CLIP's Tips

After investing your time in the previous 5 End of Year Projects to create renewal contracts, you certainly want to make the most of your efforts.

Like the rest of us, your customers are very busy, likely ignoring dozens of pieces of mail that come their way every day.  If you expect to maximize (remember, “make the most of”) your contract renewal effort, you cannot simply send a piece of mail, sit back, and wait.  You MUST follow up.

Here are some recommendations for follow up:

- Follow up via telephone about 1-2 weeks after sending out contract renewals.

- Use a script so that you are sure to say everything that you want to.  Consider including the following points in your script.

• Thank them for being your customer the previous year.
• Ask if they received the contract yet.  If not, assure them that you will send another one ASAP (ask if they would like it via email, many do nowadays).  If so, ask if they have any questions about it.
• If you are using an incentive for them to return it, mention that.  For example, at CLIP Lawn Care, we offer a price “lock-in” if customers return their renewal contract before January 1st.
• If the customer infers that they will not be signing up this year or sounds hesitant, be sure to find out the reasons why.  Through this information you may be able to convince them otherwise or you will be able to use this information to help you improve your company.  Either way, keep track of this data for later use.
• Consider any services the customers are not yet taking advantage of , and mention these to them.
• Ask for feedback from the previous year(s).

- Follow up via email if you know some of your customers prefer it.

- Do a second round of contracts and follow up calls.  For example, at CLIP Lawn Care, for any customers who do not sign up in November or December (1st round), we send another set of contracts in early March and follow up on these with calls as well.

- If you are unable to make these calls for any reason, consider using a service such as Dial My Calls to make them for you.

- Lastly, this is not directly a follow up suggestion but certainly important for maximizing contract renewals:  Consider using an auto renew contract.  I have heard nothing but good things from CLIP customers who use this method.  If you would be interested in learning about auto-renewing contracts, say so in the comments or send an email to editor@clipblog.net.

Application Action:  If you are not yet convinced that you need to follow up, just test it.  Make a list of 15 customers to whom you sent renewal contracts but have not followed up with yet.  Follow the suggestions above to create a script.  Take 45 minutes to call through the list.  If after doing this exercise, you still feel like you don’t need to follow up, send me an email so I can convince you otherwise.

Do you have any recommendations for follow up?  Let us know by posting a comment.  Thanks for your recent feedback everyone!