ORLANDO – The average customer starts spending at the bottom of the typical marketing pyramid, which is made up of the people who are least likely to respond to marketing materials, according to Real Green Systems President Joe Kucik.
Kucik outlined the advantages of marketing upsell services to current customers during his free marketing seminar, which he held this year on Jan. 8, the day before kicking off his Real Green Systems Service Assistant 2009 Conference & Expo.
“You get on average a $4 return on every marketing dollar invested to obtain a new customer, but you get a $10 return for every dollar invested when you’re upselling to current customers,” Kucik explained, pointing to his own lawn care business – Real Green, based out of Michigan – as an example. “Upselling is the most profitable part of my business.”
Kucik’s philosophy is “the more you do for your current customers, the less likely they’ll be to cancel your services.”
When marketing to current clients to pitch upsell services, Kucik recommended sending mailing four to six weeks prior to the service window.
And, he reminded contractors, they should manipulate their databases so they are upselling to the right people.
“For instance, offer grub control to people who have had grub problems in the past year or two,” Kucik said. “It would be easy to send a marketing piece on grub control to everyone on your list but it is a waste of money. Market with a scalpel, not a shotgun. A more specific mailing means they will be more likely to open it.”
And that, as Kucik explained, will equate to a better return-on-investment on those marketing efforts.