Frequently Asked Questions
How does Shred Nations work?
Shred Nations provides intercept marketing for shredding contractors. We receive leads from businesses looking to solve an immediate shredding need, we evaluate the request for authenticity and size. Once verified, local shredding contractors are sent the customer information.
What makes the shredding industry unique?
Shredding is a “sticky” business. One of the characteristics of customers is that once you have earned their trust it is difficult for a competitor to earn their business. Using contracts makes losing an account even more difficult.
Also when you acquire a new a customer, you become the beneficiary of organic profit growth. Organic profit growth comes from:
- Growth of the customer's business
- Convenience drives a natural growth in number of containers
- Awareness of privacy and confidentiality concerns drives the need to shred more materials
- Changing laws & regulations drives the necessity for more shredding
- Pricing opportunities over the business relationship enhance revenue
- Cost reductions result from increased “route density”
- New services enhance the revenue potential per customer
In addition, when you communicate frequently with a new customer and deliver the level of service the customer requests you can be the beneficiary of referrals.
What is the value of a new customer?
Because a new shredding customer tends to be loyal and tends to grow organically, the concept of the lifetime value of a customer is operative in the shredding industry. Sales Star uses 8 years at the current profit contribution as a conservative estimate of lifetime value. (There's a probability of loss and a certainty of organic profit growth but using concept of present value diminishes the true profit earned).
Why is Sales Star's intercept marketing so effective?
The Sales Star “intercept sales method” requires speed (it's not the big that eat the small, it's the fast that eat the slow). It's common knowledge that increasing numbers of people go to the Internet to research topics and to discover options. The intercept sales method for shredding caters to this growing audience and presents them with multiple opportunities to obtain shredding service by filling out a form outlining their needs.
When the prospect has reached a comfort level and fills out the form, it takes very little the time from when the customer “hits SEND” for a shredding company that is part of the Sales Star Network to contact them with a responsive solution. The closing percentage for the “first responder” is very high, but in some cases the customer will wait for additional responses. However, rarely will the customer go outside the network. That's the beauty of intercept marketing. The goal is to terminate the client's search by meeting the client's specific needs .
What impact will using Sales Star's “intercept sales method” for shredding have on my business?
Every month 1,000 to 1,500 intercepts are qualified as “good business” for our shredding service providers. On an area-by-area basis the number of intercepts vary. These intercepts represent “one time business” and “continuing business” with weekly or monthly ongoing service needs. Our network of service providers has learned that almost all of this business can be upgraded after “trust” has been established.
Many of Sales Star's shredding clients have eliminated salespeople or substituted inside sales clerks at less expense. The reasons for this are simple- the initial needs of the customer are typically very clear and the customer committed to make a decision by filling out a request form. Many of the tough obstacles to a sale have been resolved.
Each month Sales Star distributes a total of $1,000,000 to $3,000,000 in annual shredding sales. The true potential is even larger considering the lifetime value of a customer and likelihood that a new customer will grow organically. Since customers tend to be loyal in the shredding business, a supply of fresh, new customers is extremely valuable. It's simply a smart way to grow.
Every growing business needs to be concerned about growing as efficiently as possible.
What's the biggest obstacle to service providers in using the Sales Star “intercept sales method?”
It's clearly the “need for speed.” Sales personnel need Blackberry's or the equivalent to respond fast. There's inevitable frustration when a client “gets around to calling” and finds the business is “gone.” It also becomes burdensome to drop whatever you are working on to respond to the latest customer request.
Is there a lower cost way to grow a business than by using Sales Star's intercept marketing?
Yes, it's better when your customers become advocates for your business and they begin to sell others on doing business with you. However, beyond referrals, the intercept method is far more cost effective than direct mail, telemarketing, or any media advertising. The savings are from the customer has decided that there's a need for shredding, has specified the type of service that is needed and has decided to act. Your job is to close the sale.
How many leads will I receive?
That depends on what services you offer and, more importantly, your service area.
How well does it work?
Here is what some contractors have said about Shred Nations.
How many contractors receive each lead?
Shred Nations limits the number of contractors who receive a lead to four.
How much does a lead cost?
Costs are based on area and the size of the lead. Please call for pricing in your market area.
When will I be billed for the leads?
You will be billed every Wednesday for leads sent the prior seven days. Each Friday a charge will be placed on your credit card for all leads reported on the invoice.
How do you set up my service area?
We use unique three digit zip codes to define service areas. This is the first three digits of the zip code. This gives you the ability to get a very accurate service area.
What is your cancellation policy?
If for any reason you wish to cancel your membership simply notify us and we will discontinue sending you leads immediately. You are only responsible to pay for the leads you received.
Do you have a lead replacement policy?
Yes, in the event you receive a lead that does not match the parameters that they have detailed in your profile, the lead can be replaced within six days and the you will not be charged. Please review our lead replacement policy.
How do I sign up?
To get started just fill out this form and we will contact you shortly to collect all your information.
