The Game with Alex Hormozi Cost of Retention Broken Down 🔥🔥🔥 (Dollars & Cents...) Send to yo' Ops Manager | Ep 113
Mar 14, 2019
Explore the financial impact of customer retention in gyms. Discover effective strategies to foster loyalty, like reaching out personally and sending thoughtful notes. Learn how investing in retention can significantly triple the lifetime value of members. Hear about the importance of maintaining regular contact to strengthen relationships and boost profitability. This insights-packed discussion uncovers the real costs associated with keeping gym clients engaged and happy.
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Gym Client Bifurcation
- Many gyms operate with a bifurcated client base: loyal, lower-paying OGs and transient, higher-paying newer clients.
- This structure arises from owner-operators transitioning to ownership roles but retaining legacy pricing.
Retention Strategies
- Implement retention strategies to reduce churn, like reaching out to clients weekly and bi-monthly.
- Send handwritten cards monthly and consider member events.
Retention ROI
- Lowering churn from 10% to 3% more than triples customer lifetime value.
- Investing in retention yields a significant return, around 10x, on the investment.