The Profit Leak in your Business

Recently, I sent some emails about the 2 things we always recommend to clients (read here).

But there’s a 3rd thing I could recommend—and should recommend—more often.

Fix churn.

Churn looks something like this…

An electrician who doesn’t enforce boot coverings in the home, leaving muddy footprints—and wonders why they never get callbacks.

A propane delivery company pours thousands of ads promoting that they have the cheapest will-call prices but never converts them into automatic delivery clients.

A veterinary practice obsesses over steep discounts for first-time customers, only to see pet owners never return for follow-ups.

The customer you are spending so much energy to acquire disappears after one purchase.

Here’s the hard truth from Forbes:

• It costs 5-7X more to acquire a new customer than to retain one.
• Increasing retention by 5% can boost profits by 25-95%.
• Selling to an existing customer? 60-70% probability. A new one? Just 5-20%.

Yet, many businesses (40% to be exact) are stuck in the “Acquisition Trap”—chasing new customers instead of nurturing the ones they already have.

The smartest businesses prioritize retention.

They don’t start from zero every month.

Learn more about the 2 other things I always recommend, hint it includes keeping your customers engaged and coming back: 2 Marketing Tactics We ALWAYS Recommend.