#32: How to Increase Client Retention (Without Contracts & Loyalty Programs)

The most important part of increasing client retention is...
Designing a Retention Architecture System.

But for the system to work, we need to look at the right retention philosophy first.
So if you're looking for tactics to boost client retention in this post...
You'll be disappointed.

Those are already widely covered by others.

I'm sure you've heard about using CRM automations, email follow-up sequences, loyalty programs, and discounts to make clients stay.
If they've worked well, then you wouldn't be here looking for a REAL solution, right?

I'll show you how having the right philosophy increases your retention.
Ready?

I've studied with many business coaches and mentors.
Many are well-known figures in the industry.
I discovered the majority of them sell tactics and strategies for client acquisition.
They talk about ways to get leads and make more sales.
That's not wrong.
It's just incomplete.

Every business needs to do 4 things:
Marketing. Sales. Fulfillment. Retention.

The problem is... Those mentors don't usually talk about retention.
Even if they do, it's very brief and tactical.
Or it can be manipulative.
It doesn't necessarily give clients a good experience.

Usually, many businesses just focus on marketing and sales.
But they drop the ball during fulfillment...
And they lose clients unnecessarily.
That's why they're running on an acquisition hamster wheel.

For client retention to work...
We have to look at these 2 things:

1) Examine the entire client journey before, during, and after the sale.
2) Recognize this chain of hierarchy: Philosophy -> Principle -> Strategy -> Tactics -> Tools.

Since the Retention Formula states:
Trust + Meaning = Retention

We'll use the Retention Architecture System to do 2 things:
1) Identify trust leaks.
2) Prescribe solutions to fix the problem.

We'll only look at the "Meaning" component after the "Trust" component has been addressed.
Because trust is still the foundation.
No trust = No sale = No retention.

Most retention tactics and advice don't work because they're only targeting the tactics level.

No amount of retention tactics can overcome a broken philosophy.
Because there will be misalignment.
And also... Tactics belong downstream.
Philosophy is situated upstream.

Fix the retention philosophy first, and everything downstream will improve.

There's only ONE philosophy to adopt if you want to increase Voluntary Retention: People > Profits.
When we focus on helping people solve problems...
We serve them well...
We deliver a good experience...
People pay us willingly and happily.
Both parties benefit.

People > Profits doesn't mean I'm anti-profits.
People > Profits is the decision-making framework to use for operating the business.
We make decisions based on "Does it benefit people?" instead of "Does it make more money?"

Then what principles should be adopted?

Based on human behavior...

People like to be served, not sold.
People trust you more when you serve their interests first.

Specifically, Trust in Intention increases.

They know you're here to help. You're not here to extract as much money as possible.
So the principle is: Service > Extraction.

Next, let's look at the strategy.
The strategy focuses on redesigning the entire client journey before, during, and after the sale to reduce and/or eliminate trust leaks.
Many businesses treat retention as an afterthought.
They only look at retention after the sale is made.
By that time... Accumulated trust leaks may have led them to decide to leave.

And it's too late to try to retain them when clients aren't emotionally invested anymore.
That's why they lose clients unnecessarily.

After deciding on the strategy, we'll decide on the tactics to use:
We'll audit every touchpoint for trust leaks.

Only when we identify the trust leaks...
Then we can fix them.

Finally... We'll look at which tool to use.
We'll use the Trust Leak Audit Questionnaire.

Each question will reveal common trust leaks that are quietly causing you to lose clients...
Without you even knowing.

What if we do a comparison with most other businesses?
I'll show you an example of why their philosophy will cause retention failure.

Ask any business owner what they want.
The majority will tell you they want to make more money.

This is the Profits > People philosophy.

So, the principle they use will probably be: Sell as often as possible to make more money.

The strategy will lean towards: Constantly upselling people at every opportunity possible.
The tactic can be: Email the audience daily with an offer for them to buy.
Lastly, the tool will be: Daily emails.

Retention will suffer using this philosophy.
Because when people feel extracted... They lose trust.
Humans don't like to feel sold.

Commission's breath is real.
It repels people.
And that's why... People leave.

Retention tactics can't fix a broken retention philosophy.
Throwing retention tactics without examining the philosophy and examining the whole client journey...
Is similar to a doctor prescribing drugs without a diagnosis.
It's malpractice.

If you really want to retain more clients...

Start with the philosophy first.
People > Profits.
Always.