Business is simple
Until you make it complicated.
Simple business looks like this:
- happy customers
- who regularly return
- and tell their friends
- 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 ).