. But it’s definitely showing some good signals.
And we’re running this campaign on 100 percent performance-basis where we:
- Hire, manage, and compensate the sales team
- Help re-engineer existing offers and craft new ones
- Do personal outreach by phone
- Create email and SMS follow up sequences to stay on top of mind
- Introduce new roles—like Client Success Manager—to take care of the new accounts and get repeat orders
In short, probably all the things executives “know” their company could and should be doing but don’t have either the know-how, the process, the team, or the time to do it.
Well, we do! And we love it!
So, if you have 10,000-plus inactive accounts, chances are you can turn some of that “trash” into cash.
Now, if you're thinking, "After six months, people don’t even remember us... It’s not worth it... We don’t have the in-house resources..."
I feel you!
That's why—for the right partner—we fund the sales campaign a hundred percent and do all the work, and the partner shares a piece of the profits AFTER the money is sitting inside their bank account.
**Gasp** A sales team that puts their money where their mouth is!
But again, I can’t say that we can get the same results for everyone and we’re still experimenting a lot in this area. This is one of the innovations in remote teams that we’re thrilled to be bringing to the industry. And one of the exciting topics that will be covered in depth in a brand-new Summit that we’re putting together for industry leaders.
Stay tuned for more details!
And if you’d like to squeeze more profits in 2022 from your inactive list of client accounts?