Episode Transcript
[00:00:00] Speaker A: Foreign.
[00:00:09] Speaker B: Hey friends. Welcome back to the Total profit podcast. I'm T2. I'm here with the only guy I know that who can explain customer retention using sports metaphors and spreadsheets. Tommy P.
Hey, T2.
[00:00:23] Speaker A: Let's do this.
Today's topics, relationships. Not the awkward kind, business relationships. And how most people are amazed at first impression, but not so great at follow through.
[00:00:44] Speaker B: That's right, the title says it all. Quit being so good at first dates. So you put all this energy into landing the client, but then you ghost them when the job's done.
[00:00:54] Speaker A: And then you wonder why you're constantly chasing new business.
Repeat after me. Retention is easier and cheaper than acquisition.
[00:01:07] Speaker B: Well, let's talk about why retention matters. Let's break it down. Why is customer retention one of the smartest ways to increase profitability?
[00:01:16] Speaker A: Repeat customers cost less to serve. They trust you more, so they the sales cycle is shorter.
They're more likely to refer others because they like what you do, and they're less price sensitive because they already believe in your value.
[00:01:35] Speaker B: Well, we need to talk about where businesses drop the ball though. So let's be real. Most businesses focus all of their energy on marketing and sales and almost none on retention.
[00:01:49] Speaker A: Exactly. You finish the job, you send the invoice, and that's the last time they hear from you.
That's a one night stand, not a relationship.
So how can you get that second date with profit?
Here's some ideas.
Follow up. After delivery or job completion, check in not just for reviews, but just just to see how they're doing. Genuinely care and concern for your customers.
Other thing, offer something exclusive for past clients like a referral bonus or VIP scheduling. You'll bump them up in the schedule if they they have more projects.
The other is a regular value based communication, not a sales pitch. Check in on their their special days, birthdays, anniversaries, you know, notes, holiday greetings, even check in just to say hi on via email.
[00:02:46] Speaker B: Yeah, little touches really can make a big impression. Most people don't expect it. And that's exactly why it works.
My State Farm agent sends me a Happy Thanksgiving card every year in addition to the birthday. And I'm not gonna lie, I love it.
[00:03:02] Speaker A: Well, everybody loves to be recognized, of course.
So don't just ask what's the next sale? Ask what's the next solution I can offer the client.
[00:03:11] Speaker B: Right, that's really important. This is about lifetime lifetime value. You're not trying to win the client anymore. You've already done that. You're trying to keep the client.
[00:03:21] Speaker A: Exactly. A long term client is a profit machine one sale becomes five one job turns into relationship you don't be there.
I got a guy for that guy so a quick thanks to our sponsors performance margin software the tool that helps customer you track customer value like what we're talking today how do we do that follow up Analyze your churn and reduce your churn and build business that doesn't leak money out the back door so look at this week we've got an assignment for you look at your past five clients have you followed up since the work's ended? If not, no better time to start them now. Check in with them, do a thank you, do an email. Maybe it's their birthday Anything to reignite that relationship.
[00:04:18] Speaker B: And quit being so good at first dates. Right.
Learn to be good.
[00:04:23] Speaker A: Exactly.
[00:04:24] Speaker B: The relationship and the revenue will follow.
[00:04:27] Speaker A: No more one night stands for one night.
And remember take her Cool.
[00:04:35] Speaker B: Don't get too excited. It's all under control.
[00:04:38] Speaker A: It's going to be fine.
