How to boost business when sales are slow
October 23, 2008: 11:26 AM ETAsk FSB's tips for keeping customers coming back year-round, even during the quiet seasons.
Lisa Jackson, Washington Terrace, Utah
I need a balance in my business. Some months I am swamped. Other months I have nothing. How can I market my services so that work comes in steadily, but slowly enough for me to handle each client with utmost care? Should I advertise a lot and put clients on a waiting list during busy times?
By Myrlande Davermann, Fortune Small Business contributor
Dear Lisa: First, figure out what drives your sudden business spikes. What generates the excess business when you're swamped? Is that when you're doing the most marketing? Once you know what prompts your business booms, you can create a marketing plan that will help optimize your schedule.
Putting your existing customers on a waiting list during busier periods may not be the way to go. Instead, you might want to hire some qualified contractors to help share the workload, suggests Kelly Davis, president of The Strategy Tree, an HR consulting firm.
"If you proactively build a team of talented individuals that are comfortable working on a contract basis, then you will have your team ready to deploy when you need their services," she says.
If that isn't a feasible option, Davis recommends looking into a date-specific direct mail campaign or advertisement. The goal is to encourage customers to use your services before a specific date, coinciding with a slower period for you.
Also, consider creating a customer referral program, she recommends. You can offer clients a bonus with each referral they make - but be sure to set out specific program parameters. Do you want to offer customers a cash bonus for referrals, or a discount on your services? Do referred customers need to remain a client of yours for a specific period of time before the bonus is paid?
"Many entrepreneurs make the mistake of forsaking their existing clientele in search of new customers. This mistake can cost you. So don't do it," says Thomas Freyvogel, an entrepreneur and business consultant.
Freyvogel agrees with Davis's suggestion to offer referral incentives to your existing clientele. He also suggests giving out "preferred client" coupons discounting your services (again, during your slower times), sending out birthday coupons for a discount or free service, and offering incentives based on how long a client has stuck by you. For instance, you could offer customers a 10% discount after their first year with you, and a 20% discount after two years. Let your clients know that they are number one.
"You can always find new clients, but in order for the customer base to grow, you must hold on to your loyal fans," Freyvogel advises.