Why Repeat Customers Are the Lifeblood of Your Business

Why Repeat Customers Are the Lifeblood of Your Business

One of the most important metrics to track in any business is customer retention. A happy customer returning to make a repeat purchase is more than just a sale, it’s their way of casting a vote for your business. If you’ve done a great job, your customers will come back. If they don’t, then there’s an opportunity for growth you’re missing.

I recently spoke to a hotel owner who told me that most of her guests didn’t return after their first stay. This is especially challenging in the hotel industry, where it can be difficult to generate repeat business.

But as we talked, it became clear that the issue wasn’t the service or the location, there was no system in place to make rebooking easy or encourage repeat visits. The hotel was listed on platforms like Airbnb and Booking.com, making it more of a commodity where guests often book simply because it was the only available option, or the cheapest.

The hotel had numerous unique selling points (USPs) that could set it apart, and these could be highlighted in a way that encouraged loyalty. With no loyalty program, follow-up emails, or easy rebooking systems, the guests don’t have a reason to return. In contrast, large hotel chains have loyalty programs and automated systems that make it easy to rebook, incentivizing guests to stay within their brand.

For smaller businesses, the lesson is clear: repeating sales is not only about offering a good product or service; it’s about building relationships, creating systems, and making it easy for customers to return.

In Two-Brain Business, the concept of customer retention is captured through something called “LEG” (Length of Engagement). This measures how long a customer stays committed to your service and is a key indicator of business health.

The longer the LEG, the more successful your business is likely to be. I’ve learned a lot from my work with TwoBrain, where we emphasize that this is a well-known but often neglected metric. Creating systems and incentives to nurture customer loyalty will not only drive growth but create long-term stability for your business.

3 Quick Questions (3QQ) to Ask Yourself:

  1. Do you have a system in place that makes it easy for your customers to make a repeat purchase?
  2. Are you offering incentives (like loyalty programs or offers) for customers who come back?
  3. Are you making it clear to your customers why they should choose you again over the competition?

At the end of the day, your repeat customers are your biggest fans. It’s their return that signals the true strength of your business.

Rickard

“1000 Songs in your pocket”

In the world of business, the difference between success and failure often lies in how we communicate value. One of the best examples of this is how Apple introduced the iPod. They didn’t just list the features, like “5 GB storage.” Instead, they framed it in a way that made sense to people: “1000 songs in your pocket.” Simple, clear, and relatable.

This focus on results over features is why businesses like Apple thrive. They make it easy to understand the value of their product. You don’t have to be a tech expert to know that carrying around your entire music collection is life-changing.

So, how does this apply to gyms?

Gym owners often fall into the trap of marketing equipment or class availability. But what really matters to your clients is what those features will do for them. Here are some examples of how to position your gym to focus on results, not features:

  • Feature: “We have 10 rowing machines.”
    Better: “You’ll build stamina and shed pounds in half the time.”
  • Feature: “We offer a variety of classes.”
    Better: “Transform your body and mind with workouts that fit your life.”
  • Feature: “We have a fully equipped strength training area.”
    Better: “Feel stronger, look better, and live healthier with our personalized strength programs.”

To take this approach one step further, gather data from your clients’ results and share it. For example, track progress, share testimonials, and highlight the changes they’ve made in their health. Just like Apple, you’ll make it easy for prospective clients to see what’s possible for them.

When your gym becomes more about the transformation than the equipment, you’re no longer selling a service…YOU’RE SELLING A SOLUTION.

That’s where the real value lies, and that’s what will help you stand out.

This is how you can charge 10x more than your competitors.

QUICK ACTIONS

Here are three quick, actionable questions for entrepreneurs to gain better clarity:

  1. What problem am I solving for my clients, and how does it improve their life?
    • Action: Write down the tangible outcomes your product or service delivers, not just its features.
  2. How easy is it for my clients to understand the value I provide?
    • Action: Revisit your messaging. If it’s full of jargon or overly complex, simplify it to one sentence anyone can understand.
  3. What metrics am I tracking to show that my solution is working?
    • Action: Choose 1-2 key performance indicators (KPIs) that directly reflect the results your clients get from using your service. Then, make those results part of your marketing.

Welcome to My Blog: A Resource for Gym Owners and Entrepreneurs

The purpose of this blog is simple: to provide a library of knowledge and tools for business owners, particularly gym owners, who want to grow their businesses.

Through different categories, I will share my own experiences, experiments, and insights gathered over years of running and mentoring gyms. I’ll also share what has worked for thousands of other gyms around the world.

Gyms are unique in that they don’t just provide a service, they change the most valuable asset a person has: their health.

But the principles of growth and success that apply to gyms also work across many industries. That’s why I believe we can all learn from various sectors to keep improving.

So, whether you’re just starting out or looking to level up your business, this blog will offer practical advice and insights to help you succeed.

If you want to connect or have any questions, feel free to email me at: contact@rickardlong.com.

Thanks for being here!