"Why Do I Keep Losing Customers I Can't Get Back?" — Transcript

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1. 0:00My name is Eric Roberts.
2. 0:01>> [snorts]
3. 0:01>> I sell sustainable online weight loss
4. 0:03coaching to busy professionals 30 to 55.
5. 0:07Last year we did 3.2 million and this
6. 0:10year we would like to do 10 million.
7. 0:13This year but hopefully soon I'd like to
8. 0:14do 10 million. But what's stopping me is
9. 0:17consistent lead flow and sign-ups to
10. 0:20outpace structural churn.
11. 0:24And if I don't solve this, I won't be
12. 0:26able to continue to give my employees
13. 0:29raises and great lives which I take very
14. 0:30seriously and my parents retired this
15. 0:33year. So I'd love to help them
16. 0:34financially retirement and just give
17. 0:36them a really cool retirement life. So
18. 0:39>> Yeah, I've got I've got good news and
19. 0:41bad news.
20. 0:43The uh
21. 0:44the bad news is
22. 0:46you're never going to solve churn with
23. 0:47weight loss.
24. 0:51It's it's the nature of the beast.
25. 0:54The good news is you don't need to focus
26. 0:56on it anymore.
27. 0:57>> [laughter]
28. 0:58>> You need to focus on everything else. So
29. 1:00like
30. 1:02there are so few like massive true
31. 1:05weight loss coaching businesses in
32. 1:07existence because
33. 1:09of the core problem that you have
34. 1:10identified.
35. 1:11Which is it's a pure distribution game.
36. 1:13Like if you're in weight loss, it's
37. 1:15marketing. Now you can the people who
38. 1:17make the most money in weight loss are
39. 1:19the people who sell the plumbing to
40. 1:20weight loss.
41. 1:22Right? Like so you could sell
42. 1:22supplements but it's not about weight
43. 1:24loss. It's just like it's stuff, right?
44. 1:26You could sell you know, peptides and
45. 1:29you'll make more there cuz it's
46. 1:30stickier. Like people are happy to
47. 1:31inject or take pills and powders and
48. 1:32potions than they are about like
49. 1:33coaching and changing their lives,
50. 1:35right? And so I only need to say this
51. 1:37because I spent too I I lost too much of
52. 1:39my life trying to solve this. Um and so
53. 1:42there are just some businesses that are
54. 1:43just not built for it. Cuz like
55. 1:44fundamentally even though it feels like
56. 1:45a
57. 1:46weight loss is kind of its own thing,
58. 1:48it's just an education business.
59. 1:50You're teaching someone. Like it's all
60. 1:52it is. It just has There's just so many
61. 1:53people want to lose weight that it's an
62. 1:54industry. But it's fundamentally it's
63. 1:56just an education business.
64. 1:58Um and so
65. 2:00all of your focus should be on front
66. 2:03end, which is about distribution and CAC
67. 2:05reduction
68. 2:07um under the assumption that what do you
69. 2:08what's your price point for your thing?
70. 2:10>> Um so we have a front end 8-week
71. 2:12challenge that's between 500 600 a month
72. 2:15and then 60 to 70 people then percent of
73. 2:18people take up on a 6-month
74. 2:20transformation package after that. So um
75. 2:23so yeah, it's the same price as well.
76. 2:24And then if for the 30% of people who
77. 2:27don't take up the 6-month one-on-one
78. 2:30transformation, we have a downsell
79. 2:31continuity and so on and so forth.
80. 2:33>> So are you selling one to many on the
81. 2:35front end or you selling phone on the
82. 2:37front end? You're selling
83. 2:38Yeah.
84. 2:38>> For the one-to-one uh it's phone calls
85. 2:40and I do all the sales calls.
86. 2:43>> Interesting. Okay, so then on the front
87. 2:45end for the 500 for the the 8-week thing
88. 2:47that's like 500 bucks, right? You're not
89. 2:49taking sales calls
90. 2:50>> yeah.
91. 2:51>> Yeah, are you taking sales calls for
92. 2:52that, too?
93. 2:53>> Yes, sir.
94. 2:54>> Jeez.
95. 2:55It's a lot of sales calls.
96. 2:57It's a lot of sales calls.
97. 2:58>> Well, so that's it's not so I average
98. 3:01about 15 sales calls a week and so I
99. 3:04think that's where I'm like I need to
100. 3:07get obviously get more of those.
101. 3:09>> Yeah. Well, I mean it's it's it's pretty
102. 3:11compelling that you're doing the numbers
103. 3:13you are with only 15 sales calls a week
104. 3:14and you're still running the sales. Like
105. 3:16that's actually very impressive.
106. 3:17Um
107. 3:20Yeah, so LTV is what's if if you have
108. 3:22$1,500 on the front end call it, right?
109. 3:24Is what you're making per customer and
110. 3:25then half of those are buying a what
111. 3:27price point on the back?
112. 3:29>> Uh same price point just a 6-month. So
113. 3:31somewhere between like if they pay in
114. 3:33full, they get a Yeah, so three to four
115. 3:34grand somewhere like that.
116. 3:35>> Okay, and what's attrition on that? Is
117. 3:37like cuz you said churn is a problem. So
118. 3:39what's the issue?
119. 3:40>> Mhm. Mhm. Um I would say after those
120. 3:44initial 6 months or I guess the full 8
121. 3:47months cuz 8 weeks plus 6 months, I
122. 3:49think that's where it typically tends to
123. 3:51drop off. But then it's just like we
124. 3:53keep people for eight-ish months, but
125. 3:56then it almost seems like every week I
126. 3:58sign 10 to 15 people up, but then 13
127. 4:01people cancel. So, it's just like I need
128. 4:02to find
129. 4:03>> leave on the end. Yeah, they leave on
130. 4:04the back side. [clears throat]
131. 4:05So, I'll give you a a simple tactic that
132. 4:07we can do just to give you a little
133. 4:08bump,
134. 4:09um but then the majority of your focus
135. 4:11should be like basically do this first
136. 4:12and then and then focus on the front, um
137. 4:14which is when are you selling the
138. 4:16renewal on the back?
139. 4:18>> Four weeks in.
140. 4:19>> Okay. I mean yeah, I mean the like you
141. 4:21want to have multiple hits at the
142. 4:22piñata, right? You don't just have a
143. 4:23smack at once, so four weeks is good and
144. 4:26and it's um
145. 4:27it's six months, right?
146. 4:29>> Mhm.
147. 4:29>> Yeah, so I have um
148. 4:32you already are doing a back-end
149. 4:33ascension, right? And your your your
150. 4:35your front-end
151. 4:36your front-end upsell rates are fine, so
152. 4:38I'm I'm I'm not I'm not going to touch
153. 4:39that part, but the back-end part on the
154. 4:41six-month thing,
155. 4:43um
156. 4:43week four works. I would also throw in a
157. 4:45any milestone
158. 4:47that happens
159. 4:48and then halfway and then last chance.
160. 4:51And so last chance should be the month
161. 4:52before.
162. 4:54Cancellation,
163. 4:55um those would be the four times. And do
164. 4:57you have coaches
165. 4:59right now?
166. 5:00>> Yes, sir. I have two coaches.
167. 5:00>> Yes, sir. I would have I would have my
168. 5:02meeting with them, like your sales
169. 5:04meeting with them at the halfway point.
170. 5:06And then it's positioned so that you're
171. 5:07like, "Hey, this is just my way for
172. 5:09doing quality assurance, making sure
173. 5:10that you know that you're having a good
174. 5:11experience. Tell me what's going on."
175. 5:13And the close that we use there is
176. 5:15basically all roads lead to Rome, which
177. 5:16is that like um
178. 5:18if things are going great let's keep the
179. 5:20party going. If things are not going
180. 5:22great, you need more help, so let's get
181. 5:23you let's keep the party going. Like
182. 5:24either way, like you have you have a
183. 5:26reason to buy. Um
184. 5:29and then
185. 5:30yeah, last chance is is last chance. So,
186. 5:32we want to do that before they end the
187. 5:34thing because once they're once they're
188. 5:36done, you know, if completed their six
189. 5:37months, it's a new buying cycle. And so
190. 5:39we'd rather catch them right before any
191. 5:41of that stuff happens. So, we want to
192. 5:42have multiple licks at the
193. 5:43of the of the ice cream cone.
194. 5:45Uh
195. 5:46Beyond fixing that, right? Um and that's
196. 5:48just probably just going to get you a
197. 5:49lift. The big thing after that is
198. 5:51probably going to be like, "And if you
199. 5:53want, you can improve the offer
200. 5:54um on the back." So, it's like,
201. 5:56"Listen." And you can justifiably say
202. 5:58this, which is just that um
203. 6:01it cost us a lot of time to get you
204. 6:02onboarded, way less to maintain you
205. 6:05because we had to do all this work
206. 6:06together. And so, basically, it's double
207. 6:09it's double your money on the back."
208. 6:11And so, you can sell you can sell a year
209. 6:13on the back for the same price as you
210. 6:14sold the 6 months. So, it's like buy
211. 6:16six, get six.
212. 6:17Um
213. 6:18as just a more compelling offer on the
214. 6:20back. I would just I'd back pocket it
215. 6:21because, again, the cost of
216. 6:23you know this. At by the time this month
217. 6:25six or seven, like, they're kind of on
218. 6:26autopilot. And so, your gross margin
219. 6:28will still be fine.
220. 6:30Okay. If you like this video and you're
221. 6:31business owner who wants to break
222. 6:32through your current revenue ceiling, I
223. 6:34just sold every lesson from scaling 10
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227. 6:41I've used to go from zero to one, zero
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230. 6:46Again, absolutely free. And since you're
231. 6:48business owner, I appreciate you and uh
232. 6:49enjoy.