There was an ancient Hebrew story that when a group of raiders went after the town to capture women (including King David’s two wives – Ahinoam and Jezreel and Abigail from Carmel, children, and everyone else, King David and his men were so devastated and wept until they wept no more.
Then David decided to take action to chase after the band of raiders.
He took 600 men with him to start with. But then 200 men were too exhausted after reaching brook Besor; so he continued with the remaining 400 men.
The hard work paid off and the attack was successful when David got back everything they took from him (his wives, livestock, and all other people).
Then David and his 400 men returned to brook Besor to meet up with the the 200 men left behind because they were too tired to join. But there are some evil thoughts voicing their disagreements among David’s men.
“They didn’t go with us, so they can’t have any of the plunder we recovered. Give them their wives and children and tell them to be gone.”Samuel 29:22
But David quickly stood up for the 200 of the men and said:
“No, my brothers! Don’t be selfish with what the Lord has given us. He has kept us safe and helped us defeat the band of raiders that attacked us.
Who will listen when you talk like this? We share and share alike – those who go to battle and those who guard the equipment“.
From then on David made this a decree and regulation for Israel, and it is still followed today.Samuel 29:23-25
Similar to what David said, business owners often make this mistake of discriminating and prioritizing between new customers vs existing ones.
It’s hard NOT to…when the new customers are racking in revenues and cash while the existing ones haven’t yet brought any substantial cash windfall.
This is exactly what King David stood for and preached the philosophy of “share and share alike”.
Sure…new customers are bringing in new revenues but losing existing customers can also costly.
Let’s do some quick math.
- Let’s say there are 100 customers doing business with you.
- And it costs you $100 to bring in one new customer.
- When you lost this customer, it actually costs you $200 ($100 to acquire + $100 to find a new replacement)
- But it doesn’t stop there because lost customer can’t do referral and let’s say each of your customer can do at least 1 referral/year. In other words, your total loss balloons to $400 ($200 for one customer + $200 for the referral)
I can expand more and more here. But from the first level of calculation, a lost customer can lead to at least $400/lost customers.
The average churn rate for business is about 5% and you can check it out from this.
For a 100 customers, you will lose about 5 customers x $400/customer = $2000/year.
It doesn’t have to be that way when you know how to stop it from happening.
In my toolkit “ChurnbusterKit“, you can eliminate this problem and put a stop on losing revenues.
You can check it out: ChurnBusterKit.com
The more you wait, the harder it is to bring back customers because they could have gone to your competitors, move out of town, or find another alternatives.
Grab the toolkit today and watch the churn disappear.
Until next time.