Do you KNOW what your client retention rate is?
If you don’t know what it is, then you can’t figure out how much you want to improve it.
What you can measure, you can manage. <—GOLD
Here’s how to do it….
Retention Rate = ((CE-CN) / CS)) X 100
CE = number of customers at end of period
CN = number of new customers acquired during period
CS = number of customers at start of period
Don’t let the math scare you, it’s actually really easy.
Let’s say at the beginning of December, you had 100 clients (CS).
Due to whatever reason, you lost 10 clients.
BUT…you also SIGNED UP 15 new clients (CN) in December.
This means at the end of the month you now have 105 clients (CE).
Retention Rate = ((105-15) / 100) x 100
105-15 = 90.
Then, 90 / 100 = .9
Then, .9 x 100 = 90% retention rate.
There you have it! It’s as easy as that.
You can figure out your monthly, quarterly, and yearly retention rates using that same equation.
I definitely recommend tracking your retention rates as a part of your metrics.
Oh…and you want to shoot for at LEAST a 95% retention rate in your fitness business.
Better client retention means:
- your clients get better results
- you’ll get more referrals
- you’ll spend less time and money on marketing
- you’ll make MORE money
And if you’re serious about improving your retention rates…
tomorrow I’ll be emailing you my 21 Strategies to Improve Client Retention & Boost Profits.
You don’t want to miss it 🙂
Make it a productive day!
P.S. Did you see my Client Survey System & Swipes I shared on Sunday!? If not- check it out NOW <—-