Podcast Episode

TRANSCRIPT

Hello and welcome back to the podcast I want to ask you a question. Let me know if this sounds familiar to you. You are working so hard on your marketing to get more leads, you might be posting on social media. You may be doing networking. You may be running ads. Maybe it's even doing an outreach DM, strategy campaign that you're looking at. But you're basically constantly looking for that next sale. You're like a lion out in the wild who is going to be my next prey? And if you've ever thought I need more leads in your business. I want you to stop and ask yourself this, what am I doing with the people that have already bought from me? Because if your entire strategy is about getting new clients. and you're barely paying attention to the ones who've already said yes to you then I guarantee you lovely. You are probably working way too hard.
Now, you know I'm all about spinning the truth right? And did you know that it costs 5 times more to get a new client than to keep an existing 1 5 times more that is crazy. Did you also know that a returning client spends more than a new one because they already know you? You've already built up that trust. They already know how you work, what you're about, what you stand for. They've connected with you, so they're willing to spend more money with you and a just 5% increase in retention can boost your profits by anywhere from 25 to 95%. That is huge, 25 to 95% boosting your profits. Tell me you don't want that right? We're not just about building businesses. We're not just about making sure that we're constantly going for those sales. We're about profitability.
And so if I can increase your profitability by 25 to 95%, I'm sure you're keen to listen to that. So? Why the hell are so many business owners obsessed with getting fresh leads? Well, their past clients are sitting there potentially spending money with someone else because they're looking for that next step. And so my question to you is, what are you doing to retain clients within your business? I really want to focus on how you can do that today. So we're going to look at the difference between being a hunter versus a farmer in business and why it makes you richer with way, less effort, more sales, less effort all about it.
We're also going to look at how keeping your client costs less and makes you more money how to create a customer journey path. So people keep working with you. Okay? And then why do we need a retention strategy? And what happens if we don't have one. if it. If your attention rates aren't something that you look at in your tracking, maybe also consider that in your business. CEO dates, too. Let's be honest. Most people don't have a leads problem. They have a keeping clients problem, and they have a sales problem. And after today's, podcast. I hope that that ends for you today. If you're listening to this.
So let's look at the 2 types of business owners. When it comes to client management. There's the hunter. This is a person who is obsessed with getting new leads, constantly focusing on their marketing, constantly spending time and energy, and just wanting new clients, new clients, list building, new clients. constantly searching for fresh leads, always in sales, mode. chasing, chasing, chasing, and never really focusing on the nurturing. It is exhausting. I have these people come to me on a regular basis, Maree. I need more leads, Maree. I need more leads, Maree. I need more clients. I get it. But I want you to kind of think about for a moment what it would be like to be. The farmer.
The farmer is the business owner who plays the long game. They are focusing on keeping and nurturing the clients that they already have. They are big on building long-term relationships, so that people keep coming back. They get repeat sales without constantly working harder. Farmers are about nurturing what they already have. building the seeds and nurturing the living bejeebers out of them. Hunters end up, burnt out. Farmers are constantly building and building and building to increase their sales and grow their business. So if you're sitting here thinking. -Oh, insert naughty word. I think I'm a hunter. It's okay. It's okay. For now, I hope after this, podcast. Your mindset changes around that because we don't want necessarily hunters. There's going to be times where we need to do outreach and do a whole heap of marketing. But we don't want to do that marketing without also understanding that we need to farm and nurture and take care of the people that have already come into our business, whether that's through our database, whether that's being paying client, whether that's someone that has inquired a couple of years ago, what are we doing to nurture?
And so let's talk about why it costs way less to keep a client. Let me hit you with a fact that's going to change the way you think about business. As I said before, it is 5 times more expensive to get a new client than to keep an existing one. When I say people talk about spending money on ads. and if someone hasn't bought straight away from that ad they are then going. Oh, that ad cost me $300, and I didn't get what I was looking for, or I only got 10 leads. And when I spoke to those leads 2 were ready to buy, and everyone else wasn't a good fit, or was looking at starting up at another time, or just wasn't qualified enough.
But if we look at it from a farming perspective. We don't want to be spending all our energy hunting down those fresh, fresh leads instead of nurturing the people that we've already built the trust with the people that have already come in, for example, from those Facebook ads. They have clicked on you for a reason. If they're not your ideal clients. And we obviously need to look at your messaging and the ads that you're putting out there. But if people are coming in and they are your ideal clients depending on where they are in the buying stage, they may just need to be nurtured.
So instead of constantly looking for new leads, we want to nurture the people who already trust us, people that have already bought from us people that have already attended our webinars, master classes, any launches that we've had. If they've done opt ins you literally making, you are literally making business harder if we're not looking at that retention type strategy. So let's say, for example, you run a social media agency right? You lend a new client. You charge them. I don't know 2 grand for a package. You have worked hard for that sale. You've probably spent time marketing, engaging, selling, onboarding, making sure that the customer is happy, and that we are delivering on them.
Now, if, if, instead, you are hustling for a new client. You look at that same person. and you think, how can I continue to have them as an ongoing client? Maybe it's an ongoing $1,000 per month retainer. Maybe there's an extra service I can offer. Maybe once we've done package A, then there's package B and C and D, as they are ready to work through it as their business grows as they complete one email campaign or one social media campaign.
Then we're looking at. How else can we support them moving forward so suddenly? We've gone from a 2 grand client into potentially a extra 12 grand in revenue without having to chase a new client. All we've done is touch base with that current client and thought, where are you at? How can I continuously help and serve you.
This is how wealthy businesses are built. not by constantly finding new leads, but making sure each client gets maximum value, and so that we can feel ready when they are ready to leave, that we have absolutely nurtured the bejeebers out of them, and we have served them to complete capacity. They may not ever need feel the need to leave, which would be even better. Right?
So let's look at how we build a customer journey path to increase our retention. Let's talk strategy. Keeping a client isn't about hoping that they come back right. Yes. some people do live and grow their business on hope. But we're not about that, right? We're about strategy and making sure that we have a plan and a structure behind us that allows people to keep working with us. So let's use an example. Your business coach and your customer journey path may look like you've got that free or low cost intro offer, so it may be a workshop, maybe a Mini course, and maybe a free opt in maybe an E-Book, whatever that looks like for you, so it can be free, or it can be low cost.
So it's that 1st step of someone connecting in with your business. This can also be people reaching out to you via DMs or interacting on your social media. But we want to know that there is something that is pulling them from our marketing into our database where we can nurture them. Low cost, offer intro offer whatever that looks like. Then step 2. We would have a mid tier offer. So it may be a group program. It may be membership, maybe ongoing support. Maybe a tiny offer in a Mini course type thing.
And then what we want to do is once they have taken those steps, and they have implemented and have grown their knowledge, their experience, whatever it is that we are helping them with. We then want to look at. What is that next step? So maybe it might. It might be a high ticket offer. It may be VIP coaching. It might be a mastermind. It might be an exclusive service. It may be back in that retention strategy, that ongoing retainer we always want to keep thinking. What is that next step that our client is looking for, and how can we help them with it if someone finishes working with you, and there's nowhere else to go. What do you think that's going to happen? They're going to leave. They're going to think that that business has helped me as far as I can go, and so to go and get the next level of help. I need to go and find someone else.
It's not because they don't love working with you. It's because you haven't given them a reason to stay. You haven't showed them what else you can help them with. You haven't showed them. What is that next step? So I want you to take a minute and ask yourself what is the next step for my clients? What is that next retainer level that I can help them with. Let me give you a beautiful example.
The beautiful Mel Brown runs my financial adulating plan, and it is a 8 week course that her people go through to learn how to manage their money, to learn how to invest, how to get to that level of wealth that they're looking for really clear plan and spreadsheets and some really amazing tools. Right? That is 8 weeks. She supports you over those 8 weeks you've got Q. And as over those 8 weeks. But then what she does is, once you have completed those 8 weeks. She then gives you an opportunity to go into a membership style offer. and that membership is low cost, but it is ongoing, so she will have. She will bring in expert money experts on certain topics, so it may be shares. It may be investing. It may be estates and wills and all that sort of stuff that you can help with your financial growth, right? But instead of just saying, Okay, people have done the 8 weeks I've given them the knowledge. Off they go, fly out into the world and boost your income like boost your money and sort yourself out right instead. She has this ongoing support and help, so that people keep working with her. Then she offers things like your best year yet, workshops that she does once a year. So these clients continuously come back. That is our retention strategy. Instead of just going out and finding more leads and hunting for more people to go into her 8 week program. She has a really clear customer journey path about how people move through her business.
So I come back to that same question, what is the next step for your clients once they have bought from you once. if you don't have an answer to that. This is your 1st action step today. Okay, let's make this app actionable. Here are 4 things you can do right now to start keeping your clients longer. 1st consistent communication. This may be really obvious, but it is something that not everyone does. I know I've been guilty of it in the past where I have dropped the ball on the nurturing side of life. Okay, I'm human, too. but I want you to think about how else you can keep checking in, even when you're not selling, even when it is in a quiet period, even when you're not in launch.
Okay, how can you keep checking in sending emails, DMs, giving them a call, deliver some form of value. Okay? And then only. And then you want to think about what is that next step. because we don't want people to only hear from us when we have something to sell. We don't want people to feel like we are just chasing them for money. because that's not the best way to do business right? We want to be authentic. We want to be connected. We want to build those relationships. I've had clients that I have worked with that have been the second or 3rd client in my consulting firm. And they're still working with me today. That is amazing retention.
It is also being so clear on who my ideal clients are, and growing with them and helping them as their business grows. so that we keep working together. K. The second thing you can do is look at ways to surprise and delight. So loyalty, rewards exclusive bonuses, unexpected gifts. I love popping things in the mail to people, and being like Hey, happy birthday, or congrats on your launch, or happy 6 months in business or happy 6 months working together. Whatever it is, it's something to light them up and to show them that we care, and that we're so grateful that we are that they are our clients and that we're working together. Okay, when people feel valued, they will want to work with you, and they will want to stay. Okay. The 3rd thing you can look at is some follow up offers. Never let a client just finish with you for the sake of it. Always have a think about, what is that next level offer that people can take don't get me wrong. We don't necessarily want people to work with us for the next 80 years, if it's not in their best interest or in our best interest. Right? But what I'm trying to get you to understand is, don't just have one offer, and then constantly go hunting for new clients.
Keep serving the beautiful clients that you've already got. You can have things like renewals. You can have an upgrade. You can have a retainer. You can have that next level up exclusivity that they've got make staying with you the obvious choice. Make it a no brainer make it a like. Yep, this is it. This is the next step of our journey together, fantastic. And the other thing I want you to think about point Number 4 is, ask for feedback. Where are they at? What's been happening for them? Now that you've worked together? Where is their business at. What are they needing? What is that next step for you? If you want to know why people leave, ask them, have an off boarding process. And then, once you've asked them, see how you can fix it. See how you can get them to stay.
But if we're not constantly thinking about, what are those follow up offers. We don't want to just wait till the end of when someone's will like ready to leave to then go. Oh, no, I can actually stop help you. Here's another offer for you. Okay. simple client survey will tell you exactly what you need to improve and what it is that your clients are looking for. Okay. So let's recap. It's easier and way cheaper to keep a client than to get a new one. If you're hunting for new leads. You're missing out on easy money.
You need a clear next step, so that people keep working with you and can see the value that you add. Excuse me So we want people to know the value that we're adding, and the next steps that they can take for working with us. And I want you to be really clear that retention isn't just a maybe it's a must. It is essential to understand what your attention rates are and what you can do to improve them. Now, here's what I want you to do. Get out your database. Look at your past clients right now. Who could you reach out to today with that next level offer. send them a message, reach out via email, organize a time to catch up for a coffee, see if you can take them out for lunch. do a survey whatever that is right, just connect in.
I want you to really think about what you can do to get retention. let me tell you. Let me just go on a little rant for a little minute. So when I look at retention strategies and the farming versus the hunting. a really clear industry that is constantly hunting. Well, 2 industries. 1st one would be banks, and the second would be telecommunication companies. Banks don't really do anything to look after their current clients, they will offer lower interest rates to new clients or new customers than they will looking after the clients that they've already got. So it creates this lack of loyalty. and people are willing to jump ship at any time to get a better offer if they haven't been looked after. If the customer service isn't there, if they feel like people looking after new clients better than they are, their customers that have been with them for 20 years. They're going to leave.
Look at retention strategies on that side of it. Or if we look at the telecommunications constantly, hunting, constantly, looking for new clients rather than looking after the ones that they've had for 1015, 20 years. And then, when you call up and be like, Hey, I just saw this new offer. Oh, no, that's for new clients. Only right? So I'm going to leave and get a client some go somewhere else to get a better deal, and you're not willing to do anything about it. You're going to go and pay hundreds of dollars to get a new client rather than look after the one you've got freaking crazy. Don't be like that.
Retention isn't a maybe it's a must, and I guarantee you that retention will equal revenue. As I said before, 25 to 95% profit increase. If you have a look at your attention strategy, and if you are not tracking what your attention. Rates are. Pop it down in your CEO Date tracker. pop it down as your one of your KPIs that you look at on a weekly Monthly Fortnightly quarterly basis whatever that looks like for you within your business, and if your attention rates are low, figure out what you can do to continuously serve the clients you've already got. Keep them coming back. Keep working with you. Keep loving on them. Keep nurturing them, and be a beautiful farmer that nurtures their beautiful clients.
That is all from me today. I hope you've got something really helpful out of this, and something that you can. Action. I would love to know what your biggest takeaway is from this episode. And what are you going to do to increase your retention rate? Now go out there, keep those clients coming back, and I will chat to you soon. Have a great day.