The conclusion: “Because of an inability to establish lucrative relationships with long-term clients, low-quality firms have a greater incentive to rely on Internet search engines and other forms of advertising to aim at infrequent customers who aren’t willing to devote time to seeking out good companies.”
Planet Perry member @RickyMagana asked for my thoughts. Here they are:
-It is certainly true that *sometimes* the most fickle, lowest quality customers who complain the loudest are folks who are perpetually searching for anything and everything. They can be like Groupon buyers – disloyal to everybody.
-You gotta start somewhere. If you have a full book of business & repeat customers, you might not need to advertise in the first place. But if you’re new or you need more customers – welcome to the new customer acquisition scramble!
The first time a customer does business with you, it’s a first date. Do you like them? Do they like you? Everybody’s nervous.
I would have loved to hear the plumbers’ side of the story, and not just the BBB complaint log.
So what’s the real money lesson? It’s this – your REAL success indicator is:
How many people buy from you a second time.
The number of NEW customers who bought from you again is the true health index in your business.
Are you paying attention to that?
Over and out.
P.S.: Do you think Google Conversion Optimizer will ever add a “How much will you bid for a customer who buys the 2nd time” feature? :^)
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