7 Ways to Get People to Buy More Times
Summary
TLDRThe video script details a proven strategy to double the value of customers in a business by focusing on customer retention. It outlines seven actionable steps, including exit interviews, personalized reach-outs, member events, handwritten cards, attendance tracking, effective onboarding, and unlockables or milestones. The speaker emphasizes the importance of reducing churn rates and increasing customer lifetime value, which can significantly boost revenue and profit margins. The script also provides insights into understanding customer behavior and leveraging it to improve business performance.
Takeaways
- 💰 The speaker sold their previous company 'Gym Launch' for $46.2 million and emphasizes the importance of understanding business growth strategies.
- 📈 There are two primary ways to double a business: increasing the number of customers or increasing the value per customer, with the video focusing on the latter.
- 📝 The 'money checklist' is a set of actionable steps to increase customer value, applicable to businesses the speaker invests in.
- 🏋️♂️ 'Gym Launch' had over 5,000 licensed locations, and the speaker's strategy involved identifying the top 1% of gyms with the lowest churn and learning from their practices.
- 🤝 Exit interviews are crucial for understanding why customers leave and improving the product, with a strategy of being more 'angry' about the problem than the customer.
- 📞 Regular 'reach outs' to customers help simulate a personal relationship, which is more effective in retaining customers than a simple transactional relationship.
- 🎉 Hosting member events can be a way to show customer appreciation and generate leads, with the added benefit of increasing revenue from new customers.
- 💌 Handwritten cards sent to customers can increase retention and facilitate referrals by making customers feel valued and appreciated.
- 📊 Attendance tracking is a key indicator of customer engagement and can predict potential churn, allowing proactive measures to retain customers.
- 📚 Effective onboarding is vital for setting expectations, reaffirming the purchase decision, and providing a roadmap for the customer journey.
- 🔓 'Unlockables' are incentives or bonuses given to customers for achieving certain milestones, which can motivate them to stay longer and engage more with the business.
Q & A
What was the sale price of the speaker's last company, Gym Launch?
-The speaker sold Gym Launch for $46.2 million.
What are the two primary ways to double a business's revenue according to the speaker?
-The two primary ways are by doubling the number of customers sold to each month or doubling the worth of each customer.
What is the purpose of the 'money checklist' discussed in the video?
-The 'money checklist' is a set of actionable steps to increase customer value and overall business revenue when the speaker buys a company.
What is the significance of exit interviews in the customer retention process?
-Exit interviews help in understanding why customers are leaving, allowing the business to address issues and potentially save the customer or improve the product.
How does the 'angry boat' rule work in customer service scenarios?
-The 'angry boat' rule suggests that only one person can be the 'angry one' in a conversation. The business should get more 'angry' about the problem than the customer, which validates the customer's feelings and helps in resolving the issue.
What is the concept of Dunbar's number and how does it relate to small businesses?
-Dunbar's number is a postulate that people can only manage about 150 medium relationships in their minds. This concept relates to small businesses as it often caps their customer base until they implement systems to manage more.
Why are reach-outs important in maintaining a relationship with customers?
-Reach-outs are important because they help simulate a personal relationship, keeping customers engaged and less likely to churn. They also serve as an early warning system for potential issues.
What role do member events play in a business's customer retention strategy?
-Member events show customers that the business cares about them and can also serve as lead generation opportunities. They reinforce customer relationships and can lead to increased revenue.
What is the significance of handwritten cards in the speaker's strategy for customer retention?
-Handwritten cards are used to show appreciation to customers and to encourage referrals. They create a personal touch that can help in strengthening the bond with the customer.
How does attendance tracking help in reducing customer churn?
-Attendance tracking provides early indicators of customers who might be falling off, allowing the business to reach out and address potential issues before the customer decides to cancel.
What is the importance of onboarding in the early stages of a customer's journey with a company?
-Onboarding is crucial as it sets the right expectations, reaffirms the customer's buying decision, and provides a roadmap of what they can expect from the company, which can significantly increase customer retention.
What are 'unlockables' and how can they be used to improve customer retention?
-Unlockables are bonuses or rewards given to customers for achieving certain milestones or actions, such as staying with the company for a longer period, providing testimonials, or referring new customers.
How does the speaker suggest using customer testimonials to improve business retention?
-The speaker suggests using customer testimonials as a form of social proof and as a reward mechanism to encourage more positive reviews and referrals, which can enhance customer satisfaction and retention.
What is the impact of reducing churn rate on a company's lifetime value (LTV) per customer?
-Reducing the churn rate significantly increases the lifetime value of a customer. For example, halving the churn rate from 10% to 5% can double the LTV, leading to higher revenue and profit margins.
In what order should the speaker's strategies be implemented for maximum impact on customer retention?
-The speaker suggests starting with onboarding, followed by unlockables, exit interviews, attendance tracking, reach-outs, and finally, combining member events with handwritten card referrals.
What is the 'school games' mentioned by the speaker and how does it relate to helping people start a business?
-The 'school games' is a program mentioned by the speaker that helps people start a business by providing a course, calls, and articles related to specific business models. It aims to facilitate the process of making the first dollar online.
Outlines
💰 Doubling Business Value Through Customer Worth
The speaker begins by sharing their experience of selling a company for $46.2 million, emphasizing the importance of understanding business growth. They introduce two primary methods for doubling a business's value: increasing the customer base or the worth of each customer. The video promises a checklist of seven strategies to enhance customer value, derived from the speaker's experience with Gym Launch, a company that licensed business models to over 5,000 locations. The strategies are aimed at making customers more valuable, thus increasing overall revenue. The speaker also discusses their background in consulting and the process of identifying top-performing gyms to extract best practices for reducing churn and increasing customer retention.
🤝 Building Genuine Customer Relationships Through Outreach
The second paragraph delves into the concept of 'reach outs' as a means to forge genuine relationships with customers, which can help in retaining them. The speaker discusses the limitations of managing relationships due to Dunbar's number, which suggests that people can only maintain about 150 meaningful relationships. To overcome this, businesses can implement systematic reach-outs that are personalized and not solely focused on the product or service. The speaker provides examples from their experience in the gym industry, where trainers were assigned a specific number of customers to regularly check in with, creating a bond that customers were less likely to sever.
🎉 Leveraging Events and Handwritten Cards for Customer Engagement
In this section, the speaker discusses the power of organizing events for customers as a way to show care and generate additional revenue through referrals. They highlight the importance of creating an 'open loop' by informing customers about the next event to maintain their interest. The paragraph also introduces the strategy of sending handwritten cards to customers, which can act as a personal touch and a prompt for referrals. The speaker suggests using these cards to invite customers to bring friends to events, thus creating a cycle of value addition and lead generation.
📊 Implementing Attendance Tracking to Anticipate Customer Churn
The speaker introduces the concept of attendance tracking as a proactive measure to identify customers who may be at risk of churning. By monitoring the frequency of a customer's engagement, businesses can intervene early when they notice a decline in usage. The speaker shares insights from the gym industry, where a decrease in gym attendance was a clear indicator of an impending cancellation. They advocate for reaching out to customers who miss sessions to remind them of the value they receive and to encourage continued engagement.
🚀 Effective Onboarding as a Key to Customer Retention
The speaker emphasizes the importance of a well-structured onboarding process to set the right expectations and confirm the customer's purchasing decision. They suggest that by providing a clear roadmap of what the customer can expect, businesses can alleviate any doubts the customer may have post-purchase. The speaker also touches on the idea of 'walking through' the service with the customer to ensure they understand how to use it effectively, which can lead to higher satisfaction and retention rates.
🔓 Unlocking Customer Potential with Milestones and Unlockables
In this paragraph, the speaker introduces the concept of 'unlockables' as rewards or bonuses given to customers for achieving certain milestones. These unlockables can be tied to specific actions that the business wants the customer to take, such as providing a testimonial or making a referral. The speaker explains that by setting these milestones and rewards, businesses can motivate customers to stay longer and engage more deeply with the product or service, ultimately increasing customer lifetime value.
📈 The Impact of Retention on Business Growth and Profitability
The speaker concludes by illustrating the financial impact of improved customer retention. They provide an example of how reducing churn from 10% to 5% can double the lifetime value of a customer, leading to significant increases in revenue and profit. The speaker also explains that higher customer lifetime value allows businesses to spend more on customer acquisition, thus accelerating growth. They emphasize the importance of tracking and improving retention rates as a key strategy for sustainable business success.
Mindmap
Keywords
💡Exit Interviews
💡Churn Rate
💡Customer Lifetime Value (CLV)
💡Reach Outs
💡Dunbar's Number
💡Member Events
💡Handwritten Cards
💡Referrals
💡Onboarding
💡Unlockables
💡Activation
Highlights
The founder sold his previous company, Gym Launch, for $46.2 million, emphasizing the importance of business growth strategies.
Two primary methods to double a business's value: increasing customer numbers or the worth of each customer.
A seven-point checklist is introduced to increase customer value and boost revenue.
The consulting process involved surveying gym owners to identify the top 1% with the lowest churn rates.
Exit interviews are recommended to understand why customers leave and improve the product.
The 'angry boat' technique is a strategy for handling customer complaints effectively.
Upsell strategy is used to convert negative customer experiences into more valuable relationships.
Reach outs are a systematic way to build personal relationships with customers, reducing churn.
Dunbar's number is referenced to explain the limit of personal relationships in business.
Member events are used not only to show customer appreciation but also for lead generation.
Handwritten cards are a personal touch that can improve customer retention and encourage referrals.
Attendance tracking is a key metric for identifying customers at risk of churning.
Onboarding is crucial for setting expectations and reaffirming the customer's purchase decision.
Unlockables are milestones or bonuses that incentivize customer retention and engagement.
The importance of customer retention is underlined by its impact on lifetime value (LTV) and business profitability.
A case study is shared where retention strategies increased LTV and significantly boosted business revenue.
An order of implementation for the retention strategies is suggested, prioritizing cost-effectiveness and impact.
The 'School Games' program is highlighted as a resource for those starting a business, offering automated support and community.
Transcripts
I sold my last company for $ 46.2
million that was gym launch and one of
the keys was learning how to grow
businesses and so you might not know
this but there's two ways that you can
double a business one is you double the
amount of customers that you sell every
month the other is you double how much
they're worth this video will give you
seven things that we did to double how
much customers were worth in our
companies and the ones that we buy and
invest in today and so this is a money
checklist that you can literally
immediately do by the end of the video
that I do when I buy a company to make
all the customers more valuable and
ultimately make way more money so here's
our outline and just to give you a
little bit more context on this I uh gym
launch was a company that licensed to
gym owners we had over 5,000 locations
that licensed our uh business model and
one of the things that I did in the
Consulting process which I learned
before this as a white collar consultant
for defense Contracting which you don't
care about but that's okay is the
Consulting process and the way that we
discovered answers to hard questions was
we would survey a large percentage of
the population then we'd find the people
who represented the solution that we
wanted so in this instance I looked at
all the gym owners and said who is the
top 1% of gyms that have the lowest
churn and I said if you've maintained
that for six months or more tell me what
you're doing and so I hopped on the
phone with every single one of those
gyms and then each one of them gave me
30 different things that they were doing
to decrease turn to get people to stay
longer but when I looked at all of the
data across every one of these gyms that
were in the top 1% all of them were
doing five things and so I'll give you
those five and I'll also add two more
that we decided to do that cut our turn
in half which ultimately made Jim launch
a sellable company and we've now
implemented this since in all the
businesses that we buy so the first one
is exit interviews now if you're in a
business that you can't do that uh
that's fine but I'd almost recommend
that you do it and I'm going to break
down each of these in detail on that
board as soon as you get into it so I'm
going to go through each of
them as we go so let's start with exit
interviews so exit interviews
have this amazing thing that we figured
out so the gym owners would say hey when
somebody wants to cancel we obligate
someone and we discuss it UPF front
meaning when someone signs we say just
FYI if you do choose to cancel or when
you choose to cancel we just ask that
you do an exw interview and the main
reason for that is so that we can make
the product better because if every time
someone cancels we get to learn one
thing then over time we'll be able to
plug all the little holes in our product
and people stay again and again and so
what happens is you get on the on the
phone with this person and you say why
so sad right more or less
and then they will then usually need to
vent and so let me give you the rule of
the angry boat so my first or second
business Mentor I worked at his he was a
fer and he said only one person can be
the angry boat this is how it works if
someone's angry about you or your
product or your business the only way
that you can actually solve the problem
is get more Angry than them but you're
getting angry not at them but at the
problem and so they're angry at the
problem and then they feel validated
when you're even more angry and guess
what happens if someone comes in and
they're like this is talk I had
such a terrible experience you're like
that is ridiculous that they had that
experience I can't believe you went
through that that's absurd we have to
get to the bottom this right now we will
We I promise you we will fix this for
you thank you so much for telling me but
it's I I'm more upset than you are about
this now what happens is they will then
say well I mean it wasn't that big of a
deal like I I appreciate you're a
business owner things happen like thank
you so much they feel validated and they
start trying to calm you down and guess
what happens you win right and so half
the time when we'd get on the phone with
these people
half we would just say hey we're angrier
than
you and we said let me make it up to you
and so we'd say hey all the money that
you've paid up to this point I'm going
to give you and you can pick an amount
or you can give the whole thing say I'm
going to credit that towards you stay so
that I can make it up to you and if
after that period of time you still
aren't happy with the solution that I
now have given the fact I know you're
upset no worries but at least let me
help try and make it up to you by doing
that you can either save them
or if they say something to the extent
of like well I thought I was going to
get way more help I thought I need more
implementation I need more whatever I
need more handholding believe it or not
this is what's crazy many of these
people actually get upsold and you say
you know what it's our mistake you were
actually sold into the wrong thing you
need way more help than what we
currently giving you at this silver
level but you'd be perfect for gold
because that actually what you described
as the problem is literally what gold
does and so let me make it up to you let
me take everything you paid for silver
and credit it towards gold and let's get
you taken care of and by doing that we
took a negative and actually made a more
valuable customer and so if half your
customers or half of that half upsell to
something that's two times or three
times more expensive your Revenue turn
just disappears like very smart business
move when I say Revenue turn means the
amount of Revenue you lose because if
you lose half the customers but the
other half spend twice as much money you
actually don't lose Revenue now the
other half say F you and then they leave
and that's okay all right and that's
part of the game but if you can save
half of the People by simply adding this
one step guess what you cut down on turn
so that is number one exit interviews
the next one was reach outs now let me
explain what this means so I had to come
to this conclusion after looking at all
the data across all the locations we had
who were doing really well now a lot of
them did this in different ways but my
hypothesis around why this works so well
is they basically approximate a real
relationship so the reason that most
gyms and many small businesses that are
recurring especially in the service
industry get stuck around 100 to 150
customers is because of something called
dumbar number and so dumbar number is a
postulate that people can only manage
150 close relationships or medium
relationships in their mind after that
it's just too many people and so because
of that without any systems you can
usually manage about 10050 people which
guess what is what most people's
business cap at until they have systems
and so the reach outs essentially
approximate what you do to have a
personal relationship with someone but
you put it into a system and here's the
key part about these reach outs is that
the reach outs don't need to be
necessarily about the product you sell
or their experience as a customer but
more checking in on the human being
overall and it doesn't need to be every
you know every 14 days and you don't
necessarily even need to sell that and
this is a key point is you're not
selling the reach out you sell the
product you sell the membership you sell
the subscription you sell whatever and
then you just do this because on the
back end you overd
you like and one of the like the key
points of this is you can do more than
you say you do like your offer that you
give someone you don't have to tell them
everything you do you need to tell them
enough to get them to buy and then
everything else becomes surprise and
delight and so you can know that every
14 to 21 days you're going to reach out
to them and say hey how's life or hey I
saw that your daughter uh is going to
college or hey I saw that uh you went to
that concert this weekend how was it
what it does is it creates a
relationship and and it's a lot easier
you can write this one down a lot easier
to quit a membership than it is to quit
a relationship and so what we want to do
is facilitate that bond that people will
have and so what we did is we
systematized this so that every trainer
I'm just giving you what we did so that
you can make it work for your business
every single trainer had 40 or so
customers that they were responsible for
and they reached out on a every 14 to 21
days so if you got 40 customers it means
you reach out to 10 or 15 people a week
not a big deal and you just check in
which hopefully you want to do anyways
but by systematizing it we created
personalized relationships at scale and
cut down turn also that becomes an early
warning system because if someone does
have an issue they reach out to the
person they already have already in
communication with so it's not this like
who do I talk to they just talk to the
person they're already talking to right
so you get way faster feedback from the
front lines thing number three so we got
this guy reach outs next one was events
so this is member events now no matter
what business you have whether you're a
real estate agent you're a plumber
you're a gym owner you're you're an
agency it doesn't matter having events
for your customers shows that you care
but more importantly you can also make
money from them so let me explain so at
the events we made the events for
everyone so customers could bring their
friends they could bring other potential
customers and by doing this it actually
became lead gen for us too so we more
than paid for the events in the sales
that we're able to do with the events
and so if you say hey I'm just going
give you the gym example hey bring a
friend to our event everybody brings a
friend great you have twice as many
people there as you normally would and
then of course you make a crazy offer
while you're there for anybody's a
friend say Hey cuz as an aside if you
don't know this referrals are typically
worth two to three times more than than
normal cold customers and so if anyone
if you should pay for any lead the most
it should be referrals or be willing to
pay the most for referrals and so out
events the way that we do this and I
I'll give you the I'm going to give you
a
little tip here so number four is
handwritten cards I'm going to show you
how these work together all right
so that means handwritten card we found
out that handwritten cards work every
sixish weeks that also tends to coincide
with the Cadence that you can run events
for your members now an event if you run
it afterwards your turn will go up
people get a lot of value and they say
you know what I got enough value I want
to leave and so the key to making events
work is the open loop you have to tell
them when the next event is going to be
while or right before they have this
event so they always have something to
look forward to otherwise they'll get
the value and then they'll leave and I
found this out the hard way which is why
I'm telling you always have the next
thing in place place now the key to
making the referral thing work is that
you send them a handwritten card with
their name you sign it whatever you say
hey we appreciate you we know that you
could choose you know a lot of places to
fly thank you for choosing Alex Airlines
whatever now here's the PS statement
this is the important part you put PS at
the bottom and you say take a picture of
this
card and text it to a friend in a
three-way keep your mind out of the
gutter in a
threeway and that way you're your friend
is invited to so you write them the
handwritten card you remind them of the
event that's coming up so that one they
it shows that you care you took the time
two you're giving them a benefit to the
theme of the event you call it crazy
sock Wednesday whatever who who cares
all right then that's obviously a gym
scenario if you have marketing you would
make it themed around something else
then you say invite another business
owner and if they have this picture at
the door they'll get LED in and so they
then get kudos from their friend to
inviting them to a free event where you
generate leads from it and so you
reinforce the relationship with the
customer you reinforce the personal tie
and you give them a benefit while also
allowing them to give a benefit to
somebody who becomes a customer of yours
and by doing these two things together
check check we kept more customers so
the fifth one and this is this is if I
had to I'm I'm I'm getting to the best
ones last because uh YOLO all right
uh this was
attendance tracking all right this one's
big all right we're getting into the mey
the mey mees the double meets the double
meet retention tactics calm down Jason
all
right all right
so so we have attendance tracking so
what we were able to see from tracking
attendance at our gyms is let's say it's
it's somebody on a three times a week
membership so you have three times a
week they show up then three then two
then two then one then zero and they'd
cancel all right this is pretty much you
could see it you could just see it clear
as day people just start they fall they
come down once and then they slowly
trick off and then they cancel which by
the way the easiest correlation with
cancellation is lack of consumption so
if you want people to stay and pay you
got to get them to use it and one of the
things I had in the gym world that I I
think is worth writing down for anyone
is that no matter how cheap a gym
membership is a gym membership you never
use is never worth it and so whether
it's $5 or $50 if someone doesn't use it
even if it's the most amazing thing in
the world they will not keep paying for
it at some point because it's a waste is
a waste and so on the flip side almost
no one complains about a gym membership
they use every day no matter how
expensive it is because if you use it
every day you're going to want to keep
using it and so the goal is consumption
and so attendance tracking helped us get
an early indicator that someone is about
to fall off and if you don't have early
indicators in your business that's what
you need to have because churn people
canceling is a lagging indicator it
means it happens after the bad thing
happened we want to find out the moment
the bad things happen so we can turn
something from tragic to Magic that's a
Disney saying but what we found is that
if we found that somebody went and they
missed one session of the three that
they were supposed to go to if we
reached out to them a bunch of times
here the next
week in this scenario same Miss Boom
they're back at three back at three and
we saved them because they found out
that someone was actually paying
attention to whether they were coming or
not and so they felt accountable to
showing up because someone was paying
attention and so this works for whatever
it is that you sell is you want to make
sure that they know that you're paying
attention to whether they're consuming
it or
not and the way that you actually do
these reach outs is reverse of leads
okay so let me explain with a
lead like a marketing lead you reach out
a lot of times the first day fewer times
the second day fewer times the third day
few times fourth day and eventually you
stop reaching out to them right because
they didn't they didn't buy they're not
interested whatever with customers when
you reach out you reach out once the
first day if they don't respond reach
out twice the next day if they still
don't respond you reach out three times
basically you escalate rather than
deescalate when it's a customer because
you're like hey we need to figure this
out and by mapping this Reach Out
structure to attendance tracking you can
go from this scenario to this scenario
and that's exactly what happened for us
and for all the memberships that I've
been a part of so that covers attendance
tracking let's go to number six also a
big beefy boy calm down Jason which is
onboarding all right this one is like
one of those silent killers that you
would not believe how important and
effective it is to implement this within
within your business
so now if you have a on to many type
solution where you're onboarding you
know you have 100 customers a day they
get they get sold because you have a $5
a month $10 a month whatever thing you
just want to automate the onboarding if
you have any type of service that you
can possibly I would say honestly even
if it's a hundred bucks a month you can
still do group on boardings right and so
the idea is that you want to have a
clear choreographed experience for day
one all the way to day whatever day x
and you want to tell them this is what's
going to happen and the key word in this
whole thing is expectation
setting is you want to set
expectations and you want to
reconfirm the buying process buying
decision so essentially you're reselling
them on why they chose to buy from you
to begin with a lot of people in the
first 24 hours is where they get cold
feet they back out they just say hey you
know what charge you know charge back
refund whatever it is they don't even
consume the thing yet and so you want to
reconfirm the buying decision tell them
why it was a great idea give other
reasons that they didn't mention and
also confirm the ones they used to buy
and then you say this is the road map
this is what you can expect to see from
us and the ideal client relationship you
simply set expectations meet
expectations set expectations meet
expectations and if it's up to you I
would rather you set and
meet multiple times rather than set 20
and then meet all 20 on this day so
let me give you an example if I had a
marketing agency and let's say we did
website design and SEO and whatever a
bunch of other stuff if I had a weekly
Cadence with them where I said hey this
is all the stuff we did in the last week
it would be more effective to say this
is what we're working on today and then
the next day send them an email be like
hey we finished that part and tomorrow
we're working on this in the same seven
days they're going to get seven positive
feedback Cycles with you and your
business of you setting expectations and
meeting expectations even though it's
the same work simply taking a second to
reach out to them at each of these
scenarios to let them know what you did
will get them to stay longer imagine you
sign up and the next day they're like
hey we already did this we're like oh
that just reconfirmed the buying
decision and they met the expectations
they set and then you do it again and
then again and again and by the time day
30 comes around they're like man these
guys are amazing they're so on it and
that's what you want customers to think
about you and so you want to set the
expectations you want to reconfirm the
decision and I like to think of
something like a walkth through which
which is how do you use the thing
whatever it is how do you use our
service if this happens what do you do
and this process you want to have this
all over the place like this you're
going to repeat over and over and over
and over and over and over again because
they're not listening they're on their
phone they've got their kids in the
backseat they don't really care that
much about your business they bought it
one time on a whim whatever you want to
make sure that at least one of the times
they hear part of it and they can
assemble the whole Mona Lisa picture
together through the many times you told
them so onboarding if you're not doing
it please for the love of God do it
because you will be amazed at how many
you will get you could probably add one
or two months to your uh recurring
Revenue by simply setting the acation
properly reconfirming the decision and
walking them through exactly what they
just bought so that gives us our
onboarding and finally lucky number
seven
unlockables all right so what's an
unlockable great question Jason
unlockables and Milestones
okay now this is going to be so
painfully obvious and yet no one does it
what do you want a customer to do like
really you're like what do you want a
customer to actually do besides continue
to stay and pay there's other stuff too
right so right off the bat what I want
someone to do is I want them to activate
now if you haven't Define what
activation is you look at the customers
that have stayed with you the longest
and you ask them what are the things
they did early that provided the most
value you can also survey this depending
on the size of your customer base you
say hey what was the thing that provided
the most value and you can try and guess
at this once you get this point right
everything you do drives to activate
customers so for example uh if you had a
software that built landing pages you
might find out that if you get someone
to switch to a customer URL rather than
you know XYZ software dot whatever their
name is as soon as they make that switch
they stay five times longer you want to
figure out what that activation point
was for gym launch it was if we get
someone a $2,000 sale in the first seven
days the likel they stay and continue to
pay was monstrous and so we drove a lot
of attention to try and make sure people
actually made a darn sale that was
really big in material in the first week
duh right if I have someone in weight
loss I want them to lose five pounds or
more in the first week duh so these are
these key points that seem like duh
things but if that's actually so
important why aren't we driving all of
our effort towards that thing a
different software company that I know
uh they called the first five clients
problem they had to get um trainers onto
a software and they realized that if
they just got the trainer five clients
then they would never cancel and so
everything drove towards getting the
person the first five customers and all
of that is Activation so that's step one
step two is what else would I want from
our customer well I I don't know about
you but I would want testimonial right I
mean if I activated them and they're
happy now let me see if they can get me
more customers so I want to get a review
I want to get a testimonial and you can
do that a variety ways they can do a
post they can leave you a review on a on
a review site they can leave you a
personalized video number of different
ways you do it or all the ways you can
ask them to do those things and you get
something else from them number three is
I want a
referral right you know people why do
you hate me why don't you want to tell
your friends about my product do you
hate them or do you hate me you hate one
of us right so we got to figure out what
it is and I think I I used to like again
this is where Rapport comes into place
and how big your business is but like
when I was like younger I'd be like why
do you hate me so much Sarah and she's
like what are you talking about I don't
hate you i' be like you haven't sent any
friends or do you hate your friends and
be like I don't hate my friends I'll be
like then let's meet let's hang out
introduce me let's do a three-way and
they're like whoa just kidding haha same
jokes every time anyway and so you do
the text intro you get you get it you're
like hey take a picture with me and
Sarah and we take the picture I take it
on her phone we send it to her friend
with me me as the third person that way
they can't ignore you and you have it on
the iPhone so it's all blue and everyone
knows everyone's legit but because of
that they have a face that they don't
know the face they do know and the face
they do know is in the text message
thread so they can't be a dick to me
because they know that Sarah likes me
and that's how you can get referrals
referrals number three number four
you're like wait how's this Ty your
retention don't worry don't you worry
we'll get there is Ascension so uh this
is actually wild uh there was a great
research study that was done by one of
these big Fortune whatever companies and
they found out that the single greatest
thing that you could do to retain
customers is get them to buy something
else because at a certain point people
get this itch to buy like it's been a
year since I bought something in this
space and if you don't satisfy them by
literally providing another offer to
them they will just go buy somewhere
else and so as silly as this sounds
sometimes the best way to retain someone
is to sell someone again and sell them
something else or bigger and so if we
think about this from a reverse
standpoint if I had a customer I would
want them to activate I want them to
leave me a testimonial I want them to
send a referral and I want them to buy
more stuff and more expensive stuff well
if that's what I want them to do then
for God's sake why don't we make these
things the unlockables
now the unlockables are another fancy
word for
bonuses that someone gets after they do
a certain thing so if I want everyone to
activate then I might make whatever my
kpi is for Activation get a big carrot
on top of it they get a big jackpot for
doing doing this thing right and so if I
was in a digital environment let's say I
have a school community so you can say
hey if You' stayed for 3 months you get
this big Mega training on ads that I did
and the reason I have it at three months
is because you got to do the
fundamentals but if you stay past month
three this unlocks wow boy do I have a
bigger incentive to State a month three
if I know I'm going to get this big
jackpot of value and guess what I'm
going to do a month three a month six
and month 9 and the thing is you want to
go some little human behavior thing you
can actually extend this timeline it can
go three and then you can go eight then
you can go month 15 like you can extend
the time Horizon between the big
positive reinforcements and then just
make them bigger and batter every time
and they look forward to them more and
more and more and so unlockables can
either be on activity meaning they did
something I'll give you this ad training
if you leave me a testimonial I'll give
you this ad training if you send me a
referral I'll give you the as training
if you buy the next level or it can be
off of tenure which means they don't do
anything besides stay and pay which hey
we're also happy to do that you get this
at month six you get sorry you get this
at month three you get this month eight
you get this month 15 whatever and so
the unlockables can get people to stay
that extra time and if you're not
tracking this every month which you
absolutely should be you should be able
to tease that number up you should see
every month okay we're at 3.7 months all
right we're 4.2 months all right what do
we do to go from 4.2 to 4.7 what do we
do from 4.7 to 5.6 and you just keep
adding and plugging the holes in the
bucket because I promise you with
retention it's not the bullet it's all
of these things put together and when we
did this it took our turn from
11% to 6% monthly now let me walk you
through the final thing to explain why
this is worth it so we're going to talk
about retention why does this matter all
right so let me give you a very simple
example let's say you sell something
that's $100 a month okay great awesome
Alex $100 a month now let's say your
turn as in the percentage of people who
leave every month is 10% so you've got
100 custom customers month later you've
got 90 so 10% churn now my lifetime
value per customer is $11,000 that means
they stay on average 10 months this is
V1 this is pre everything I'm about to
show you now if all we do if you follow
everything I show you in this video is
you get that 10% let's say what do we
want to get it to survey says give me a
number what do we want the CH to become
6% all right that'll be tough for math
let's go
5% so we get turn from 10% to 5% doesn't
seem like a big difference we go from 10
to 5 right we decrease it by 5% big
whoop right well let me show you how big
of a whoop it is calm down Jason all
right it's that means that my new
lifetime value per customer is $2,000
and while everyone else in your industry
is obsessing about how do I get more
customers how do I get more customers if
you can double how much your customers
are worth you more than d one you double
your Revenue but secondly you'll more
than double your profit because you
don't have to pay the additional cost of
acquisition every time to make that
extra revenue and so all the savings
drop straight to your bottom line so the
incremental margin on this is huge and
guess what other jackpot bonus you get
if everyone else can only spend let's
say if they're doing three to one $300
to get a customer guess what you can
spend $600 to get a customer that's if
you're keeping three to one which I
recommend all right so you can get
whatever 650 you get the point all right
per customer so here's the crazy thing
is that if you can only spend 300 you
might be you might cap out at say $1,000
a day in ad spend but if you can 650 you
might cap out at 100,000 A Day In AD
spend so getting a double on LTV I'll
give you an example for one of our
businesses one of our companies we took
we 1.9x LTV actually really similar to
this it was actually it was so it was
2,000 to start and we took it to uh
3,800 and we did this through a massive
list that I'm going to show you in a
second but by putting by going from
2,000 to 3,800 that's an eight we went
from $2 million per month in the
business to $2 million per week that
that's why this matters so let's dive in
so we talked about what retention is we
talked about why it matters you can
massively make way more money by just
changing the things you do inside the
business also you'll be a better
business overall but the third one was
how to actually change it so I'm going
to give you a bonus number four which is
okay Alex I haven't done any of these
things which should I start with if I
was going to give you an order to order
these things and I was just a nefarious
which I which I am um I did
these not in reverse order um I would
probably think about this both in cost
to put into place and then return from
it because some of these things might be
really powerful but take a long time and
I'd rather you do this in order of like
bang for buck all right so number one
would be onboarding you literally just
add one step in the process after
someone gets closed and then you
reaffirm the decision you set the
expectations and then you give them the
road map you give them the walkthrough
what's what's going to happen next it's
all you do all right and you talk to
them make them feel like a human that
they didn't justay money some glom big
gray box of money making all right so
number one we on Board number two is I
would probably do unlockables main
reason here is that you pretty much just
set the incentive in place once you have
it it's like a one-time fix like you do
you figure out what your unlockable is
and then you just set up when you want
it to be and for example if you're
currently people are currently staying
four months then put it at month five
just try and get them to get over that
edge just give them something to look
forward to Edge them on right so you
want to just put it just path where
they're currently cancelling so that
would be the second thing that I would
do the third thing that I would do would
be the exit interviews that's a three
there we go because you can pretty much
implement this quickly and I think you
as a Founder uh especially if you're
getting into this this is so valuable
like you get so much great data on what
you can do better and you have the
opportunity to save the customer and you
have the opportunity to ascend the
customer like so so high value
definitely worth it uh if I had to go
number four here attendance tracking
this one takes more work but huge
returns and so I would say this one has
is super effective in terms of uh Power
it just takes more work to do but this
would probably be number one or number
two in terms of like actual effect on on
retention it just takes a little bit
more work so i' do one two and three
first all right let's do after that I
would say survey says number we're five
right here I would go reach outs we want
to facilitate a human relationship this
takes a little bit work because you got
to you got to disseminate customers
between people and if you don't have
that then you have to set up systems to
automate some of those reach outs and
make and here's the key if they know
it's automated it will not work it has
to be systematized not automated if it's
automated like how many times do you
respond to the green text that's like
obviously automated never you don't care
because it shows that they don't care
and so the best way and this is aism the
best way to get people to think that you
care about them this is a really key
trick is to actually care about them
that's it so reach outs and then I would
say these these two I would Implement
together so we'll go six and seven
because they're just such a perfect
little marriage of doing the events and
the invitations via handwritten cards um
this is something that's like fun it's
value at it's the key is the open loop
between the events and you get the
referrals you get from the handwritten
cards so that's the order that I would
do these in and I've got something else
for you something extra sexy because you
know I love you little Easter egg for
everybody else right now we've got the
school games running and if you don't
know what that is I'll tell you the the
outcome of it which is that right now
3.44% of people who start the games and
finish their first month all right first
month just finish their first month make
their first dollar online which I cannot
explain to you like going from here
wherever you're at now if you don't have
a business to making your first dollar
is the hardest bridge to get over
there's so many things that feel unknown
and so the fact that we're getting 3.44%
I like could not be more excited about
and so if you're somebody who's trying
to start a business we help you
facilitate a lot of the stuff in school
automatically um and so automatically if
you will uh and so uh you can give it a
shot I've got a course we do a bunch of
calls in there I put articles inside of
the group there uh that are specific
related to that business model uh and
you can start absolutely free uh so if
you want you can give it a shot
school.com games everybody else keep
crushing and if you have a business you
want to sell go acquisition. comom see
you later
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