What Business Are You In?
I’m curious how you answer this question about your business. I’ve been thinking about this very question for the past 20 years…and I’ve been in several markets. I’ve had various different Corporations and Limited Liability Companies. I’ve sold various products and services – from Audio Visual Solutions to Marketing Services, from Medical Diagnostic Services to Spirits and for EVERY SINGLE BUSINESS, my answer has been the same.
Before I share my answer, I’m curious – what business are you in?
Over the past year or so, I’ve had the opportunity to speak to various groups of entrepreneurs in North America, Europe and Asia, and I’ve been networking and masterminding with amazing entrepreneurs from dozens of countries across the globe. Each time I meet someone new, I ask them “What business are you in?”
I’m always curious to hear the answer to this question…and as you can imagine, I get all sorts of responses – such as, “I’m in personal development…” “I’m in software – specifically SAAS…” “I’m in coaching…” “I’m an author…” “I’m a speaker…” “I’m an Amazon Seller…” “I have a Pilates studio…” you name it – I’ve heard it!
And as they answer the question, I watch their body language. They seem to be looking for me to acknowledge their response and give them a head nod of affirmation that I understand their business, or to immediately tell them my business too…but I remain quiet, and let them go on and on…
But sometimes, every once in a while, I hear the same business that I’m in…and that’s when I smile. ?
You see, my answer to that question is that I’m in the Customer Loyalty and Retention Business! Every single one of my businesses has been designed to solve a problem, create a larger opportunity or help someone maximize some aspect of their life or business. That’s what I sell in my products and services and my experiences…but the business I’m ALWAYS in – is the Customer Loyalty and Retention Business.
You’ve probably heard the statistics before, it’s costs more to acquire new customers than to keep your existing customers. There are hundreds of statistics on this (if not more) depending on who you listen to, but it’s always between 4 times to 10 times more expensive to acquire a new customer than to keep an existing customer. In fact, there are some sources that suggest it’s even up to 30 times more!
Honestly, I don’t care if it is 3X more or 30X more – the fact is…it’s more! Most businesses spend so much time working on getting new business that they often forget about the very people who took the leap of faith and invested in a relationship with them in the first place – and that’s a tragedy!
In my 20 years of experience working with brands large and small, the answer to exponential growth, loyalty and raving fans has been to focus on building relationships with your customers; caring for your customer and loving on them. It’s no accident that the most successful brands in the world focus on this very strategy.
The funny thing is that it’s super easy to do. In fact, it’s even more fun. So I’d love to give you something to ponder…how much faster would your business grow, if you didn’t lose any of your customers? What if your customers were SO HAPPY WITH YOUR BUSINESS, that they felt compelled to share their amazing experience with their friends and colleagues – if they posted about it on social media? If they created a testimonial or case study for you – because they had such tremendous success with your product or service?
This is not “something nice” to do…it’s absolutely critical for survival in today’s world.
Focus on delighting your customers and everything else will fall into place!
I’d love to hear about what you’re doing to delight your customers. Leave me a comment below and let me know your top strategies for turning your customers into Raving Fans!