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Why Unhappy Customers Cost More Than You Think


As customers, we’ve all experienced lousy products and services. Most of us shrug it off and vow never to buy from that company again. Yet there’s a special few who go the extra mile in getting their revenge.

If you’ve shared your bad experience with others, complained to the company, or gave a bad review on social media you’re part of that special few.

Sure, at one time or another, we’re all been part of that group.

Do you know how much money you’re costing companies every time you write a bad review, or call customer service to complain?

To put bluntly, you’re costing them ALOT!

As consumers, this may sound like justice being served, but if you’re a business owner, you should be concerned and here’s why.

 Unhappy customers create a domino effect of revenue loss.

Companies lose much more then life time revenue. In Fred Richfield’s book The Ultimate Question 2.0, Fred explains the domino effect unhappy customers (detractors) create which results in huge revenue loss.

How can a detractor create a domino effect of revenue loss?

The unhappy customer takes their anger out on your frontline staff creating low morale. Dealing with 1 or 2 disgruntled customers is common place. Yet, as the number of detractors grow, the greater the impact on company morale and job satisfaction. The once serene workplace turns into a negative work environment which results in talented staff quitting.

Employee turnover is an expensive problem.
A Huffington Post article titled, How Much Does Employee Turnover Really Cost, by Jack Altman, states the cost of losing an employee is 1.5-2.0x an employee’s annual salary.

Darn you unhappy customers!

In addition, detractors impact revenue by bad mouthing your company. If your company’s brand isn’t well establish this could spell disaster, especially if you lack enough social proof to overcome negative reviews. For a prospect to consider your services, it could take 5 to 10 positive comments for every negative comment made.

Ouch!

To truly know how much unhappy customers are costing your business, calculate the potential revenue of a lifetime customer, plus the cost of loss staff, plus the loss of prospects and referrals.  Multiply this number by each detractor and that’s how much revenue your company is losing.

Yes, it’s a big number and why customer relationships are so important.  Customers can be your best salesforce, or your worse critic.

In essence, unhappy customers can put you out of business.

So moral of the story, do right by your customers!

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How To Optimize YOUR Brain Power & Take Massive Action

If you created your 2018 Business Success Plan or are working on it, chances are your plan will call for massive action.

We optimize our resources for efficiency and value. Why not optimize the most powerful asset available to us, our brain?

Most entrepreneurs buy in to the latest trend of hustling and overlook the importance of enhancing our brain power. Yet, when it comes to taking massive action, providing your brain what it needs to deliver peak performance wins hands down.

Experienced business owners understand how their brains operate and work with it to optimize results. Do you?

What do you need to know about your brain for peak performance?

We’ve all experienced the auto pilot effect.

For example, arriving home with few memories of the mechanical process of driving there, or our daily morning routine. When we repeatedly do something, it becomes second nature.

When you form habits they become part of our subconscious, or long-term memory. Using less energy, you perform habitual activities without thinking about them. Learning something new, or solving complex problems requires more energy.
You have to think about what you’re doing because it’s stored as a short-term memory.

The goal for brain optimization is 3-fold; to transition vital information from short -term to long- term as quickly as possible, reserve energy, and restore energy reserves when depleted.

8 way to Optimize Your Brain Power

1. Empty your brain of to-do lists and ideas. Keep a notepad with you so you can jot down ideas when they come and use technology to create to-do lists. As David Allen stated in his book Getting Things Done, “Your brain is for having ideas, not storing them.”

2. Practice makes mastery. Move essential information and knowledge from short-term memory to long-term through practice and reinforcement. Once in long-term memory, you expend less energy.

3. Use pictures and music to remember information. Did you know that long-term memories are stored in the emotional brain? Linking information with music and pictures will enhance your memory.

4. Reserve decisions making energies. Use your energy to make important decisions. Energy used to decide what to eat can be used elsewhere. Decide on breakfast once and have the same thing for the next week or month.

5. Work on complex tasks during peak brain times. Do you know what time of day you’re the most alert and focused? Are mornings the best time for you? Maybe you prefer the afternoons or evenings. If you don’t know, experiment and find the time of day you’re laser focused. Tasks the involve planning, brainstorming, or tasks you don’t want to do should be worked on during your peak time. FYI, it’s normal to have more than 1 peak time.

6. Rest and recover. When work becomes challenging, give yourself a break for your brain to recover. Allow at least 15 minutes. If you’re feeling stuck and can’t find the answer, walk away and allow your brain to relax. You’ll find your brain will give you an answer when you least expect it.

7. Stay nourished. Avoid skipping meals and stay hydrated to restore energy.

8. One thing at a time. Multitasking is a huge energy drainer. Avoid distractions and focus on one task for a determined time period.

BONUS: Have yet to create your 2018 Business Success Plan? Tap here to learn how to get started!

THANKS FOR READING MY BLOG!
Are you’re looking for ways to stay top of mind? Click here for details.
Contact Us for a strategy session!
Or check us out on Facebook at TamaraBurkett