Allison,
The last few posters made some very good points about using the wire services to your/our advantage and I want to share why I'm not dropping them at this time. (example: haevy wire out business/very profitable for us). I will have to go visit the "Wizard" one day and get some courage to do drop them, I know that day is ahead, but for now, I'm staying put and I just might out-live them if you know what I mean. The groupon thing is another nail in their coffin and the funeral deal they made a few months ago might be for themselves. They are really being dumb about business and I get so frustrated also. Free technology is their newest form of bait if you "become an FTD go to store". No thanks! I'm already in "FTD GO TO STORE RECOVERY AA). I know they're plenty of people on here wire fee and for a long time and I applaud all of you for that stance. Thye made that decision based on factors they flet importnat to them.
In Jan of every year I run previous year numbers and really determine where my sales are coming from, the platforms that they use and how we as a store can better improve service. Here's how they fell last year.
2010 was a good year for our store. I look at numbers in a different way than most (or maybe not) so here's my advice:
We had 505 new customers come to the store during 2010. Our customer retention rate was mid 70's (average florist should be 65 - 70). We saw a few weeks ago BN's had dropped to 61%, my guess is FTD is same and JF is down to about mid 40's. (only a guess) from what I can research. It shows people are returning less and there's a reason. So out of the 505 new customers:
(40%) came from our referall program in place (or word of mouth some call it)
(35%) came from WS (average store will get 12 - 14% if they do nothing but fill orders. With a little marketing, nudging, etc. that number can be raised very fast.......)
(16%) came from the website (not that good) I don't think. Not up on tech the way I should be, but learning (thanks to you guys)
(9%) misc coloumn (following van, saw windows of storefront painted with Rick as Santa on it, employee shopping at store saw her shirt, heard our radio show, etc.)
To get a new customer in the store costs you about $65 - $85 and you don't make money until that gets paid through repeat business, it could take 2 - 3 years.
So I guess I'm afraid of losing that 35% and then having to spend $13,000 plus on marketing to get that many new customers, and then wait 2 - 3 years, when I only spend $9000 of fees, comm., etc. and that number is paid for at delivery, so if i convert them, when they order it's profit now (not speculation for later). I do know the bottom line could/would increase with that 35% gone, but if you don't add the rate of new customers that aren't in your retention platform, that equals "closing". I prefer to stay as I am for now. Expample: If you have 10 customers, this year, 7 return next year, 4 the next year, etc. in 4 years that numbers is 0, so you have to add 3 new ones, to keep up the cycle or as I call it "the customer triangle".
Oh and the other 65% who didn't use me are put into an "education program" about w/s and og and marketed to before each event they we're originally sent to or for. I don't track that number, I probably should, I know I convert some of them. All these numbers a very general but accuarate, some clerks don't click the right buttons......................Sorry for such a long writting, hope this helps and doesn't give you a headache......
