Do you understand why leaders leave money (profits) on the table?

Do you understand why leaders leave money (profits) on the table?

About five years ago, I recall having a conversation with a colleague in their office. The topic of discussion was why certain individuals appeared to have no desire to increase their income or business revenue.

I expressed my frustration regarding business owners who, despite customer research indicating what customers wanted and industry data confirming that meeting these wants would be profitable and require no additional capital investment, were still hesitant to try.

In response, my colleague simply stated that they were content with their current level of income. This was incredibly frustrating to me.

While I am not advocating for prioritizing profits above all else, it is important to recognize that profits are beneficial, especially when they result from meeting the needs and desires of customers.

The specific situation I referred to involved a business offering extended trading hours. This was not a new service or an increase in prices, but rather a means of providing convenience to customers. By doing so, the business could have gained a competitive edge, attracted more customers, and fostered increased customer loyalty.

Regrettably, the potential for increased profits was neglected, leaving customers unsatisfied.

I was reminded of the above when recently, Qualtrics Australia released research demonstrating that poor customer service costs Australian businesses over $74 billion annually, and globally, that number is even higher, reaching trillions.

So, although there may be valid reasons for companies to be cautious about expanding their service offerings, I fail to comprehend why they would forgo potential revenue and profits simply because they do not prioritize providing a satisfactory level of service.

Could it be that my colleague's point about being content with their existing level of profit holds some truth?

I sincerely hope that you and your business are not complacent about the level of service and experiences you offer. Assuming you are not and seeking to improve, I suggest taking the following three steps:

1. Define your core customer service protocols, ensuring that everyone understands them and knows how to execute them effectively.

2. Seek feedback from your customers. We can discuss the types of questions to ask at another time, but even just one question can provide valuable insights.

3. Share the feedback received from your customers with your team and collectively decide on one to three actions to focus on improving in the following months.

By repeating these three steps, you will continually improve and reduce the likelihood of providing subpar service, ultimately preventing potential financial losses.


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This caught my attention ...

Net Promoter Scores (NPS) drops in most industries

Research conducted by Forrester reveals that in 2023 NPS scores dropped in 8 out 13 industries across the USA.?

The only industry to have a significant NPS improvement was the luxury auto industry.?

Perhaps not surprising is the fact that investment firms, utilities and airlines had a notable decline in their NPS.?

In 2024, these industries will have to work harder to earn the right for repeat and referral business.?


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What I read this week.

In "All In: How Great Leaders Build Unstoppable Teams," Mike Michalowicz offers a comprehensive guide for business leaders aiming to cultivate a culture of commitment, cohesion, and unstoppable momentum within their teams.?

Drawing upon his extensive experience and insightful observations, Michalowicz lays out a practical framework that any leader, regardless of industry, can implement to inspire their team to achieve extraordinary results.

The core of Michalowicz's message revolves around the critical importance of trust, purpose, and engagement in building a high-performing team.?

He argues convincingly that when leaders are fully invested—emotionally, intellectually, and operationally—their teams are more likely to mirror this commitment, leading to unprecedented levels of performance and innovation.

What sets this book apart is its actionable advice, grounded in real-world examples. Michalowicz does not shy away from sharing the challenges he has faced and how overcoming these obstacles helped him develop the strategies he shares.?

His emphasis on the human element of business—the idea that genuine care for team members' well-being leads to success—is particularly refreshing.

This is a must read and you can get a copy here.?


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Dan Kennedy is the provocative, truth-telling author of the popular "No B.S." book series; a serial, successful, multi- millionaire entrepreneur; trusted marketing advisor, consultant and coach to hundreds of private entrepreneurial clients running businesses from $1-million to $ 1-billion in size.?

Dan is one of the most successful direct marketers in generations.?

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Great insights on NPS improvement strategies, looking forward to implementing these tips and exploring your podcast episodes for more valuable advice!

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