How to Increase Client Retention with Punishment?
Penalty for accountability is a big plus to give to your customers.
In the world we live in, it’s easier to find another company that provides the same services or products as you.
For the sake of this example, let’s keep the conversation for a service-based business.
Whether it’s PT, Life Coaching, SaaS, or consulting, you want to bring as much value (I hope!) to your customer base and charge as much capital as your service is worth.
Now, there are many ways you can create value for your customer base that makes your price look like a bargain. One of the most commonly known ways for you to bring value to your customers and locks them in is by challenging them.
Why should you “Punish” your clients
A prime example of a successful business running this strategy is Clickfunnels. They have a fun and challenging training that they use to attract customers & more importantly, retain them.
In short, the challenge consists of attending training every day for a totality of 30 days. This training also comes with a book that contains the story of 30 men and women that have used Clickfunnels to create a successful and fruitful business for themselves.
Now here is what makes it interesting.
You have exactly 30 days to complete this challenge before all of the information given disappears.
It doesn’t allow you to slack off.
It gives you a deadline to complete the challenge or else you lose the funds you’ve invested in your future business.
Go check out the challenge here!
The Theory Behind the Magic
‘’Why should I take away the content my customers paid for?’’
Glad you asked.
It’s simple once you understand the genius behind this concept.
Let’s say you completed the challenge, now what? well, you’ve just been given great training on how to make your idea and turn it into a money-making business in 30 days.
You succeeded to complete this challenge because you had an accountability target.
In 30 days, you knew you were going to lose EVERYTHING you just had access to. Might as well show up and complete the challenge.
Why Should I Stay?
In theory, you can just opt-out after the challenge. The only caveat is that you’ve been instructed in serious business tactics for the past month. It’s to your benefit to use the expertise acquired and put it to good use.
That is the way you secure your customer retention game.
The idea behind this marketing method is that when they agree to show up, they have no choice but to be exposed to your content.
You just guaranteed yourself the attention of your soon-to-be lifetime customers for the remainder of the challenge.
I am not a fan of Gurus and influencers. In fact, I’ve written about how I don’t like them here.
However, it is important to give credit where credit is due and Russell Brunson is one great marketer and teacher.
Key Takeaways
Remember to always secure a customer for the longest period of time possible. You have a message that can help individuals better their lives.
You’re taking the time to bring a service to them. It’s only fair that they show up.
— Diego Rodriguez, CEO of Graffiti Studios
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