5% Increase in Client Retention? Yes please!

That's where the real magic happens , and in this episode of the Pilates Business Podcast , we're going to dive deep into the often overlooked yet incredibly impactful strategies that can enhance client retention . Well , hi there , I'm Sarah in Glenfield . I'm a business and marketing strategist just for boutique fitness studio owners like you .

If you're ready to be inspired and make a bigger impact , you're in the right place . All you need are a few key strategies , the right mindset and some support along the way . Join me as I share the real life insights that will help you grow a sustainable and profitable studio . This is the Pilates Business Podcast . Welcome back to the Pilates Business Podcast .

I'm Sarah and I'm so thrilled that you're here with me today listening in wherever you are in the world . Now , this morning , I was actually just chatting with a studio owner in Europe , and this is a studio owner who has her own business and has just two other teachers working alongside her .

Everyone's schedule was fully booked earlier this year , but she had noticed that since the summer there had been some gaps , gaps that she had expected would be filled but haven't really found that they people have come back in the way that she had wanted to .

So I thought this would be a wonderful topic for us to discuss here on the podcast , because , as you already know , retention is a critical factor for the long-term success and profitability of your studio , and we often forget about the importance of this because perhaps you focus elsewhere in our business and it's one of those things that we really do need to be

very proactive about in our business . It doesn't work so well if we kind of stop and start our retention efforts .

So we want to make sure that we're keeping up to date with our clients' activities in the business , how engaged they are , and we're really tracking actually that data as well , and one of the I think the biggest differences between this business that we are in , this industry that we are in , and many , many other businesses out there is that you are in a

relationship business and the buying style of your clients is not just a one-time purchase right . Your clients come back in order for them to get the best results .

In order to get what they want to get out of the service that you provide , they need to come back many , many , many times , often multiple times a week , but certainly multiple times a month right , which means that we are not selling something once and done with it , we are .

People are buying from you over and over and over again , and what that means is that one of the biggest drivers of long-term success and success can mean a lot of different things , a lot of different people , but for the purpose of this particular conversation , long-term success means working with wonderful clients and being able to do that in a way that brings you

the income that you want and the profit that you need right , and in order for you to be able to grow a successful and thriving studio business that is fulfilling to you , retention is really , really important .

So I want to talk through just a couple of a few , actually , strategies that can help you to improve retention , because what we know is that just a 5% increase in retention can mean a very significant increase in your studio's revenue , and there's various different kind of data points and it depends on what measure you're looking at specifically , but it can lead

to an increase of anywhere between 25 to 75% increase in your overall studio revenue , and this is an astonishing statistic and it really does highlight just how important and profound the impact of retention activities it has on the financial success of your studio .

But if you are not focused on this , you can often see some of this revenue slip through your fingers and you'll find that your business doesn't grow in the way that you want it to , especially from a revenue perspective .

So you want to make sure that we are focusing on that retention activities , focusing on retaining your existing clients , and this actually helps you to unlock just some of that additional revenue potential in your business without even going after any new clients , without acquiring new clients or doing any lead generating activities .

So those that your existing client base is what we would call a warm audience and we want to make sure that they stay warm and excited about what you're doing . And there are just a few reasons why retention has such a substantial impact on revenue . One is obviously that when you increase retention , your clients have a longer lifetime value .

They stay in your business longer , which usually means they spend more money .

Doesn't always mean that , but usually it means that , which means that if a client is just coming in for a one time visit every now and again versus a client that is coming in once a week for five years , that client is worth far more , and it's as a result of your retention efforts , and so retained clients will continue to generate revenue over that longer

period of time . And when you are able to keep your clients engaged and committed , you can sort of tap into that long term value and reduce the need for constantly acquiring new clients , which , frankly , is more challenging .

It's more challenging in many ways , and one of the ways that it is more challenging to just rely on new clients coming in the door is that it's actually far more expensive to market to new clients , to get people in the door , and in terms of what you might be doing from a time perspective and investing in your networking , for example , or spending time on

your email marketing or your social media marketing , but even what you might need to spend in terms of advertising , and so you actually reduce , you can ultimately end up reducing your marketing costs if your retention numbers are strong , right .

So by retaining existing clients , you can save on those what we would call lead generation or client acquisition costs and can allocate perhaps some of that revenue towards other things , like your vacation , right .

So a couple of reasons why client retention has such a substantial impact on revenue is your clients will stay longer , which means they spend more we talk about that in terms of lifetime value and then you may find that you don't spend as much time or money on that upfront marketing costs at the top of the funnel , at the beginning of that customer journey .

Now the third reason why retention has a substantial impact on revenue is one perhaps you might not have thought of , which is that you end up with a larger pool of clients right when your retention is strong , you'll find that your clients you have more clients that are active in your business and those satisfied , loyal clients if you do what you do and you do

it well will become advocates for your studio , and what that means is that they will then refer their friends , their family and their colleagues to you , all the while improving perhaps that word of mouth marketing or those word of mouth referrals that will bring in even more new clients with even less marketing spend right .

So a lot of good reasons , many , many , many good reasons to focus on your retention efforts in your studio business . So what can you do ? What does that look like ? I know you're thinking that right now . What's that ? What can I do ? What does that mean for me in my business ?

And I want to share with you a few strategies that will make the biggest impact for you and to perhaps spark a few ideas for how you might be able to perhaps increase retention in your studio . So the number one thing that we know makes the biggest difference when it comes to long-term retention especially is personalized experiences .

Now , in the boutique fitness industry , this is at the heart of your business .

That personalized attention , that community feeling , is really , really vital , and what that means is that you want to treat each client as a unique individual and take the time to understand their goals , their preferences and their challenges , and perhaps even , if you have the ability to perhaps make recommendations or to tailor your offerings to meet some of these

unique needs . I would encourage you to go back and listen to an episode I recorded recently and that was just released , with Donna Fisher . She goes ahead and she has created a very unique customer experience in the way that she works with her clients and has taken this concept of personalized experiences to the next level .

But for you , this could look like conducting perhaps some initial consultation or taking the time during those early sessions to really understand your client's goals and preferences and then , like I said , use this information to recommend perhaps specific classes , instructors , teachers or programs .

So maybe you know a client really wants to improve their flexibility and once you know this information because you've taken that time to ask them some questions you can then send them perhaps a follow up , even suggesting specific classes that they should take or specific homework exercises they could be doing .

That will help that , and that personalized touch point , that personalized experience that you're giving them , will make that client feel extra special , but it will also help to elevate your credibility and their desire to want to trust you as their leader for their fitness and wellness journey .

So that personalized experience is really so incredibly powerful and I really recommend that you look for ways to deliver that inside of your studio , whatever that looks like for you . The second thing that is really important when it comes to retention is consistent communication .

Now , this quite possibly is one of the most challenging things that a studio owner has to oversee , but what this means is that you want to be regularly engaging with your clients and , as you know , there is an abundance of ways you can do that in this world today .

We've got , obviously , the good old fashioned way of speaking with them when they walk in the studio , but then we have got also direct messaging text messaging us mess . We've got your email marketing . You've got your automated email follow ups . I'm everything in between , all of the different social media platforms .

So there's a lot of ways that you can communicate with your clients .

But one of the most important things , it's not necessarily about the number of platforms or where you are , how many places you have you can connect to your clients and communicate with them , but it most importantly is you want to be consistent about it , because consistent communication means that you are showing up on a regular basis right , and you are doing what

you say you're going to do . You're going to follow up when you say you're going to follow up , and that means a lot to your clients .

And so you want to make sure that you are regularly engaging with your clients and even as like pulling in on the previous point , which is that you can also perhaps personalize that communication as much as possible , which would really make that the impact of that communication just that much more profound .

So obviously , if you're listening to this podcast , you know that I'm a big fan of regular emails . Email marketing is still my number one favorite way to spread the word amongst your existing client base .

So , when it comes to retention , that's a wonderful way to connect with your clients on a regular basis , but you want to make sure that you're being consistent about that and being consistent also about the themes and the topics you include in those letters or in those emails . So consistent communication is critical to your long term retention . Now number three .

This actually probably should have been number one , but number three is exceptional customer service . It goes without saying that providing outstanding customer service at every touch point from when your client walks into the studio to the way that they are welcomed into class , to the way that the class is ended and how they leave is really , really , really important .

Again , it creates that wonderful experience for your clients , and this is the small details that a boutique fitness studio has the opportunity to really really lean into . That makes that experience very unique , and so I would highly recommend you do a full customer service audit .

Think about how you can elevate the customer experience with exceptional service at every single touch point .

And so , for example , you might want to follow up with a certain client who is having a hard time doing a particular pose or exercise in a class and just check in with them or ask them afterwards if they'd like to perhaps do some one-on-one work or two , if they had any questions about that .

Because the more that you can take that extra step , take that extra care over your clients , the more they are going to feel a connection to you and your studio business , and that is what leads to those retention numbers ticking up , which is what we like . All right .

Next , I would love to hear from you guys if you do regular feedback surveys from your clients , because this is something that I think is often overlooked but a really powerful way for you to get take the read on the temperature of your clients , what they're thinking , what they want , what they enjoy and so on .

And if you aren't doing this , or you haven't done this before or haven't done it in a while , then take this as your opportunity to perhaps get that done , because when you're regularly seeking feedback from your clients through surveys or even through direct conversations , you can learn so much about where they're at , what they're thinking and what they are wanting ,

and you can address concerns . For example , it helps to highlight , perhaps , areas that you could improve upon or and often highlight things that you might not even see yourself . So it's really , really important to check in with your clients and invite them to share their feedback with you , and you'll be amazed at how insightful that is .

Finally , one of the most important things that you can do in your studio and one of the things that I think just keeps your it creates that sort of glue around within your studio is to foster a sense of community .

When you do that , what you'll find is that people come back not just because of you and your , your , your classes which is a huge part of it but also because of the other people that you have in your studio space .

And if you have been able to express your brand and your values appropriately , what will you will find is that you are able to attract very like-minded and similar people into your business because they feel a connection to your brand and who you are .

And the more you're able to infuse your brand and you're into your marketing messaging , the more likely you are to pull together a group of like-minded , similar people , which means that that is a an amazing place for friendships to form and really wonderful way for clients to feel connected .

And when you have that sense of community , you can add on additional workshops and events , challenges , things like that that create and foster this sense of community and get people excited not just about your movement classes or their one-on-one sessions with you , but also about being a part of your community .

So community building is really , really an important part of your retention efforts . Don't overlook it , don't forget about it , don't ignore it . It really is an incredibly powerful part of of your your toolkit that you have available to you , and also probably one of the more fun things that you can be doing in your studio business .

So there you have it a few strategies that will help you to improve your retention in your studio business .

If you can focus on personalized experience , consistent communication , exceptional customer service , getting some of that client feedback and building a sense of community , you'll find that the data delivers and you'll find your client retention numbers increase and along with it , so will your revenue .

So a 5% increase , just a 5% increase , in client retention really does have a remarkable impact on your studio's revenue and if you're able to prioritize client retention and implement some of these strategies effectively , you can really tap into the potential that exists already within your business .

So I hope this was helpful to you , and if you want a little bit of insight and support and extra resources to help you improve your retention in your business , as well as improve your systems , as well as improve your client acquisition as well as improve your marketing , then you will want to check out my Thrive Business Accelerator .

It's designed specifically to help you focus on uncovering some of these gaps in your business and helping you fill them and then move your business to the next level . So I hope this is helpful to you as you go about building your boot to peak fitness business .

If you loved what you heard today and you'd like to hear more like this , I'd be so appreciative if you could take a quick minute , go to wherever you're listening to this and rate and review this podcast .

It would mean so much to me and would help to get the podcast out there into our community so that more teachers and studio owners , just like you , can feel encouraged and supported on their journey in our industry .

Did you love this episode and want more , head to Spring3.com and check out my free resources that will help you runa profitable and fulfilling studio business . And before you go , one last reminder there is no one way to do what you do , only your way . So whatever it is that you want to do , create or offer , you've got this .

Thanks again for joining me today and have a wonderful rest of your day .