December 14, 2021

Squeezing More Juice From The Lemon

Speaking of reader emails, here's a recent quote:

  • "I know you care about new customers, but it makes more sense to squeeze more juice out of the lemon, if you know what I mean. I'd rather get a $200 a year customer to spend $300 a year than find a new and unproven customer while costing my company profitability."

Well, that sounds seductive.

But if you knew how to "squeeze more juice out of the lemon", wouldn't you already be doing that?

It is terribly hard (pre-inflation) to get customers to spend more. Look at your historical metrics, you'll see just how hard it is.

I realize 80% of you disagree with me here, but again, if you could squeeze more juice of out the lemon you'd have already done that. Meanwhile, I'll go find new customers and let 10% of the new customers become loyal and then those newbies will delivery a ton of profit for the companies I support.

I mean seriously, how many of you saw your sales increase by 50% during COVID? And you looked at your existing customer metrics and you maybe got 10% more spend from your existing customers but you ramped up newbies (without even doing anything special to make it happen) and your sales went bonkers.

That happened to most of you.

So why must you fight me on this topic? You have the data, you know the truth, now go do something about it!!!!!!

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.

Winning Items Among New Items

Back to the brand we're studying. In each year we see sales distributed by A/B/C/D/F grades, allowing me to calculate a GPA for the firs...