Checking The Pulse Of A Healthy Business…

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One of the quickest measures to evaluate the current health, and future potential, of any small business is to look at one simple statistic.

This is information you likely have at your fingertips… it doesn’t require researching any market data, or surveying your customer base.

Just answer this question:

How much of your business last week, last month, and last quarter came as a result of repeat customers… either through direct purchases or referrals?

That’s it… repeat customers are the lifeblood of a healthy business.


While decent marketing can bring prospects in the door, and a crack sales team can convert them, a business is on thin ice that doesn’t have the rest of the house in order.

We all know that the lines between marketing and sales continue to blur, but many miss the fact that ALL activities within the company must be viewed in terms of their impact on marketing…, or else the customers that come… will go.

A revolving door in a customer base will lead to a similar revolving door in a company’s staff as dissatisfaction and disbelief ultimately replace the unity of vision and purpose that provides the glue for any organization.


Repeat business is much more valuable than new business for at least three reasons:

First, it is an indicator of a company’s own leadership ability. Repeat customers are a sign that the organization as a whole is capable of creating the types of experiences and relationships that are the foundation for long-term success.

Second, only repeat customers are capable of, and have the potential to, become advocates for you and your company. Repeat business and referral business work together… they are opposite sides of a coin… as loyal customers spread the word on your behalf. This loyalty, however, can only develop over time.

And third, the costs of marketing and sales are dramatically reduced when working with enthusiastic and willing repeat buyers and their referrals. Not only can we eliminate much of the expense of bringing new prospects in the door, but the conversion rate on referrals is ENORMOUS in comparison to other contacts.


I look forward to hearing of your continued good (business) health in 2009.



While marketing can bring people in the front end… it takes leadership to create the relationship and customer experiences that matter in the long run.

The company with the most repeat business will be more financially stable, and more enjoyable to work for, than its competitors.

Repeat customers become an extension of your company’s marketing activities.


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