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.

Outlines

00:00

💰 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.

05:00

🤝 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.

10:02

🎉 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.

15:04

📊 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.

20:05

🚀 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.

25:07

🔓 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.

Keywords

💡Exit Interviews

Exit interviews are a customer retention strategy where a business engages with customers who are considering leaving or have recently left. In the video, it's described as a process where customers are asked to participate in an interview when they choose to cancel their membership, providing valuable feedback that can help improve the business and potentially save the customer. The script mentions that exit interviews can lead to identifying issues and even upselling customers to a higher tier of service.

💡Churn Rate

Churn rate refers to the percentage of customers who discontinue a subscription or stop doing business with an entity within a given time frame. It is a critical metric in the video, as reducing churn rate is one of the main goals discussed. The script explains that by implementing various strategies, such as exit interviews and personalized customer interactions, the business can significantly decrease its churn rate, leading to increased customer lifetime value.

💡Customer Lifetime Value (CLV)

Customer Lifetime Value is the amount of revenue a company can expect to generate from a single customer throughout their relationship with the business. The video emphasizes the importance of increasing CLV by not only retaining customers longer but also by increasing the value of each customer. The script provides examples of how strategies like unlockables and onboarding can enhance CLV.

💡Reach Outs

Reach outs are proactive communications from a business to its customers, aiming to build a personal relationship and check in on their satisfaction. In the video, the concept is discussed as a way to approximate real relationships and goes beyond just discussing the product or service. The script mentions that reach outs can be about general life updates, creating a bond that makes customers less likely to quit their membership.

💡Dunbar's Number

Dunbar's Number is a theoretical cognitive limit to the number of people with whom one can maintain stable social relationships. The video references this concept to explain why many small businesses and gyms cap around 100 to 150 customers without implementing systems to manage more relationships. The script suggests that by systematizing reach outs, businesses can overcome this limitation and build personal relationships at scale.

💡Member Events

Member events are organized gatherings for customers, which serve to show that a business cares about its customers and can also function as lead generation opportunities. The video script describes how events can be leveraged to increase customer engagement and even generate new leads by encouraging customers to bring friends or potential new clients.

💡Handwritten Cards

Handwritten cards are a personal touch that businesses can use to communicate with their customers, often to express gratitude or to reinforce relationships. In the video, the script describes using handwritten cards as part of a strategy to increase customer retention and generate referrals by asking customers to share the card with a friend, thus creating a personal connection and a sense of community.

💡Referrals

Referrals are a marketing strategy where a customer recommends a product or service to others, often due to their satisfaction with it. The video script discusses the importance of referrals in increasing customer base and revenue. It suggests that businesses should incentivize customers to refer others by offering them value in return, such as a handwritten card with a personal message and an invitation to bring a friend to an event.

💡Onboarding

Onboarding is the process of integrating a new customer into a business, ensuring they understand the service and feel valued. The video emphasizes the importance of a well-structured onboarding process to set expectations, reaffirm the customer's decision to purchase, and provide a roadmap of what they can expect from the business. The script explains that effective onboarding can significantly increase customer retention.

💡Unlockables

Unlockables are bonuses or rewards given to customers for achieving certain milestones or performing specific actions, such as referrals or testimonials. The video script introduces the concept of unlockables as a way to incentivize customers to continue their subscription and engage more deeply with the business, thereby increasing their lifetime value.

💡Activation

Activation in the context of the video refers to the actions or milestones that a customer must reach to fully utilize and benefit from the service or product. The script discusses identifying key activation points, such as making a first sale within the first week for a gym membership, which can significantly increase the likelihood of customer retention.

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

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there's so many things that feel unknown

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school.com games everybody else keep

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you later