Designer Business Tip – What About Engagement Fees?

Well now, as we move forward from the craziness, excitement, and fear that we’ve missed something important at Spring Market, we would like to lighten things up a bit. Besides, we can’t work that hard ALL the time, right? And so, we have a quick designer business tip on charging your design clients an “engagement fee”. (You know, a trivial little subject that hardly matters!)

According to Sean Low, “the go-to business coach for interior designers” at BusinessOfHome.com, for designers who know their value, an engagement fee is a must. However, those who doubt themselves and continue to “hustle” for design projects like a newbie might want to reconsider.

(If there’s one thing we know about Mr. Low, it’s that he pulls no punches.)

Are You Worth It?

Answering the above question depends largely on you. If you’ve established a solid reputation as a designer who delivers what you say you will, dependably and creatively, why would you think otherwise?

As Mr. Low says, “Your talent, wisdom, and experience have intrinsic value and deserve to be recognized (and compensated). Your willingness to dedicate the time necessary to fulfill your … promises needs to be appreciated and paid for. That’s where an engagement fee comes in. It’s not a deposit or retainer; it is a fee for your talent and attention that goes against nothing and is non-refundable.” (emphasis added)

In other words, they are paying you – for you – and all that may include!

“If you ask a client to invest a significant sum in you to create the transformative environment they seek, the more likely they will give you what you need to make the transformation happen. As much as they are investing in you, they are investing in themselves. Once invested, you will be better able to receive the kind of information you need to create as you must.

What Do You Owe After the Fee?

“You do not owe your clients anything other than your best work. You have nothing to prove, only the willingness to share your talent, wisdom, and experience with those clients [who] truly care about your work and how it will come to be for them.”

He concludes with, “While a significant engagement fee might make your firm more money, that is not my ultimate aim. Instead, I want you to establish a relationship dynamic from the very start that will yield the greatest opportunity for success.”

There now. How was that for a lightweight, frivolous topic following the hectic week at Spring Market? You’re welcome!

And remember, Ted remains available for questions and answers about things like charging an engagement fee and other designer business tips to help you grow your business. With more than a quarter century in the business, Ted has the experience and knowledge to offer high-quality business consulting to the trade. Simply… Get in touch with TD Fall today.

Selling Benefits Over Features is What Creates Value

Seems like it’s time to confuse you with selling tips but, if we do our job, we’ll clarify what we’re talking about well enough to un-confuse you! Since we focused on selling value just last week, it may seem contradictory to offer thoughts on selling benefits over features this week.

It’s not though since, as the title of this post claims, benefits-based selling creates value for the products and/or services you have to offer.

As the marketing mavens at HubSpot like to say, “Features tell, benefits sell.”

While both are important bits of information for the consumer, the majority of prospects will be swayed by the benefits they will enjoy because of the features. “Features are often technical in nature, describing what the product or service does [or is built]. Benefits, on the other hand, paint a picture of success in the prospect's mind of how it will change their life in some way.”

Features or Benefits – Which closes the sale?

The upgraded features of luxury furniture will often be used to justify the greater cost. Yet, for most homeowners, those things will not matter nearly as much as how they will affect their lives.

After all, will having eight-way hand-tied springs supporting the cushions of a new designer sofa improve their lives in some obvious way? Not bloody likely (as the Brits might say).

Yet, as you (and we) know, such a support system will greatly enhance the comfort of any quality piece. This labor-intensive system will also prolong the life of the cushions as well as the piece overall. Not to mention, these springs even reduce the possibility of squeaking due to years of use.

Hmmm… That looks like we have four clear benefits to the homeowner for a single feature! (That’s what we’re talkin’ about!!!)

Though we came up with four benefits for a single feature above, here’s a proven yet simple formula you can use to create value and close the deal:

Feature + Benefit + Benefit + Benefit = Make the SALE!

In other words, the quickest way to make a sale is to present three benefits for each feature.

Since anyone can list the features a given manufacturer might claim for their products, it takes knowledge and experience to outline the advantages for your clients and prospects. You’re the expert, which means you understand the benefits offered by every feature. Use that expert knowledge and hard-earned experience to close the deal.

The beauty of this approach is that it is not restricted to particular products or services. That is, selling benefits works across all markets and industries. If you find yourself struggling to implement a benefits-based sales strategy, Ted is available for sales coaching and business consulting to the trade. Simply… Get in touch with TD Fall today.

Selling Value Over Price – The Key to Sales Growth and Profits

Whether you call it “value-based” or “benefits-based” selling, the concept is the same: selling value is more likely to close the sale and protect profits than focusing on price.

“Price is what you pay, value is what you receive.” – Warren Buffett

We recently spoke of the need for creativity when selling in today’s volatile markets. This included concepts such as creating a sales pitch that is solution-focused, value-driven, and creatively tailored to the needs of each client or prospect. That is fine as far as it goes but, what do we mean by value-based selling?

“Value-based selling is the approach of highlighting the measurable business values your product or service brings to a customer. It is about finding a match between your client’s needs and your product’s benefits. Value-based selling means putting the customer’s needs above your own revenue, helping them become more interested in your product. The core principle of this technique is to think of your prospect’s problems and desires [before your own].” (NetHunt.com)

This is not some sort of misguided sense of altruism where you sacrifice the goals you’ve set for your business to the needs of your prospects. On the contrary, you should prioritize the satisfaction of their desires as the means of making the sale. If you follow this approach, profit and sales growth will take care of themselves.

Give Your Prospects a Reason to Buy

Would you like to raise your prices while increasing the odds of conversions? That’s impossible, right?

“In the 1970s, Harvard psychologist Ellen Langer conducted experiments about compliance, trying to discover what makes people agree to a request. In short, Langer’s students asked people to cut in a line for a photocopier with three different requests. A straightforward request was honored 60% of the time, but Langer found that adding a reason for the request increased the compliance rate to 95%.”

This proves that when you give people a reason to buy, they become more receptive when you ask for the sale. By their nature, human beings are predisposed to look for a reason to agree to your requests.

This also explains how the best salespeople on the planet succeed: they give their clients a reason to buy – and they ask for the sale. Further, because repeat clients have already said “Yes” once (compliance), they are far more likely to do so again.

The beauty of this approach is that it is not restricted to particular products or services. That is, selling value works across all markets and industries. If you find yourself struggling to implement a benefits-based sales strategy, Ted is available for sales coaching and business consulting to the trade. Simply… Get in touch with TD Fall today.

Getting People to Buy Once They’re Ready

Once you get the answer to the  question “Why do people buy?”, you still have to ask yourself, “How do I get people to buy from me once they’re ready?” To get that done, you must help your target audience learn about the products or services you have to offer in a way they can relate to as the answer to the age-old question, “What’s in it for me?”

In other words, regardless of the features (or the number of them), what they care about more than anything else is what they will gain from doing business with you; the benefits your products or services offer them. These are the only things your marketing message should be about.

Saying this is one thing but how it works in the real world takes some explaining.

Real-World Sales Tips

• Sales Example #1: Auto sales is a great real-world example because the product can be loaded (even overloaded) with features, yet most consumers will take those things for granted. The technology of the engines, transmissions, and electronics used in modern vehicles has become so reliable that buyers rarely ask about them these days.

What contemporary car buyers tend to care about most are comfort and price. They usually want every luxury item available while paying the basic price. Of course, wanting both of these things makes little sense so the question becomes, how can the sale be made when the potential buyer wants all the extras but is only willing to pay the minimum price?

The answer to that one is impossibly simple yet seemingly impossible. Building value in the features the customer wants is the only way to defeat this type of thinking because value overcomes objections about price. In fact, it’s the only thing that will. And that is the key to making a sale – when the value is greater than the price, the sale is made.

• Sales Example #2: Personal and business coaching have become incredibly popular in the age of internet marketing and virtual services. From life coaching to nutrition coaching; from personal training to health and wellness coaching; and from career coaching to business start-up coaching as well as many others, the number of online coaching services has grown exponentially over the past couple of decades.

The best online coaches can offer services packed with features yet, if the benefits of these features are not clearly defined, few prospects will be willing to buy. Again, if the value of the benefits exceeds the price, your prospect becomes a buyer.

Creating a Marketing Message

Back in the day, when pretty much all selling was done face-to-face, the message was far easier to convey (at least in theory). It was easier to build trust when looking someone directly in the eye, just as it was easier to show one’s expertise. By contrast, and with something like 2 billion websites worldwide, today’s virtual world is impersonal and detached.

This is easy to forget for those of us who work virtually on a daily basis, so it’s important to remember that such an environment requires extremely personal messaging if you hope to build trust and value. And, if you want to get people to buy, that message must be heavily benefits-based.

How can you put the ideas in these two sales examples to use for your benefit, as an interior designer or furnishings dealer?

If you're searching for help with answering that question for yourself, Ted remains available with real-world experience as a business consultant to the trade. To find out more… Contact TD Fall today.

Is Your Sales Copy Too “Salesy”? (Naughty, Naughty!)

When it comes to your sales copy… Pushy prose about a product is problematic and should be proscribed at all costs! (How do you like that alliteration, huh?)

Joking aside, overly aggressive sales copy, making impossible claims that imply prospects aren’t too bright if they don’t buy, is a massive turn-off. In fact, it makes such a bad impression one wonders why some marketers continue to use it. Perhaps they’re just hoping to land one of those suckers born every minute? (Thanks a lot, Mr. Barnum – NOT!)

If you're struggling to create copy that generates conversions, think about the last time you bought something online. And, remember, two very important things are critical to making a sale:

• Benefits Matter – Your prospect won’t buy until you answer the question, “What’s in for me”?

• Offer Value – A sale is made only when the value exceeds the price.

Didn’t your last online purchase offer you these things, and isn’t that why you felt comfortable investing in whatever it was?

Conversational Copy is the Key to More Sales

Anyway, it turns out that the best way to create effective sales copy is to start a conversation. People want to be engaged by your copy, enhanced by the knowledge that you understand what they need and can supply it.

This is not to say that writing a catchy headline has become a thing of the past in online marketing. On the contrary, finding a way to create interest is mandatory for beginning the conversation! (Just stay away from the “limited time,” “don’t miss your chance,” and “one time only” type of hype. And avoid too many exclamation points!!!!!)

To get started, imagine how things might go if you and I were to sit down and have a face-to-face conversation about the services you offer. Or, imagine that same chat with a friend or family member. You wouldn’t come at either of us with a line like, “Get it now before it’s all gone” would you? (Before what’s all gone – YOU?)

No, the way to offer value on the benefits you have to offer is to know your audience and recognize their pain points. Then you must present them with practical, real-world solutions that will work – for them AND you.

By doing that, you will be able to engage your audience more fully. You will then connect with them emotionally, enabling you to lead them to a place where they feel they can trust you and are ready to buy your product or service.

While it’s not rocket science, it is about understanding human nature. It’s about appealing to each individual’s self-interest, without labeling them as selfish. It’s about being helpful in a way that they can appreciate for its own inherent value.

For more tips on improving your sales copy and building value for your clients, contact Ted about his business consulting programs.

Why People Buy One Thing Over Another

Have you ever taken the time to think about why people buy one thing over another? Whether a product or a service, what is it that flips the switch for them; the thing that makes them say “Yes” to one and “No” to the other?

It’s a pretty important question for anyone in sales and/or marketing. If you're unclear on why prospects purchase the things they do, you're going to find it close to impossible to entice them into doing business with you.

At the most basic level, marketing (and selling) is about educating your target audience about the features and benefits of the products or services you have to offer. Or, as stated at PsychologyToday.com, “Simply stated, a buying decision is the result of a consumer learning pathway where [they can] learn about a product or service and relate it to their specific situation to make a favorable buying decision.”

Now, there are two parts to that sentence that need our attention: the “learning pathway” bit, and the “relate it to their specific situation” section.

The reason these are so important is because, through your messaging, you can help your target audience both learn and relate to the products or services you have to offer. In fact, these are the only things your marketing message should be about.

How Your Knowledge Base Affects Your Messaging

The point we really want to make here is that, sometimes, the more we know about something the easier it is to take for granted that others know something about it too. In other words, our familiarity does not breed contempt, but rather, the more we know the more we assume too much about our target audience.

In other words, the fact that you know your product’s features will benefit your ideal client’s life does not mean that they can see how that’s true – for them.

For example, we know a former mattress salesman who once encountered a customer who asked, “Are there really springs in that box spring?” Nonplussed, his response was, “Uhm, yes.”

You see, he thought the name alone was so basic and self-explanatory it needed no explanation. But, for his potential buyer, the name had little to no meaning. It was just the thing that goes under a mattress to keep it off the floor.

It would be easy to make fun of this naïve customer however, it’s more important to understand the impact this had on our salesman; the powerful realization that he had let his customer down. That, simply because he had intimate knowledge of his subject, he had no business assuming his client base did as well.

It struck him that the more he learned, the more expert he became, the more he forgot to talk about the basics. And that his ability to share the most fundamental facts of the products he sold would go a long way to determining his success at selling the products. At the same time, when appropriate, he had the wide base of knowledge needed to display his expertise when the situation required.

Ultimately, it was not that he knew too much, just that he needed to always be mindful that many people would know far less and it was his job to help them learn what they needed to make an informed buying decision.

Help Your Prospects Learn

Imagine for a moment that you have a degree in advanced calculus. If you happen to get hired to teach fourth graders, your knowledge base will be fairly useless since they are still learning addition and subtraction. If you forget that simple fact, you’ll make a poor teacher.

Similarly, if your marketing message ignores the basics and focuses on things that only experts tend to know, you’ll miss the mark more often than not.

This might mean a coach who talks exclusively about reaching goals will find it difficult to entice prospects who have trouble even defining and setting goals. That’s a fundamental step in business, life, and other types of coaching that can be easy to forget. Goal setting is a skill that must be learned before a client can be taught how to achieve them.

And so, taking from the example of our mattress salesman above, when you’re developing your marketing message, be careful you are not sharing knowledge your audience may not yet be ready to learn. Never assume, as he did, that they have a foundation of knowledge similar to your own.

No, they have a desire but lack the knowledge to make it happen. That is where you come in, and that is why your message, when properly constructed, will resonate with them.

Unfortunately, getting the answer to the “Why do they buy?” question only gets you so far. Once you know that, you then have to ask yourself, “How do I get them there?”

The art of selling requires thought, patience, and knowledge, as well as the willingness to educate yourself about why people buy. For anyone struggling to close more sales, Ted is available with business consulting and sales training for both interior designers and furnishing dealers. To learn more, just… Get in touch with TD Fall today.

Strong Upward Movement in Decorating & Home Renovations for 2020 and 2021

We’ve been seeing some interesting trends in home renovations nationwide for the past couple of years. And, while interior design is a local phenomenon (as we never fail to mention whenever possible), the latest national metrics are encouraging for all of us in the industry.

It’s understandable if you resented the lockdowns and stay-at-home orders imposed on most of the country last year. However, they seem to have had a positive effect on the decorating and home renovation areas of the marketplace. In fact, according to the most recent Home Renovation Trends Study by Houzz.com, these areas are experiencing some nice growth.

• “Home Renovation Spend Rises: Home renovation spending has grown 15% in the last year to a median of $15,000. Higher-budget projects (with the top 10% of project spend) saw an increase from $85,000 or more in 2020, compared with $80,000 in the two years prior.”

We found it especially interesting that, “The gap between median renovation spend by Baby Boomers and Gen Xers narrowed in 2020. Baby Boomers ($15,000) spent the most on their renovations and Gen Xers ($14,000) are no longer a distant second. The top 10% of renovation projects among these generations were at least $90,000 and $85,000, respectively.”

Where Home Renovation Dollars are Being Spent

Kitchens and bathrooms remain the most popular spaces for renovation among all age groups. Yet, it should come as no surprise that the younger generations placed a heavier emphasis on home office renovation than did the older. This is surely a result of the work-from-home trend that we saw as a result of the pandemic and Millennials and Gen Xers acted on this.

According to the study, “Millennials (17%) and Gen Xers (16%) renovated their home offices more actively than older generations. At least 1 in 5 homeowners across all generations renovated their master bathrooms in 2020.” We see no reason this should change in 2021 and even in 2022.

Further, “Automation and security upgrades are top priorities for Millennials, compared with older generations. Exterior paint upgrades were more common than deck upgrades among homeowners, and especially among Baby Boomers (21%).”

Kitchen Renovations Remain a Priority

While all of these metrics are well and good, we continue to maintain that the kitchen is the most popular – and therefore the most important – room in nearly every home. And, when it comes to home renovation projects, the data prove this to be true; especially for large kitchens (i.e., more than 200 square feet).

• “Homeowners Invest In Large Kitchens: Kitchen projects are the most popular among renovating homeowners, and while median spending has been flat on these projects for the past three years, investment on major remodels of large kitchens jumped 14% to $40,000 in 2020 compared with $35,000 in 2019.”

“Spend on kitchen remodels remained stable at $12,000 in 2020. That said, homeowners with kitchens larger than 200 square feet spent 14% more on major kitchen remodels, where all of the cabinets and appliances were replaced.” (emphasis added)

While bathrooms remain the second most popular spend for home renovations, the dollars spent tend to be far less than for a kitchen remodel of virtually any size.

Finally, two of the more delicious and delightful metrics revealed by the study include: cash remains the leading form of payment for home renovations at 83%. And, the demand for interior designers, construction professionals, and other home renovation specialists is up across the board. So, while DIY remains popular, renovation and design professionals have much to look forward to across all age groups.

While optimistic, these metrics are of necessity based on data collected nationally. If you have yet to see such upward trends in your local market, Ted may be able to help. He is available for business coaching and consulting to designers and furnishing dealers. With more than 25 years of experience in the luxury furnishings and interior design industries, he can help with branding, client acquisition, and general marketing solutions to help you grow your business. Feel free to… Get in touch with TD Fall today.

High-Value Website Content not Attracting an Audience? Repurpose It!

Do you have a long piece of high-value content on your website that visitors are ignoring? Is it something you spent hours (or days) creating to make your furnishing client’s and design prospect’s lives easier? Why the heck won't they read or view it?

Well, the first thing to know is that everyone’s attention span seems to be shrinking. For example, in 2015 the average time spent on a website page was about 58 seconds. Today, that metric has shrunk to a scary 36 seconds or so.

While these time-on-site numbers look ridiculously brief, take a moment to reflect on your own online behavior. What happens when you search for “interior design trends 2021”? For us, Bing returned some 4.5 BILLION results! Then we had to choose between sites offering “38 trends”, “10 hot trends”, “the 25 hot looks for 2021”, “videos of trends”, a “what the experts think” piece, and, and, and… ad infinitum.

Clicking on a couple of them, the first thing we noticed was that we had no idea who was telling us what the hot trends were. In fact, some of the articles didn’t even identify the author! There went 36 seconds of our lives wasted.

Next, we struggled to uncover where these trends were so trendy. This is disconcerting because – as we’ve said so many times – interior design is local and things that are super trendy in one area of the country may be behind the curve or thought of as just plain yucky where you come from.

Needless to say, we didn’t spend much time on any of them. Instead, we rely on our own experiences and guidance from our suppliers and clients. Why? Because they know what’s going on in their markets better than some anonymous blogger ever will!

Repurpose Content for Short Attention Spans

With all of this in mind, the question remains, how do you keep visitors on-site when they have the attention span of a four-year-old?

Well, here’s the thing. That wonderful piece of content we mentioned in the opening of this post may simply be too long for your audience to read. After all, no one can absorb a 5000-word article in one to half a minute. Heck, most of your visitors will see how long it is and run for the hills (virtually speaking).

The solution? Cut, cut, cut it down and turn it into a series of posts. Then, as you reconstruct your genius-level content, use eye-catching headings for sections, and add bullet points, bold text, and underlining. These techniques are used by professional copywriters to stop the reader from scanning content, and actually take it in.

You see, the idea is to sort of “play to your audience” and give them what they need in smaller doses using tricks that slow them down so they take the time to absorb your content.

·         Or watch all of a video.

·         Or listen to a podcast.

·         You get the drift.

·         (See what we did there? And here?)

Again, the goal here is to refine your delivery in ways that your audience is comfortable absorbing. You can't take it personally that they don’t appreciate the effort you’ve already put into creating something that should be valuable to them. Instead, it’s your job to find a format for presenting content that makes it easier to digest and which will ensure they recognize the value.

Getting Your Content Right Isn’t Always Easy

Creating valuable website content that draws traffic, encourages engagement, and produces leads may be the most challenging aspect of online marketing. We work hard on it every week and, while we hope our audience – you – finds the information we share valuable, we also know we can't please all of the people all of the time.

That’s why we bounce back and forth between subjects. We jump from business building tips to design trends or from new products or new lines we carry to news about production and shipping delays. Our thinking in doing this is that different people look for different things from us and if we stay on a single subject week after week, we may lose you. (Or, at a minimum, bore you.)

We recommend you do the same on your business website. Share your thoughts and experiences in ways that will appeal to your audience, not in ways that appeal to you. Keep focused on their needs rather than your own and do everything you can to make sure the content you offer addresses a need or solution your audience is looking for.

Well, that’s about it. We’ve passed the 750-word threshold and we know from experience that’s about the limit for our audience. So, if you have questions or comments about creating or repurposing your best website content, let us know. All you have to do is… Get in touch with TD Fall today.

When Instant Gratification Isn’t Possible - Who Pays for Design Project Delays?

Instant gratification can be a good thing – as long as you're the one being satisfied. For an interior designer though, trying to ensure your client’s remodeling project is completed quickly and smoothly has likely become far more challenging recently. With upholstery foam shortages and shipping problems worldwide, design project deadlines that seemed reasonable in the past may no longer be possible.

But who bears the brunt of these design project delays, you or your clients? Beyond simple scheduling problems to iron out, who absorbs increases in costs that extended lead times can cause? Finally, how do you even explain these problems to your clients in ways they can accept?

First, you can take some comfort in the fact that you are not alone – absolutely not alone. And, as explained in an article at BusinessOfHome.com that answers some of these questions, there are more than enough reasons that were out of your control to allow you to remain guilt-free.

“You [never] could have predicted that a cargo ship would get stuck in the Suez Canal for more than a week and hugely interrupt international shipping, nor could you have known that a deep freeze in Texas would virtually destroy foam production for months. And the once-in-a-hundred-year pandemic? Guessing you could not have foreseen that one either.”

Always, Always Be Professional

Next, it’s your responsibility to be the adult in the room. As Sean Low writes, “While these are extraordinary times, they are not without precedent. Price shocks and delays happen all the time, just not as suddenly and pervasively as now … do the hard work of having frank conversations. The fair solution is the right solution, even if some feathers are ruffled along the way.”

Neither you nor your client will benefit from temper tantrums and name-calling. A professional consultation that follows an open and honest initial interview and project contract will go a very long way toward smoothing the waters – for both of you.

Further, you have no ethical or professional justification for taking advantage of the situation. That is, when the costs of materials and labor increase, your client should bear the brunt. However, you are not entitled to make more money because of it. You and your work have value, of course, but that value does not change simply because the cost of kitchen cabinets has risen.

“If you have synced the cost of production with your percentage on purchases, you will now have to do the work to explain that the percentage was always a shorthand to get to what it takes to have the design come to life in their house once it is out of your head. If that work has not changed, then neither should your price, even if the cost of materials and labor have risen considerably.”

In other words, you have no right to charge your client more for the same amount and type of work. (Beyond being unprofessional, doing that would be unethical in the extreme!)

Don’t Eat Project Cost Increases

Time delays cost everyone and the cost must be borne equally. If your cash flow is tied to the timing of certain project goals, or “you earn a percentage on items purchased or charge a flat fee, there is very little you can do to increase revenue in the event of a delay. And do not kid yourself if you charge hourly, the delays will likely not result in enough work to compensate you for the loss of other work. (While you might get more money relative to those charging flat fees or percentages, you will definitely not get enough money.)”

All of this is to say that, while price increases for furnishings can be explained and justified (if not necessarily accepted painlessly), you cannot afford to bear the increased costs from time delays on your own. Fair is fair, after all. And, when the fault lies elsewhere, say with Mother Nature, they do not become your responsibility by default.

As Mr. Low explains, “My position is that time delays ought to be borne by both you and your client almost equally, perhaps through an additional monthly fee to recognize that the project is extending and you need to have the resources necessary to finish the job to the level you both agreed upon when you first started.”

While there is no way for us, or him, to suggest solutions that fit every situation, he does offer some nice insight and advice in the article. Again, you can read it at the BofH Business Advice column.

If you're looking for a more hands-on approach to coping with design project delays and keeping your clients satisfied (if not exactly instantly gratified), Ted is available for business consulting to the industry. Get in touch with TD Fall today.

Relationships with Past Design Clients – The Key to Repeat Business

In a recent perusal of the blog at BusinessOfHome.com, we were intrigued by a post on how designers generate repeat business. In it, author Haley Chouinard asked a dozen designers how they go about maintaining relationships with past design clients to foster new or additional business.

We’re happy to recommend taking the time to read the ideas shared by the designers in the article but, what caught our eye, in particular, was this comment: “Whether I randomly see a home decor item they may like or do an activity that reminds me of a certain client, I will share it with them afterward.” (Tiffany Brown, Brown Builders Design, Charlotte, NC)

“Why?” you may ask. “Because,” we would answer, “doing this would not only be an excellent way to reengage with a past client, it could also be the perfect lead-in to meeting with them and proposing another project.”

“How so?” You may further ask. “Thusly,” we would likely respond…

Reengage Past Clients for Repeat Business

First though, a quick reminder about the value of repeat clients over new ones, which we shared in this post back in March:

Based on the latest research, designers and dealers will do themselves a favor if they can devise ways to retain or reengage existing and past clients. Why?

• New clients are 7x more expensive to acquire than keeping or reengaging existing or past clients.

• The probability of converting an existing customer is between 60% &70%.

• The probability of converting a new client is just 5% to 20%.

• Repeat clients spend an average of 33% more than new clients.

• Repeat clients are 60% to 70% more likely to buy an up-sell.

These are just a few of the reasons that re-engaging and working to establish customer loyalty is critical to the growth of your business.

Relationships, Relationships, Relationships

And so, back to thusly…

Obviously, and by definition, there is already a relationship between you and previous clients. Following the advice offered by Ms. Brown presents a great opportunity for re-engagement on a highly individual basis.

By sending them a quick, “I saw this and instantly thought of you and (that room/space in your home)” note, you tell them you haven't forgotten them. Not only that, you’re still actively thinking of them and their ongoing design needs. And, as she also said, “This thoughtful reminder that someone is thinking of you is [a] feeling we all hope for in our daily lives.”

Imagine the different responses they might have to your note:

·         A quick “Thanks for thinking of me” note, then silence.

·         That same note with a request like, “Can you tell me more?”

·         Or, and this is what you are most hoping for, a note that says, “Thanks so much for thinking of me. Can we get together and talk about where you think it would fit best in my home?” (Cha-ching!)

That last one could be the goose that’s getting ready to lay a golden egg – right on your doorstep.

Take the Reins and Ride into a New Project

Let's take it a step further, shall we? Imagine you were at Market or in a showroom recently and saw the perfect sofa for a previous client’s living room. You know it’s perfect because not long ago you redesigned their kitchen for them and wondered how you might inspire them to renovate a room that made you think, “Ew!”.

Since you are a true professional, when you meet to discuss how the sofa would be a perfect fit for their formal living room, you are fully prepared with a plan to improve that space. You might also say something like, “This is perfect for a formal setting, right in front of that beautiful picture window. Or, better yet, two of them facing each other before that gorgeous fireplace!”

They may respond with something like, “Oh, I was thinking maybe the family room”.

“Oh my,” you would respond. “This piece is much more appropriate in a formal setting like your living room. But, hey, I think I remember the perfect choice for your family room, too! Let me just see if I can find it in my notes. Ah, here it is. What do you think?” (We knew you’d have it ready for them!)

Now, suddenly, you're not simply trying to sell them a sofa. You’re talking about renovating two rooms for them, all because you're such a thoughtful human being and a wonderful, professional interior designer! (Go ahead, pat yourself on the back!)

This is the definition of upselling a client. And, because they’re a repeat client, they already know and trust you. Plus, you’ve displayed your concern for them by letting them know you were thinking of them even outside the setting of their home.

And, don’t forget, you are 60% to 70% more likely to make a deal with them than with an unknown prospect. From there, closing a new deal with your repeat client should be easy!

When Opportunity Knocks, You Caused It!

Don’t forget to check out the article we mentioned earlier, either. There are some pretty cool tips there about how to maintain and grow relationships with past design clients.

If any of the ideas we offered above resonate with you, please let us know. Also, if you have more questions about how you can generate new business with repeat clients, Ted remains available to work with you on an individual basis, consulting on how you might best engage or reengage with your design and furnishings clients. Just… Get in touch with TD Fall today.