Discussing the annual value of a customer can be a very powerful way to establish the value of the local online coupon advertising. Most local online coupon sales forces has the ability to generate activity reports based on the number of times an advertiser’s online coupon is viewed, printed, sent to a mobile phone, etc. These reports can be very powerful. It’s critical that, as a sales rep, you understand how to use them to maintain the relationship with the client and build steam toward an advertising contract renewal.
During your pre-sales process, you should have established and agreed to the value of a new customer brought in by your online coupon. Your advertising client must give you input and agree upon the value of a new customer. This value is commonly the amount of marginal profit the advertiser draws from a new customer over the course of a year.
In some cases, this is merely the first purchase amount, as is the case with roof repairs and air conditioning. In other cases, it’s the total of multiple purchases over the course of a year, as is the case with restaurants, limo services, car washed, etc.
Most local online coupons business models assume at least half of the coupons printed by a consumer get redeemed. This will vary from site to site for many reasons, but in general, it’s 50%. Talk to your client about this and see if they would generally agree to that. Once they do, you have a frame work for talking about the report.
If your product did its job, you’ll be able to show the client that taking the number of prints, dividing by two and multiplying that by the annual value of a customer to show a great return on their marketing dollar investment.
For example, take a full service car wash and assume the charge for the car wash is $20, but the marginal profit is $10 every time the customer come in. 12 visits a year times $10 = $120 in profit from that new customer. If your reports show ten prints of the clients coupon per month, and we assume five turn into redemptions, you begin to build a case that you’re bringing in 5 times $120 = $600 in profit from their advertising with you.
Tags: Manage Expectations, Post Sale, Reports, Sales, Sales Reps