How To Target The
First Time Customer
By Tom Egelhoff
 Most business experts agree that it costs
a business six times more to attract a new customer than it does
to retain a current one. But here in Montana that may not be
entirely true. Montana towns have a much higher turnover of residents
than most other states. We have a low per capita of income, sparse
population and some pretty challenging weather from year to year
that cause people to seek opportunity elsewhere. According to
local figures, my hometown of Bozeman turns over in population
every seven years. So even if you are the best business around
there is a constant influx of new customers up for grabs at any
given time. So what's the best way to bring in "new blood?"
There are only two ways a business can bring in new customers.
Steal them from your competitor or develop a brand new customer
that has never used your product or service before. For example,
a high school student turns sixteen and gets a drivers license.
The student is now a gas station, tire store, auto repair, car
wash, and oil and lube customer. This one person affects a lot
of local businesses just by being a new customer to the market.
I would make the following suggestion to every retail business
owner reading this column. Have a yearly "Grand Opening."
When I moved to Bozeman 10 years ago I had to find all sorts
of goods and services. A grocery store, shoe store, dentist,
auto mechanic, and the list goes on and on. New people are invading
your town daily and any time a new business opens the natural
urge is to go take a look.
A yearly grand opening does two things. It alerts new residents
that your business exists and it also reminds some old customers
you may have lost that you are still around and better than ever.
If you are a seasonal business like a ski shop of bike shop you
would plan your "grand opening" just before your season
begins to capitalize on the peaking interest. Budget this expense
into your advertising and marketing plan each year.
The most important aspect of this to remember is that good
planning is the key to success. You never get a second chance
to make a good first impression. Your employees and sales people
have got to be at their very best. Make sure you have enough
salespeople and inventory to satisfy demand. Take a tip from
restaurants that have an unadvertised "soft opening"
to work out all the kinks and problems before the actual Grand
Opening takes place. You are trying to turn first time customers
into lifetime customers. This is much more than a one shot deal
so make the most of it.
If you are concerned about your level of customer service
you might consider one of the "mystery shopper" companies.
Or use friends or relatives to give you feedback on what you
might be overlooking. Remember word-of-mouth can make or break
a small town business so make sure your customers are sending
out positive words about you.
I would also suggest bringing in a group of your best customers
and ask for their feedback. Put them in charge for an hour or
so. What do they really like about your business and what would
they change if they could?
Learn about your industry to get some free publicity. For
example October is small business customer service month. Its
also "pizza month" Last October Pizza Hut send out
press releases with pizza facts from around the world that got
people excited about pizza. Can you tie national days or months
to your annual grand opening and get some coverage in the paper,
radio or TV?
Use co-op money to help defer some of your promotion costs.
Bring in industry experts and suppliers to educate your customers
and give your business more credibility. In many cases they will
have promotional give away items you can use as freebies or gifts
for drawings. Perhaps you can barter your products and services
for newspaper, radio or TV time.
Last but not least, don't forget gift certificates. When you
have a store full of people this is the best time to promote
them. Use your promo traffic to bring in more traffic. If you
have a web site make sure that you also promote it there. Take
pictures of your packed store and post them online to build future
business. If you have customer testimonials have them framed
and placed all over the store for browsers to see.
You can't have old customers until you bring in new ones so
get creative and bring em in.
Based in Bozeman, MT, Tom Egelhoff is the author of How To Market, Advertise & Promote Your
Business Or Service In A Small Town, and The
Small Town Advertising Handbook: How To Say More And Spend Less.
He is also a seminar and workshop presenter and trainer.
© 2004 Lee Enterprises
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