Case Study – co-ordinating an offline and online promotion [with Video]

timelyLast year Microsoft shelled out $26 billion – yes, that’s twenty six billion dollars – to take over LinkedIn. Just think about that for a minute – $26 billion is greater the entire Gross Domestic Product of more than half the countries in the whole world.

And why would Microsoft do that? LinkedIn’s total revenue in 2015 was a paltry $670-odd million. So Microsoft is hardly interested in LinkedIn for its profits.

Nope. Microsoft is prepared to make the biggest purchase in its 40 year history to get hold of LinkedIn’s 350 million members. And most of that 350 million are high-value professionals of some kind.

Microsoft recognises that the real money is in the list of customers.

So how does this relate to your small salon or spa in Downtown Anywhere? For exactly the same reason – the real money is in your list of customers, clients and prospects.

nicole1-1024x768Last week, veteran WSM member Nicole Panayiotou, owner of a successful salon in the Victorian country town of Sale decided she wanted to boost sales for June, and at the same time clean up her large database of several thousand clients and former clients.

Here’s what she did:

1) At my suggestion, she shot a short video on her mobile phone, sent it to one of my team at Worldwide Salon Marketing, and we loaded it up onto her salon’s website. You can see that video here.

2) Next, she made a list of 150 clients she hadn’t see in a few months, and wrote them a cute letter – a variation of our famous Rupert the Dog letter – except in this case the letter was ‘written’ by her baby daughter Billie. (WSM members can download a copy of that letter from the Salon Marketing Resources Library here.)

Blush letter3) At the same time, she used her database – her list – to find another 400 such ‘missing in action’ clients with mobile phone numbers, and sent them a text message that read as follows:

“Want a FREE $50 voucher? Click the link to redeem it! We miss you at Blush x. http://www.beauty-salon-sale.com/we-miss-you – Reply stop to opt out.”

The link in the SMS took recipients to the new video on her website here, and under the video, a simple form to fill in and get the gift voucher.

Results?

“I sent 150 letters, got 3 clients back off the first letter. Sent 400 texts, got 11 opt outs and 7 clients back in! Still got more to send so extending it (the offer) thru till end July. Great chance to clean up data base so I’m happy.”

Now, before you dismiss that as a poor result, think about it; with a simple, easily-implemented promotion using just a tiny section of her existing list of clients, she resurrected ten ‘missing in action’ clients, with the chance to turn them once again into regular buyers. At say, $1,000 a year per client, it’s a cheap way to regenerate $10,000 a year revenue.

That’s the value, and the money, in a well maintained list. And that’s why Microsoft is spending $26 billion to get hold of one.

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About The Author

Josh Kallmeyer

Born and raised in Perth, Australia, he left with his family to live abroad in Canada, when he was 17. Whilst traveling, Josh worked with a plethora of clients in different industries, all taking charge in their marketing. He's headed $250,000 product launches, revolutionized a Bali-based jewelry company's online store, and learnt – through trial and error –online and offline marketing, copywriting, and everything business. He now works with WSM as head of marketing for both WSM and WSM's members.