Why Coaching Churn Starts at Onboarding — Transcript

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1. 0:00Thank you for taking me out for dinner
2. 0:02last time. That conversation that we had
3. 0:04literally changed my life and changed my
4. 0:06business. So, yeah, appreciate that. Um
5. 0:09>> Can I tell the story of what happened?
6. 0:11>> For sure.
7. 0:12>> We had an event that was scheduled, had
8. 0:14to get moved. The memo got passed down
9. 0:16and everyone
10. 0:18found out except for one sales guy and
11. 0:21he sold six people into an event that
12. 0:23didn't exist. On like a random Monday,
13. 0:26we had six people showing up. Came from
14. 0:28Israel.
15. 0:29And he was like, "Hey, I'm here for the
16. 0:30workshop." And I was like, "This looks
17. 0:32awesome for us. I'm really happy
18. 0:34I'm really happy that we that we're in
19. 0:36this situation. We've always tried to
20. 0:38come from the perspective of like when
21. 0:39you when you have something that gets
22. 0:40messed up, like you can't just like
23. 0:42refund somebody cuz they're still net
24. 0:44negative. Right? Like he still flew from
25. 0:45Israel. If I'd said, "Hey, my bad.
26. 0:47Here's the money back." he'd still be
27. 0:48like, "Screw this guy."
28. 0:50Right? And so, we had the team spend the
29. 0:52day with the the six and then we took
30. 0:54them out to dinner. And I I bring that
31. 0:56up just because it was a great like
32. 0:58example, um
33. 0:59of like something that took me too long
34. 1:01to learn was that like you can't just
35. 1:03make it right. You have to make it more
36. 1:04than right um in order to actually make
37. 1:07it right. You know, that was obviously a
38. 1:09super unfortunate situation and you
39. 1:11know, every business, if you have
40. 1:12humans, you make mistakes, right? And
41. 1:14so, that was a mistake that we had made.
42. 1:15I remember hearing the stat from Disney,
43. 1:17which is that it takes 37 magical
44. 1:19moments to overcome one tragic moment.
45. 1:22And so, the moral of that statistic is
46. 1:24not, "Let's do 37 magic moments." It's
47. 1:26avoid the tragic moments if at all
48. 1:28possible. But if you do find yourself in
49. 1:30a tragic situation, here's an
50. 1:32interesting thing that Leila taught me,
51. 1:34which is that, believe it or not, the
52. 1:36people that you wrong and then super
53. 1:38compensate to make it super right become
54. 1:41your biggest ambassadors.
55. 1:43He flew back out and he gave such a
56. 1:46heartfelt, you know, you know, story
57. 1:48that like
58. 1:50it took somebody who was negative and I
59. 1:52think, you know, from at least what it
60. 1:53sounded like, he was super positive
61. 1:55towards us. And I think that that's in
62. 1:58some ways, as terrible as it is, when
63. 2:00you do have one of those tragic moments,
64. 2:01just see it as an opportunity to flip
65. 2:03someone from a hater into an ambassador.
66. 2:06Rather than being like, "Oh, we got to
67. 2:07give these people refunds." It's like,
68. 2:08"No, like we actually get to build our
69. 2:10reputation and decide what kind of
70. 2:11company we want to be."
71. 2:12>> Where we're stuck at right now, so we're
72. 2:14selling the back end offer $195 a month.
73. 2:17>> Yeah.
74. 2:18>> Um for semi-private.
75. 2:20>> Okay.
76. 2:20>> Um or 4 months for 595. Our churn for
77. 2:24both of those is 50%, so weighted it's
78. 2:2630% churn. And the reason why we've got
79. 2:29such terrible churn is nobody shows up.
80. 2:32Like 7% of our student body actually
81. 2:35shows up to the calls and actually gets
82. 2:38the value from the thing they purchased.
83. 2:40>> What's the onboarding look like?
84. 2:42>> So, we have the closer um get them to
85. 2:45see the calendar of we have eight
86. 2:47sessions a week that they can join.
87. 2:49>> Mhm.
88. 2:49>> So, they show them the calendar, they
89. 2:50say, "Okay, which one of these do you
90. 2:52think you can come to?" And then they
91. 2:54get them to say, "Okay, this one." And
92. 2:56then the closer says, "Okay, I'm going
93. 2:58to tell Jenny, who's the coach on that
94. 3:00call, she's going to be expecting you."
95. 3:02>> There's two There's two kind of like
96. 3:04different angles to attack this. One is
97. 3:06the kind of like logistics side, which
98. 3:07I'm going to cover first cuz it's easy
99. 3:08and just process stuff. And the other is
100. 3:10kind of like the bigger more amorphous
101. 3:11stuff, which is like, "How do I make our
102. 3:12thing easier?" Uh and easier and more
103. 3:15enjoyable for people to kind of
104. 3:16experience.
105. 3:18Um on the logistics side, I'm sure that
106. 3:21you're on my email list. If we had
107. 3:22dinner, you better be on my email list.
108. 3:24By the way, if you got Anyone here read
109. 3:26the Mozzi Minute?
110. 3:27Anyone? I think it's the best like I
111. 3:28think it's some of the best stuff I put
112. 3:29out. Anyways, it's really good. I think
113. 3:31it's really good. I spend like my
114. 3:32Sundays on it. Um anyways, so BAMFAM is
115. 3:34a way of life. So, book a meeting from a
116. 3:36meeting, right? And so, the sales guy
117. 3:39should obviously book to the onboarding
118. 3:41call, right? Or the whatever. I do think
119. 3:43that you probably need to add one
120. 3:44onboarding call that's specific to the
121. 3:46person, not just have them drop in. How
122. 3:48much do you want this to work?
123. 3:50>> Really bad.
124. 3:50>> Okay, so this is what I would recommend
125. 3:52doing.
126. 3:52You'll probably want to do something in
127. 3:54the neighborhood of four to six sessions
128. 3:57that are one-on-one.
129. 3:58I'm just being like now if you need to
130. 4:00adjust price in order to do it, fine.
131. 4:01But it's four to six sessions of
132. 4:03one-on-one before they kind of like
133. 4:04qualify to go into the kind of the group
134. 4:06setting. And so it's like you you will
135. 4:08personally onboard them so that they
136. 4:10have this way better buy-in. They're way
137. 4:12like they don't feel like they're just
138. 4:13like in no man's land and just getting
139. 4:14tossed in the middle of a conversation.
140. 4:16Like you kind of like on-ramp them.
141. 4:18After you have the onboarding, which
142. 4:20would be and you can you can cut I mean
143. 4:22at the very beginning just do two. You
144. 4:24know what I mean? Like just to start and
145. 4:25then you can kind of see how it goes. Um
146. 4:27from there, you basically want to keep
147. 4:29bam-famming
148. 4:30um
149. 4:31per session. So all the people are
150. 4:33showing up, the last five minutes I
151. 4:35would say, "Okay everybody, let's pull
152. 4:36up the calendars. When are you guys
153. 4:37showing up again?" Great and I'll book
154. 4:39it with everybody so that I'm keeping
155. 4:40people forward. And you have to back
156. 4:43that up with probably the reminder
157. 4:44sequence that they're going to get
158. 4:45because it's actually a scheduled
159. 4:46session. So they should get automated
160. 4:48reminders and they should probably get a
161. 4:49manual reach out from the person who's
162. 4:51running the session of the people who
163. 4:52are supposed to who are supposed to
164. 4:53attend. At the very least do the
165. 4:55automated one and that would probably
166. 4:57get a huge amount of like that will
167. 4:58probably do a lot. And so this is
168. 5:00actually believe it or not this is an
169. 5:01onboarding process for a gym. So if you
170. 5:03have large group training, if you take
171. 5:04people and just toss them into the
172. 5:05group, it's much harder than having
173. 5:08kind of a more dedicated onboarding
174. 5:10experience. The ideal is you do like six
175. 5:11one-on-one sessions with someone, they
176. 5:13feel more comfortable in the gym, they
177. 5:14understand people, they understand how
178. 5:15the kind of vibe the culture is and then
179. 5:17they kind of graduate into the group
180. 5:19sessions. And so what happens also is
181. 5:20that the group sessions are now on a
182. 5:21pedestal. It's like you're not you're
183. 5:23not ready for that yet. Right? It's like
184. 5:25you got to earn that. And all of a
185. 5:26sudden it becomes the prize that they
186. 5:28earned and now they got on with that.
187. 5:30Does that make sense? Can you see how
188. 5:30that would work?
189. 5:31>> For sure.
190. 5:32>> Yeah. So this would probably be the
191. 5:33>> that up as like a big headlong tail sort
192. 5:35of pricing system?
193. 5:37>> And the question that you'd ask um if
194. 5:39you want to give an AB close for this is
195. 5:41you would say, "Would you rather train
196. 5:43uh you know, start your start your thing
197. 5:44in a group or one-on-one with me?" Now
198. 5:46that's if you're selling. If it's
199. 5:47somebody else or one-on-one with John.
200. 5:50And they're a lot of times they're going
201. 5:51to be like, "I'd rather do it with
202. 5:53John." You're like, "Great. So, this is
203. 5:54the price for that."
204. 5:56And then you just go for that sale. If
205. 5:57it's not, it's like, "No worries. We can
206. 5:58just start you here. Not a big deal."
207. 6:00And then if you want, if normally you
208. 6:02sell six, you can say, "You know what?
209. 6:04I'm still going to give you one if you
210. 6:05do that cuz it's going to be way better
211. 6:07for the experience for you." So, then it
212. 6:08feels like a gift and it doesn't feel
213. 6:09like they're like, "Well, now Well, now
214. 6:11I don't want the group thing, right?"
215. 6:12So, just give them one or two if you if
216. 6:14you sell sell for example.
217. 6:17Does that make sense?
218. 6:18So, um he presented obviously with a a
219. 6:20low consumption issue, which then
220. 6:22probably translated into low renewal and
221. 6:25probably low uh high churn. And so, the
222. 6:28the the issue that
223. 6:30typically precedes that is low
224. 6:31consumption. Right? And so, in order to
225. 6:34first get consumption, you know, figured
226. 6:36out, I like to get attribution in place.
227. 6:38And so, I don't know what kind of
228. 6:40tracking he had, but I think he said
229. 6:41like 7% or something like that. Um and
230. 6:43so, he had some level of tracking which
231. 6:45allowed him to even take action on the
232. 6:46problem. But most times when I ask more
233. 6:49questions, I'd say nine times out of 10
234. 6:50the entrepreneur has a problem but
235. 6:52doesn't collect any data that precedes
236. 6:53the problem. And so then, the first step
237. 6:56is to just go collect the data. And once
238. 6:57you have the data, typically the
239. 6:59solutions become obvious. And so, a lot
240. 7:02of time is wasted in this space of like
241. 7:04trying to ideate and figure out this
242. 7:06hypothetical solution without any data.
243. 7:09And you're like, "I don't know. Is it
244. 7:09this or this or this that we could do?"
245. 7:11It's like, "Well, you have no data, so
246. 7:12you have no idea." And so, you just keep
247. 7:14circling. And so, when you don't know
248. 7:16what to do, get data first, and then it
249. 7:18makes the path easy. If you like this
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251. 7:20wants to break through your current
252. 7:21revenue ceiling, I distilled every
253. 7:23lesson from scaling 10 businesses past
254. 7:2410 million and three businesses past 100
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261. 7:36I appreciate you and uh enjoy.