The Rule of Thirds

I know that I have high expectations compared to the “average consumer,” but that’s because I don’t tolerate excuses.

I know that a high level of customer experience can be achieved, every time, if the focus is put in the right places. The area, where focus is most often currently placed — profit — will take care of itself, if the customer experience is taken care of.

This is one of the reasons why I feel that I am more capable, beyond my years of experience, to run a company is because I my “big picture” focus is where companies need to be placing their effort. Effort should be placed equally in three areas of the business:

The Rule of Thirds

  • 1/3 on maintaining an excellent product quality.
  • 1/3 on amazing and memorable customer experiences.
  • 1/3 on constant innovation (thinking of ways to improve).

Rule of Thirds

If effort is placed equally on these three areas, businesses will result both in fantastic short-term success, but more importantly long-term customer loyalty and retention.

For those who feel that customer retention plays a relatively minor role in helping a company grow a healthy bottom line, here are a few statistics you might be interested in:

According to Bain and Co., a 5% increase in customer retention can increase a company’s profitability by 75%. 

And if those numbers don’t impress you, Gartner Group statistics tell us that 80% of your company’s future revenue will come from just 20% of your existing customers. 

Still not sold on customer retention? One final statistic provided by Lee Resource Inc. should give you plenty to think about:

Attracting new customers will cost your company 5 times more than keeping an existing customer.

– Forbes.com

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