Do You Know and Plan For The 3-R’s for Your Business?
By Leanne Hoagland-Smith
Everyone is familiar with the 3-R’s from school – reading, ‘riting and ‘rithmetic. This was our first introduction to an effective performance model. As proficiency increased in each R, performance was further enhanced. Effective performance models by their very design are a continuum that automatically raises performance to the next level.
Today’s businesses have their own 3-R Performance Model. This model hasn’t really changed since the early of origins of business enterprises. No matter what the latest business guru advocates, good business practices and most importantly the “bottom-line” always appear to return to these basic 3-R’s. For without Relationships, Referrals or Revenue, today’s businesses will not achieve current goals nor grow.
R1 – Relationships
With the Internet providing immediate access to unlimited vendors, products and services, today’s business owners must develop sustainable and loyal relationships. Current customer service research suggests that the cost to attract a new customer or client is 10 times greater than to maintain an existing customer. Relationships lead to the second R.
R2 – Referrals
Referrals according to recent research account for 84% of all sales. This research supports what our common sense tells us about human nature. We are more likely to believe a close friend and probably a not so close friend over the slick Madison Avenue advertising efforts. Additionally, only 1 in 26 dissatisfied clients will share their dissatisfaction with the organization, but will be more than happy to share their “bad” experience with others.
Referrals add value to the bottom line by reducing marketing dollars. You can’t “pay” for referrals. Referrals are given free much like a friendly smile or a sincere handshake. R1 and R2 make R3.
R3 – Revenue
Without this final third “R,” companies would not be in business. Revenue is the ultimate desired end result. When revenue grows, both the company and employees transition beyond surviving and transform into a thriving, high performance, results driven team where everyone shares a laser focus. Successful companies and individuals actively work the 3-R’s every day regardless of their yearly achievements. Complacency for these individuals is not an acceptable attitude!
If your goal is to reach that next level of success, then maybe the first step is ask yourself, do you know your 3-R’s? The second step is to begin to construct a plan to help you improve your 3-R’s. And the final step is to implement your Plan.
P.S. Remember, indecision or the inability to act is a decision. One of the most consistent mistakes businesses make is the failure to operationalize their strategic plan or goals. Plans do not work setting on a desk, in a drawer or on a book shelf.
About the author:
Leanne Hoagland-Smith helps individuals and organizations to double results usually within 2 to 12 weeks. She secures lifelong change through proven processes. If at least doubling your revenue, improving your organizational culture or finding balance interests you, visit www.processspecialist.comor ask to subscribe to complimentary copy of Power Choices a monthly newsletter at info@processspecialist.com
