Ready for some easy wins? In this episode we do a deep dive into retention strategies to keep current customers coming back for more.
It can all get a bit frustrating when you're working around the clock with just a few sales coming in and little financial certainty across the months to come ... so it's time to change your focus ...we tap into exactly how to build a successful customer retention strategy so that you can effectively work smarter and not harder in your business.
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TUNE IN TO HEAR ABOUT
- Why retaining an existing customer is great for your bottom line
- Why retaining an existing customer is easier than acquiring a new customer
- 7 key retention strategies to help you work smarter in your business
Anna Jonak: [00:00:50] Welcome to Episode 16 of the Raising Her Game Podcast. We're Anna and Flori the queens of small business and we deliver female entrepreneurs both the business and mindset tools needed to start, grow and scale your small business for success.
Flori Pyke: [00:01:05] Yes. Success speaking of success. I want to share my hashtag winning moment right out of the gates because it's been a long work in progress but I'm finally starting to feel settled into my new abode.
Anna Jonak: [00:01:22] What a pimping pad.
Flori Pyke: [00:01:24] I don't know about pimping, [Anna laughs] but it's just nice to have s**t out of the way and to have unpacked 74 boxes. Put it that way.
Anna Jonak: [00:01:35] Dude I've moved so many times. I've got you. I'm hearing you and I'm so like talking to Bo about the next place we move to because you know we need some more space again. And he's like no we're not moving, we've moved like five times in five years and I'm like we're so good at this now.
Flori Pyke: [00:01:52] I mean I'm not OCD but you know I, like you, we both really like a bit of organising.
Anna Jonak: [00:01:57] Yeah I know.
Flori Pyke: [00:01:58] And so I really struggle when like things are not where they should be.
Anna Jonak: [00:02:01] [laughs] in order.
Flori Pyke: [00:02:03] It really throws me to chaos and so the last six weeks basically
Anna Jonak: [00:02:08] have been a bit chaotic [Flori agrees]. There's been a lot going on and with bub on his way there's tons happening. Not to mention as usual we do a bajillion majillion things. [laughs]
Flori Pyke: [00:02:19] Anyway what about you.
Anna Jonak: [00:02:20] My winning moment is actually as you know we're preparing lots of new exciting content for a little live masterclass series that we're going to be unleashing to all of you and inviting you all to, we're going to be doing some live teaching on a very special masterclass series. And just going through the content and putting that together it's very exciting and you'll hear more about that soon. So we just literally want to do what we're doing right now on the podcast but on a live class so we can interact with you. So hang tight it's going to be exciting.
Flori Pyke: [00:02:51] Really really exciting. Ok hashtag losing. I'm missing my wine. I'm not going to lie. I'm missing more than one coffee a day. I have so many decafs because I'm like tricking myself that s**it is any good [Anna laughs]. And I'm just I'm like ready. I'm ready. Get this thing out.
Anna Jonak: [00:03:07] Come on.
Flori Pyke: [00:03:08] Even though it's still like
Anna Jonak: [00:03:09] I was just going to say you have ages left. You're just going to have to deal with it. Well I say that but my losing is worrying about the fact that you are going to be leaving me in a little while. [both laughing]. But we do have the lovely Jo and I actually think that we're going to be on an expansion process with team shortly. Just because of the way the business is going which is very exciting, which is a winning. But I'm going to miss you. But I say I'm going to miss you but I'm still going to be hounding you.
Flori Pyke: [00:03:36] Oh I know. Well it's like what I say to everyone though. Everyone is like oh are you taking mat leave, and I kind of laugh out loud because I'm like maybe a week yeah. But the truth is I love what we do. So it doesn't feel like work it's quite different.
Anna Jonak: [00:03:51] I know I was going to say I bet you'll be like there's a bit going to want to switch off. But you're also going to be like what's happening.
Flori Pyke: [00:03:56] Yeah totally. Like a newborn, I mean they're so cute but they don't really do much. [both laugh] I mean let's be honest. Other than feed.
Anna Jonak: [00:04:02] Just keep you up all night.
Flori Pyke: [00:04:05] Yeah but you know I think it'll, we'll be right.
Anna Jonak: [00:04:10] We'll be right that's the attitude I like. That's a mindset, approach it with it's all gonna be fine.
Flori Pyke: [00:04:14] Totally. OK. So we've got a big one for you today.
Anna Jonak: [00:04:17] Oh yes and we've been alluding to it across a few episodes so I'm very excited to share this one.
Flori Pyke: [00:04:22] We certainly have. And our topic today is titled what better than acquiring a new customer.
Anna Jonak: [00:04:30] Good question. Yeah the answer is retaining an existing customer.
Flori Pyke: [00:04:35] Yes. So today we really want to move your mindset, your psychology, away from getting new leads and getting new customers in at the top of the funnel. And instead we want you to shift your focus on keeping the customers that you have. Good old customer retention okay. And why you might ask. Well there's a lot of reasons. So for starters keeping customers coming back will continually result in a greater return on investment for you. Because also the likelihood that they're going to buy from you again is a lot higher. So if you can keep them coming back for more. It means more value for them and more share of wallet for you.
Anna Jonak: [00:05:24] Exactly right. And also it costs less to keep an old customer. Essentially you've already engaged them and now it's just about having another conversation with them. You know if you delivered a great service the first time there's nothing stopping them coming back it's just being front of mind. And in fact it can literally cost you five to 25 times less which is huge.
Flori Pyke: [00:05:46] That's enormous. [Anna agrees] It is enormous.
Anna Jonak: [00:05:49] And people put so much energy into getting a new customer and so little into keeping the ones they do have.
Flori Pyke: [00:05:55] It's absolutely true what you're saying. Another point is that it also takes a lot less work to keep an old customer than to go and find a new one. And if you're constantly having to go and find a new one it means you're probably working harder than you need to be.
Anna Jonak: [00:06:13] Yeh so much energy. Think about from the recruitment process that you go on and the sales funnel and all the different things that go into it and you do that again and again and again.
Flori Pyke: [00:06:21] That's exactly right. And not only the energy but the expense. Right. Because at the top of the funnel that means you're running ads [Anna agrees] if you're serious about getting people buying from you. And it's expensive. Whereas, as you just said if you focus on retaining your customers
Anna Jonak: [00:06:40] doesn't have to cost you anything
Flori Pyke: [00:06:41] Exactly
Anna Jonak: [00:06:42] Or a few things to get some brilliant systems and processes in a bit of time. But you're going to see we've got some great examples for you. There's also a really good chance that if you're not focusing on your current customers that you could actually be leaving a lot of money on the table. You'll see that if people don't know what you've got, they may have loved what you had the first time, and they don't know what else you've got. So it could just be about sharing the love and giving them more information or perhaps you've got products or services that they want from you but you haven't asked them. You don't know because there's always gonna be people there that will spend more and we'll certainly be talking about the golden 80/20 rule as we get going shortly.
Flori Pyke: [00:07:19] I love love that rule by the way. And finally you know if you're not keeping your old customers you're missing out on a deeper more fulfilling relationship with your existing client base. You know if your focus is always on what next or who's next, who next am I going to get in, we want to ask you to think about well are you really delivering the customer experience that you truly want to be in your business.
Anna Jonak: [00:07:51] You see so many businesses so focused on getting people in the door and then they get that client in and that's it.
Flori Pyke: [00:07:56] And that's it and they pi** off.
Anna Jonak: [00:07:56] Yep. Gone. And we've had a few people coming to us who have been in course experiences like that where they had a lot of upfront conversion like tactics and then they've just been completely left to their own devices. We think this is such an important topic and it's certainly something that has been front of mind for us as a business and we've spent a lot of time and effort and are continuing to, so there is a lot of time and effort going into this but not a lot of money is going into it but we're having some fantastic consumer relationships as a response. We're very focused on delivering a really in-depth experience for the people that we work with. And for us that's changing our business model.
Flori Pyke: [00:08:37] Absolutely.
Anna Jonak: [00:08:37] Having a focus on the people that we're working with, on taking them on a real journey with their business as opposed to delivering a one off course which is what we used to do. We're definitely more about you know a longer program and experience now. But like it's just having a huge impact on everything for us.
Flori Pyke: [00:08:53] Yeah definitely it's very exciting I have to say you know watching students that we've now started to create this more intense relationship with in the personal coaching forum and then beyond that even in the mastermind, but it's very very rewarding
Anna Jonak: [00:09:08] absolutley
Flori Pyke: [00:09:09] watching them implement the different tactics and advice and tools that we suggest to them and seeing the results that they're gleaming in their business is just awesome.
Anna Jonak: [00:09:20] Yeah it's just a different way. And I mean prior to that we have to say that we've been on the hamster wheel [Flori agrees] and we've certainly been on a hamster wheel of just you know recruiting, getting people through the door I mean we've obviously always worked hard to deliver on what we do. But ultimately looking at kind of constantly trying to keep the business going and everything else...
Flori Pyke: [00:09:37] ...it just means we can breathe a little bit better now.
Anna Jonak: [00:09:40] Well when you're focusing on delivering a customer experience and that kind of leads people to stay with you for longer than there's less focus on needing anybody new in all the time. So there's a real shift in focus. So we want you to have a little think about that basically.
7 Core Retention Strategies
Flori Pyke: [00:09:53] Yeah exactly. And so what we want to do with you today is basically share with you seven core retention strategies so that you can effectively work smarter and not harder in your business and focus on really creating more fulfilling relationships with your audience as you continue to grow your business and of course we've created a little cheatsheet for you with all the gold that we've got on tap for you today which you can head over to the website and download as well as have a look at the show notes over on theelevatory.com/podcast.
1. Create more of what they need
Anna Jonak: [00:10:28] All right. So let's get in to strategy number one and that is creating more of what they need. Now this is the time to dive into the 80/20 rule, love this rule. But essentially it suggests that 80 percent of your profits will come from 20 percent of your customers. So basically you'll see that there's a top 20 percent of people spending with you again and again and again. What's more the principle will state that of the 20 percent, 20 percent of them will spend four times more than others. There's always going to be people in your current client base that want to spend more and are able to spend more. So it's about ensuring that are not leaving that money on the table that you are catering to everybody that you've got in there. So this is about you really starting to think about what products and services you could be creating to accommodate this top 20 percent. Is it looking at for example for us, we've created the Beyond Brave mastermind. Because we have people who want that next level and are in a position, because their business is growing, to invest in a high level mastermind. So it's something that's come about of creating more of what people want and need. So that's an example of an upsell. I've been having some amazing conversations with people recently just about including things like a subscription based service into their business. So if you're selling some form of jewelery could you be bringing in a subscription base so that people can have more of what they want more frequently rather than coming back, you know could you have a VIP side of things where people can get exclusive access. There's so much you can do with this but ultimately find out what they want and need which really comes onto point number two.
Flori Pyke: [00:12:03] Yeah. I'm going to talk about point number two really quickly. I just want to kind of recap on one of the things that you said that really highlighted, it really stood out to me, is you know it goes back to the 80/20 rule. We get it 20 percent of people buy from you again. But the 20 percent of those 20 percent, are willing to spend four times more than others. Okay so just think about that because that is huge.
Anna Jonak: [00:12:27] It is huge but it's also like this start there's a rule for a reason. And we've certainly seen it in our business has always been a top percentage of people, who if we've created a new product or service or an opportunity, that they jump there's always going to be people in there that will do that. So it's about realising who they are and leaning in and understanding more about what they want. Certainly.
Flori Pyke: [00:12:45] Yeah absolutely. And that's very exciting because if you're not tapping into that well you're leaving money on the table
Anna Jonak: [00:12:50] and big money
2. Connect more
Flori Pyke: [00:12:51] yeah big money and you're also not creating enough value for them to come back to you. So OK. Point number two is connecting more. So just as Anna said how do you exactly connect with that 20 percent and then the further 20 percent of that 20 percent to make this money and deliver that value - well you really need to do the research. So do some surveys, polls, phone interviews what have you, but at the core of it you need to engage your audience and learn more about them, about what they need, about what they're struggling with, about what they're wanting. Become their biggest fan and deliver on that with whatever it is that you then offer them - those cross sales, up sells, subscription models, what have you. But ultimately it really comes down to, it goes back to that whole element of research.
Anna Jonak: [00:13:43] I was going to say we whenever we run like I do this survey section with our students and we go through them looking at key questions that they want to learn and everything else. And there's always questions I asked them to put in about in about what new products and services that people may want and quite often they put multiple choice in there but sometimes it's best to leave those questions open ended because there could be things out there that you haven't even thought of yet. And that someone your top tier customers are going to tell you exactly what it is that they want. And then you can go and create it. So yeah research all the way.
Flori Pyke: [00:14:15] Yeah. And I think on that note in terms of research it's going to help you to see and understand what you're doing well already in the offerings that you're extending, as well as what you can improve on. And what else they might like to see from you. So that is all just such fundamental insight that any business owner would want in order to...
Anna Jonak: [00:14:34] ...small improvements or big improvements. So kind of see what you could be doing better. It comes back to looking at the numbers. Can you improve your conversion rate. Can you get more people buying, connect more, we definitely talk about connecting more.
3. Create moments that matter
So number three is creating magical moments that matter. Now we definitely talked about this a few weeks ago and it came to looking at mass personalisation. So this is really about personalising your consumer experience so using their first name, coming back to sending personalised thank you videos, maybe it's writing a handwritten note, maybe it's creating, for some businesses, it could be creating a celebrating a client of the month heroing them and their success in their journey. It's about really kind of getting up close and personal with your audience and showing them that you care.
Flori Pyke: [00:15:18] Yeah and I think on that note actually if you are listening right now in case you didn't know, one thing that we do in terms of trying to really foster this point, is and this isn't just for existing customers but it does show you know how much and how committed we are I think to our vision of helping mums all over the world to truly be able to reach their business goals is we extend a free scholarship a month. So you know in this case we're talking about customer retention but yeah.
Anna Jonak: [00:15:50] Well from our student perspective we have a special hashtag in our community which is all about hashtag winning. We basically want people to be celebrating. We also have an event at the end of the year where we do awards which is something that we love. We know how excited everybody gets but we do really try and hero and encourage our students to step up and when we see exceptional work then we really want to showcase that in our community. And indeed you'll see some fantastic testimonials or interviews we've done with some of our students just killing it on our Facebook page and that's because we want them to be recognised for their efforts.
4. Stay top of mind
Flori Pyke: [00:16:23] Absolutely. Absolutely agreed. OK. So key point number four is stay top of mind. Do not just disappear if someone buys from you, you want to make sure that you're continuing to nurture that relationship. So whatever that plan is, you want to have a strategy in place with different check ins, offers, updates, see how they're going, how are they enjoying the purchase that they've made. Do they have any questions. Is there something that you can help them with. For instance we with our students have created a whole automated e-mail sequence that spans twelve months to ensure that we're always checking in with them and ensuring you know it goes back to personally connecting with us in the coaching forum so in those e-mails we say come and talk to us in the personal coaching forum and we've now created another strategy actually today to if we don't hear from them for a while now when they log in we let them know that and we're like hey guys
Anna Jonak: [00:17:22] we haven't heard from you where are you. Come talk to us.
Flori Pyke: [00:17:24] Yeah. Because for students to get results that means that we're getting results and it's a full circle benefit you know if you can deliver your customers value then you're going to get value back.
Anna Jonak: [00:17:38] Completely we've literally created a whole standard operating procedure now for touching base with students who have gone MIA. So from phone calls and messages to e-mails to check ins to what's happening on their dashboard, everything is designed to encourage participation in what they paid for so they can get the maximum results. But also a lot of the contact is very personalised as well. [Flori agrees]. So it's reaching out because we want them to be successful we know where they're at in their journey but we could look at every single one of our students that have been with us who've come through on our last six months on our new program and we can pretty much tell you where everybody's at.
Flori Pyke: [00:18:11] Yeah. Totally like 110 percent.
Anna Jonak: [00:18:15] Every week is like we haven't heard from this person we need to reconnect them. It's incredible but it's so fulfilling for us to be able to facilitate that now. And the depth though as we said that the kind of relationships that are being built now, completely a different level.
Flori Pyke: [00:18:29] And isn't it interesting that as a result of the depth of these relationships enabling you know by now having these personal conversations with them in the forum the results that they're getting are like five or 10 fold what they were doing before when we had a different business model
Anna Jonak: [00:18:46] where it was more DIY. We teach and then
Flori Pyke: [00:18:49] and then leave them to it. I mean now we're really getting our hands dirty and facilitating and I know like making sure that they get results and that is what this is all about.
Anna Jonak: [00:18:58] So it's accountability. I mean obviously I do want to caveat from the mindset perspective that one must take personal responsibility too. You obviously have to hold your head up get dirty and go for it. But we appreciate that life gets in the way and we want to add the extra layer of accountability because we know that sometimes people get off track.
Flori Pyke: [00:19:18] Yeah well and life happens. You know...
5. Give more value
Anna Jonak: [00:19:20] [whispers] but we'll find you [laughs]. And number five is giving more value. So this is about thinking about the things that you can do just to enhance your consumer experience with you. Like a lot of people who might create a Facebook community, so of purchasers, maybe you sell eyelashes and you create a community of all these people who are buying your product and you give them tips and tools on what to do next. Or it could be that you have a course like we do and there's a Facebook community for the people to come together and support each other and get extra information.
Flori Pyke: [00:19:55] Yeah yeah. You have a great example there too that we were talking about earlier which you know if you're a product seller, maybe in how you package your product and whether you are maybe you take the time to write a personalised note to that person who purchased the product from you and you say you know.
Anna Jonak: [00:20:14] On that note actually Bonjoro, they sent a handwritten note to us to say thank you because we have sent so many bonjoros.
Flori Pyke: [00:20:22] Case in point. There you go.
Anna Jonak: [00:20:25] It is kind of just saying it's the real people. It's not just a mass e-mail. It's something personal. So it makes a difference. Maybe it's a call to say thank you. A lot of people I think get afraid of getting on the phone. And I think if it's done from the right perspective when you're looking at adding value or letting someone feel special that actually it's a wonderful thing to have that acknowledgement.
Flori Pyke: [00:20:48] Yeah I really I really agree. I remember actually speaking of Bonjoro, I remember when we took the product launch formula with Jeff Walker. He sent us a personalised postcard. Do you remember.
Anna Jonak: [00:20:58] Oh yeah.
Flori Pyke: [00:20:58] Yeah. And those kinds of personal touches they resonate with you. And you remember them. So yeah. Another great example.
Anna Jonak: [00:21:07] I'm sure there are plenty of things you can do to brainstorm to make it that little bit more personal.
6. Offer incentives and rewards
Flori Pyke: [00:21:10] Totally. OK so number 6, offer incentives and rewards. So this is again just going down that whole track of brainstorming you know how else can you reward your customers. So you know we gave some ideas earlier on how we like to recognise our top performers in our Facebook community and how we dish out rewards, literally, awards I should say, at an end of year event. But for you, you can offer loyalty points to your clients so that they can access more of whatever it is that you offer for them by spending more money. You know can you offer referral benefits or rewards or maybe more flexibility in terms of their payment plans. Is it afterpay what have you or like a VIP subscription for your top buyers.
Anna Jonak: [00:21:57] Yeah they get something special that no one else gets as a VIP subscription just for them.
Flori Pyke: [00:22:01] I know actually on that point that totally triggers my memory. One of my good friends Sharon actually she is that like a tea fiend and back in the day she used to purchase all of her tea at T2 and she must have been like a Platinum member or something because she doesn't drink coffee she doesn't drink alcohol. She doesn't even drink water it's like tea. Really healthy. I'm sure there's some health benefits pegged to that but I don't know when it is all green tea and black tea. But anyway. But my point is at the end of every year, do you know, they would literally hand deliver, I'm not kidding you, this massive black box full of tea sets. So it had like one or two or three tea sets.
Anna Jonak: [00:22:45] Beautiful.
Flori Pyke: [00:22:46] And all these different tea containers. And it was amazing.
Anna Jonak: [00:22:51] She was the top 20 percent.
Flori Pyke: [00:22:52] She was like the 20 percent of the 20 percent. But that is just...
Anna Jonak: [00:22:57] recognition of loyalty. Absolutely I think it's like the concept of payment plans so appreciating that if a customer's paid for work to start with and they are a repeat customer coming back and maybe they need a bit flexibility actually again is that personalised nature of going 'do you know what we can do to make it work for you because we completely appreciate your loyalty and what you're doing'. And that's certainly something that we look at internally from our perspective [Flori agrees]. So much gold. I love this episode.
7. Re-engage those that are dormant
Okay. And another one is re-engage those that are dormant. Reactivating customers who you already know. It's about recontacting them, reminding them of your existence, finding out perhaps why they're no longer buying, what's happening in their life. Maybe it's overcoming their objections or getting them excited again but when you're showcasing that you value and respect them.
Flori Pyke: [00:23:45] Yeah and I think on this note you know you really need to build a strategy around this and in due course and you know this isn't designed to overwhelm you if you're listening to this and I'm like oh my god. But it's just starting to open your eyes to the fact that if you don't have a strategy in place around reengaging those customers that you have bought from you but haven't bought from you again, what are you going to do to get them to buy from you again. How else are you going to reengage them basically and and drive them to feel valued and listen to what they want and then create offers that are going to appeal to them.
Anna Jonak: [00:24:17] Certainly if you were surveying people and doing things like that and you can get responses so they can then meet those objections and say hey this has changed now, why don't you try it again.
Flori Pyke: [00:24:25] Yeah. Such a good tactic there.
Anna Jonak: [00:24:27] Or how are things going for you but I just think it's that personal touch base but kind of like we haven't, but not in a way it's just like we haven't heard from you in a while here's an offer, but more like just taking in how was your product purchase. And as long as it's authentic and I think that this is a big thing is that it is about authentically giving a crap, really caring and genuinely wanting the best for your consumers and that's really a deep relationship. And as you said it's just so much more fulfilling
Flori Pyke: [00:24:54] for everyone
Anna Jonak: [00:24:55] for everyone. Yeah. When you're working on something when everybody cares and it's about delivering experience and value but everybody wins because a business continues to grow as opposed to constantly being focused on the top of the sales funnel which is so draining.
Flori Pyke: [00:25:11] Yeah no absolutely right. Okay so massive massive session today. I absolutely love this stuff and I think we've really learned to embrace this over the last few months.
Anna Jonak: [00:25:22] Huge shift for us. Yep.
Flori Pyke: [00:25:23] Anna, it's been just such a wonderful change and shift that we have made for our business, for our customers, our students, everyone. So to summarise look it's not always about the brand new sale or the brand new client ladies but instead about looking at what's right in front of you and how you can love and nurture those in front of you beyond their wildest expectations. So again it goes back to that whole element of authentically giving a crap okay, [both laugh] really caring,
Anna Jonak: [00:25:53] Need a hashtag on that one. [both laugh]
Flori Pyke: [00:25:54] Yeah totes. You know feeling those warm and fuzzies and getting your customers to feel them too.
Anna Jonak: [00:26:01] Yeah it's really special honestly. Try this stuff. Okay now it's time to wrap things up. And again if you're loving listening we'd love you guys to leave a little review. Pretty please. And if you want any of this information, the cheatsheet you know to head to theelevatory.com/podcast.
Flori Pyke: [00:26:20] Absolutely.
Anna Jonak: [00:26:21] And our parting thought today is this. I love this. This from Jeff Bezos. We see our customers as invited guests to a party and we are their hosts. It's our job everyday to make every important aspect of their customer experience and little better.
Flori Pyke: [00:26:38] Oh I so love that. Yeah. Make that party really good.
Anna Jonak: [00:26:41] So they never leave. [both laughing].
Flori Pyke: [00:26:44] The party that keeps on giving I want to go to a party.
Anna Jonak: [00:26:49] When you can drink.
Flori Pyke: [00:26:51] hashtag losing anyway. All right ladies and remember. Be brave in your business.
HOW TO CONNECT WITH ANNA AND FLORI
Business School: www.theelevatory.com
Phone: 1300 634 230
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