I just lost a massive customer…

Originally sent exclusively to The Letter subscribers on October 13th. Want to be the first to get my personal newsletter in your inbox every Monday at 7am? Subscribe for free here.

We’re tribal… and that’s dangerous.

Tribes are what human beings love; it’s in our DNA.

Comfort, trust and recognition are where we like to be. Yet sometimes, it’s failure or disaster that leads to our greatest discoveries.

A redundancy can finally push you to start that business, or a heartbreaking breakup can pave the way for an even better love.

Sometimes things need to go wrong for things to get better.

We like comfort and convenience, just like the smell of your nan’s house.

That mix of ‘old’ and home baking instantly puts you at ease, relaxing your shoulders with warmth, love and recognition.

Your favourite actor, comedian, film, restaurant, or food - they’re safe choices. They make you feel good.

It’s what marketers call know, like and trust.

So why try something new?

Just like your favourite takeaway, you’ll repeat what works.

You’re wired for it. Literally - your neural pathways protect you, and in a way, they control you.

It’s only when you’re on holiday, in a new town, or following a trusted recommendation that you might be tempted to try something different.

Or maybe you’re round a friend’s house when you’re offered something new - a different drink or dish. “Go on then, I’ll try a peshwari naan for the first time.”

Then comes that moment: what in the deliciousness is this? Who knew this existed?

This new tribe just introduced you to something better. We need to remember this when we get too comfortable.

In business, we can be exactly the same - sticking with trusted advisors, maintaining the status quo, or letting our teams become creatures of habit with their “that’ll never work here” mindset.

Why break what doesn’t need fixing?

Because while you’re sitting comfortably, there’s a hunter out there - hungry, restless, searching for its next meal.

That hunger drives innovation. They’ve left their tribe in search of something better, something that will one day make them comfortable.

That’s what drives an economy.

This week, I’ve been thinking: just when you feel comfortable, when it all seems to be going your way - watch out. Innovators are hunting you down.

They want to out-innovate you and they want you to evaporate.

This week, I lost a massive customer in one of my companies.

It was brutal - a supplier cut us out and went directly to our customers, spreading lies.

Lessons learned, and yes, a few people to take to court. (If this ever happens to you, read the poem “If” by Rudyard Kipling.)

I was having a great week until I lost the million in revenue that came from that deal.

If this had been my only business, I’d be in real trouble.

That’s why multiple revenue streams are essential if you want to survive the game of business.

Here’s what I do know: the market wants price, range, convenience, and to know, like and trust you.

If customers do leave, they’ll come back - if you have those traits in abundance.

The best prices, the widest range, the greatest convenience, and a solid brand, that’s what wins the day. Just ask Jeff Bezos.

So, if you feel like you’re losing ground or your competitors are knocking on your customers’ doors - don’t be bitter, be better.

Get into new tribes that’ll expand your thinking, no matter how uncomfortable it feels.

Remember what makes people buy: price, range, convenience, and know, like and trust.

Get more convenient to do business with. Offer the best range at great prices. Build influence through trust and familiarity.

That’s how you keep customers.

Lastly, my dog Charlie keeps chasing people on bikes. My wife asked me what I’m going to do about it. I said, “I’m going to take his bike away.”

Quote of the Week

In life, we all win and lose as we trundle through the years. I lost this week - and you’d do well to remember: “We learn more from our losses than our wins.”

To your continued success,

James

PS. Have you listened to our podcast — The Business Broadcast: Real business owners, real challenges, real solutions? Why not apply to come on the show and get honest advice from JB and me! Here’s the link if you’d like us to help your business.