Thread by @NeelBParekh

The 2 biggest mistakes I see with local businesses are:

• Constantly chasing new customers
• Not taking care of existing customers

Here are the 4 main customer retention tactics I used to get $50K+ in MRR 🧵

Core Concept: Get to 3 Cleanings

I analyzed our customer churn data and found there is a HUGE correlation between customers making it to 3 cleanings and them sticking around for a long time.

Why? Customers get into a HABIT after 3 cleanings and want to keep their program. ⬇️

So your only question should be "How can I get my customer to 3 cleanings?:

For those not in the cleaning biz, find the equivalent threshold for your local biz's recurring service.

If your local biz isn't one that has a recurring revenue source...figure out how to get one 😀

Tactic 1️⃣) Get them on the recurring plan to begin with

For phone sales, we only offer options for monthly, 2x/month, weekly. That's it. Do NOT even mention one-time as an option, this is key.

If they REALLY want one-time, its a certain $$ minimum thats much higher

Strategy Behind Tactic #1:

People don't like commitment and will get the one-time service if you offer. We did this for years.

Remove that option entirely. Your goal is to build up recurring rev AKA annuity stream.

Admittedly, we still some take one-time jobs. Cash is cash 🤷‍♂️

Tactic 2️⃣) Check In Call with Surprise Add-On

We always call after the 1st cleaning to see how the cleaner did and if any changes are needed.

On the call we say "pick a number between 1-5"

Even = free fridge cleaning extra on next job
Odd = free dish washing extra on next job

Strategy Behind Tactic #2:

You want to wow the customer and get them to that 3 cleaning threshold to build the habit.

Customers LOVE fun surprises. This gets them looking forward to the next cleaning + makes them less likely to cancel.

How can you surprise your customers?

Tactic 3️⃣) Surprise & Delight

Export customers who spent a lot of $$ with you.

Ex: any customer with 100+ cleanings with us will get a surprise gift during the year. We did a custom Yeti mug last time.

Key Twist: do this when they DON'T expect it (i.e. not X-Mas).

Strategy Behind Tactic #3:

Be different. What other local biz is giving thoughtful gifts randomly through the year? Probably no one!

Pleasant surprises = high retention.

These are very small things you can systemize that will have a big impact in the long-run.

Tactic 4️⃣) Welcome Complaints.

I always tell my staff this phrase:

"You don't win a customer for life until their first complaint"

Change your mindset around complaints. This is an incredible opportunity to wow a customer and win them for life. Welcome this opportunity.

Disclaimer: Customer satisfaction with your product is the MOST important metric/tactic for retention.

If you have a bad offering to begin with, nothing in the above will help.

Constantly see how you can improve quality, and then implement the above 4 tactics alongside that

TL;DR

0. Get Clients to 3 Cleaning Threshold To Build Habit
1. Don't even offer one-time option
2. Surprise freebie after 1st cleaning
3. Surprise gift randomly for high spenders
4. Reframe your mindset around complaints

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I write about:
• Local biz, digital nomading, mindset. Memes too, why not

My company: maidthisfranchise.com

✌️