This case involves a successful loan company. They had been trading for many years and were doing well, but the MD of the company had always felt that he could be doing better. He advertised in the daily papers and his staff manned the phones until 9 pm, seven days a week, taking the enquiries. Generally, they were doing everything right, but the MD had the brilliant idea to try direct mail as well. His first step was to get a data expert to trawl through his past enquiries, find all those that were over six months old. He then got the mailing company to send personalised laser printed letters, direct to these past enquiries and ask if they were interested in a loan. Extra business flowed in from these previous enquiries, so the MD continued to the next step. He sourced some suitable names and addresses of people who may be looking for a loan or a second mortgage, from a specialist data rental company and got his mailing company to send personalised letters to these people as well. More business flowed in.
By steadily mailing out more and more targeted letters each month, the MD has made very good growth to his company and can turn the enquiries on and off, like a tap. He can expand just as fast as he wishes, or slow the flow of enquiries during staff holidays etc. He is now considering using the power of reward, by giving a printed pad and pen, mug, pocket knife or calculator to his enquiries and a larger business gift upon completion of the loan or mortgage. This will encourage client loyalty as well as tempting potential clients. Everyone likes to receive a free gift, providing it has a high perceived value. Strangely, this has nothing to do with its actual cost. What man would be disappointed with a mult-function, stainless steel penknife? Yet they cost less than £2.00 each.