How to achieve repeat business - and keep people coming back

Originally sent exclusively to The Letter subscribers on July 1. Want to be the first to get my personal newsletter in your inbox every Monday at 7am? Subscribe for free here.

I often speak about this little trick at seminars, called The Rule of 4. It’s definitely a thought-provoker.

It’s like having two dishwashers. Once you do this, you’ll never go back.

Before I walk you through it, I think it’s best we start with some background thinking. Let’s begin with education and psychology.

I have never been a fan of “waste your time” education.

I’ve never fancied taking on a “university challenge”.

It seems to benefit no one but banks, lending money to would-be students, and universities that have become huge businesses. While it may be great for the UK economy, it’s not great for the individuals who get saddled with debt and waste precious years to obtain a piece of paper they then don’t use.

Can you really make use of a sports science and criminology degree?

I recall my uncle pursued photography, before transitioning to a financial advisor. Go figure!

That said, if you know why you’re pursuing a path, maybe to become a doctor or barrister, I’m all in. We need these people.

When it comes to education, I’m a big fan of self-education - the personal development stuff.

I love this phrase: “An education will make you a living; self-education will make you a fortune.”

If there's one skill that I believe could assist any entrepreneur, it's accelerating the understanding of human psychology. Once you grasp this, the decisions you make become smarter and wiser. That can’t hurt, can it?

Furthermore, it aids you significantly in your efforts to attract customers. It’s the foundation of marketing in my opinion.

Entrepreneurs are often labeled as “gifted,” and if successful, you might attain god-like status. You’ll be labelled a fortune teller.

People might say, “everything he touches turns to gold.” Codswallop to that.

They often only see the end results, not the struggles. Only YOU see that.

The driven, the successful few - we’ve merely had more attempts than most.

We cram more into a short period of time, and we are remarkably resilient.

Therefore, we recover quickly from setbacks. They teach us how to avoid them in the future. Then we continue, armed with a wealth of knowledge.

We store the setbacks in the unconscious brain, forgetting them in the conscious brain, and are skilled at bridging life's obstacles. We build muscle memory to avoid danger.

People close to me often say, “You forgive too easily.”

The truth is: I haven’t the time to dwell more than necessary.

Once you've overcome a difficult person or a wrong business move, you recognise the traits of “dodgy and wrong”.

You develop even more muscle memory. Society might label it as “gut instinct” but, in reality, it’s “experience” disguised as a mystical power through repetition and practice.

Ten thousand hours of practice will make you proficient.

Ninety percent of people think more similarly than you’d imagine.

Most like safe, then there’s us: the ten percent, the disruptors who dare to venture into business, those labeled as outsiders, adventurers, innovators, risk-takers, workaholics, and movers-and-shakers.

Starting early - yours truly as a 22-year-old millionaire.

When I was 15, a man named Colin, for whom I was working, said to me, “Do you really want to work this hard? At your age, you should be thinking about breasts!”

I was engaged in numerous activities – Saturday jobs, DJing, magic shows, and seven paper rounds. I was armed with hunger and drive.

He said, “You're a freak, but you're unique.”

15-year-old me cherished the label. I am.

The top 10% meet more people. They knock on more doors, ask questions, and are curious.

This grants them more experience and sharpens their understanding of people, giving them greater intuition power.

This is how I learned about the Rule of 4.

I’ve discovered that if we repeat a task four times in quick succession, we’re set.

Trying to reduce sugar in your tea or coffee? Have four cups, naked of sugar, and you'll be free.

Nervous on day 1 of a new job? Get to day 4 - it’ll feel better.

Do you have children? Observe how anxious they are on the first day of school, notice the change by day 4.

Been on a date? What typically happens on the fourth date? (“Would you like to come in for coffee?”)

Writing your fourth book is easier than the first. (I know.)

Eighty percent of podcast makers do not reach episode 4. Most give up.

If you're in business, you must understand this concept.

How can you entice customers to return to you four times rapidly? You want to become the customers' habit.

Here are 4 ideas to implement once someone has made a purchase from you:

• Thank you cards

• Build a database to communicate with them* (please read the note at the bottom)

• Offer free returns (builds loyalty)

• Call them and get acquainted with them, asking for additional work

Also, consider this: how’s your business model, Captain?

It requires considerably more effort to bring patrons back to a restaurant four times in quick succession, compared to a day nursery.

One is a better model for profitability and fosters a connection between customers and the business, solely based on frequency. When you avail the service regularly, it simply works better.

I now select better models, especially as I notice grey hairs lining up to greet me each day. If grey hairs are a sign of wisdom, I’ll be a genius in no time.

Call me Gandalf. Thanks to experience, my businesses are becoming wiser by the year, although I despise how it shields against risks.

In essence, “good models” are what the doctor of business success would prescribe. Just as “an apple a day keeps the doctor away” in the health realm, in business, “a good model will keep the bailiffs away.”

Netflix really knows how to keep its audience coming back for more.

How can you emulate a “Netflix/Stranger Things” business model, creating a “just one more episode before bed” mentality?

The audience becomes so captivated that they yearn for more. Come on, admit it – most of us binge-watched at least four episodes when Stranger Things dropped, didn’t we?

Netflix masters the rule of 4 - they've captivated you.

They have built a business around human psychology. Once you engage people four times, you become their habit. They forget about competition, unless you tarnish it.

By caring for your customers, they will reciprocate by caring for your business.

What we seek are repeat customers – those who return again and again. You can be good but the right model helps you get it quicker.

Now - until next week - I’m signing off from the Rossi Ice Cream Parlour in Southend, Essex.

Many of our cherished customers are habitual, visiting us more than four times. I frequented this place with my grandad, who visited with his dad, and now my children have been here.

I bought this place for its charm, brand and history. But also because it has customers that are automatic.

It's a rule of 4 business.

Time for a knickerbocker glory... with nuts, naturally.

If you're ever in Essex, come and see us for lick of deliciousness.

To your continued success,

P.S. *If you haven't set up a customer database and don't communicate through it, well, I'll say it: you're missing out.

Originally sent exclusively to The Letter subscribers on July 1. Want to be the first to get my personal newsletter in your inbox every Monday at 7am? Subscribe for free here.