Thank Goodness It's Monday #395

HOW TO REACTIVATE

LONG-DORMANT ACCOUNTS

Now that prosperity appears to be stirring anew in many parts of the economy, it’s a good time to take a look at old “dormant” accounts. These are the customers who once did a greater volume of business with your company than they do now. 

Watch this: Some business people tend to ignore dormant accounts, treating them as a lost cause. Others, who have power over such things, succumb to the urge to reassign the accounts to the most novice players on the team. 

Big mistake. No matter where you stand or how you feel about the subject, here’s how to turn the enterprise’s inactive/barely active historic clientele into bigger sales dollars and profits.

TGIM ACTION IDEA: Consider dormancy as hibernation – a prolonged period of sleep – at least as far as your business is concerned. Since the “official” observance has only just passed, take a “Groundhog Day” approach.

 

 

TGIM IDEA IN ACTION: Initiate a great reawakening. Be aware that, although it’s asleep with you, an account may still be doing a lot of business with competitors. If you (or the folks you lead and/or manage) want to revive the full potential of the dozing previous purchasers and  get them back on the track to more sales and profits, try these steps:

● Become a detective. Find out all you can about the current state of the accounts. Perhaps start in accounting and review old records. 

Some Qs to review:

Q: What was the account buying and why?

Q: Is it clear why the account is dormant?

Q: What was its annual volume?

Q: Who in your organization had last contact?

Q: Has anyone got “exclusive” responsibility now?

Q: Is the account’s industry moving up or down?

Q: Has growth been evident?

● Narrow your list. Fire up the computer and start searching. Pick up the phone and start dialing for dollars. Your primary objective at this early stage: Eliminate (or postpone pursuit of) accounts that don’t show promise. And put the balance in descending order of 2013 potential. Then go after the top of the list.

● Develop an action plan tailored to each account. If the account was yours and you once knew their hot buttons, push them again and see what happens. If they don’t click, default to the “We’ve got something new that may be beneficial for you” approach. (Just be sure you can back it up.)

● Try the old contact first. If the account went sour because of something that went wrong on your side and an apology is in order, issue it on behalf of your company. Or recognize that there were differences that you feel can be easily resolved. 

Bad news: Expect some rejection and be ready to respond to: “We’ve got new sources we’re quite happy with.”

Good news: You won’t always get rejected. Some accounts will welcome you back with open arms, especially if you’ve apologized. That may be all some of them have been waiting for.

● Ask for an “update” appointment. If you feel you don’t really understand them or their needs at this point, say you’d just like to be brought up to speed during this interview. If you have something new to share, tell them you’d also like to keep them updated. 

Emphasize that it’s an “information sharing” call, not a sales pitch. That takes the pressure off and makes the first reconnection easier to get.

● During the appointment listen, listen, LISTEN. Go with the intent to learn anew. Be interested. Take notes, it shows interest. Don’t overstay your visit unless asked. Be prepared to share your own “what’s new” but don’t press and insist on leading with it or even revealing it until you’ve got a clear picture of the account’s current state of affairs and interests. 

● Before leaving -- Seek to determine what your potential competitors are offering (best price, easier terms, faster delivery, etc.) that holds the biggest appeal to your would-be-revived account. Then --

● Ask for permission. To continue the dialogue … connect with more specifics … to work up a proposal. At the very least, if you determine to go forward, lock down a precise “who will do what” and “when” – specific date and time -- you will reconnect. 

● Deliver on your part of the bargain – and then some.

Wrapping it up: Why look backward to and invest so much time and energy in clients who have faded and all but abandoned a working relationship over time? 

TGIM Takeaway: Because it’s still at least one step closer, and at least one step easier than starting from scratch, zip, zero, zilch and cold calling a total stranger. 

Even if the last contact with the long dormant account was totally acrimonious, at least you have that acrimony in common.

And that’s a great starting point for progress.

 

It doesn't matter what the shadow revealed. Get digging for those Groundhogs NOW!

Geoff Steck
Chief Catalyst
Alexander Publishing & Marketing

8 Depot Square

Englewood, NJ 07631
201-569-5373
tgimguy@gmail.com

 

P.S. “Let’s take this opportunity to honor the movie Groundhog Day and pretend everything I did the last time we saw each other never happened.” That’s an unattributed quote floating out in the blogosphere. It appears to be referring to personal relationships. But it also seems also like a pretty good mindset (and maybe even opening line for someone with a wry movie-wise sense of humor) for reestablishing long-dormant business relationships.