Original Message:
Sent: 09-18-2022 21:30
From: Steven Rosenthal
Subject: How many customers do you REALLY have?
Susan, you make some good points, I've been hired to remove the player parts from old (20 years) systems that used floppy disks.
At the same time, we have to remember that this isn't our first time to the rodeo. Player pianos were the original home entertainment systems at the turn of the last century. Being first, their advent was a huge boon to the industry. Players drove piano manufacturing to a half million units per year in the US during in the first quarter century, productivity never to be seen again. That era was every bit as much a tech boom as the first quarter of this century and the bottom of the player piano market fell out in 1925, collapsed in fact; by then recorded music, movies, and most significantly radio eclipsed interest in player pianos. Home life had changed by then in historic proportions. So had our way of "hearing the world" but that is a different topic.
I was surprised that Steinway would invest so much resources into a player system but apparently they knew what they were doing. And they are being used on the concert stage, we saw an intriguing example of that at the convention last month. I've been tuning for concerts on other forms of hybrids for the last 20 years. So for the short term (at least the next 20 years) we should be prepared. Also, even though the first big wave of player pianos ended 100 years ago, there are still plenty of them around.
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Steven Rosenthal RPT
Honolulu HI
(808) 521-7129
Original Message:
Sent: 09-18-2022 01:49
From: Wim Blees
Subject: How many customers do you REALLY have?
There are two things I want to mention as part of this thread regarding old and new customers. They are not related but still important to know.
One, regarding the number of new clients. In my opinion we will never run out of new clients. After all, the population keeps growing and some of those people want pianos. There has also been a concern about not enough people wanting to go into music. That might also be false. I don't know what the latest figures are, but a couple of years ago I read in a reputable magazine that enrollment at university music departments across the country are at an all time high. Schools were turning away music students, and/or making adjustments in scheduling. And, of course, hiring more faculty to teach them. Maybe not all of them, but I'm confident that most of those students will eventually buy a piano after graduating, if not for themselves, but for their kids.
The second thing I want to say is for those of you who have been in the business for a while, but for some reason, the phone just isn't ringing as much as it should be. This is what I did about 25 years ago. As I mentioned in an earlier post, I send out a postcard (not email), to my customers for 5 years in the anniversary month of the last tuning. But there was a period of time when business was slow. I had my wife call all the customers that I hadn't tune for over 10 years with the excuse that we were cleaning out our data base. She would ask if they still had the piano. If they did, if they were using another tuner. If not, would they like to set up an appointment. While some said they didn't have another tuner, but no we didn't need to schedule an appointment because (no one plays, it sounds OK, etc), she did schedule quite a few appointments. What was interesting, though, was when she told those who didn't want to get their piano tuned that she would remove their name from the data base, some of them pleaded, "no please don't remove me from the data base". We didn't know whether it was because they were afraid it would effect their credit score, or whatever, we thought it was funny that they still wanted to be in my data base.
Anyway, a very interesting thread. Thanks, Geoff, for doing all the research.
Wim
Original Message:
Sent: 9/17/2022 11:01:00 PM
From: Geoff Sykes
Subject: RE: How many customers do you REALLY have?
I think it's important to point out that the percentage of active customers a tech has relative to the percentage of inactive customers will decrease as their database grows larger. If a tech has been in the business for a very long time their overall customer database could be huge. 20% of a huge database could be overwhelming. That is to say, as we continue our business we hope that the percentage of active customers actually decreases while the number of overall customers, active and inactive, continues to grow. I would think that once we achieve an active customer base that keeps us as busy as we are able, or want to be then we have reached an equilibrium where we acquire new customers at the same rate we lose old ones. When we are starting out, until we reach that equilibrium we have to actively hustle for more and more new customers. Even after we achieve that equilibrium we must not assume that new customers arriving to replace the old ones will just magically appear. That work may become easier but it still requires attention.
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Geoff Sykes, RPT
Los Angeles CA
Original Message:
Sent: 09-17-2022 20:37
From: Benjamin Sanchez
Subject: How many customers do you REALLY have?
Sorry Geoff, I tried to reply to this yesterday but apparently it got lost in cyberspace. Since moving, I've lost my California client database so can't provide accurate numbers, and my Alabama business is still too young to do so. But, here's what I remember about my CA business.
It was very similar to what you report. I think my active clients made up 25-30% of my total clients. My inactive clients were about the same break down as you wrote, I think.
As much as I hate inactivating a client, I try to remind myself that it's for the best. It allows me to focus on my good clients and ultimately provide a much better service because I have a much narrower focus in my business. I believe someone once told me that's part of working on the business, not just in the business.
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Benjamin Sanchez, RPT
Piano Technician / Artisan
(256) 947-9999
www.professional-piano-services.com
Original Message:
Sent: 09-15-2022 22:21
From: Geoff Sykes
Subject: How many customers do you REALLY have?
As I was setting up to send out reminder emails recently, out of curiosity I took a look at my customer database see how many active vs inactive customers I actually have. I was shocked to discover that only about 20% of the customers in my database are currently listed as active. I keep pretty good notes on everyone so I took a look at about 20% of the inactive customers to find out why they are listed as inactive. In other words, I wanted to find out what, if anything, I might be doing wrong to no longer have those customers. After several hours going through about 20% of the inactive customers I saw a pretty consistent pattern showing up, so I didn't go further. Here are the results, and some comments about them.
: 12% - The piano just never gets tuned unless absolutely necessary. It's rarely played and unless they suddenly need it for a party, or their teacher says they're not coming back until it's tuned, they don't care.
: 12% - Customer never responds to reminders. This is frequently the result of new piano 1st free tunings provided for people that already have a tech. Or, they eventually wind up falling in to the previous category. Many times it's simply because the customer is just too busy to respond and they forget, or they never see the reminder in the first place. As a rule I send reminder emails to every customer about twice a year. If I get no reply in two, sometimes three years if I really want the customer, I make them inactive. I don't want to pester them if they've moved on. Then again, sometimes, after four, five or even more years it dawns on them that their piano needs service and they contact me, almost always with apologies.
: 12% - Customer has moved far away. Most of the time they tell me and I am able to help them find a new tech in their new location.
: 11% - I'm no longer willing to make the drive. They are too far away by Los Angeles standards. This is a travel experience issue, mostly. For example, a 20 mile drive to the west side that once upon a time used to take half an hour or so can nowadays frequently mean a 2-1/2 to 3 hour round trip. Charging more, or scheduling multiple tunings in the same area is not the answer. I'm just no longer willing to spend that much time in 5mph traffic. Customers that I have explained this to always understand and are grateful for my referral to a tech closer to them.
: 7% - I don't like the customer and don't want to provide service to them.
: 5% - I was only substituting for another tech. In other words, it was never my customer.
: 5% - They were renting and the piano was returned.
: 5% - The customer is too difficult to contact. Only access is an assistant that changes out frequently, with a new and now unknown email address and/or phone number, or a management company that isn't able, or willing to coordinate with the customer.
: 4% - The customer is too difficult to schedule. They want hours, or days, that I am not available, or continually cancel and reschedule due to forgotten plans or emergencies.
: 3% - I don't like the piano, or the home is just filthy. Customer may be fine but I get shivers at the thought of going back.
: 3% - I'm told I'm too expensive
: 3% - Customer has a spinet. Due to lower back problems that come with age, I am no longer able to service these instruments so I recommend them to a younger tech in their area.
: 2% - Unable to convert the person to a paying customer. Sometimes this was a first time appointment that got cancelled at the last minute and the customer would not respond to reschedule. Sometimes this was a potential customer that wound up only wanting advice or, ultimately, was just price shopping.
: 2% - Customer sold the piano.
: 2% - Customer requested that I do not send reminders. Promised they would call when tuning was wanted. And most of them actually do. But because they do not get reminders they are categorically inactive customers.
: 2% - Piano is no longer serviceable without many problems and customer won't invest in repairs or replace.
: 2% - Customer died.
: 2% - Customer wants my services but due to health, family emergencies, divorce etc., can no longer afford it.
: 1% - Warranty service call. Usually the customer already has a tech and I was brought in because that tech could not take care of the problem. This 1% is the number of warranty calls I take where I was unable to take advantage of the previous techs failure and convert them into an active customer.
: 1% - Business closed.
: 1% - Customer told me they found another tech.
: 1% - Not their piano. Paid for tuning for a friend, or relative. That person then usually winds up in the It's Never Tuned category.
: 1% - Referred to another tech as I was not qualified to do required repairs.
: 1% - Believe it or not, there are parts of Los Angeles that I just feel unsafe going to.
Seeing how this information fell together I'd like to believe that I'm basically doing OK in the customer relations department, so please try to refrain from offering suggestions. Yes, there are likely customers in several of those categories that I have failed. I can't please everyone. And that's OK because all of us are always on the lookout for new customers for all the reasons stated above, and more. There will always be customer turnover. Customers disappear and new customers take their place. That's the nature of what we're doing. Still, statistically I found it a little disconcerting that only 20% of my customer database is comprised of active customers. On the other hand, I've been doing this for a bit over 20 years so my total customer database is a decent size, and if I had to actually deal with too much more than about 20% of my total customer database I would be overworked. So, the main reason I'm posting this here is to find out if my situation is unique or rather common. What percentage of your customer database is actually active?
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Geoff Sykes, RPT
Los Angeles CA
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