Business is simple

Until you make it complicated.

Simple business looks like this:

  1. happy customers
  2. who regularly return
  3. and tell their friends
  4. who then also become happy customers

This is a virtuous cycle. Which seems so easy to understand.

Except that damn near every business forgets steps 2, 3, and 3,a.

Getting a customer in the door is just the start. You NEED the other steps to actually have a viable business.

Drug dealers get this and so does Netflix. So do Zappos, Amazon, and Target.

Peter Drucker said “that which gets measured — gets improved”. Many companies track marketing, sales, and initial conversions. But do they track recurring sales — nope. Ask who their top 10, 50, 1000 clients are — they have no idea.

Here’s why this matters so much — profit margin ( ka-ching!! ).

Returning customers cost about 1/8th what a new customer cost. And — returning customers bring their friends ( for free ).

If you are not measuring ( and then enabling ) returning customers — you are missing a huge business opportunity. BTW, emailing them every day with the new deal is a truly horrible strategy — just sayin.

Think simple — your customers will thank you ( so will your CFO ).

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