The One Goal Every Business Should Have,
but Almost None Do Of course, getting to revenue-neutral churn is not easy, and in a few business models, may even be impossible. But what if you could get to the point where only 10 or 20 percent of the churn affected sales numbers? The growth for your company would be incredible.
Have you ever wondered if there was one goal or key performance indicator (KPI) that is more important than all others? What do big companies focus on? Is there one single metric that, if you could nail it, would literally mean millions and millions in extra revenue and profit for any business? Before I share this one goal, I want to ask you a question. How big would your company be right now if you’d never lost a single customer in all the years you’ve been in business? We would likely have a few extra million dollars in sales annually, maybe more. The problem is, we all lose customers. You can use media like a newsletter to decrease the number of lost customers each month and year, but never, ever losing a customer isn’t possible, right? You’re right, but there is a way to not lose money simply because a customer leaves. The utopian goal for any and all businesses is called revenue-neutral churn. Simply defined, revenue-neutral churn is when you focus on decreasing churn numbers via relationships, education, events, etc., and focus on upselling your existing customers so their additional spend makes up for any loss in revenue from the cancellations you can’t save. American Business Trivia The good news is, there is a single goal that, if you choose to make it a priority, will revolutionize your business.
To have a chance at revenue-neutral churn, you first have to focus on all areas you have control over that cause churn. A few examples are relationship marketing, pre- and post-sale education, becoming an expert advisor in their lives, and having an upsell system to help them solve additional problems. If you really want to grow, it’s unlikely you need just more leads. You’d grow simply by decreasing churn. You’d grow by upselling the customers you already have. You’d grow by building a relationship and follow-up system that helps you convert more prospects to customers. So why don’t more businesses simply focus on the above areas of their business? The answer is simple, really. All you hear about is new customers, more leads, etc., so that’s what everyone focuses on. If you really want to grow, focus on the goal many of our big brother and big sister companies focus on — finding a way to get to (or as close as possible to) revenue-neutral churn. Do that, and you’ll be swimming in cash in no time.
Sudoku
3. Which car company had to recall the Pinto because of its tendency to burst into flames in rear-end collisions? a. Chevy b. Ford c. Honda d. Lexus 4. Of these popular online retailers, which is the largest? a. eBay b. Bandcamp
1. Which fast food restaurant got its start as a barbecue joint in 1940? a. Carl’s Jr.
b. Burger King c. McDonalds d. Arby’s
2. In seasons one through three of AMC’s hit series “Mad Men,” what is Don Draper’s profession?
a. Creative director b. School bus driver c. CEO d. Janitor
c. Expedia d. Amazon
Specialized Insurance Programs For Specialized Industries. • www.insurica.com • 3
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