http://redrope.social/redropesocial2/wp-content/uploads/2015/08/logoHeader-300x134.png 0 0 Bill http://redrope.social/redropesocial2/wp-content/uploads/2015/08/logoHeader-300x134.png Bill2017-07-26 05:27:472017-07-26 05:27:47Business is simple
Until you make it complicated.
Simple business looks like this:
1) happy customers
2) who regularly return
3) and tell their friends
3.a) who then also become happy customers
This is a virtuous cycle.
Which seems so easy to understand.
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.
Returning customers cost about 1/8th what a new customer cost.
And – returning customers bring their friends ( for free ).
If you aren’t measuring ( and then enabling ) returning customers – your missing a huge opportunity.
Make it simple, your customers will thank you ( and so will your CFO ).