3,631 New Customers from a $90 Promo -- We hit a grand slam!

JP Maroney

Greetings!

Many of you read and contributed to one of my other posts about the 154-year-old jewelry store that's a client of mine. We did follow through with a special sale -- that was VERY successful, and I'll share details on that later (the last "Private Sale" day is this coming Sunday.)

For now, I had to tell you about another promotion I created for him that has turned out to be a HUGE success! Maybe you can learn from it -- and apply it to one or more of your clients.

To save on typing time, I'm pasting in a story release I wrote about this to send to business media. If it sounds too "self-promoting" forgive me -- just read it for what it is... and feel free to post questions about how we worked this deal. I'll be glad to answer them.

Quote:

154-Year-Old Hometown Jewelry Store
Spreads Holiday Spirit – and Attracts
3,127 New Customers in Just 4 Days
With a $90 Marketing Promotion

(TYLER, TX) – Since 1850, xxxxxxxxxxxxx has faithfully served its local Tyler, Texas customers with fine custom and stock jewelry as well as repairs and service. But, this holiday season, store owner xxxxxxxxxxxxx saw signs of slumping sales and knew he needed to do something fast to jumpstart his business.

In a dramatic and risky move, xxxxxxxxxxxxx dispatched a fax to local business owners and managers offering to provide free $50.00 gift certificates they could give to all their employees as holiday or end-of-year bonuses. Response to the fax was immediate, and overwhelming.

“We couldn’t answer the telephone fast enough,” says xxxxxxxxxxxxx who adds that he has never seen this kind of response in the history of his company. “We had no idea people would react so favorably.”

Within just four hours, xxxxxxxxxxxxx and his staff fielded calls from more than fifty-six local business owners and managers requesting the gift certificates. Requests totaled more than 1,700 employee gift certificates on Thursday, the first day of the promotion. The next day, calls kept pouring in and continued on Monday after the weekend.

By Tuesday morning, xxxxxxxxxxxxx had seventy-four businesses requesting more than 3,000 gift certificates. Based on average sales information, he expects the certificates to bring in more than $1.5 million in new business for his store, all from a $90 promotion.

“People are puzzled at how xxxxxxxxxxxxx can afford to make this offer,” says JP Maroney, a business strategist who advises xxxxxxxxxxxxx, and masterminded the promotion. “In fact, many are skeptical, because it sounds too good to be true. But it’s really simple. We examined three key areas of his business; The lifetime value of a customer, the dollar amount of his average sales transaction, and his profit margins. We then determined that the promotion would pay off above and beyond the risks.”

xxxxxxxxxxxxx is a sixth generation xxxxxxxxxxxxx storeowner. He and his brother, xxxxxxxxxxxxx, each independently own their respective stores in the Tyler, Texas area.

Last night I was in a local restaurant and ran into my client, xxxxxxxxxxxxx. He said the count as of close of business yesterday was well over 3,650 certificates -- and they expected a few more.

If you're wondering how this works: It all goes back to understanding that his average sale is over $200 -- and the lifetime value of a customer for his organization is well over $2,500 -- probably higher.

And, the most he risks is about $17 in wholesale cost if somebody ONLY buys a $50 item.

Most SAVVY business owners would pay $17 for a new customer all day long... Understand?

If only 20% of these certificate recipients become long-term clients -- he stands to gain $1,800,000.00 in lifetime sales from this $90 fax.

OH... if you want to see a copy of the fax I wrote for him you can view it here:

Feel free to comment or ask questions!

Nice one, JP. I love it when a plan comes together.

David

JP Maroney

Quote:

Originally Posted by David Bridger

Nice one, JP. I love it when a plan comes together.

David

Thanks, David!

Michel Fortin

Yup, that's freakin' awesome!

JP Maroney

Quote:

Originally Posted by Michel Fortin

Yup, that's freakin' awesome!

Thanks -- Michel!

Did you happen to read the fax?

Michel Fortin

Yup. I also like this:

Based on average sales information, he expects the certificates to bring in more than $1.5 million in new business for his store, all from a $90 promotion.

That's awesome. Also, a great hook for your resumé

One of my clients (and mentors), John Reese, made the case of "sacrificing early profits," and much of it goes to "lifetime value of a customer."

Brilliant, JP.

JP Maroney

Thanks again, Michel...

If you were in my position... in what proactive ways would you leverage this to gain new clients? You mentioned the resume... while imporant and applicable -- I'm looking for something direct-response I might do.

I have begun preparing a letter that might go out to local business, or other jewelry store owners, or other retail business owners, etc. But, I'd appreciate you weighing in on sort of a step-by-step "this is what I would do -- if I were you" kind of response.

(NOTE: Writing and launching this offer was only one small part of a much bigger strategy to grow his store -- I currently consult with him, train his sales staff, and of course -- write copy.)

Your thoughts?

JP:

Great idea and great news! I'm very happy to hear everything is going to turn out okay for your friend. Strangely enough, I was just thinking about this the other day.

Michel Fortin

JP, did the promo save the business? A tesimonial, especially as a liftnote preceding your letter, would be tops. But you can also easily add to your letter promoting yourself...

In an attempt to save a 154-year-old jeweler on the verge of going broke, JP Maroney is the brainchild behind a tiny $90 promotion that generated 3,631 new customers estimated to bring in more than $1.5 million in new business for his store...

Off the top of my head, I guess...

JP Maroney

... nice Michel -- very nice!

If you think of anything else -- feel free to add -- 'cause I know you got nothin' else to do but think about me and mine...