Case Study: How Retaining Clients Increased Revenue 3x:

People come to us for different reasons, some want more clients, some want better quality clients, some want help with their sales process, some want to create a better experience for their clients so that they can make more money and have better relationships with them. What it all really boils down to is that most people want to get their time back and create a business that is making the money that they want to make and that they love and that they are not a slave to.

This was the case with Dream Body Fitness. They came to us because they had a high churn of clients, 30% to be exact, so they were always looking for new clients. Their marketing was great, they were spending a lot of money getting people in the door and it was very effective, but once they were in, a large portion of them didn’t stay for the full period, which means they had to continually market to get new people in the door. So they spent all this time, effort and money to bring people in the door, only to see them walk out the other side.

Now the good part is that people paid up front for the program so they made their money either way, but the bad part is that they missed out on all the upsell and cross sell opportunities. Now for them, if people weren’t going through the program, they weren’t getting the full benefit, which means they could not sell them into their next program, they could not sell them their nutritional products, their training merchandise or personal training programs. It meant that they were only collecting the upfront fee and missing out on the biggest part which was the ongoing revenue that worked out to 5x what the ongoing was.

Let’s put that into perspective. If 100 people came in the door and spent $300 for a 12 week program, that’s $30 000. With a 30% churn rate, that’s losing out on 30 people. If 50% of those people upsold into all the programs (which is low) that’s 15 people who would each spend $1500 which equals $22 500 in extra revenue – they would have almost doubled their business just by retaining and upselling 15 out of 100 people. Isn’t that HUGE?

What if they upsold 50 people? The return would be $75 000 – their business has just changed completely.

That’s the return on investment of retaining and servicing existing clients.

So how was the problem solved? A simple communication sequence was put in place that had video shot from a phone camera of the owner talking directly to the clients and motivating them on a daily basis. An email went out daily to talk to them about the emotional, mental and physical challenges they would face as they went through the program and how to overcome them. It was as if they had the owner of the business coaching them and working with them on a daily basis to get them through the toughest parts, over and above the people that were physically helping them in the gym.

The results? They went from a 30% churn down to a 5% churn. They were able to upsell 50% more clients which generated a lot more revenue and gave them more cash in their business and they had more referral business come in because people loved the process and were telling their friends about it.

Think about what that would do for your business?


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