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