Difference Between Websites And Blogs

blog, website, computer, laptop, tablet, smarphone

What’s up ? This is THE stephane ANDRE !!! I heard Olivier Roland’s tips and I learned some good stuff.

Often people ask themselves this question to start a company on internet: “What is the difference between a website and a blog ?”.

The answer is that there is no difference because a blog is a website. To be more precise, a blog is a type of website because there are websites that aren’t blogs. A blog is a type of website in which the content is published by antichronological order (it means that the last published article is displayed first). It’s possible to have a static home page for blogs, this is an option.

In the case of e-commerce, a blog can be a complementary website to attract qualified prospects. I take the example of fitness. You have a company that sells fitness accessories (weightlifting belt, squat knee sleeves, etc). You create a website to sell your products with Prestashop , Shopify , Magento . By creating another blog type website, you share content that will interest your potential clients, fitness fans.

On the blog, you share articles like: “Protect you back with these 4 strength coach secrets” or “7 exercises to build your strength and power foundation” or “How much protein, fat and carbs should you eat to lose weight”. Topics that interest people who do fitness. You have to publish content to attract qualified prospects, it means, qualified prospects who are likely to buy your products.

Study case

analysis

It gives a huge advantage compared to your competitors who don’t do that.

Here is a concrete example. Bonnegueule is basically a blog about French men’s fashion. But the Bonnegueule’s founders did more than what infopreneurs usually do (sell online training and ebooks) They created their own clothing brand in collaboration with fashion designers. Since 2014, they have 3 physical stores in France.

What is innovative with Bonnegueule is that on the products sheet of clothes, there is the complete details of the materials used, tips to be elegant with the clothe, how to associate this clothe with others, tips for good maintenance of the clothe and the fashion designers pictures.

With all this people see Bonnegueule as advisers and not sellers, even if they sell products. And that makes a huge difference in the relation with clients.

It’s also smart to create multiple types of content (text, video, audio) on other platforms such as YouTube, Instagram, Facebook or Soundcloud to attract other qualified prospects to other locations.

Subscribe to my newsletter and share this article if you think it can help someone you know. Thank you.

-Steph

P.S. If you’re in Miami and you like Caribbean food, go to my cousin’s bistro to eat Haitian food, click here .

Entrepreneurship And Personal Development

entrepreneurship, entrepreneur, company

What’s up ? This is THE stephane ANDRE !!! I heard Olivier Roland’s tips and I learned some good stuff.

Entrepreneurship and personal development are 2 related elements. To start, I think it’s necessary to define “personal development” because there is everything and anything. Personal development means self-development. Self-development means getting better. It’s important to clarify this definition because the majority of people (and also the majority of my family members) think that personal development is a scam.

Personal development

personal, development

What I understand is that these people are talking about companies in the personal development industry. And yes, as in all industries, there are scammers but the difference with personal development is that we buy not a product or service but training. And to know if a training is effective it takes several months. But I repeat again in every industry, there are scammers and there are excellent personal development companies. Now, we agree that personal development is about getting better.

Entrepreneurship

entrepreneurship
entrepreneurship word cloud concept isolated on white

For a company, a company must always improve its products or services to satisfy clients. As you can see, the word « improve » is common to both. Entrepreneurship is something that takes you out of the comforts zone and asks you to be bold. It’s something that many people dream of doing but don’t dare to do.

Entrepreneurship is something that involves risks and even significant risks such as no longer having money, going bankrupt, being the laughingstock at by your family or co-workers who have stayed in their jobs and who tell you : « You see, I told you ! », etc.

The problem with entrepreneurship is that we can’t learn to be an entrepreneur at school. I know there are good schools that teach a lot of things, but it’s only in the field that we learn. And with high tech, everything is changing very quickly and schools don’t have time to create a course on a specific topic because on the field it has already changed.

Same common point

When you decide to be an entrepreneur and start a company, you need to improve yourself and learn new things to grow your company. My opinion is that entrepreneurship is a great way to become a better version of yourself.

Entrepreneurship and personal development are linked because of the verb « to improve ». There is also another way to improve yourself in life. We’re experiencing difficult problems that make us move out of our comfort zone and evolve. But the problems always happen by surprise (like my dad today with his early Alzheimer) while the entrepreneurship, it’s us who decide to make this process, it’s intentional. And because it’s intentional, this process allows us to improve yourself, to improve the lives of loved ones and improve the world.

Subscribe to my newsletter and share this article if you think it can help someone you know. Thank you.

-Steph

P.S. If you’re in Miami and you like Caribbean food, go to my cousin’s bistro to eat Haitian food, click here .

How To Have Too Many Clients

too many clients

What’s up ? This is THE stephane ANDRE !!! I watched an Olivier Roland’s video  and I learned some good stuff.

The trick is that you have to have more people who want to buy your product than products available. This trick is also valid for service.

This trick is that you have to develop your audience to make sure there are so many people who know you that it’s not possible for everyone to buy your products/services. Here is an example.

Imagine that you have a bakery. As there are several bakeries in the neighborhood, your turnover is limited because of the local radius. People don’t go kilometers (miles) to go to bakery, usually they go tho the bakery closest to home.

Social media for your company

social media

There is something to boost your audience/clients through the internet. It’s to develop your bakery’s presence on internet with a blog, a podcast or a YouTube channel. With a YouTube channel, you can show what you do every day with vlogs. You make a video when you get up at 4 in the morning to make breads and cakes, which means that you film the process (knead the dough, the oven, etc.). All these videos, you can publish them on YouTube, Facebook, Instagram and other video support.

To start, you will publish these videos to your local clientele, then to a national level and then to an international level. This is an important first step but it can be quickly copied. To differentiate yourself from other bakeries, it’s necessary that you have an extremely good cake with a secret recipe. You can make videos of this cake with a secret recipe but you don’t show the whole process, all the ingredients. It’s a cake with a secret recipe like Cola-Cola.

Tell a story about this secret recipe to make it mysterious. It must be a true story like : « It’s a recipe from my mother’s grandmother » or « It’s a recipe I accidentally created ». With this story, this storytelling, people of the neighborhood will know you better and you’ll become a local celebrity. And what’s interesting is that there will be people from other cities coming to your bakery because you’re the baker who has this great YouTube channel.

With a website, you can sell your breads ans cakes online in other cities. Because of your presence on internet, local newspapers will do an article about you because there is buzz. And you can display these articles in your bakery in a very visible place so that all clients can see them. All this will boost word of mouth.

2 options

options

After a while, you will not be able to satisfy the request and it’s at this moment where you have to ask yourself these 2 question :

  • Open another bakery. You will work more, earn more money and recognition.

  • Increase prices. You limit your time for the quality of life or the quality of your products because you’re an artisan.

In London, there is this Japanese restaurant, The Araki , which has 3 stars in the Michelin guide. There is a waiting list of several months to eat there. The Araki has one menu only of £300 and only 10 seats. It’s really interesting to read their « Booking Policy » .

I know that this can’t be applied in all professional fields but it gives you the possibility to have more clients.

Subscribe to my newsletter and share this article, if you think it can help someone you know. Thank you.

-Steph

P.S. If you’re in Miami and you like Caribbean food, go to my cousin bistro to eat Haitian food, click here.

Create A Company In A Hyper Competitive Market

hyper competitive market

What’s up ? This is THE stephane ANDRE !!! I watched an Olivier Roland’s video  and I learned some good stuff.

People often tell me that they want to create a blog, a Youtube channel or a company but the market is very competitive and they wonder if it’s worth it. It’s true that in markets like personal development, fitness or photography, these are markets where you will not start in the same way as in a market where there is little competition.

Feeling

feeling

It’s not because the market is hypercompetitive that you have no chance. The main thing is to differentiate yourself from others and to allow people to connect with you. That’s what happened to me a few months ago. I was looking for podcasts on fitness and I found Shrugged Collective . But I didn’t like the guys voice so I changed to The Model Health Show  and I like this podcast. These 2 podcasts are listened to by thousands (or millions) people and what is important to understand is that these podcasts can’t please everyone, it’s impossible.

There are people who will like what you do and there are people who will hate what you do. This is why there is a place for everyone. In theory, you can offer exactly the same product/service as many other people in a market but there are people who will buy your products/services rather than others because people have more feelings with you.

Shrugged Collective and The Model Health Show are the same thing, they’re podcasts about fitness. What makes the difference isn’t the content (because now, a lot of people make good content) but the podcast’s voice. The question you ask yourself when you’re listening a podcast is : « Am I going to spend hours and hours listening to that voice and that kind of elocution ». It’s the same with companies, especially on internet when you do Personal Branding (reputation) when you allow your audience to connect with you.

Have Your Own Authentic Style

authenticity authentic

It’s like in everyday life, there are people who will like and others who will hate you because we’re human beings. When you buy a computer or a smartphone, who will you buy it from ? You’ll buy it from people you like the most and it’s normal.

Of course, having your own authentic style isn’t the only way to differentiate yourself. But attention, it’s not because people like you that you’ll automatically have a business that works. It’s necessary to have an idea that has economic potential. What I have noticed is that people neglect the importance of connecting with the audience, the community or the clients.

I know there are people following me because they have a good feeling with me and not with my competitors. And others have a good feeling with my competitors and not with me. It’s not a problem, it’s normal, it’s human and it’s part of life.

Don’t be afraid to enter a market with hypercompetitiveness, there is always a place for you. In this case, it’s necessary to realize that it will be difficult to make your place in a competitive environment. It’s difficult because you should be in a market where there are behemoths. But the advantage of a competitive market is that you know it’s a profitable market because there are already a lot of people living on it.

Subscribe to my newsletter and share this article if you think it can help someone you know.

-Steph

Chi-Square Test With More Than 2 Categories

tableau chi square test

I have just enrolled in a Data Science course on Udemy  and I learned good stuff.

In this article, we will do a Chi-square test with more than 2 categories. We will use the A/B test « Country » which has 3 categories which corresponds to 3 countries : German, Spain and France. Select « Gender Actual » tab, make a copy with a right-click and select « Duplicate ».

tableau chi square test

Name the tab « Gender Actual (2) » by « Country Actual ».

tableau chi square test

In « Dimensions », move the variable « Geography » over « Gender » in « Columns » to replace « Gender » with « Geography ».

tableau chi square test

tableau chi square test

Here’s how to do an A/B statistical test when there are 3 categories. We’ll start with the classic method and then I’ll show you another way to do Chi-square test with any number of categories.

Let’s start with the classical method. In this case, there are 3 categories so we can’t use the online tool of the previous article. In the previous article we used an online tool with only 2 categories « Sample1 » and « Sample2 ». That’s why we’re going to use another online tool, click here  .

tableau chi square test

In this online tool, we can enter the values without using the total values. That is, we enter only the number of observations in each category. We simply need to enter the values that are on our A/B test. And I’m going to show you how to turn our A/B test into a table. In this way, it will be easier to enter the values in the online tool without making any mistakes.

Go to the « Show me » tool at the top right.

tableau chi square test

Click on « text tables »

tableau chi square test

tableau chi square test

Click on « Swap Rows ans Columns » button.

tableau chi square test

tableau chi square test

Cool, now you have a table arranged in exactly the same way as the online tool.

In the online tool, we will select 2 rows and 3 columns.

tableau chi square test

As we have 3 categories and 2 possible results, we enter our values exactly as in the table we just created on Tableau.

tableau chi square test

Perfect, our table is ready. You can click on the « Calculate » button.

tableau chi square test

tableau chi square test

As you can see, we observe the same thing as the other online tool. There is our indicator « p » value which is less than 5%. Which means there is a meaning.

tableau chi square test

This statistical significance means that these results are valid for the total number of the bank’s clients and not just for the sample of 10 000 clients. We observe similar differences with A/B test « Country » whose results are based solely on the sample of 10 000 clients. We can conclude that in the total number of the bank’s clients, it’s the clients in Germany who are more likely to leave the bank. This is how we do things cleanly.

You saw, this online tool limited by 5 by 5 tables so you can’t use this tool when you have 6 categories or more. But fortunately it’s possible to do Chi-square test with any number of categories. It’s a special method and for you to understand that, I’ll give you a theoretical explanation.

Here we have 3 countries : German, Spain and France.

tableau chi square test

What we’re trying to compare is the clients number leaving the bank in each of these countries.

tableau chi square test

With our basic A/B test based on a sample of 10 000 clients, we obtained 16% for France, 32% for Germany and 17% for Spain. Now the question is : « Do we observe the same results on the total clients number of the bank ? », it means : « In general, does the country have a significant effect on the clients number leaving bank ? ». Germany has the largest number of clients leaving the bank so the idea is : « Why would we need to compare the 3 countries at the same time ? ».

tableau chi square test

If we do an A/B test statistical test with Germany and France and we get a significant difference in the clients number leaving the bank between these 2 countries, then that would mean that in general, the country has a significant effect on the clients number who bank. Indeed, if we find by comparing Germany and France that the Germans are more likely to leave the bank than the French, we can consider that Spain will not change anything. Germans will always be more likely to leave the bank than the French. Maybe there will be a different relationship between Germany and Spain but there will always be a statistically significant difference between France and Germany with a larger number of clients leaving the bank in Germany than France.

Here is a way to confirm that this logic is true. There is a test and the participants of this test are German, Spanish and French. Imagine that this test was done without looking at what is happening in Spain. Now you get the result and you ask yourself the question : « Would the results changed if you added Spain ? ». The answer is « no » because there is no interdependence between Germany, Spain and France. That is, the decision to leave the bank in France and Germany doesn’t depend on Spain. And therefore, it’s quite correct to separate the categories by putting 1 aside to compare the 2 others. And as now we have 2 categories, we can do a Chi-square test with the online tool that we used in the previous article.

So let’s go back to our worksheet and put a country aside to compare only 2 countries. Select « Country » tab.

tableau chi square test

What we observe is that the difference between Spain and France is very small, so it wouldn’t be interesting to do a Chi-square test between Spain and France. It’s more interesting to do a Chi-square test between Germany and France and to prove that there is a statistically significant difference between these 2 countries. This will be enough to conclude that the country has a statistically significant impact on the clients number who leave the bank.

Selects « Country Actual » tab.

tableau chi square test

We will use the online tool of the previous article, click here  .

We will make a copy of « Country Actual » to have a bar chart with absolute values. Select « Country Actual », right-click and select « Duplicate ».

tableau chi square test

In « Show Me », select « horizontal bars ».

tableau chi square test

tableau chi square test

Removes « SUM (Number of Records )» from « Columns » and removes « Exited » and « Geography » from « Rows ».

tableau chi square test

tableau chi square test

In « Dimensions », move « Geography » in « Columns ».

tableau chi square test

tableau chi square test

In « Measures », move « Number of Records » to « Rows ».

tableau chi square test

tableau chi square test

In « Measures », move « SUM(Number of Records) » in « Label ».

tableau chi square test

tableau chi square test

In « Dimensions », move « Exited » in « Label ».

tableau chi square test

tableau chi square test

In « Dimensions », move « Exited » in « Colors ».

tableau chi square test

tableau chi square test

We also need total absolute values, which means the total number of men and women. There is a very fast way to get that. Right-click on the vertical axis and select « Add Reference Line ».

tableau chi square test

Then in « Value », click on the drop-down on the right and select « Sum » to have the total sum of the observations.

tableau chi square test

And in « Scope », you select « Per Cell » option to specify that you want the total sums for each category, male and female.

tableau chi square test

Now, we have the total sum at the top of the bars. We will modify labels to have the absolute values. In « Label », we will change « Computation » to « Value » and click on the « OK » button.

tableau chi square test

tableau chi square test

tableau chi square test

Here’s how to enter the data :

For « Sample1 » in #success, you enter 810 because there are 810 people who left the bank. For « Sample1 » in #trials, you enter 5014 because there are 5014 people in total.

For « Sample2 » in #success, you enter 814 because there are 814 people who left the bank. For « Sample2 » in #trials, you enter 2509 because there are 2509 people in total.

tableau chi square test

Here is the verdict : « Sample2 is more successful ». « Sample2 » corresponds to German’s clients and #success is :« yes, the client left the bank ». This verdict means that of all the clients from German are more likely to leave the bank than clients from France. And look, there is something important, it’s « p<0.001 ». This means that the « p » is strictly less than 0.001. As you can see, « p » value is very small, which concludes that the tests are statistically significant.

Ooh, there’s another thing I wanted to show you with the tab « age » with the 2 bar charts in parallel.

tableau chi square test

As you can see, there are many categories (more than 5) because each category corresponds to a 5-year ago group with clients of the bank aged from 15 to 90 years old. This is a lot of comparison but it would be a good exercise for you to find what are the 2 categories to compare that shows that there is a significant statistic difference.

I give you a hint, compare slices from 50 to 54 years old or from 35 to 39 years olds. In fact, you should compare all peer categories where you observe difference on this basic A/B test. Do a basic A/B test with absolutes values. Then do a Chi-square test to check if the difference is statistically significant, I mean, if the result is valid for the total number of bank’s clients.

This is a way to statistically validate the insights we see onTableau. You see, it’s not very difficult and it’s effective. Here is a way to find insights on Tableau and validate them.

Subscribe to my newsletter and share this article if you think it can help someone you know. Thank you.

-Steph

Validate Data Mining In Tableau With A Chi-Square Test

validate validation

I have just enrolled in a Data Science course on Udemy  and I learned good stuff.

In this article we will start using statistics. Don’t worry we’ll do something simple, we’ll use the Chi-square test in a basic way. There is a special section to learn how to do statistics at an advanced level.

I’ll explain why we’re going to learn how to use the Chi-square test. The results we have with theses 2 bar charts are good. We see on theses 2 bar charts that age has a significant impact on the rate of client leaving the bank. We also see in which age groups the clients leaves the bank the most and which age groups the clients leave the bank the least. With that we have good insights.

In the A/B test « Gender », we can see that there is a correlation between the male and female sex and the choice to leave the bank. But as I said before, this A/B test is basic. The results of a basic A/B test visually shows us what is probably happenning in reality but we aren’t 100% sure of these results. To validate these results, we need do to use statistical tests like Chi-square test.

Doing a report based on basic A/B test is very risky and you can have completely false insights. I don’t advise you to do it (unless you want to leave your job). It’s for this reason that using Chi-square will help us to have strong insights.

Chi-square will allow us to know if our results are statistically significant. Our results are based on a sample of 10 000 clients and Chi-square test will tell us if these results are due to chance effects or if these results can represent all the client of the bank.

For example in our A/B test « Gender », we observed that in our sample of 10 000 clients, women are more likely to leave the bank compared to men.

tableau data mining science chi square test a/b test

Now, we aren’t sure if the results of this sample represent the behavior of all the bank’s clients.

To use basic Chi-square test, we use an online tool. Click here  .

tableau data mining science chi square test a/b test

On internet, there are plenty of websites to do a Chi-square test but we’ll use this one so that you can understand how it works. To do a Chi-square test, we need to use absolute values and in our A/B test we have percentage.

Let’s go back to Tableau. We’ll create a new tab with a version of A/B test with absolute values. In this way, we keep the A/B test with the percentages. Do a right-click on the « Gender » tab and select « Duplicate ».

tableau data mining science chi square test a/b test

Name the new tab « Gender Actual » to specify that it’s absolute values.

tableau data mining science chi square test a/b test

To have the absolute values, move « Number of Records » in « Measures » to the « Marks » area and put it over top of « SUM(Number of Records ».

tableau data mining science chi square test a/b test

tableau data mining science chi square test a/b test

Move « Number of Records » in « Measures » to « Rows » over « SUM(Number of Records ».

tableau data mining science chi square test a/b test

Cool, we have our absolute values.

tableau data mining science chi square test a/b test

We also need total absolute values, which means the total number of men and women. There is a very fast way to get that. Right-click on the vertical axis and select « Add Reference Line ».

tableau data mining science chi square test a/b test

Then in « Value », click on the drop-down on the right and select « Sum » to have the total sum of the observations.

tableau data mining science chi square test a/b test

And in « Scope », you select « Per Cell » option to specify that you want the total sums for each category, male and female.

tableau data mining science chi square test a/b test

Now, we have the total sum at the top of the bars. We will modify labels to have the absolute values. In « Label », we will change « Computation » to « Value » and click on the « OK » button.

tableau data mining science chi square test a/b test

tableau data mining science chi square test a/b test

Perfect, we have the total amount of observation at the top of each bar : 4543 women and 5457 men. We have what we need to use our online tool.

tableau data mining science chi square test a/b test

OK, I’ll explain how this tool works. « Sample1 » and « Sample2 » correspond to the independent variable « Gender ». You choose in which order you enter the data, « Sample1 » for men or the opposite. In our case, we use « Sample1 » for women and « Sample2 » for men.

« #success » corresponds to the result Y=1, which means in our case « yes, the client left the bank ».

« #trials » is the total number of observations, which means the total number of women in « Sample1 » and the total number of men « Sample2 ».

That’s how you enter the data :

  • For « Sample1 » in #success, you enter 1139 because there are 1139 women who left the bank. For « Sample1 » in #trials, you enter 4543 because there are 4543 women in total.

 

  • For « Sample2 » in #success, you enter 898 because there are 898 men who left the bank. For « Sample2 » in #trials, you enter 5457 because there are 5457 men in total.

tableau data mining science chi square test a/b test

Here is the verdict : « Sample1 is more successful ». « Sample1 » corresponds to women and #success is :« yes, the client left the bank ». This verdict means that of all the bank’s client, women are more likely to leave the bank than men. And look, there is something important, it’s « p<0.001 ». This means that the « p » is strictly less than 0.001.

tableau data mining science chi square test a/b test

« p » is the value that indicates whether an independent variable has a statistically significant effect on a dependent variable. In our case, the independent variable is « Gender » and the dependent variable is « Exited », which is : « yes, the client left the bank ». So « p » is strictly less than 0.001, which means that the independent variable « Gender » has a statistically significant effect on the dependent variable « Exited ». This shows us that out of the total number of bank’s clients, women are more likely to leave the bank than men.

This is how we use Chi-square test with this online tool. This is the same principle on all online tools that you can find on Google or DuckDuckGo . You can repeat these instructions that I gave you with other tools, you will get the same results.

It’s cool with the Chi-square we validated the A/B test and to specify that this A/B test is validated, we’ll color the tab in green.

Right-click on the tab, select « Color » and select « Green ».

tableau data mining science chi square test a/b test

tableau data mining science chi square test a/b test

Perfect, now we’ll validate another A/B test. Selects « HasCreditCard » tab.

tableau data mining science chi square test a/b test

We’re going to create an A/B test « HasCreditCard » only with absolute values. To save time, right-click on « Gender Actual » tab and select « Duplicate ».

tableau data mining science chi square test a/b test

We’ll remove the green color on the tab « Gender Actual (2) ». Right-click on the tab and select « Color » and « None ».

tableau data mining science chi square test a/b test

You rename the tab « HasCreditCard Actual ».

tableau data mining science chi square test a/b test

Move the variable « HasCrCard » over « Gender » in « Columns ».

tableau data mining science chi square test a/b test

tableau data mining science chi square test a/b test

Excellent, everything is ready to do a Chi-square test. We’ll remove « Exited » labels to better see the absolutes values. Make a click and drag out.

tableau data mining science chi square test a/b test

tableau data mining science chi square test a/b test

Perfect, let’s go back to our online tool. In this case, « Sample1 » is « no », which means client who don’t have credit card and « Sample2 » for « yes », which means clients who have a credit card.

That’s how you enter the data :

  • For « Sample1 » in #success, you enter 613 because there are 613 clients who left the bank. For « Sample1 » in #trials, you enter 2945 because there are 2945 clients who don’t have a credit card.
  • For « Sample2 » in #success, you enter 1424 because there are 1424 clients who left the bank. For « Sample2 » in #trials, you enter 7055 because there are 7055 clients who have a credit card.

tableau data mining science chi square test a/b test

Let’s look at the verdict, it’s « No significant difference ». « p » value is very high, it’s above 5%. This confirms that the independent variable « HasCrCard » has no statistically significant effect on the dependent variable « Exited ». That was the conclusion we had made when we had done the A/B test with percentages.

We had seen that there was 21% of « Exited » (clients who left the bank) in the category « no » and 20% in the category « yes ». With these results we concluded that most likely the variable « HasCrCard » had no impact on the rate of clients who left the bank. Chi-square test confirms our conclusion and we can put the tab « HasCrCard » in green to say that it’s OK.

Right-click on the tab « HasCreditCard » => « Color » => « Green ».

tableau data mining science chi square test a/b test

tableau data mining science chi square test a/b test

Excellent, now, you can do a statistical A/B test with 2 categories. Soon, we will do statistical A/B tests with more than 2 categories.

Share this article if you think it can help someone you know. Thank you.

-Steph

Simple Tips To Boost Sales

boost sales

What’s ? This is THE stephane ANDRE ! I watched an Olivier Roland’s video  and I learned good stuff.

The majority of entrepreneurs all make the same mistake and if you understand this mistake, you can have the advantage over them. This is because theses entrepreneurs are focused on acquiring new clients. For example an entrepreneur who want to increase the client base by 20% per year, he/she will say to himself/herself : « OK, I have to find 20% more new clients per year ». And you know what ? This reasoning is wrong.

I’ll explain why it’s wrong. In this reasoning, these entrepreneurs don’t take in account attrition. Attrition is the clients who no longer do business with the entrepreneur. Look, if an entrepreneur has an attrition of 10% per year, which means that 10% of the clients that the entrepreneur has convinced, stop using his/her products/services. Now, if this entrepreneur wants to increase the client base by 20% per year, he/she must actually find 30% more clients per year.

You see the problem. To improve the situation, it’s necessary to know the 3 category of clients who stop using your product or service (a client who leaves the company).

Category 1

problem solve

This the easier category to deduce, it’s the client who is not happy. This client liked your product/service for a while, something didn’t go well and this client decided to stop using your product/service. What is important to know is that these clients will leave and never buy a product/service in your company without ever explaining why. That’s why I recommend you to put a system to ask those client who leave, the reasons. You can ask this type of question : « Is there a problem ? If yes, can you describe it to us ? ».

Clients in this category leave your company because there was something wrong with the product/service and often these are things that are very easy to repair. It’s possible that these are legitimate problems that are easy to solve, in this case, repair it very quickly. You can use a sentence like : « Yes, it’s our fault and we solved the problem, sorry. To be forgiven, we give you a  ?_ ? % discount on the next product/service you buy. This is a simple way to win back some of those clients who would otherwise be gone forever.

Sometimes, you’ll have clients who want while paying as little as possible and who are never happy. In this case, let these clients go because your business is much better without these people.

Category 2

This is the category whose client situation evolved. This means that at some point in their lives these clients needed your product/service and today they’re in a different situation. It’s not that these clients don’t like you product/service anymore, it’s just that they no longer need to use it.

For example, you sell a product/service for pregnant women. Once women have given birth, they’re automatically no longer clients. It’s impossible to keep those clients. But if these clients were happy with the product/service, you can ask them : « OK, now that you no longer need to use our product/service, can you share our product/service with someone do you know and we will offer her a welcome gift, because this person comes because of you ? ».

In this type of industry, clients use a product/service for a limited time so this little trick make it easy to have new clients.

Category 3

forget omer simpson

This is the category of clients who used your product/service for a while and have forgotten you. It hurt your ego but we all have billions of things to do. We have already used a good product/service and after a while, forget it. For example, I have a Tumblr‘s account. 2 years ago, I often went on Tumblr and for 1 year, I stopped to use it. For my blog, I automated a process to share a link of each article I publish on my blog to Tumblr. 2-3 weeks ago, I noticed on one of my emails that there were several new people everyday following me on my Tumblr account. Seeing this , I decided to use Tumblr more often.

Sometimes these are cases where you used a product/service for a while and for 1 year, you no longer use this product/service. Once, by chance, you see the ads of a competitor and you will buy from the competitor. You have completely forgotten that there are 1-2 years ago, you used a product/service that did the same thing.

For clients in this category, it’s necessary that you identify them to recontact them as soon as possible by offering them a gift (a discount, an invitation to an event, etc).

Conclusion

By focusing on these 3 clients categories and by setting up actions that I shared with you, you’ll be able to decrease your company’s attrition. With that you’ll have an advantage over your competitors who focus only on having new clients.

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-Steph