Sales
Letter
A sales letter is a
letter written to publicize and ultimately sell a product or a service to the
consumers. It is a type of business letter; meant for generating business. It
also has the bearing of an Announcement Letter. A sales letter is also referred
as Letter of Sale, Marketing Sales Letter and Business Sales Letter. It is also
known as direct mail as it is being directly sent to the client. A definition
of sales letter provides additional and assisting information in understanding
the one mentioned.
A sales letter is a piece of direct mail which is
designed to persuade the reader to purchase a particular product or service in
the absence of a salesman. The
sales letter is the most highly individualized form of advertising and
publicity. It is like a written sales presentation and follows the persuasion
steps towards convincing. With the use of computers the sales letter can be
personalized to suit the needs and interest of selected groups or individual
buyers. To be efficient it should catch the attention of the reader,
excite his interest and curiosity and induce him to buy the goods or services
offered. It should begin with an attention catching device and end with an
inducement for action. It closely follows the four stages of the selling process,
Attract
attention – by using proverbs and quotation.
Create
interest and desire – by understanding human desire and feelings
as well as good knowledge of the product. There are two things that really
stimulate people: the hope of gain and the fear of loss.
Win
confidence – make your offer, and with this also give a guarantee.
Motivate
action – introduce scarcity in order to make reader take a decision.
Importance of Sales Letter
Get the Attention of Prospective Clients:
Sales letter grab reader’s attention. Starting your letter with a compelling headline, interesting story or anecdote is an effective tool to draw your reader in. You can also pose a question to your prospective clients or customers to pique their interest. Your opening statement should be address a potential problem or need and propose a possible solution.
Generate Interest in Your Product:
Rather than citing a laundry list of features, engage the reader
and relay the information in a way that highlights why they need what you have
to offer. This is particularly important if you're in a highly competitive
market. Distinguish your product from the rest of the field based on what it
can do for the customer.
- It introduces new goods in the market more effectively, quickly, at a lower cost and in a wider area.
- It also educates the customer in selecting the right type of goods and also in better understanding of products and service.
- It creates and maintains goodwill among the customer by offering quality products and services.
- It may also functions as a salesman wherever a salesman cannot visit the customer.
- It widens the market for existing products without much cost.
- With this all, it also helps the customer to remember the product or the service of a firm whenever he is in need of it.
- It also keeps the customers constantly in touch with the company and its products and services.
Sales letters are sent to:
- Companies and Industries
- Travel Agencies
- Reservation Services and their member hotels
- Airlines
- Government Institutions/Semi Government Institutions
- Individual Clients - Prospective and existing
- Multinational Companies
- Exporters and Importers
- Traders/ Merchants
- Financial institutions and Development Agencies
- Foreign Embassies and International Agencies
AIDCA is a sales and marketing acronym. It concentrates on few features
of product or service.
- Providing convincing evidence of excellence
- Use believable or convincing language
- Introduce price in middle of letters
- Offer something special when possible
A- Attract favorable attention, I – build interest,
D – create desire, C – get conviction, A – ask for action
1. Get your readers attention – Create an attractive headline. Begin with a relevant statement or a challenging question that entices the receiver to read on because they want to know. The starting point begins with an envelope color, enticing words, fonts, handwritten addresses, and announcement. Use powerful words, or a picture that will catch the reader's eye and make them stop and read what you have to say next. 2. Get them interested, this should be done by getting straight to the point, for example: “Learn how you can drive traffic to your website”. Begin to tell what your project, product, services or idea is and what it will do for the reader. Gaining the reader's interest is a deeper process than grabbing their attention. This means helping them to pick out the messages that are relevant to them quickly. So use bullets and subheadings, and break up the text to make your points stand out.
3.
The reader needs to have a desire to read your sales
letter or brochure… the reader wants to know one thing: “what’s in it for me?”
Readers will desire to do as you request and be convinced if you present proof.
As you're building the reader's interest, you also need to help them understand
how what you're offering can help them in a real way. The main way of doing
this is by appealing to their personal needs and wants.
4. Conviction – This is where the key points to your
marketing message should appear. Give evidence your that your statements are
true. With this also be aware of your legal responsibilities for truth. Include
needed fact, pictures, figures, samples.
5. Action - This is where you are calling your reader to take action. Make action easy: give phone number, location (address) etc. induce reader to act now or within a certain time. You need to be very clear and straight forward, for example: “Sign up now and get the $20 discount today…!” Finally, be very clear about what action you want your readers to take; for example, "Visit www.mindtools.com now for more information" rather than just leaving people to work out what to do for themselves.
5. Action - This is where you are calling your reader to take action. Make action easy: give phone number, location (address) etc. induce reader to act now or within a certain time. You need to be very clear and straight forward, for example: “Sign up now and get the $20 discount today…!” Finally, be very clear about what action you want your readers to take; for example, "Visit www.mindtools.com now for more information" rather than just leaving people to work out what to do for themselves.
Sales latter example (Washing machine)
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[Senders
Name] [Address line] [State, Code] [Letter Date] [Recipients Name] [Address line] [State, Code]
Dear [Recipients Name],
Ever found yourself sending your clothes to the Laundromat on
the weekends because your washing machine just broke down again?
We at Red Machines have excellent news for you! Because you have been one of our loyal customers for several years now, we would like to give you $60 off any purchase you make of any of our latest washing machines available! Now you won't have to spend hundreds of dollars on having your clothes washed at a Laundromat! Hurry and avail of this offer before (date promo ends)! We hope to see you soon!
Yours truthfully,
XYZ
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Do not:-
-
Be insincere in any of the arguments used
-
Anger the customer by using “red paper” words
like neglect, ignore, fail, careless which hurt the customer’s feelings
-
Humiliate the customer by appearing superior
-
Suggest two alternatives
Suggest two alternatives action at the end of the letter. If possible
offered a choice between two actions, the reader often postpones the decision.
·
Reminder Stage:-
The first reminder is sent
within a week of the bill or duplicate copy. It may be form letter which has
the advantage of looking like mere routine with no personal implication.
A second reminder may be
sent in a week or in a fortnight; this is a personal reminder that the bill has
been reached, and indicates expectation that it will be paid soon.
The third reminder is more
pointed and urges the customer to settle his account early. The writer assumes
that the customer has forgotten because of the pressure of business.
First
reminder
Steel Cast LTD
Ruvapari Road,
Bhavnagar
364001
21st
July, 2016
M/S Ram Traders
13, Rajkot Road,
Rajkot 362001
Sub:
Our bill no. 30657
Dear sir,
We are really
uncomfortable about your indifference to our letter about our overdue bill
no. 30657 dated 1st June, 2016 for RS. 50000/-.
It is possible that the
letter had not reached to you. We enclose a copy of the bill which is overdue
for payment. We are eager retain you as a regular customer.
We look forward to an
early settlement.
Thank you.
Yours faithfully,
Priyanka (secretary)
Enclo: bill
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Second
reminder
7
Gopal Tower
Mumbai-400001
6th August, 2016
M/S Rai & Sons
32, Credit Street
Mumbai-400002
Dear Ms Maya Patel,
Sub:
Reminder for Overdue bill no. 30657
This is a quick reminder to let you know that your account with us is
past due. The amount of RS. 50000 for services rendered on 21st
July, 2016 were due on August 7th 2016 per invoice number 30657.
Please pay this amount by August 21st 2016 to avoid late payment
penalties.
If you have already sent payment for this invoice, please3
disregarded this letter and accept our thanks for payment. We appreciate
doing business with you and look forward to doing so in the future.
Yours sincerely,
V.R. Bizzmen
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Third
reminder
7
Gopal Tower
Mumbai-400001
1st Sep., 2016
M/S Rai & Sons
32, Credit Street
Mumbai-400002
Dear Ms Maya Patel,
Sub:
our bill no. 30657 on 6th August, 2016
We regret to inform you that inspite of our many continues reminder,
the payment of RS. 50000, bill no. 30567 has not made by you yet.
We have always considered you as one of our valuable customer. Your
quick payment and co-operation is necessary to maintain good relations
between us. The bill is now long overdue. A statement of your account is enclosing
for the reference.
We request you to send your cheque for fall payment and settle your
account as soon as possible. We look forward to an early settlement.
Thank you.
Your trustworthy,
M.
Zala (proprietor)
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·
Persuasion
This serves purposes like,
- It compels the difficulty, ‘silent’ customer to say something
- It makes sure that the customer does not complain late, about the product/service
- It conveys the message of “customer first”
- You can also offer help by accepting payment in installments or accepting return of any goods that the customer finds difficult to sell or use. Your desire to help must be strongly stressed.
M/S
Parekh & Sons
Jawahar Road,
Ahmedabad
380001
2nd Oct., 2016
M/S Pushpa & Sons
41, Dalal Street,
Relief Road,
Ahmedabad 380001
Dear sir,
Sub: Regarding our payment
We are sorry to see that you have not replied to our letters asking
for payment of our bill of RS. 50000, outstanding since 21st July.
You will agree that the bill will long overdue. We delivered your
goods to your satisfaction but you have not done your part of the transaction
with equal promptness. Usually, we do not extend credit for more than three
months and in allowing your account to remain unsettled for so long we have
been unfair to other customers from whom we collect payments in three months.
Besides, you are not being fair to your own name as reputed businessman, in
this delay. We do hope that you will live up to your reputation and settle
your account this week.
Yours
sincerely,
M. Zala (proprietor)
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·
Legal Warning and Threat
When all appeals fail to bring any response from debator (receiver),
the collection series enters the last stage. This stage is rigid, and can be
extended to three letters.
- The first letter pleads with the debator to settle the account and avoid legal action; no date may be set for the legal action.
- The second letter fixes the date for legal action but allows a period of time for the debator to pay the bill.
- The last letter merely tells the debator that the account has been handed over the company’s lawyer.
M/S
Parekh & sons
Jawahar Road,
Ahmedavbad 380001
1st
Nov.,2016
M/S Zavery & Sons
41, Dalal street,
Relief road,
Ahmedabadb 380001
Dear sir,
Sub:
overdue bill no. 30657
We are sorry to let you know that all our humble efforts for
collecting our bill no. 30657 dated 6th July, 2016 of RS. 50000
have not been done.
When the credit facility was given to you it was for three months
only. Now, more than three month passed. We had shown you every consideration
to help you from our side. We are forced today legal action against you if
you do not pay amount before 11th Nov. 2016. If you fail to do so,
we shall handover the matter to our lawyer.
Urgently send the cheque and save your credit reputation.
We hope to hear from you soon.
Yours truly,
M.P. Parekh (proprietor)
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Goodwill
Letters
Credit
& status Inquiry Letter
If a proper credit and status inquiry is not made
before starting a new business relationship you may either damage your sales or
invite trouble for yourself with collection of dues. You have to get
information about the credit standing of customers who ask for credit, and also
give credit information about your customers when others make inquires.
A buyer’s credit standing depends on his capita,
capacity and character. In addition, circumstances also pay an important part
in a buyer’s credit position. While making a new business relationship see the
bellow things:
Capital – is the cash as well as the stock, the building, the
machinery and other property that the buyer owns.
Capacity – is the person’s kill and ability to use resources
properly and to run the business profitably.
Character – People or customers reputation, honesty, ability to
work hard, and self-respect.
Circumstances – political conditions, government’s financial and
economic policies and industrial relations may help sometimes as well as also
affect business or profession.
All these aspects
of credit are taken into account before granting credit. The inquiry by asking
for information from references given by the credit applicant, and may extend
further to source found out from the first reference or agencies.
If a customer sends an order
to execute on credit, without giving credit references, you have to ask the
customer to give credit references. Otherwise, you can send a letter asking for
specific information, like name and address of the bank, account number and
names and addresses of two other creditors. Also, explain the need for this
procedure.
Business FirmsThis Business Credit Request Letter is for use when one company desires to open a business line of credit with another company. This letter contains the names of the companies and length of time the requesting company has been in business. It also sets out specific reasons why credit is necessary. It is important that this type of business letter be clearly set out in writing. A well-written Business Credit Request Letter will act as a written record of your request and your intention to purchase goods or services from the company on a regular basis. Business Credit Request Letter State Law Compliance: This form complies with the laws of all states.
Points:
- Appreciation of the order
- Explanation of routine inquiries made, credit references to be given and the time it will take to complete inquiries
- Offer to send goods c.o.d. (cash on delivery) if customer’s requirement is urgent
Example
Sheth & Sons
Waghavadi Road,
Bhavnagar 364001
20 April, 2016
M/S Zavery & Sons
41, Dalal street,
Relief road,
Ahmedabadb 380001
Dear sir,
Sub: Request for credit information
It is a pleasure to welcome you to
our large circle of customers. Thank you for your order 17 April for 1000
boxes of our camel crylin colors, to be delivered on 30 days’ credit.
As it is customary to have some
records on our files about our credit customers, we are sending you,
enclosed, our credit application form. Please fill and return it to us in the
enclosed envelope, as early as possible. It will take some time to collect
the required information; it usually takes a fortnight to complete the
inquiries.
In case you need some of the boxes
urgently, would you prefer to send us a cheque so that we can make shipment
immediately?
Yours truly,
Xyz (person name, designation)
Encl: Credit Application form
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Banks do not give information about their customers to the public. You have to write to your own bank to take up the inquiry with the prospective customer’s bank. The letter to the bank is formal and short. It includes the following points:
1 name, address and business of credit applicant, with amount
and period of credit
2 name and address credit applicant’s bank and A/c number
3 request that the bank should take up the reference and
advice on the safety of the risk
4 assurance that the information given will be treated as
confidential
Shah & Co.
High
Court Road,
Bhavnagar 364001
20 April, 2016
The Manager
Bank of India
Mahatma Gandhi Road,
Bangalore 560001
Sir,
Sub: Request for status inquiry
We have been asked for credit
of Rs. 75,000/- by Messrs. Sanghvi & Pai of 87, Green Street, Bangalore
560004, who have given the same of Canara Bank, Lal baug Gardens Branch,
Bangalore, as their credit reference. Their A/c No. is 4870.
Please take up the reference on our behalf and inform us whether the
proposed transaction is a safe risk. The information you give will be treated
as strictly confidential.
Yours
trustworthy,
XYZ (persons name)
|
Letter giving favorable opinion
Bank of India
Mahatma Gandhi Road,
Bangalore 560001
25 April, 2016
Shah & Co.
High Court Road,
Bhavnagar 364001
Sir,
Sub: Replying of status inquiry
We are glad to be of help in ascertaining the credit of our customer,
Messrs. Sanghvi & Pai of 87, Green Street, Bangalore 560004.
They have bought from us on credit for the last five years, and we
grant them credit up to Rs. 200,000/-. They have always been prompt in paying
their bills and are known in the market for their integrity and business
acumen. We ourselves would readily grant the credit they have asked for from
you.
This is our personal opinion of the firm and we request you to treat
it as such. We are not responsible in any way for any decision you may take
in this matter.
Yours faithfully,
XYZ (persons name)
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Second example but just content
The party, about whom you inquired in
your letter of the 6th, has been our customer for the last 3
years.
We grant them credit up to Rs.
50,000/- and have not tried higher limits; we have had no difficulty in
collecting dues from them. One of the partners who has recently joined the
partnership, has a good training in business administration, and the firm may
be is expected to develop rapidly.
Please not that our experience with
the firm is limited, and whatever decision you may make is without any
responsibility on our part.
|
Letter giving unfavorable opinion
Bank of India
Mahatma Gandhi Road,
Bangalore 560001
25 April, 2016
Shah & Co.
High Court Road,
Bhavnagar 364001
Dear Sir,
Sub: Replying of status inquiry
We have known the party you mentioned
in your letter of 20 April, for seven years.
Our credit dealings with them have
been few and they have paid, usually, after a delay of fifteen days. We have
had little opportunity of observing their habits of payment with their regular
creditors. We suggest that you make further inquiries, and not consider our
opinion as anything final or decisive.
Please treat this letter as strictly
confidential.
Your trustworthy,
XYZ (persons name)
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Second example but just content
Writing about the credit standing of the firm you
mentioned in your letter of 7th July, 04, We must, advise you to consider the
application carefully.
In the past two (2) year’s this firm has been deferring
payments for long periods. It makes commitment but fails to comply. Furthermore,
their financial strength is no more satisfactory and their reputation is
getting down day by day in the business arena. As a result, we and other
suppliers are giving them goods on cash basis only. We suggest a line
of caution.
The above information is strictly confidential and we
don’t accept any responsibility for it.
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Letter Granting Credit
This
is pleasant message to convey and should be written with a note of welcome. The
letter gives information about the routine terms of shipment of goods and
payment of bills.
-
Statement that
credit is approved
-
Information about
regular terms
-
Message of
goodwill
M/S Parekh & Sons
Jawahar Road,
Ahmedabad
380001
2nd Oct., 2016
M/S Pushpa & Sons
41, Dalal Street,
Relief Road,
Ahmedabad 380001
Gentleman:
Sub: Regarding Granting
Credit
We are happy to inform you that your
application for a credit account has been approved.
Your account has been opened on a
monthly basis. You can either pay the bill for each consignment within seven
days of the delivery of goods and take advantage of the 2% cash discount, or
you may pay the entire bill amount following your purchase. We send our
monthly bills in the first week of each month; the payment is to be made by
the 10th of the month.
We are looking forward to receiving
your first order that will make the beginning of a long and pleasant business
relationship.
Yours truly,
XYZ
(persons name)
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Complaint
and Adjustment Letter
In any business there will be
some mistakes and mishaps; you may not get the goods and services as you had
ordered. If things go wrong on your order, you to inform the supplier about the
problem and see that the faults are corrected and adjustment are made.
Letter of Complaint
Drafting and Effective Letter of
Complaint
A buyer may have one or more of
the following reasons for making a complaint:
- Goods received in a damaged condition
- Unsatisfactory of gods
- Wrong goods received
- Quantity of goods different from what was ordered
- Goods delivered at the wrong place
- Delay in delivery of goods or completion of works
- A mistake in a bill or reminder for payment after the bill has been paid.
- Reference to the order, its date and number
- Clear description of the mistake or deficiency
- Clear statement of the inconvenience or loss caused, and the action the supplier should take to lessen the inconvenience
- Request for adjustment or investigation
When a customer
complaints, you get a chance to correct any faults, to make adjustment, to
explain, and to help the customer to use the product properly is called
adjustment letter. The adjustment letter must first express regret for the
inconvenience caused; it must state what is being done, especially, to put
matters right, no matter whose fault it was and then explain why things went
wrong. You must have a proper frame of mind and a positive attitude for writing
a good adjustment letter. There are some points that will helpful in drafting
this letter:
First of all
- Locate the error; find out where it occurred and who was responsible for it
- Control the error; know which steps are there to take in order to put matters right & quickly and also know how to prevent such mistakes from occurring again
- Forgive the error; use courteous words, and show human consideration while mentioning or describing the cause of the error, and do not accuse either employees, associate businesspersons, suppliers or the customer.
Secondly, be helpful and
sympathetic. Sometimes, a customer who makes a complaint has the fear that he
himself may be at fault. If you re-assure him about using the product properly
and help him to understand how to avoid trouble and get the best service, he
will appreciate it.
Characteristic
of well draft adjustment letter and adjustment policies
Do:-
-
Follow a simple business
-
Answer a complaint promptly
-
Write in a cheerful tone
-
Acknowledge the problem and accept blame gracefully
-
Focus on relevant fact rather than emotion
-
Emphasize the corrective measures which is being
taken
-
Treat a client with respect, even if their claim
is insulting
-
Begin with a positive statement, express
sympathy and understanding
-
Granting immediate promise,
-
Offering further cooperation
-
Use courteous and friendly language
Do not:-
-
Do not use abusive and insulting language, but
be diplomatic and polite
-
Do not be negative or suspicious about the
customer’s claim
-
Don not blame other individual, departments or
company policies
-
Do not argue with the customer or contradict
with them
-
Do not overcompensate the client
-
Do not make the excuse that
the mistake was made by new or inexperienced clerk
-
Do not say, “It will never happen
again.”
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