7 Ways to Get People to Buy More Times

Summary

The 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.