Do you have $100,000 of profits you never see?

Originally published in Southern Jewelry News, November 2006

While most stores are focused on bringing in new customers, few do what they should to make sales to those they already have. The common excuses are either, "I'm too busy," or "they will call if they want something." Both of these are recipes for lost profits of at least $100,000 per year for most stores.

When should you contact your customers? The most obvious answer is when they have a need for your product. When you do this, it helps if you know what they might like. Always maintain records of what they have so you can suggest other items. It is also a good idea to ask your customers what items they might like in the future and make a note of it.

I recommend contacting your customers in advance of:

• Christmas
• Valentine's Day
• Mother's Day
• Graduation
• Father's Day
• Wedding Anniversary
• Wife's Birthday
• Husband's Birthday
• Child's Birthday

The most expensive way to sell things is to advertise. The least expensive is to sell things to customers you already have. I recommend you contact your customers monthly with an e-mail newsletter to inform them of things going on in your store, trends in the industry, etc.

I've known many stores with thousands of customers in their database that struggle financially. In most cases I have found that these stores spend too much time attempting to attract new customers, while ignoring those who have made significant purchases in the past. What have you done to tell those who have purchased from you before how much you appreciate them?

Your goal should be to build lifelong relationships with your customers that will blossom into the referrals of many friends and family members. Never forget that the value of the relationships that you develop is of much greater importance than what you sell today.