The E-zine Tammy Stanley's Sales Refinery Insights
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2008-01-03
Vol. 5, Issue 1
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Hi, Archive Visitor

Welcome to The Sales Refinery Insights

- Feature Article:
Why Customers Quit Buying From You

- Refinery Update:

To the New Year!


- Tammy Recommends:

The Top Sales Experts Free Christmas E-book


Please add "tammy@tammystanley.com" to your whitelist or address book in your e-mail program, so that you have no trouble receiving future issues!

A Note From Tammy

Dear Archive Visitor,

More recently I became one of 24 sales trainers asked to join a group of Top Sales Experts (www.TopSalesExperts.com). In December we released our Christmas E-book, which you can pick up for free at www.TopSalesExperts.com.

There is an article from each of the experts including yours truly. Just yesterday I received a call from a Canadian sales trainer that read my article and asked if he could give it to all his students at the entrepreneurial schools where he teaches. Hmm... maybe you do want to get that free ebook after all, eh? (Can you hear my imitation Canadian accent?) Click here to get your free e-book.

Well 2008 is here and I trust you're ready to make this year the best you can. In this week's article I share some key insights about customers and why they stop buying from you. You'll undoubtedly see how you can easily increase customer loyalty this year after reading it.




Feature Article

Why Customers Quit Buying From You
By Tammy Stanley

After 7 years of loyally buying from the same tree farm lot, I vowed this December to never buy from that farm again. The reason I made that decision is actually the same reason many customers that are pleased with a company will take their business and go elsewhere. The reason is Company Indifference.

Here's an interesting statistic regarding why customers quit buying from you and take their business elsewhere:

* 4% Feel the pricing is unfair. They aren't given enough "value" reasons to stay. (Check that out, only 4% leave because of price. This alone should convince you that a good sale isn't what keeps most customers around!)

* 9% Became unserviceable. They move their location, pass away, or their needs change (Obviously, you can't prevent this one).

* 12% Are disappointed with the company (Most business owners/entrepreneurs think this is the #1 reason).

* 16% Accept a competitive offer. You aren't there, but your competition is! (Visibility is key)

(Hear the drumroll!) * 55% of customers take their business elsewhere because of "Company Indifference" or "No Contact". (In other words, over half of your customers leave you because you show no interest in keeping them around!)

When you add up the last two reasons (A Competitive Offer and Company Indifference) you discover that 71% of lost customers actually value you and/or your company and only take their business elsewhere because they feel that you don't value them.

And I just happen to have the perfect case in point!

I won't ever own one of those fake Christmas trees. 10 years of living in Oregon has me spoiled. Every year on the day after Thanksgiving, our family took a wonderfully romantic drive into the hills to one of our favorite tree farms (we had a couple of favorites to choose from) and cut down our holiday tree for the season.

We built so many mini traditions into that one that I could write a book as opposed to an ezine article. Suffice it to say, it was a great disappointment when we moved to Phoenix, Arizona where trees in grocery store parking lots are the closest thing to a tree farm you can find.

Our first year in Arizona I felt more disappointment than excitement the day we went to get a tree. Now picture that disappointment transform to satisfaction as I meet a family of Oregonian tree farmers managing the tree lot we chose. Then imagine the delight I felt when I recognize their tree farm name as one of the farms we frequented. As we shared some of our hilarious tree stories with them (again, stories for a book not an ezine!), they laughed and shared tales of being in a long line of family tree farmers.

Before we left, they suggested we sign their guest book so they could send us a postcard the following year informing us where their lot would be located. I was delighted to oblige.

The following year right around Thanksgiving I received a post card from the farm as promised. However, in addition to letting me know the tree lot location, the postcard was a 10% off coupon on any tree purchase. Naturally, I returned and recognized the tree farmers as soon as I walked on the lot.

The next year I started looking for their postcard (key point) as the Thanksgiving holiday approached. When it arrived in the mail, I felt a sense of relief along with the anticipation of meeting up with the now familiar Oregonians. As I walked on to their tree lot that year, I felt a sense of pride to be one of their loyal customers (another key point).

The third and fourth years were a near exact repeat of the previous paragraph. Again, I received the postcard almost as soon as I started looking for it and was thrilled to buy from the same tree farmers' lot.

However, the fifth year I again started looking for their postcard the week of Thanksgiving, but it didn't show up. I thought I was just eager and that it would soon arrive, but it didn't. In addition to that, I didn't see their sign at any of the tree lots nearby.

Just when I thought I'd have to buy from another farm (and a major point here is that I DIDN'T WANT TO DO THAT), I saw their sign one day as we were driving into the shopping mall, 5 miles south of their previous location! Now let me help you understand what that means here in the 5th largest city in the United States. Within 1 to 2 miles of my house, there are 4 tree lots during the holiday season. Within 3 miles, there are 8. Just imagine how many within 5 miles. Get the picture? Lots of competition!

I didn't understand why the ONE year my favorite tree farmers needed to let me know their location more than ever before, they hadn't, until I arrived on the lot. My favorite farmers weren't there. They had obviously hired out that part of the business to someone else. When I explained to the new people that I was lucky to find them because I hadn't received the yearly postcard notification, they apologized and offered me the 10% discount I was accustomed to receiving.

The sixth year I didn't receive a postcard in the mail, but I discovered my favorite tree lot right next to our favorite privately owned coffee shop. This time I met a different couple managing the lot than the year before. When I informed them that I hadn't received a postcard this year again, I was told that they were now sending the notices by email and that one could print off the coupon. Hmmm. That would have been nice to know AHEAD OF TIME!

I was beginning to feel like a jolted lover, but because of the years of good experiences, I wanted to give them another chance (another key point) by filling out the "new" guest book and supplying my email address for them to contact me the next year... which brings us to the 2007 holiday season.

Did I receive a postcard this year? Of course not. How about that email? No. I did, however, find them located once again near my favorite coffee shop. This time when I asked why I didn't receive a postcard or an email, the gentleman (a completely new face again) told me others had mentioned the same thing but that he didn't know anything about it.

You know the decision I made that day. And the reason I made it wasn't because I didn't like the tree farm. It wasn't because I was sore at the owners for outsourcing the tree lot part of the business. It wasn't because I didn't like the new people managing the lots. And it certainly wasn't because I couldn't save a whopping 10% on a tree!

I made the decision to take my business elsewhere from now on because after 7 years of loyally buying from the same company, I feel unvalued; I feel their indifference to me. I can't help thinking that if it's not worth it to them to stay in touch with me, they must not care whether or not I buy from them - so I won't. I'll buy from someone else.

What can you do differently or more frequently this year to show your customers that you are anything but indifferent to the business they give you?



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Tammy Recomends
Looking for help with your most challenging sales issues?

If so, you'll find just the right resource on Top Sales Experts (www.TopSalesExperts.com.).


We have scoured the four corners of the globe, to bring together the finest collection of sales gurus ever assembled in one location, to help you achieve your key sales objectives such as:

* Improving prospecting effectiveness
* Growing existing customers
* Giving powerful presentations
* Relating to different customer types
* Negotiating better deals
* Shortening sales cycles
* Selling to big companies
* Plus so much more

Go to www.TopSalesExperts.com. and get our free e-book to learn how to overcome some of your biggest sales challenges.

About Tammy

Tammy Stanley, founded and directs The Sales Refinery, a sales training company that assists sales professionals to generate more business and build long-lasting sales teams through powerful marketing, selling and leadership strategies.

Tammy has been coaching and training since 1994 and has a deep understanding of the challenges and needs of the independent sales consultant. While raising four children, Tammy built a multi-million dollar direct sales organization, reaching her company's Circle of Excellence 7 consecutive years in a row. She earned numerous sales and leadership awards, world travel, and promoted 11 offspring managers.

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