How to Use Promotional Products to Earn Repeat Customers and Referrals

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When it comes to a successful education, old timers tell us about the 3 R’s of education. The idea is that a focus on “Readin, wRitin, and aRithmatic” would help create a good student.

And though that is hopefully not the entire focus of our education system today, we know that those are the basics for success.

The Three R’s of Business Growth: Retention, Repeat Customers, Referrals

When it comes to business, there are also the THREE “R’s” that are important in any successful, long term business.

We have already spent an entire blog post on one the role that promotional products can have in fostering the first “R,” customer retention. Today I’m going to introduce the next two R’s of Business—repeat customers and referrals.

Why are repeat customers so valuable?

All successful business owners want to have a steady stream of repeat customers. Repeat customers are the backbone of any vibrant business. They are the “holy grail” of business growth.

These customers come back again and again and (hopefully) their loyalty leads them to spend more time and money with us.

(Repeat customers are, incidentally, our best source for the third “R”—referrals—but I will get to that in a minute.)

Repeat customers are great because we have already won them. It takes a great deal of time, energy and money to earn a customer’s trust and business. It’s much harder to convert a non-customer into a customer than it is to sell to one of your current customers. Depending on the study, it’s been shown that it costs up to 6 to 7 times more to capture a new customer than to sell to a current customer.

Insufficiently focusing on their current clients is one of the main mistakes many businesses make. Why do so many spend so much time and money on the clients that are hardest to reach?

So, we have a base of repeat customers. Great! Now, what next? It’s safe to say the goal is to grow that base. But how?

The first way is to get these repeat customers to come and do business with us more often! If we can increase the number of times these customers do business with us, we increase sales. Duh…right?

Well in two separate studies (in 1993 and 1994 respectively) promotional products were shown to improve repeat business.

Research into How Promotional Products Encourage Repeat Business

Repeat Business for a Food Delivery Service

In the first study, conducted by Southern Methodist University, 900 people were divided into 9 groups of 100. These nine groups were broken down by customer type (existing residential food delivery, new residential food delivery, and business/commercial food delivery customers) and what they received (a promotional product, a coupon, or nothing.)

The promotional product and the coupon were both valued at $2. But which one turned out to be more valuable?

  • Customers who received promotional products ordered up to 18% sooner than those who received coupons.
  • Customers who received promotional products also averaged up to 18% more orders than those receiving coupons.

In other words, the customers that received the promotional products ordered more quickly and more often than those that received coupons…or nothing. Sales more often and sales more quickly = more sales.

Repeat Customers for a Dry Cleaning Business

This study, also conducted by Southern Methodist University, tracked the activity of 300 new customers at two locations of a dry cleaning business.

Customers were randomly assigned one of three groups. Everyone received a welcome letter from the company. One of the groups, in addition to the letter, received a promotional product valued at $5. The second group received a $5 coupon. The control group just received the welcome letter.

After 8 months, the results of the study were:

  • New customers who received the promotional product spent 27% more than those who received coupons, and 139% more than those who received only a welcome letter.
  • Promotional product recipients were 49% more likely than coupon recipients (and 75% more likely than letter recipients) to patronize the dry cleaner in each of the eight months studied.

Just as in the first study, this second study showed that customers who receive promotional products spent more and were more regular customers than those who do not.

If repeat customers are the “holy grail” to business success, then you need to consider how cementing that relationship with a promotional product can help you grow.

How to Get More Referrals

Another huge part of any successful business is the third R…referrals. As a business friend once told me, “The best way to get referrals is to deserve them!” Obviously, this is foundational. But I am going to assume that you’re already running a business that is worthy of referrals.

So here I’m going to talk about how to get more referrals.

As I mentioned earlier, your current customer base is often the best place to look for growth in your business. It’s also a source of referrals that many business owners and marketers ignore. Your current client base already “gets” you. They understand what you offer, and they love you for it. Repeat customers can be a fantastic source of new customers.

The problem with referrals is that no really likes to ask for them! Admit it. You, like everyone else, don’t like asking for referrals. (Most people don’t.) Nearly every time I speak to a group, everyone agrees that getting referrals is a great way to grow your business. It’s just common sense. And yet, most people admit to failing to “consistently ask” for referrals.

What I’ve found, time and again, is that giving a promotional gift before asking for a referral is a simple way to make asking for referrals easier.

And another study proves it.

In 1993, researchers at Baylor University showed that customers who received a promotional product are more willing to provide referrals than those that don’t.

The study was conducted with 20 Mary Kay beauty consultants, half of whom distributed a promotional gift to their customers; the other half of whom gave no promotional gift.

The results were impressive.

  • Customers who received a promotional product were 14% more likely to provide leads than those that did not.
  • Salespeople who gave promotional products to their customers received 22% more referrals than the salespeople who did not use promotional gifts.

Providing even a small promotional gift to your customers increases the likelihood that they will provide you with referrals. Combine that with the fact that you have a business worth referring…and you have business gold!

Here’s an Idea: Create a Gift-Based Referral Program

Are you still struggling to ask for that referral? Here’s another approach—create a referral program which does the asking for you.

First, create a flyer to email, mail, fax (or send via smoke signal, your choice!) to your current customers.

The flyer should advertise a nice “referral gift.” Use your imagination. The gift can be anything from a nice watch to a piece of luggage. The incentive gift does not have to break the bank, but it does need to be nice enough to garner attention.

Send your flyer, letting customers know that if they provide a referral that results in business for your company, they will receive this fabulous gift.

Boom. Watch the referrals flow in.

A few tips:

  • The gift needs to be nice enough to get your customer to act: Make the new customer’s qualifying purchase large enough that the profits from that sale will cover the cost of the item. This way you might break even on this transaction, but now you have a new customer for life!
  • Make it feel “exclusive”: Considering only sending your referral offer to your top 20% of clients. They are the most likely to give you the best referrals anyway!

Setting up a simple program like this—one where you “give first”—takes “the ask” out of the referral. Instead of asking for a referral, you’re giving them an opportunity to receive a great gift. It’s a win-win proposition.

Focusing on the three R’s—retention, repeat business, and referrals—lays the foundation for building a successful business. And the research shows that promotional products can help your business achieve all three goals.

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What Do You DO After the Meeting

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A Good Sales Meeting Can Be A Great Investment.  This past week, several members of the Hasseman Marketing sales team (and me) attended an intense, multi-day sales event at the Kalahari Resort in Sandusky, Ohio.  It was a “speed dating” style event where we got the chance to meet with a different supplier every 18 minutes.  It was fast.  It was productive.  And…it was exhausting!  We left with lots of ideas for our clients and ourselves.

I love to attend sales meetings and events like this because, though they do require time out of the office, they can really recharge your passion.  You certainly get new ideas.  But sometimes the most powerful takeaway can be an old idea that you have not implemented!  Either way, I view these events as opportunities to invest in myself and my business.

But what do you do after the meeting?

One of the challenges I find with events like this is what comes next.  We have all been there.  After being out of the office for several days, we find that the world did not stop in our absence.  As a matter of fact, I sometimes think things get more busy when I am gone!  You get back to the office and face a pile of priorities, a mountain of emails and several emergencies.  Despite the best of intentions, and tons of good ideas, you get back into the day to day and don’t follow up.

It’s called the Whirlwind…and it’s easy to get lost in it.

That’s why it’s so important what you do after the meeting or event.  Remember, the event is an investment.  It’s not just about pumping you up (though that’s great).  The idea is to create a new and better business that is ready to grow.  So here are a few things I try and do to make sure the ideas don’t get blown away in the whirlwind.

Schedule Time for A Debrief

After the meeting, before all of the ideas get lost (or the notes get thrown away) set some time to go over what you learned.  By yourself or with the team, look again at some of the ideas that had you excited.

Get Specific Ideas on Paper

This seems obvious, but I often miss this step.  I like to get the ideas I want to execute all in one place.  Otherwise I spend a lot of time thinking “where did I write that down?”

Schedule Time to Implement

Now that you have gone over the meeting and created a list of “things to do,” put some time on the calendar to actually do them!  My role is, if it is not on my calendar, it doesn’t exist.  So create the time to make the plans come to life!

I always struggle to get events on my calendar.  They cost you time and they cost you money.  But every time I take the time to invest in myself and my business this way, I am glad that I did.  It’s just important to make sure you take the time to make it worth it!

P.S.  Congrats to the OPPA Promotional Group for putting on such a great event!  If you want to learn more about us at Hasseman Marketing, check out our About us page.

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Giving First with Promotional Products!

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“For it is in giving that we receive.” ―St. Francis of Assisi

We are in a “Give First Economy.” 

I believe this in my bones.  We even talk about this here…and some ways to succeed in this space.  But how can we talk about Succeeding in the Gift First Economy without talking about creating “marketing joy” with Promotional Products?  You can’t.  So let’s dig into how to “give first” with Promo.

Created in back in the late 1800’s, Promotional Products are often an overlooked part of the marketing tool box.  There are even some college professors that refuse to talk about Promo when it comes to marketing classes.  This is short sighted, small-minded and frankly irresponsible.

Why?  Because Promotional Products Work…and it’s not just my opinion.  Study after study is proving it to be true.  So much so, that I wrote an entire book (Delivering Marketing Joy) on the subject.  I don’t want to “re-litigate” the entire argument here.  But I will include this one sections from the book here.

I am sure every form of advertising is accused of “not working.”  As I heard once, “Just because you can’t put the ball in the basket, doesn’t mean there’s a problem with basketball.  Maybe you’re just not good at it.”

Promotional Products do work. 

Many of us have known this for years.  But more studies are coming out all of the time that proves it.  That’s the best thing about marketers getting more interested in measuring ROI.  We are getting facts to back up the theory.  Here are just a few from a study released in 2010:

*Of 1000 people surveyed that had received a promotional product, 89% could recall the advertiser.  Say that out loud people.  The name of the game in advertising is to create customer recall.  Nearly 90% is a number that you might want to know when you are figuring your budget.

*14.7% of participants reported contacting the advertiser after receiving the promotional product.  That is nearly 3 times greater than other media.

When done right, promotional products are incredibly effective.  The more the facts stack up, it’s just hard to argue.

Work Too Well?

The great irony is the other side of the coin is it can be argued these products work too well.  Don’t believe me?  Well look no further than the laws written to limit the amount of promotional materials that can be given in the healthcare industry to Doctors.  These laws were put in place because Big Pharmaceutical companies were creating “undue influence” over these Physicians.  Now some will argue that these laws were put in place because of free trips, game tickets, and extravagant dinners.

Maybe so.

But then why legislate the kinds of products that can be given to doctors’ offices?  To put it simply, these laws were created because promotional products were having a huge influence on healthcare decisions.

The goal of any marketing campaign is to affect behavior change.  When you can implement a campaign so effective that it needs to be legislated…you may want to consider that strategy to promote your organization!

Promotional products have been around since the late 1800’s and I think sometimes this is part of the reason the results are discounted.  Everyone wants to know the newest, hottest ways to reach customers.  You should!

But don’t sleep on the power of promotional products.  Now more than ever, you need to include them in your marketing mix.

If Promotional Products work so well…how can you use them to help you grow in the Give First Economy?  Let’s dig into that.

Marketing They Say “Thank You” For

As we like to say in the promotional world, when you create a Promotional campaign that works, your customers and prospects will thank you for your advertising!  No disrespect to radio, or TV, or newspaper, or social media…but no one thanks you for advertising there!

So how do you create a Promo Campaign that works and resonates in the Give First Economy?  Here are just four things to consider to make sure you hit the mark.

Don’t Just Go Cheap

Probably the biggest mistake I see businesses of all shapes and sizes making is considering your promo ONLY on price.  Of course, your budget has to be a part of the discussion!  It should be.  But just like in EVERY other area of your life, price should not be the only piece of information you consider.

If you are shopping for a car, most people do not just look at price. You consider the features you are interested in.  You think about the reputation of the dealership.  You consider whether you want to drive lots of miles (so gas mileage might factor in) or if you will be going off road or driving in the snow.  If you only consider price, you will likely get a vehicle you are unhappy with.  You want a vehicle that is a good value.  It should meet your needs AND fit in your budget.

When you are considering a promotional piece, think about that item being a very real and tangible representative of your brand…because it is.

Consider Where It Will Be Used

Now that you have decided to create a promotional piece that is not just a cheap piece of junk (we all thank you), you should consider how and where the item will be used.  Do you want your prospects or customers to have your branding around their office?  Is that where these decisions are made?  What about the kitchen?  You would be surprised how many decisions are made there.  Regardless, you need to consider your customer and where you can bring them value.  When you spend just a little time to do that, you can come up with a promotional piece that is used, appreciated and valued for years to come!

Consider Advertising Versus Branding

Next, consider what you are trying to accomplish with the promotional piece.  Sometimes, you want to provide your customers and prospects information where they can reach you.  Maybe (and I am just spit-balling here) you are a pizza place and you create a dry erase board for your best clients.  You want them to place this on the fridge and have your phone number, website, etc. in front of them all the time.  Great.  This is more of an advertising or direct marketing approach.

But sometimes you just want to create more brand affinity…and there is a ton of power in that.  You might want to create a super soft, comfy and cool t-shirt.  This warm piece reminds your customers of their feelings for your brand every time they put it on.  You aren’t going to plaster your phone number all over the t-shirt (seriously, please don’t).  With a piece like this, you create more brand recognition.  Done right, they will remember you.

By the way, neither of these is wrong.  But it’s important to understand what you are trying to accomplish when you begin.

Make It A Thank You Gift

One of my rules in sales is to (occasionally) go to your clients and prospects when you are NOT asking them for money!  As entrepreneurs, salespeople and marketers, we are often guilty of following the rule of Glengarry Glen Ross.  Remember that scene from the movie when Alec Baldwin declares “Coffee is for Closers!”

Baldwin stands at the chalkboard and yells at his underperforming sales team and shows them the ABC’s of Selling.

A:  Always

B:  Be

C:  Closing.

I disagree.

Promotional Products can be the perfect way to go to a client with a marketing gift just to say “thank you.”  Going to your client, on a regular basis, with a simple “thank you” and a small token of your appreciation for their support, will go a long way toward creating a long and profitable relationship.

Simply put, giving first is all about creating value for your customers and prospects.  The best promotional campaigns are designed to do just that.

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How Tariffs Will Affect Your Marketing

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hasseman marketing tariffs

One of my goals with this blog is to provide value to those that read it…and make sure we, as a company, help to keep you informed.  Whether we show the latest promotional merchandise, or keep you up to date on trends, we want to help you in your marketing and branded merchandise efforts.

That’s why I want to talk about Tariff’s today.  Wait!  Don’t click away or fall asleep!  I will keep it brief!

As I mentioned in this recent blog, at the PPAI Expo (the largest promotional trade show in our industry) Tariffs were the talk of the show.  Everyone is talking about them, worrying about them, and asking questions about them.  Why?  Because when it comes to branded merchandise, a huge percentage of the items that are sold in the industry are imported from China.   This is such a concern that there are suppliers in our industry that have printed their entire catalog without putting in pricing!  Why?  Even those that have included pricing have included less information or large disclaimers saying that “pricing could change.”

So what does that mean to you?

It means, quite simply, if you use branded merchandise, your budget very likely could be affected.   This is not a threat or a political statement.  It’s just a fact.  If the tariffs continue, the price of your promotional material will go up.

So what can you do?

There are a couple of things I am recommending.

1.  Begin to adjust expectations.  As you move into 2019, just understand that the pricing for promotional items are in flux.  If there are items that you order regularly, you might want to stock up a bit or check in on pricing.

2.  Consider domestic options.  Though I do not expect to see American manufacturers of promotional items start popping up everywhere, I do expect an uptick for those that already are here.  When you are creating a marketing plan, make sure to include something made in North America. This is not the end of the world and the sky is not falling.  I just wanted to spend a few moments to put this trend on your radar.

If you have more questions, please feel free to reach out to us and we can discuss it!   Make sure you never miss an update!  Sign up to become a VIP here.

3 Simple Tips for Surviving a Trade Show

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In a few days, Kelly Bowe and I (and thousands and thousands of other marketing professionals) will descend upon Las Vegas for the PPAI Expo.  It is one of the largest trade shows in the United States.

Imagine, if you will, the ultimate trade show of trade shows.

Though the event is amazingly well run, hugely helpful and a wonderful thing to attend, it can also be totally overwhelming.  My guess is, regardless of industry, you have events like this too.  So here are some simple tips and tricks to making the most of your big trade show.

Comfy Shoes:  Though there are still plenty of people that look sharp, business attire has become less formal.  Regardless of how you feel about that, this is one time to make sure you have comfortable shoes.  Make sure you have shoes you can walk and/or stand in for hours.  You don’t want to be missing out because all you can think about is your aching feet.

Lots of Water:   At many events, plenty of people drink.  They just don’t drink enough water!  These events can strain you both mentally and physically.  Make sure you take the time to hydrate, hydrate, hydrate.  Many events have hydration stations.  Take a re-usable water bottle and drink the H20.

Have a Plan:  When I first starting attending events like this, my plan was “I want to see everything!”  As I know now, this is not a plan.  It’s a recipe for being overwhelmed and exhausted.  Before you leave for the event, make a list of people you want to meet, projects you want to research, and things you want to do.  Keep this list close at hand to make sure you stay on track.

As a side note, for education conferences, I like to think “what is the one thing” I want to take away from this?  It helps me focus in and not be so distracted by all of the concepts I am hearing.  For example, this year at Skucon, my goal is to make in person connections with as many people as possible.   Regardless of your event, have a plan and a goal.  It will help you make the most of your event!

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1 Mistake I See People Make in the Give First Economy

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hasseman marketing gift mistake

I believe we are living in a “Give First Economy.”  What I mean by this (and I talk about it more here) is that the best and most successful brands, salespeople, entrepreneurs, etc. provide value up front.  They “give” before they go for the sale. This is great for people who want to “do business right,” because they are poised to do this anyway.  They want to help. But there is one mistake that I see people make all of the time around this “give first” economy.  They want to say “thank you,” but they mix it up.

Let me explain. I got a box in the mail the other day from one of our suppliers.  They are a great company, and we do a decent amount of business with them.  The box said it had a gift inside, so I was excited to break it open.  Let’s face it, it’s always nice to get a “thank you gift.”   However, when I opened the package, there was a sales flyer and samples.  Don’t get me wrong.  They were nice samples.  They even had good information on the sales flyer.  It was a quality sales piece…and it got me to open the box.

But it was NOT a thank you gift.  It was a sales pitch.

I immediately felt duped.  I was a disappointed.  I went from being excited to being (mildly) annoyed.

It was not the most egregious mistake in the world.  It’s not like I won’t forgive them.  But I guarantee you it was not what they wanted me to feel (at least I hope not).

So just a quick word of advice for Succeeding in the Give First Economy; don’t mix up appreciation and sales.  If you want to say “thank you,” then just do that.  Show the appreciation.   Be sincere.  Give first. Don’t work in a sales pitch.  You are smart enough to see through that…and so are your customers and prospects.  It takes away from the original intent.  It also decreases the likelihood that I open the next package.

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