From the Far Eastern Shore of Maryland
Hey ,
Over the past decades, despite good intentions, few service businesses have been able to follow through on their commitment to satisfy customers.
Not exceed expectations…
Not meet expectations….
Just plain-ol-satisfy…
But service companies are beginning to understand what the manufacturing industry learned in the 1980s—that…
quality doesn’t improve unless you measure it.
When manufacturers began to unravel the costs and implications of scrap heaps, rework, and jammed machinery, they realized that “quality” was not just an invigorating slogan but the most profitable way to run a business.
They made “zero defects” their mission, and the quality movement took off.
Service companies have their own kind of scrap heap: customers who will not come back.
That scrap heap too has a cost. As service businesses start to measure it,
- they see the urgent need to reduce it.
- They strive for “zero defections”—keeping every customer the company can profitably serve—
- and they will move mountains to achieve it.
Customer defections have a powerful impact on the bottom line. They can have more to do with a service company’s profits than scale, market share, unit costs, and many other factors usually associated with competitive advantage.
As a customer’s relationship with the company lengthens, profits rise.
And not just a little.
Companies can boost profits by almost 100% by retaining just 5% more of their customers.
Re-read that statement.
I ain’t makin’ it up. (Source Bain & Co)
Think about it. Take this simple example:
- You sell a $100 product.
- Your cost to get a new customer is $50
- Your first year profit is $50
But let’s move to the customers 2nd purchase.
- You sell a $100 product.
- Your cost to get the customer is near ZERO
- Your profit from the 2nd sale is $100
A 100% increase in profitability!
Why is it then, that all these marketing dipity-doos are always schlepping the same old wares… More leads, more customers, more leads, more customers.
Pfui!
Yes, you do need a system for attracting and converting NEW customers, especially if you want your business to grow.
But if you want to grow PROFITABLY… you need a system to monetize your EXISTING customers.
And that is what April’s XP Intensive Master Class will do for you:
- 5 easy strategies to increase lifetime value (LTV) of your customers
- The #1 strategy to keeping customers for life
- My step by step system for creating special interest clubs that can extend your clients lifetime with you
- One simple tactic to boost profits by almost 100% by retaining just 5% more of your customers
- Four strategies Disney uses to create freakishly loyal customers, and how you can adapt those strategies in your business.
- 7 simple steps to creating exclusive VIP programs to retain more clients.
- The ONE strategy that created an 82% return rate that you can use
- The 3 steps to magnetically ATTRACT your best customer.
- One strategy to REPEL poor quality prospects
- 5 Ways to create emotionally engaged fans that stay, pay and refer.
All for less than a daily Caramel-Double-Shot-Venti-Half Soy-Half Cream-Half Potato Juice-19-Hour-Energy Coffee
Get it here as part of the Inner Circle. Just click on this obnoxiously bolded & italicized large font link
Remember, you won’t profit unless you implement,
Vance “There’s money in your scrapheap” Morris
