80:20 Rule Myth Shattered

by

Ask, and you will receive. The findings of a recent national research study have shattered the widely-held contention that successful businesses generate around 80% of their revenue from repeat and referral transactions.
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Referrals have declined, substantially.

Consumers report effecting direct and personal referrals and recommendations to less than 8% of entities with whom they dealt with in the 4 weeks preceding interviews.

Arguably, the most disappointing finding was that only 2% of consumers reported being requested by service providers to provide recommendations, referrals and introductions.

Clearly, the art and discipline of asking for business has been lost on many -, new - generation employees in particular.

Things don’t just happen in business. They need to be encouraged, supported and nurtured.

Follow up and follow-through are integral elements of a transaction. They are the founding steps to establishing and sustaining relationships, adding to a burgeoning customer base.

Recruitment, induction, training and ongoing development processes need to feature and to reinforce the need for and benefits from a consistent practice of requesting endorsements, recommendations and referrals.

They must be complemented by an integrated schedule of corresponding, self-initiated contacts with those prospective clients who have been identified and nominated as satisfied customers. The circle of life has similar characteristics to that of the cycle of business. Birth, rebirth and procreation are fundamental.

Remember, ask, and you will receive. Dismiss concerns about the fear of offense and rejection.

Barry Urquhart


About

Barry Urquhart, MD Marketing Focus, Perth, is the author of Australia's top two selling books on customer service and is an internationally recognised authority on consumer behaviour and creative visual marketing.

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