But there’s a lesson from the 2016 US Presidential election that’s relevant to you as a business leader – no matter where you live in the world.
For those who may not be up-to-speed, here’s the quick and dirty election backstory…
There was a Presidential election, and most polls showed Hillary Clinton was expected to win, becoming the first woman President of the United States. She had more money, a more organized ground game, and the lead going into election night. But Clinton didn’t win. Her opponent, Donald Trump – a dark horse businessman who’d never before held elected or military office – won instead.
How did Clinton lose the election?
That’s a complicated question.
Here’s my take on ONE piece of the answer, and it’s the part that’s relevant for your business.
Hillary Clinton had many enthusiastic supporters. She also had a lot of detractors in pockets of the country that had historically voted Democratic. In states like Wisconsin, Michigan and Pennsylvania there were long-time Democrats that chose not to show up to vote on election day. Without those voters, the results of the election flipped from Clinton to Trump. The difference between winning and losing came down the Clinton failing by a slim margin to get enough voters in key areas to actually come out and vote.
And there’s a reason that happened.
Simply put (and yes, this is a simplification), in some of those critical areas of the country, voters didn’t feel appreciated. Clinton didn’t spend a lot of time courting those voters, because she expected their votes. Because she automatically counted them as being supporters, she didn’t invest time and advertising dollars with them.
As a result, those voters didn’t feel like their voices were heard.
They didn’t feel valued.
She didn’t make the effort for them, and they returned the favor. Some voters didn’t make the effort to vote, and that small number tipped the scales to Trump.
What happened in the 2016 Presidential election is no different from what happens in your business.
No matter how you define customers – clients, patients, or, in this case, voters – if people don’t feel seen, heard and valued, they will not support you enthusiastically.
And just like in the election, a small difference can make a big impact.
Let’s break it down exactly for your business…
If you can improve your customer retention rate by just 5% – that’s five percent more of your customers sticking with you instead of going elsewhere for your products and services – you increase your profits by anywhere from 25% to 100%.
PROFIT, not revenue.
Try this exercise for YOUR business!
Now calculate your numbers:
How many customers do you serve in a year?
What’s 5% of that number?
What’s your total projected profit for the year?
If you increase that number by 25% to 100%, what’s the opportunity for your business?
If you haven’t already, start by downloading my free action guide White Hot Loyalty. White Hot Loyalty shares some exercises to help you grow your business by creating customers who come back again and again.
Here’s the bottom line…your short path to profit comes from making sure your customers are happy. Not just happy when they’re IN the business with you. That’s the easy part.
The more important thing to focus on is making sure customers are dedicated after they leave, so they’ll come back more often.
When you miss the specific steps you need to keep customers happy, you lose them. And just like the US Presidential election, losing a few key folks can make a big difference in your outcome.