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Client Retention Best Practices
Marina de la Torre
Senior Director, Customer Success
A MINDBODY University Sneak Peek
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Marketing is great, but if you cannot keep your clients coming back,
then those dollars are wasted.
Customer retention is less expensive and requires less time and effort
than bringing in new clients.
Client Retention
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The Cost of Attrition
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10% The average year-over-year
retention for a class-based
business/service
A good goal is 50%
40% The average year-over-year retention
for appointment-based
business/service
A good goal is 90%
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03
02
01
04
05
Reporting
First Impressions
Connection
Motivation
Client Feedback Loop
The Cost of Attrition
Reporting
01
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Your staff play an important role when it comes to retention and you are
only as strong as your weakest link.
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Staff Bonus Based On Retention
Quantify your expectations:
• Desk staff will sell 5 Autopays per week
• Instructors will maintain retention rates for new clients of 50%
or higher
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Understanding Attendance and Retention
Big classes can hide poor retention.
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Setting Retention Goals: Retention Report
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Setting Retention Goals: Staff Bonus
Set an achievable goal to increase new clients retained:
273 x 46% = 126 new clients
273 x 51% = 139 new clients
13 more new clients per 5% increase
13 x drop-in ($20) x avg visits per month (4)
$1,040 per month
$6,240 per 6 months
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Clients Lapsing (and How To Win Them Back!)
Motivate and be proactive about it:
• Have a retention plan and staff person who implements retention strategies
• Reach out before they expire
• Keep them motivated and coming back
• Call them—reschedule them
• They want to hear from you!
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• Send a “we want you back” message, include a promo code (use
Promotions in software)
• Easily export report directly to excel to get email addresses
• You can also use this with Autopays to catch people before they cancel
Clients Lapsing (and How To Win Them Back!)
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Examples of “We Miss You” Email
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MINDBODY Accelerate
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Example of Accelerate “We Miss You” Email
First Impressions
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20 seconds
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First Impressions: New Clients
It’s essential to make great first impressions in all areas you interact
with clients.
• Physical space
• Staff
• Website
• Collateral
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First Impressions: New Clients • The physical space of your business
should reflect your style, values, and
vision
• It must be clean, welcoming, and
comfortable
• Although often unaware, clients are
deeply influenced by their surroundings
and may choose your competitor
because it is more physically appealing
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Making It Easy: Signing and Paying
Connection
03
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- Brene Brown
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Orient and Help New Clients
• New client workshops / orientation / “Getting Started”
• Greet them by name
• Welcome packages
• Call them afterward (Advisor)
• Specific classes/sessions geared toward new
clients
• Selling them something else (Sales Person) increases retention from 20% to 40%
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Education for Clients
• Newsletters: give the “why” and educate your clients
• Staff experts
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Shower Clients With Attention and Love
• At the end of the day, how you treat your clients on a day-to-day basis
will determine whether they come back or not
• It isn’t the smartest, most talented
teacher/trainer/instructors that are
most successful—it’s the ones who
have the best people skills
• Same goes for businesses
Motivation
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Tactics to Motivate and Engage Clients
GROUP PROGRAMS CHALLENGES CERTIFICATIONS
Your clients don’t necessarily see or feel their improvement, so you need
to highlight it for them.
Measure, take pictures, have written assessments, range of motion, SOAP notes, etc.
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Examples
Client Feedback
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What Does Your Client Want?
“The problem with most failing businesses I’ve encountered is not that their
owners don’t know enough about Finance, Marketing Management, and
Operations—they don’t, but those things are easy enough to learn—but they
spend their time and energy defending what they think they know. The greatest
business people I’ve met are determined to get it right, no matter what the
cost.”
– The E-Myth Revisited, by Michael E. Gerber
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Customer Feedback
Proactive Approach
• The business makes the first
move to help customers
• Listen to customers and
continuously solicit their feedback
Reactive Approach
• The business reacts to
customers’ problems
• Manage customer complaints
Provide an experience that meets customer expectations and produces
satisfied customers.
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The Value of Complaints
Customers who have a problem with a product or service voice their
objection to the company directly (only) 50% of the time.
9 out of 10 of these customers usually take their future business
elsewhere.
A complaining customer gives you the
opportunity to turn them around and make
them a happy customer—consider it a gift.
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Staff Training to Diffuse Complaints
• Let clients vent, even if it is irrational
• Acknowledge the client’s feelings
• Offer solutions – fix the problem and/or offer incentive
• Evaluate client lifetime value
• Is it worth losing a customer over $100, when their lifetime contribution to your
business might be $5,000?
• Turn it around – make them a customer for life!
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Listen to Customers
APP
REVIEWS SUGGESTION
BOX
WEBSITE
FEEDBACK LISTEN 360 SURVEYS
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Understand What Your Clients Want
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Having a Retention Strategy and Plan in Place
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02
01
04
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Reporting
First Impressions
Connection
Motivation
Client Feedback
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#BOLDConference