The “Oh Duh” Way to Acquire New Customers

So here’s the headline and the lead of the article…

Positive Customer Experience Drives Loyalty, Revenues

There is a high degree of correlation between customers’ experiences and their likelihood to recommend a company and consider purchasing more products and services from that company in the future…Source: MarketingCharts.com

And when I read it my reaction was “Oh Duh“! Everyone knows that (or should), right? But then it got interesting…

How My Dad Taught Me to Increase Revenue

Grandpa Gray Taught Dad to Sell

My dad was an up-by-his-bootstraps entrepreneur who went from migrant laborer as a kid to self-made millionaire by the time he was 40. His formal education ended in the 6th Grade which is where his business education began.

He taught me there were only two ways to increase revenues:

1. Increase sales or
2. Decrease expenses.

He pursued both methods fanatically.

Sell more, spend less. Makes sense but there are ways to sell smarter that make it easier to sell more.

The Secret to Increasing Revenues. NOW!

So what’s the secret to increased sales revealed in the “Oh Duh” report? Simple. Treat the customer in front of you now better. That’s right, oh duh!

So what happens when you treat customers better?

• They buy more
• They don’t go to the competition
• They tell their friends
• They don’t slam you on social media; they might even praise you

How Much Extra Revenue Can You Generate?

How Can You Increase Your Revenues?

I’m extrapolating the numbers to some degree as the report cites the benefits for billion dollar companies which most companies aren’t but if you use their numbers and you’re doing a million dollars in annual revenues, you’ll realize an extra $300-400,000 dollars in revenue over a 3 year period.

What could your business do with an extra $100-200,000 per year? 

Oh, and You’ll Probably Decrease Expenses Too

At least those expenses dedicated to marketing because, as you probably know, a sale to an existing customer costs 6-7 times less than a sale to a new customer.

How I’ll Teach My Son to Increase Revenues

My formula won’t be a whole lot different than my Dad’s. I’ll teach my son that the way to increase revenues and improve profits is to

1. Increase Sales
2. Lower Expenses
3. Improve Your Customer’s Experience

In fact, I’d advise him to work on providing the best experience possible for everybody who interacts with his business: customers, employees, suppliers and prospects.

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