Why Most Brisbane Business Owners Are Flying Blind
I’ve sat down with hundreds of business owners from Chermside to Coorparoo, and almost all of them make the same mistake. They look at their bank balance at the end of the month and think, "Great, we made money," or "Right, we need more customers."
But here is the problem: they have no idea if the customers they got in January are still buying from them in June.
If you run a gym, a landscaping business, or a dental clinic, you don't just need new customers. You need repeat customers. It is five times cheaper to keep an old customer than to find a new one.
Today, I’m going to show you a simple way to look at your numbers—without the technical jargon—to see exactly when and why people stop paying you. This isn't about complex math; it’s about making sure your bucket isn't leaking before you pour more water in.
The "Group" Method: Seeing the Big Picture
In the marketing world, they call this "cohort analysis." Forget that. Let’s call it the Group Method.
Think of it like this: If you signed up 10 new clients for your pool maintenance business in September, that’s your "September Group." If you signed up 12 in October, that’s your "October Group."
By looking at these groups separately, you can see patterns. For example, you might notice that the September Group stayed with you for six months, but the October Group all quit after two.
Why? Maybe it rained more in October. Maybe you hired a new staff member who wasn't doing a good job. Maybe your introductory offer was too cheap and attracted people who only wanted a bargain, not a long-term service.
When you see exactly what’s making money, you stop guessing and start growing.
How This Puts Money in Your Pocket
Most people think marketing is just about getting people through the door. It’s not. It’s about keeping them there. Here is how focusing on your customer groups helps your bottom line:
1. You stop wasting money on the wrong people
If you spend $1,000 on Facebook ads and get 50 new customers, you might think you’re a genius. But if 45 of those people never come back for a second visit, you’ve actually lost money. By tracking groups, you can see which ads bring in "lifers" and which ads bring in "one-hit wonders."2. You know exactly when to reach out
Let’s say you own a hair salon in Paddington. You notice that, on average, your "March Group" stops coming back after 8 weeks. Instead of waiting for them to disappear, you send them a "We miss you" text or a special offer at week 7. You’ve just saved a customer before they left.3. You can predict your future income
When you know that 70% of your new customers usually stick around for at least a year, you can plan your business growth with confidence. You aren't just hoping for the best; you're operating on facts.The Quick Win: A Simple 3-Step Audit
You don't need fancy software to start doing this. You can do it with a basic spreadsheet or even a notebook if you're small enough. Here is how to do it this afternoon:
Step 1: Pick a Starting Point
Go back 12 months. List how many new customers you got each month.Step 2: Track the "Drop Off"
For each month's group, check how many of them are still paying you today. - Month 1: 10 customers - Month 2: 8 still here - Month 3: 5 still here - Month 4: 2 still hereStep 3: Find the "Cliff"
In the example above, the "cliff" is Month 3. That’s when half your customers vanished. Now you have a specific problem to solve: What happens in Month 3 that makes people leave? Is that when your introductory price ends? Is that when the novelty wears off? Fix that, and you'll double your business without spending a cent on new ads.Real World Example: The Morningside Plumber
We worked with a local plumber who was spending a fortune on Google Ads. He was getting plenty of phone calls, but his profit wasn't moving.
We looked at his customer groups. It turned out that customers who called for "emergency blocked drains" almost never called him back for renovations or maintenance. However, customers who called for a "tap service" ended up spending thousands over the next two years.
By shifting his budget away from the emergency calls and toward the smaller service jobs, his long-term revenue soared. He was measuring ROI based on the lifetime value of the customer, not just the first invoice.
Don't Get Distracted by "Vanity Metrics"
I see this all the time on the Gold Coast and in Brisbane: business owners brag about their website traffic or their Instagram followers.
Followers don't pay the rent. Customers do.
If you have 10,000 people visiting your site but your "January Group" of customers is already 90% gone, you don't have a traffic problem. You have a retention problem. Looking at your business through groups (cohorts) forces you to be honest about how good your service actually is.
Common Pitfalls to Avoid
- Looking at everyone at once: If you just look at your total revenue, you won't see the trends. New customers hide the fact that old customers are leaving. - Ignoring the "Why": Data tells you what is happening. You still need to talk to your customers to find out why. If people leave after a month, call a few and ask why they didn't come back. The answers will be worth more than any marketing course. - Overcomplicating it: You don't need a PhD. You just need to know: "Of the people who started with me in June, how many are still here in December?"
What Should You Do First?
If you're feeling overwhelmed, start small. Look at your biggest month of the last year. Find every customer who started that month. Check your records—how many of them have spent money with you in the last 60 days?
If that number is low, stop spending money on new ads immediately. You are pouring water into a sieve. Fix your service, fix your follow-up, or fix your pricing first.
Most of what you read online about "scaling" a business is rubbish if you don't understand these groups. You can't build a skyscraper on a swamp. Get your customer retention right, and the growth will happen much faster (and cheaper).
How Long Until You See Results?
This isn't an overnight fix. It takes a few months of watching the groups to see the patterns. However, the decisions you make based on this data can have an impact within a week.
For example, if you find that customers leave after their first service, and you implement a follow-up call the next day, you will see your "return rate" climb in your very next group.
Summary for the Busy Owner
1. Stop looking at total numbers; look at groups of customers based on when they started. 2. Identify the "cliff"—the point where most people stop buying. 3. Focus your marketing spend on the groups that stay the longest and spend the most. 4. Don't be afraid to stop doing what isn't working, even if it brings in "leads."
At Local Marketing Group, we help Brisbane businesses stop the guesswork. We don't care about clicks; we care about your bank balance. If you want us to take a look at your numbers and help you find where you're losing money, let's have a chat.
Ready to grow your business for real? Contact Local Marketing Group today.