The Most Overlooked Business Strategy (From The Man Who Built Ritz-Carlton)

Last week I had the privilege of sharing a stage with Horst Schulze, the legendary co-founder of Ritz-Carlton. I‘ve heard Horst speak several times throughout the years, and it is always refreshing. At 86, this straight-talking German businessman opened with his trademark question: "Do you want me to be nice or do you want me to be honest?" The audience chose honesty, and they definitely got a dose of it!

While Mr. Schulze is best known for his approach to hospitality, he had plenty of straightforward business insights that I found insightful. While some of the principles seem deceptively simple on the surface, they're the very things most organizations consistently fail to execute.

According to Horst, great businesses do four things exceptionally well:

1. Keep existing customers: The easiest customer to have is the one you have right in front of you. Don’t lose them.
2. Acquire new customers… ideally through existing ones.
3. Maximize revenue from each customer...without losing them: When you add as much value as possible, you’ll find the result will be that the customer will spend more money with you.
4. Operate as efficiently as possible without compromising quality: Be careful with this one – this is about streamlining, not cost cutting at the expense of the customer experience.

Each of these could warrant its own post, but I want to focus on that first point: Keep the existing customer.

My natural tendency is always looking ahead to the future and the next opportunity. But the leaders and organizations that stand the test of time share one critical trait: they fiercely protect relationships with people who have already put their trust in them.

Think about it:

• The neighborhood restaurant that remembers your name, your favorite order, and your anniversary
• The family-owned hardware store that's survived three big box competitors because they know their customers' projects and preferences
• The nonprofit that makes existing donors feel so valued they become lifelong champions

We're constantly bombarded with messaging about growth, expansion, and chasing the next big thing. Meanwhile, the goldmine of existing relationships is often an underappreciated asset.

Here’s my challenge to you: Find time today to do one simple thing to show appreciation to an existing customer. Not tomorrow. Not next week. Do it today.

Pick up the phone.
Write a handwritten note.
Send a thoughtful email.
Do something that shows genuine appreciation and adds value to their life or business.

The most successful organizations I've worked with don't just chase new customers—they obsess over keeping the ones they have.

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