Episode 314
Stop Chasing New Clients: How to Boost Profits with Client Retention [Ep 314]
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If you're a service provider, coach, consultant, freelancer, designer, or creative running a done-for-you or done-with-you business, listen up: constantly chasing new clients is draining your time, money, and energy.
In this episode, we dig into why client retention is the overlooked key to sustainable, profitable growth. You'll learn the true cost of always hunting for new clients, how to boost lifetime value, build a repeatable client experience, and set up upsells, continuity offers, and referral systems that keep your pipeline full, without endless marketing hustle.
If you're ready to move from unpredictable, one-off projects to a stable, growing business that clients want to stay with, this episode gives you the strategy you need.
Here's your Next Steps:
- Take the "Where's the Gap in Your Business Strategy" Quiz
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- Visit my website to learn more and apply for the Focused Visionary Accelerator
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Transcript
Today we're going to talk about a topic called client retention.
Speaker A:And it's so funny to me because I posted that I wanted to record this podcast episode, and literally nobody jumped in on it or was, like, interested in it.
Speaker A:And I'm recording it anyways because these are the topics that are, like, business building topics, and these are the truth of the matter, and these are the things that are actually going to increase your profitability and make life simpler.
Speaker A:So I know it sounds boring.
Speaker A:I know it's not sexy.
Speaker A:I know it's not all about, like, here's 10 new ways to find new clients today.
Speaker A:Well, let's talk about actually retaining the clients that we already freaking have, because that's a whole lot easier, but it's something nobody freaking talks about, and it drives me crazy.
Speaker A:Like, this is business 101, okay?
Speaker A:So you can hear it in my voice.
Speaker A:I'm already feeling a little bit spicy about this one because I want to increase profit, right?
Speaker A:There are so many coaches and strategists and experts and gurus out there in the online space that all talk about new, new, new, new, new.
Speaker A:When those things all cost time, energy, and resources.
Speaker A:Retaining the clients that you already have increases profit.
Speaker A:It gives you a higher lifetime value, lower acquisition costs, better client experience, better, better referrals, all the things, right?
Speaker A:So, like, why is this not the topic that people want to hear about?
Speaker A:All right, so you're listening to the Real truth about business, and that's what we're talking about.
Speaker A:Because if there was ever a real truth, this is it.
Speaker A:This is the topic.
Speaker A:Client retention, okay?
Speaker A:And how it increases your profitability.
Speaker A:All right, we're not talking fluffy bullshit here today.
Speaker A:We're talking about the real actions and how you can increase your.
Speaker A:Your profitability by simply retaining the clients that are already in your world.
Speaker A:Okay?
Speaker A:And we're diving in.
Speaker A:I'm excited about this one.
Speaker A:I want you to be, too.
Speaker A:All right, okay, so let's.
Speaker A:First and foremost, we're going to dive in and talk about the real cost of constantly chasing new clients.
Speaker A:Okay?
Speaker A:Because this is what I see all the time.
Speaker A:Like, when I posted in a Facebook group, I was like, hey, what kind of topics do you guys want to hear about on the podcast?
Speaker A:It was all about new clients.
Speaker A:New clients.
Speaker A:New clients or sales.
Speaker A:New clients.
Speaker A:Sales.
Speaker A:New clients.
Speaker A:And I get it.
Speaker A:We all need new clients.
Speaker A:But I am here to tell you that 90.
Speaker A:I don't even know if that's an accurate number.
Speaker A:Let me.
Speaker A:Let me probably give you a more accurate number.
Speaker A:I would say 60% of my business every single year comes from clients that are on retainer or clients that are repeat or have come back or that I have retained for years, some of them upwards of seven years, right?
Speaker A:That my list is very small, my email list is very small, my podcast listenership is small, but my business still grows every year, and a lot of that is through retention.
Speaker A:Okay?
Speaker A:This is a very powerful strategy.
Speaker A:All right, the cost, let's first, like I said, diving into the real cost of constantly chasing new clients, acquiring a new client is on average five to seven times more expensive than for most service businesses, right?
Speaker A:Because you have the marketing, you have the admin, you have the calls, you have the follow up, you have the sending of the proposal, the follow up, the reaching back out, the nurturing, the, you know, inviting them to a masterclass, inviting them to a workshop, whatever, right?
Speaker A:And so it's expensive and it costs you a lot of time, right?
Speaker A:So it's on average like it's costing you five to seven times more, right?
Speaker A:Like literally think about if a dollar, right?
Speaker A:So acquiring a new client is like literally throwing $7 for every dollar you make down the drain just in constantly chasing new clients, right?
Speaker A:Like, are we in the business of throwing money away?
Speaker A:No, we're in the business of keeping money, right?
Speaker A:So really think about that.
Speaker A:Like really, really think about that.
Speaker A:And then here's the other thing is that for a lot of people, the reason that, that you have these instable months where it's like, I have a good revenue month and then a slow revenue month, and then a decent revenue month and then a slow revenue month.
Speaker A:That instability, it's because of the churn, right?
Speaker A:It's because of this constant need to find new clients.
Speaker A:And because new clients take time to convert, right?
Speaker A:Because it takes time to build authority, it takes time to build that trust.
Speaker A:Especially in a trust recession, there is a bit of that instability.
Speaker A:And so you're kind of starting at zero every month.
Speaker A:Because if you're constantly finding new clients and you're so focused on lead generation, those leads are cold, right?
Speaker A:And so sometimes it takes leads, you know, months and months and months, sometimes years to convert.
Speaker A:So again, like, that churn is what's creating this instability in your income, okay?
Speaker A:And then this constant stress about lead generation drives bad marketing decisions.
Speaker A:I've seen this over and over when it becomes this desperate energy of like, I need a new client.
Speaker A:And so people start discounting, they start saying yes to bad fit clients because you know, that client that gives you all the red flags.
Speaker A:And you know they're not going to be a right fit client and you know they're not going to get the results that you're promising or they're, they're going to be a pain in your ass.
Speaker A:But like, hey, some clients are better than no clients.
Speaker A:And so you say yes to them and then they're like a total pain in the neck.
Speaker A:Or you end up spending more time on them than necessary and they end up costing you money.
Speaker A:Again, they end up costing you money.
Speaker A:You're literally throwing money away.
Speaker A:We're not in that business, right?
Speaker A:Like that is not a smart business decision.
Speaker A:But I see this happening as we come from a place of desperation because we're like, I need a new client, I need a new client, what can I do?
Speaker A:And you start throwing discounts and all of these things or you start changing up your messaging and like, let me try this, let me try this, let me try this.
Speaker A:And so there's just like this scatteredness and then people start to feel like, well what the hell's going on?
Speaker A:You know what I mean?
Speaker A:And people sense that, like people feel and sense that desperate energy.
Speaker A:Okay, So I want you to think about like what Even if like 10%, let's look at 10%.
Speaker A:Let's say you have 10 clients, even if just one of them continued to do business with you over and over, like what kind of stability would that, conti.
Speaker A:Would that create for you?
Speaker A:And then if you can duplicate that and now it's 20% and then you duplicate that and it's 30%, right?
Speaker A:Like think about that is it creates this stability.
Speaker A:Now I will preface this and say that I know some people do not enjoy having retainer clients, meaning where they're on like a retainer and you work with them all month long or something like that.
Speaker A:However you can get repeat clients, right?
Speaker A:So if you are a project based business owner, somebody who operates on a project based like project to project basis, that doesn't mean that even if you're on project based that you can't find ways that you can continue to do additional projects for said client, one client, right?
Speaker A:So that you're not having to constantly turn and burn and find new ones, right?
Speaker A:So for example, if you are a web copywriter and you write web copy for them, okay?
Speaker A:Not everybody needs a full blown website all the time.
Speaker A:But they might have a new offer that they need a landing page for.
Speaker A:They may have a launch sequence that they might need emails for.
Speaker A:They may have regular just sales emails that they Want to send once a month that they want you to write out.
Speaker A:They may have like PR pitches that they need written or.
Speaker A:You know what I mean?
Speaker A:Not.
Speaker A:I know not a lot of you copywriters like to write social media content, but it's there if you want wanted it or some social content, right?
Speaker A:So like there's always something else.
Speaker A:There's always more that you can sell somebody for the most part, right?
Speaker A:There's times where people are just done and like you've done all you can and that's okay.
Speaker A:But like, I want you to really think about like what would it be like to just know that like these people keep coming back, right?
Speaker A:And so why does retention equal more profit is lifetime value.
Speaker A:This is huge to think about.
Speaker A:You've got one time value and then lifetime value if a client does business with you one time, right?
Speaker A:So let's say somebody lands a $5,000 client.
Speaker A:Okay, great.
Speaker A:That sounds awesome.
Speaker A:My price is a little bit lower.
Speaker A:But here's the thing.
Speaker A:I have clients that have retained me for seven years.
Speaker A:I have made far more than $5,000 off of that one client that's been with me for five years, right?
Speaker A:And so my lifetime value per client far out exceeds somebody who is like signing clients and then they leave.
Speaker A:And then signing client and then they leave, right?
Speaker A:Like their one time value.
Speaker A:So they have a huge amount of churn, right?
Speaker A:And so lifetime value is more sales over time without marketing spend, right?
Speaker A:Which means more profit because there's revenue coming in, but there's very little expense associated with that revenue coming in, which means.
Speaker A:Means higher profit, right?
Speaker A:This is where the power is, okay?
Speaker A:Consistent revenue.
Speaker A:And here's the other thing.
Speaker A:Consistent revenue makes planning and growth so much more predictable, right?
Speaker A:Like how we all love to have consistent revenue.
Speaker A:That's what 90% of the clients that come to me say.
Speaker A:I need consistent revenue.
Speaker A:I get.
Speaker A:I'm sick of being in this feast or famine cycle.
Speaker A:Well, one of the best ways to create consistent revenue is to retain the clients that are already happy.
Speaker A:It's always the very first thing I tell clients to do is who can you reach out to past clients and see if you can do more business with them?
Speaker A:They already liked you.
Speaker A:They already trust you.
Speaker A:They already know you.
Speaker A:They were already happy with your service, so why not continue to do business with them, right?
Speaker A:Think about your hairdresser, right?
Speaker A:You go back to your hairdresser because she knows you.
Speaker A:She knows your hair.
Speaker A:She knows what you like, she knows what you don't like.
Speaker A:The same holds true in business, we have so many service providers in our personal lives that we are loyal to, that we continue to do business with that.
Speaker A:They have us on retainer.
Speaker A:Whether we go once a month or once every three months, we are still on retainer.
Speaker A:So their lifetime value, they're doing nothing for us to come back.
Speaker A:We're just booking ourselves back in.
Speaker A:The same can happen in your business if you give people the opportunity.
Speaker A:Okay, and then here's the other thing that how this increases profit is happier clients means easier referrals, right?
Speaker A:They're more likely to send referrals your way because they're happy, they're on retainer, they're telling people about it.
Speaker A:It creates social proof and it gives you testimonials, right?
Speaker A:There's so much power in that because the referral and the testimonial and the social proof is that they continue to do business with you.
Speaker A:Right?
Speaker A:There is power in that and there's profit in that because again, they're continuing to do business and thinking about profit.
Speaker A:I want you to understand it's not just about making more sales.
Speaker A:It's profit is not a game of numbers.
Speaker A:Right?
Speaker A:Revenue is kind of a numbers game, right?
Speaker A:More revenue, more revenue, more revenue.
Speaker A:Profit is about making smarter decisions and smarter sales.
Speaker A:So selling to somebody that doesn't require any marketing to acquire, doesn't require further conversation or having another discovery call or all of this long term trust building, follow up, et cetera.
Speaker A:It's just, hey, I wanted to reach out.
Speaker A:I got this new offer.
Speaker A:I think you'd love it.
Speaker A:Here's why I thought of you.
Speaker A:What do you think?
Speaker A:Right?
Speaker A:Like that's smart selling.
Speaker A:That's smart selling and that increases profit, profitability like first and foremost, right?
Speaker A:That's what we're here for.
Speaker A:I don't really give two flying Fs what people's revenue number is because if they are spending all of their time, money and energy to get to that revenue, then they literally don't have a profitable business.
Speaker A:And that means nothing.
Speaker A:It really doesn't, right?
Speaker A:So here's how you create that retention.
Speaker A:Retention starts before the sale even closes.
Speaker A:And this is something I talk about all the time.
Speaker A:Every single person that comes into the Focus Visionary Accelerator.
Speaker A:When I have that initial discovery call with them or that initial conversation with them, I am already prefacing it with.
Speaker A:Once your six months is over, we've got a continuation program, blah blah, blah.
Speaker A:Like I'm already setting the stage to say like this is not a six month one and done.
Speaker A:Like I am not going to leave you high and dry.
Speaker A:I am going to continue to support you and the cost is much lower.
Speaker A:I want you to make sure that it's an easy yes.
Speaker A:I want to make sure that you feel supported.
Speaker A:I don't want you to feel like you have to abandon your plan.
Speaker A:Right.
Speaker A:Like, it starts before they've even said yes to the Focus Visionary.
Speaker A:Like, it is just there.
Speaker A:I make it very clear that there is a next step.
Speaker A:The summer sales sprint that I did, that was like that little summer program.
Speaker A:I already told them, like, start here.
Speaker A:And then likely the next step will be for you to move into the Focus Visionary accelerator.
Speaker A:If and when the time is right, like, that will be the next step for you.
Speaker A:Because you will then finally by going through this program, you'll have the data, you'll have the information, then you can really start diving into that further deeper planning, which is what we really focus on.
Speaker A:So again, like, I've already created the retention before I've even closed them.
Speaker A:All right.
Speaker A:But then also, I always, you over deliver, right?
Speaker A:Like, you set the expectation and then over deliver.
Speaker A:And it's like when people feel like they got so much value for their money, then it just becomes like an easy yes of like, well, I don't want to leave you.
Speaker A:How do I make sure?
Speaker A:Or even if they do leave you, like, here's the other thing.
Speaker A:Especially for those that are on project based or for people that don't, like, take that next step or maybe don't retain right away, don't cut off your communication with them.
Speaker A:I see this happen so many times.
Speaker A:It's like somebody says, hey, I think I need to take a break.
Speaker A:And then they just ghost them.
Speaker A:They the service provider.
Speaker A:You ghost these clients like, yeah, you're no longer doing business with me, then fine, I'm not going to talk to you.
Speaker A:But I can't tell you like how many people come back to me because I continue to cheer them on whether we're working together or not.
Speaker A:And that is something that I will never stop doing.
Speaker A:Yeah.
Speaker A:Does it hurt sometimes when people leave and then they go sign up for another coach?
Speaker A:Yeah.
Speaker A:But I can tell you more times than I can count, they've come back.
Speaker A:They've come back because of the value that I give, because of that personal connection.
Speaker A:Because there's just like such this deep personal connection that I am so ingrained in their business that they're like, I'm not getting that with anybody else again, like, make it manageable for yourself.
Speaker A:But also where people like crave it, right?
Speaker A:Like, because, you know, not everybody's providing that level of service.
Speaker A:And so even if they go and try working with somebody else, there's a good chance that they're not going to get that level of service and they're going to miss it.
Speaker A:Right?
Speaker A:And so building that relationship, right?
Speaker A:Keeping that relationship going, even if they take a break will allow for them to come back and keep the door open.
Speaker A:But so many times I see people just shut people out and then when they want to come back, they're like, I don't think she wants me back as a client.
Speaker A:She hasn't talked to me, she hasn't reached out to me.
Speaker A:You know, again, that's a very transactional based way of thinking.
Speaker A:And if you want retention and you want people to be loyal to you and you want them to be repeat clients, then you need to be building that relationship whether they're paying you or not.
Speaker A:Relationship.
Speaker A:You continue to make deposits, right?
Speaker A:Continue to make deposits into that relationship and they will come back.
Speaker A:You have to understand that their needs are going to evolve, their situation is going to evolve.
Speaker A:I have a client right now who we've worked together for on and off eight years and we are about to go into an off face because at this point there's really not much more I can help her do.
Speaker A:She's at a place where she just needs to execute and this is, this happens.
Speaker A:Like we get to a point where we've ex, we've gotten all the strategy, but she's kind of a one man show and she needs to execute.
Speaker A:And without execution, there's only so much strategy that we can put in place.
Speaker A:So we're on, we're about to go off again.
Speaker A:But that doesn't mean I'm not going to check in with her.
Speaker A:That doesn't mean I'm not going to offer her some suggestions.
Speaker A:It doesn't mean I'm not going to continue to provide value to her.
Speaker A:Like, because this is a relationship that's built beyond the transactional dollar.
Speaker A:And when the time is right and when her business grows and when she gets at that place again where she's feeling stuck, I will be the one that she comes back to.
Speaker A:And I know that.
Speaker A:And that again, I will do nothing aside from maybe put some deposits into that relationship that costs me nothing.
Speaker A:Right?
Speaker A:So when she comes back, it's pure profit at that point.
Speaker A:And again, lifetime value.
Speaker A:Lifetime value.
Speaker A:All right, so what can you do to be that goes to resource that they never want to leave, right?
Speaker A:Like that they never Want to work with anybody else.
Speaker A:That is such a powerful place to be.
Speaker A:And honestly, it's how I've built my business.
Speaker A:And I'm not saying like my business is massive.
Speaker A:We all know I'm very transparent about it.
Speaker A:Like I definitely could take on a few new clients.
Speaker A:I am definitely in the lead generation needing new clients.
Speaker A:But I will tell you, and I did the math.
Speaker A:I talked about this in a previous episode that with the fva, right?
Speaker A:So it was six months.
Speaker A:I launched it in January.
Speaker A:It was on a six month retainer, right?
Speaker A:Six month program with the intention that there is a continuation program.
Speaker A:Now the continuation program I made a 12 month, although everybody thought it was six months, which I think is.
Speaker A:Is funny.
Speaker A:But anyways, it's 12 months because it's like at this point they've learned the soft, they've learned the system, they've learned the framework, they're implementing it.
Speaker A:At this point, the reason to stay in is the continued coaching, the continued strategy, the continued accountability, the planning, all of that.
Speaker A:Right.
Speaker A:And to continue the momentum that they gained in the first six months.
Speaker A:So I made it a 12 month retainer and I made it at a no brainer price.
Speaker A:No brainer, okay.
Speaker A:I am retaining 62% at this point.
Speaker A:Like my client retention rate is 62% right now.
Speaker A:And actually that number is actually a little bit higher because two of the people that I did not include in that retention rate, I'm still working with one to one, they're just not in the group program.
Speaker A:So the retention rate is actually a little bit higher, probably closer to 70 to 80%.
Speaker A:So like, why would I not want to do that?
Speaker A:The longer they stay in the fda, the more results they get, the longer, the more they find value in it.
Speaker A:And the more they have the opportunity to talk about it, the more they have, you know, they're still in this program.
Speaker A:People see it like, wow, you're still working with Michelle.
Speaker A:That's amazing.
Speaker A:Let me.
Speaker A:Maybe I should look into this, right?
Speaker A:Like this happens when people see that you've stuck with somebody.
Speaker A:They, they of course get a little bit more curious because social credibility goes a long way, right?
Speaker A:So again, like, where's your retention rate?
Speaker A:I want you to look back, go back through your client roster.
Speaker A:Go back through and see like, what is your retention rate staying at?
Speaker A:This is a massive number.
Speaker A:This is a huge key success factor.
Speaker A:I talk all the time about key success factors.
Speaker A:Retention should be a key success factor.
Speaker A:Or you know, again, like repeat business, that type of thing.
Speaker A:But there's because that's profit.
Speaker A:That's where the profit comes from.
Speaker A:I'm not going to keep saying it.
Speaker A:Okay.
Speaker A:And so there's so many things that you can do.
Speaker A:You can think about an offer like upsells, you can create referral programs, you can offer continuity options like I talked about, like whether that's a maintenance package.
Speaker A:So for the web designer that I hired, I am on a maintenance package with her.
Speaker A:She's.
Speaker A:I'm on retainer with her.
Speaker A:So retention, there it is.
Speaker A:Like I pay her every single month just to make updates to my website and it literally cost her nothing to attain.
Speaker A:Retain me because I said I want to keep working with you.
Speaker A:I don't want to have to find a new web designer.
Speaker A:Like, you know my software, you know what you built, you know my language, yada yada, yada.
Speaker A:Like what does it take to just go on retainer with you?
Speaker A:So there's maintenance packages, there's ongoing strategy.
Speaker A:So if you don't want to commit to like monthly, you could commit to like maybe one call a month.
Speaker A:You could commit to a check in, you could do a group program.
Speaker A:Like this is where group programs are great continuity options.
Speaker A:Maybe there's like a cross sell.
Speaker A:So one of the things that I am working on from a client retention standpoint is reaching out and doing some direct invites to those that have worked with me in the past or have been in my programs in the past and inviting them into the Back Pocket Insights.
Speaker A:And I will invite you in if you're listening.
Speaker A:You know, I'm continuing to talk about it.
Speaker A:Back Pocket Insights is my little private podcast, community and training center.
Speaker A:Right.
Speaker A:That's where I'm hosting all of my trainings, all of my workshops, anything that I used to host for free that is now being hosted inside of the Back Pocket Insights.
Speaker A:And it's a great way for people to be able to stay in my world, continue to learn from me, but maybe aren't quite ready for any of my bigger programs.
Speaker A:And it's also a great way for me to stay connected to past clients because it's a great, maybe they don't need a full one to one program, maybe they don't want to, they don't need the full group program, but they still want to be able to ask me questions or they want my eyes on their business.
Speaker A:It's an incredible way for me to stay connected to past clients so that I can continue to see what's going on in their business.
Speaker A:So if and when the time is right that they need more Help.
Speaker A:I'm already involved, right?
Speaker A:They're not having to catch me up on six months worth of things that have happened because I've been there, seeing it.
Speaker A:So Back Pocket Insights is like a lead generator.
Speaker A:It's a nurture piece.
Speaker A:It's a.
Speaker A:It's a lead generator.
Speaker A:I. I think I just said that.
Speaker A:But it's also a great retention piece.
Speaker A:Okay?
Speaker A:So there's all kinds of offers like that that you can create.
Speaker A:And even though it's super low ticket, I mean, seriously, $11 a month, it's.
Speaker A:It's there.
Speaker A:And it's a great way for me to stay top of mind with people, which is really very important to me.
Speaker A:I.
Speaker A:And I like that.
Speaker A:Like, I tell everybody, like, once you're in my world, you're in my world for life.
Speaker A:And I mean that.
Speaker A:I don't joke about that.
Speaker A:Like, I'm telling you, I will continue to make relationships.
Speaker A:I am loyal to the freaking bone, maybe sometimes to a fault, but it is, it is such a top value of mine that I want to stay involved.
Speaker A:And I will find a way for me to continue to stay updated in your business just because, like, it's so.
Speaker A:It's that important to me, okay.
Speaker A:And so find ways that you can continue to create that continuity, right?
Speaker A:Upsells do not have to be terribly complicated, right?
Speaker A:It doesn't need to be like, again, the whole point is profitability.
Speaker A:So it doesn't mean that, like, you have to over deliver and fill your schedule and be booked solid and be like, you know, balls to the wall busy.
Speaker A:That's not what it needs to be.
Speaker A:You know what I mean?
Speaker A:Like, an upsell can literally be join back pocket insights, right?
Speaker A:Or it could be like, let's do a day in boxer once a month or something like that, right?
Speaker A:Like, there's so many different options.
Speaker A:And then referrals, like, make it easy for people to refer you because again, that's a great way to increase retention, especially if they're there already.
Speaker A:Like, hey, if you stay in and you refer somebody else can create referral programs, you can create referral bonuses, you can give incentives.
Speaker A:But what you need to do is just ask, right?
Speaker A:Because they're happy clients and they want to refer you, but sometimes they don't know.
Speaker A:And then also, one of the things that I think is really, really important here when it comes to retention is don't make assumptions that your past clients know how to find you or know what you're up to.
Speaker A:Like, this is the biggest struggle or mistake that I see.
Speaker A:Happen in entrepreneurship is like people assume past clients just automatically know how they can continue to work with you.
Speaker A:Well, if they haven't worked with you in a couple years, like, they're not, they may not be thinking about you.
Speaker A:They may not think that you're available.
Speaker A:They might think that you don't want them back.
Speaker A:Right?
Speaker A:So like, don't make that assumption.
Speaker A:Like I would say assumptions are the biggest thing that hinder people's growth is that we just make these, our assumptions about what people know or don't know or think or don't think or whatever.
Speaker A:So keep inviting them in.
Speaker A:Like, keep inviting them in.
Speaker A:What is the worst they're going to say?
Speaker A:Like, no, right?
Speaker A:I'm, I continue to invite you into Back Pocket Insights.
Speaker A:I'm not going to stop.
Speaker A:You are going to get annoyed by it.
Speaker A:Maybe not.
Speaker A:Maybe you won't be.
Speaker A:And here's the thing, like, I want you to not be annoyed by it because this is business.
Speaker A:Business requires you to talk about your offers, right?
Speaker A:Like, let's not be annoyed about people talking about their offers, okay?
Speaker A:So anyways, invite people in.
Speaker A:Don't make assumptions, okay?
Speaker A:And then I really want you to take, consider, like take note of your retention rate.
Speaker A:Like, spend some time.
Speaker A:That's your action point is spend some time to really look at like, where, what is my retention rate?
Speaker A:And I don't really have a percentage that I say, like, if you're under 50%, you've got work to do or over.
Speaker A:This is all very personal, but I think that most people should be able to maintain like a 20 to 30% retention.
Speaker A:Retention.
Speaker A:Again, retention doesn't need to be like continuous.
Speaker A:It just needs to be repeat.
Speaker A:All right?
Speaker A:And then also really looking at like your churn rate, meaning like the clients that don't renew or don't buy again.
Speaker A:And then just kind of analyze that like, is there a reason they didn't buy again?
Speaker A:Are they not a good fit?
Speaker A:Was it because you didn't offer it to them?
Speaker A:Right.
Speaker A:You want to keep a lower retent, a lower churn rate and a higher retention rate, right?
Speaker A:Like those are the percentages you're kind of looking for.
Speaker A:And then also your lifetime value of a client.
Speaker A:Right?
Speaker A:So you just, this is, you can keep track of this kind of on a spreadsheet.
Speaker A:If you have a CRM software, it should be able to give you your lifetime value of a client.
Speaker A:Like Thrive Cart's really good about this.
Speaker A:They will give you, they track all the transactions.
Speaker A:So if you use a checkout like ThriveCart.
Speaker A:It will track how much money you make off of each client.
Speaker A:And that's, like, a really powerful number to start tracking, is really looking at.
Speaker A:Like, what is your average lifetime value of a client versus one time value?
Speaker A: g business with them once, or: Speaker A:Right?
Speaker A:Because I. I don't even know what my average lifetime value is, but I can tell you that it's five figures for most clients, right.
Speaker A:Versus three or four.
Speaker A:So, like, that's something to be very proud of.
Speaker A:Okay?
Speaker A:So you can just take a look at these things again.
Speaker A:You don't have to get super technical about it, but look at it.
Speaker A:Okay?
Speaker A:So again, hopefully you're, like, not bored to tears.
Speaker A:Hopefully you're actually feeling very fired up about this.
Speaker A:Because again, this is the things.
Speaker A:These are the things that grow business.
Speaker A:These are the things that create profitability.
Speaker A:These are the things that create sustainable business.
Speaker A:The businesses that are here for 5, 6, 8, 10, 12, 15, 20 years, they are able to sustain that because they have a good lifetime value and a good retention rate.
Speaker A:Okay?
Speaker A:The businesses that fail is 90% of the time because of churn.
Speaker A:This is one of the key factors to success and giving up or failure.
Speaker A:I don't like the word failure, but, like, there is some, you know, some businesses just can't stay afloat, and a lot of that is churn.
Speaker A:There's something wrong.
Speaker A:There's a reason why clients don't come back.
Speaker A:The businesses that succeed for years and years and years on end is because they have a very strong, powerful whole, like, client base of super fans.
Speaker A:So that's what you're trying to create.
Speaker A:Okay?
Speaker A:So don't be, like, bored by this episode.
Speaker A:You should be like, michelle, that was amazing.
Speaker A:Thank you for saying what nobody else is saying.
Speaker A:I'm gonna toot my own horn there because truly, I don't see anybody talking about this.
Speaker A:I really don't.
Speaker A:And I.
Speaker A:It drives me absolutely freaking batshit crazy because this is business.
Speaker A:And that just also goes to show and prove to you that most people and a lot of these coaches in the online space and, like, I'm not trying to discredit anybody at all because everybody has their own set of skills, but a lot of them didn't have any business background.
Speaker A:And I.
Speaker A:That's what I went to school for.
Speaker A:I went to school for business and accounting, right?
Speaker A:Like, that's the world I lived in for 15 years is business development and accounting.
Speaker A:So these are the things, like, I see what makes businesses run.
Speaker A:I've been there.
Speaker A:I've been on the back end of this.
Speaker A:I've been the one creating the reports that tell people, like, tell my boss, like, hey, we're struggling with retention, you know, and seeing how that plays a role.
Speaker A:So, again, like, this is the real truth, and it's fun.
Speaker A:Like, these are the things that make life easier.
Speaker A:This is about keeping clients.
Speaker A:Like, don't we all want to make life easier?
Speaker A:Keep the clients you already freaking have.
Speaker A:It's so much easier than marketing yourself.
Speaker A:20, 24 freaking 7.
Speaker A:So much easier.
Speaker A:So, like, this should excite you.
Speaker A:This should light a fire under you.
Speaker A:Okay.
Speaker A:Love you.
Speaker A:I'll talk to you soon.
