Imagine this: You’re running a successful business, sales are booming, and life is good. Suddenly, your customers start dropping off like flies, and you can’t figure out why. This nightmare scenario can be avoided by tracking your churn rates. Let’s dive into why it’s crucial for your business’s survival. In this episode of the Bella in Your Business: Pet Industry Business Podcast, I discuss the importance of tracking churn rates to gain insight into the health of a business. While emphasizing the need for businesses to be proactive in addressing underlying issues. Do you know retaining existing customers is not only cheaper than acquiring new ones, but it also increases your revenue? So, if you want to make more money and keep your business thriving, buckle up, and let’s talk about churn rates.
Topics Discussed and Key Points
- Churn rate and what it means
- The importance of knowing your churn rate
- Optimization of your business processes using the Mastermind churn rate template
- Importance of customer and employee experience
- the importance of tracking churn rate and how it impacts the business’s profitability and growth.
- Business scurrying and why it is not good
- Predictability typically comes from numbers
- Building customer relationships
- Churn rate strategies
- Why you don’t need loans in a pet sitting and dog walking business
Timestamps
[00:34] Introduction to the concept of churn rate
[03:25] What is the churn rate?
[04:27] Churn rate template
[05:52] What is in the Mastermind this month?
[06:10] The importance of addressing touch points in business and employee satisfaction
[07:25] Why knowing the churn rate is critical for your business
[09:15] Implementing churn rate strategies
[11:08] Importance of financial and time freedom
[12:16] Next episode: Asking for feedback
Notable Quotes
[00:03:31] “It’s important to know your churn rate because it can give you insight into the health of your business. If you have a high churn rate, it may mean that there are underlying issues that need to be addressed.” [00:03:44]
[00:04:40] “The template allowed them to set meaningful goals and targets for their business, helping them stay focused and on track towards achieving sustainable growth by keeping a close eye on their churn rate and setting proactive measures to improve retention.” [00:04:54]
[00:07:26] “Knowing the churn rate is critical to the success of your business, otherwise, you’re just scurrying and you have no idea what’s going on. You have no idea when you need to implement anything.” [00:07:37]
[00:08:38] “We continue to build a relationship and let customers know that we’re here to support them and to enhance their life, not to give them more problems.” [00:08:49]
[00:09:24] “It is going to be so much easier for you to flex this muscle and to start doing these kinds of business push-ups. We’ll call them workouts. Now, when your data is small, it grows larger and larger.” [00:09:38]
[00:10:51] “If we see problems in our business and we try to throw money at it as I’ll just pay more and I’ll get people I need. Then what happens is you’re running a nonprofit or you’re running at like a 4% profit margin, which is not okay in a pet sitting in a dog walking business.” [00:11:08]
[00:11:41] “Churn rate is just one of those little tweaks, those buttons that we can adjust in turn to really understand when and where our clients and our employees are dropping off.” [00:11:52]
Links
Resources
- Podcast: Bella in Your Business: Pet Industry Business Podcast
- Join Mastermind
- Email Bella: bella@jumpconsulting.net
Book: Joey Coleman: Never Lose a Customer Again
Connect with Bella
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Transcript
Welcome welcome to another episode of Bella in your business. My name is Bella Vasta. And Today I want you to just imagine, imagine if you could predict when a client going to leave you, or an employee was going to leave you. Imagine what that would do for your ability to plan to hire to market. What it would do to get your brain thinking about one thing or the other and not feeling frazzled. Like you have to do all of it, let alone, let’s say we knew this information and there was something we could proactively do about it to keep people with us longer, whether they’re employees or clients. How amazing would that be? Well, you can. It’s called churn rate. And today, we’re talking all about that. So you’re not going to want to miss this episode. But before we get into it, I want to encourage you guys to like, share, subscribe to the podcast, and go ahead and tell a friend to share it in one of the Facebook groups. Let people know how valuable this teaching podcast is. Because I know I’ve gotten a lot of phone calls. And you guys call me all the time we do these 20 Minute Calls. If you want one, jumpconsulting.net/20. And I hear I’ve been listening to all of your episodes, or I’ve been binging on Bella. And I love that because it means that all of this work that I’m doing is not for nothing. It means that it’s Saturday morning, when I’m recording this, thank goodness for makeup, I am super tired. My daughter is with her occupational therapist right now in the living room. And I’m here sitting with you. And I’m making a conscious effort to get it done and to keep consistent for you guys, every single Thursday since 2014. What? So please, if you like this episode, tell all your friends. Also, if you want to meet with me, I would love to meet with you just go to jumpconsulting.net/20. I’ll give you a complimentary 20-minute call, we can solve one problem that you have. And this is for anybody who I’ve never met before. It’s my way of getting to meet you. And I promise. There’s no sales pitch. It is going down deep and dirty. And sometimes at the end of these calls, it’s interesting because you’re all like, so how do I work with you, Bella, and I’m like, Well, this is what you can do. Or sometimes I’m like, You’re not ready to work with like, we’re not ready to work together yet. Because you need to figure out some really fundamental foundations of your business that only you can decide. And then when you come we can work on stuff, you know. So I love it because I get to point people in the right direction, whether or not it’s with me.
But let’s get into it today. So a churn rate is the rate in which employees and clients leave your business over a given period. It’s important to know your churn rate because it can give you insight into the health of your business. If you have a high churn rate, it may mean that there are underlying issues that need to be addressed. So high and low is going to be dependent upon a lot of different people. Because let’s say that you have you’re in a college town and you hire college kids, well, they might be a little bit more transient than someone who might be a freelancer at home. And so your churn rate the rate at which you have to hire someone new because someone quit is going to be longer. Think of the churn rate for employees or clients. If, if anytime you hired someone or anytime you onboard a new client, you did not ever lose them, what would that mean for your business? But that’s the thing. We’re constantly trying to get new clients, but at what rate are we losing clients? Last month in the mastermind, we actually provided our members with a powerful tool. It was a churn rate template that enabled them to monitor and track the retention of both their clients and employees. That template allowed them to set meaningful goals and targets for their business helping them stay focused and on track towards achieving sustainable growth. By keeping a close eye on their churn rate and setting proactive measures to improve retention. Our members are now equipped with the insights they need to optimize their business processes and deliver exceptional experiences to their clients and employees alike. This, this, you have to, you have to track it. Because once you have the information, then you can start seeing trends, you can start seeing like, oh, employees drop off right after I hire them, employees drop off right after the six-month line, clients daily dog walking the average, they stay with us for 16 weeks, and then they start dropping off or cutting back.
All right, this information is so valuable, because what happens is you’re able to put in these, these, these safety nets, so to speak. So Joey Coleman has his book on never lose a customer. And we’ve done book clubs on it in the mastermind, too, in the years past. And some of you might have done that with us. But the main premise of this and customer experience, what we’re talking about in the mastermind this month, is taking those numbers and putting them into action. And so one of the things that you can do, and even though we say customer experience, it’s also employee experiment experience, right? Because we know that both of these systems are the same. Once you get this, you can start understanding where you need to do touch points. And that’s big. I’m not going to go into that today. But, if you know that, you know, people are excited, they like got your solution, you’re going to be their pet sitter. And then they get buyer’s remorse. And they’re wondering, oh, my gosh, did I make the right decision? Is this going to be okay? Did I like how it happened? Was the service good enough for me? All these things, or maybe they consistently have trouble booking with you or getting a hold of you or getting feedback from you, or communicating. And they’re all there are so many things I could list off that I’ve heard of or employees, maybe they feel like it’s a honeymoon phase like you really pour into them at the very beginning. And then all of a sudden, you just drop off and you’re like, okay, yeah, they know what they’re doing. I don’t have to talk to him anymore. And what happens is, they feel like they’re unappreciated in your company. And then they’re like, huh, this isn’t as good as it was, I don’t think I want to work here anymore. These are all real scenarios that have happened to my clients, okay?
So it’s important, because if you could predict the long-term employee or client, how long they would stay with you, and you knew when they started to fall off, and why you could put in those touch points to address any issues, and hopefully retain them, knowing that churn rate is critical to the success of your business. Otherwise, you’re just scurrying, and you have no idea what’s going on, you have no idea when you need to implement anything, and you have no idea why people are leaving you. And you’re just really running around blind. And that’s not a good way to run the business if you want as much predictability as you possibly can. And those typically come from numbers. All right. So I want you to be proactive in addressing this issue with employees, and with clients. And I want to see what you come up with, I want to see you document it so that you can start seeing patterns because there are always going to be patterns.
And then I want you to implement this stuff. We’re going to talk a lot about customer experience this month in the mastermind. There are some systems out there that we’ve discussed a couple of years ago, and there are some systems that I actually use in my own business, and the mastermind and better marketing with Bella have helped tremendously. And it’s all things behind the scenes to make sure that our customers feel appreciated. Now, I’m not saying send them a card or leave them chocolates or anything like that I am talking in a completely different thing, where we continue to build a relationship and let them know that we’re here to support them, and to enhance their life, not to give them more problems. So I want you to understand the churn rate and implement the strategies that can reduce the lead, or the energy to try to find employees and new clients, it can lead to higher profits. Because think about it, you have one client that doesn’t leave you, that’s a lot more money than someone who keeps leaving you and you have to keep regenerating it. And then ultimately can learn to move to scale your business. If any of you guys are in the beginning stages of your business, maybe 123 years, and you haven’t thought about this, I encourage you to implement it. Now. It is going to be so much easier for you to flex this muscle and to start making these kinds of business push ups, we’ll call them workouts now when your data is small so that when it grows larger and larger and larger, you’re already going to be doing this you’re going to be so far ahead of the game because most people are like an ostrich sticking their head in the sand. But I know that is none of you jumpers that people that are listening to this podcast, want to increase their business want to increase their staff they want to achieve their business dreams.
I’m gonna leave you with a story I have a call I had, and I mentioned it on a recent email that went out to everyone on Friday, I got a call from a gal. And I just wanted to hug her. She was in dire straits, she was paying way too much in labor. And she already had another business coach, which is fine. But I still wanted to talk to her because we were talking on Instagram. And she said something that she wanted to take a loan out for her business, I was like, well, Hold up, wait a minute. We don’t need to get loans and our pet sitting and dog walking businesses, there’s just not enough, like, overhead that we need that you don’t. And if any of you out there think you do, go to jumpconsulting.net/20. I’ll show you how we don’t need one. Now, maybe she did. Because she got in a lot of debt. And that’s the thing, because if we use the problem if we see problems in our business, and we try to throw money at it, as I’ll just pay him more, and I’ll get people I need. Then what happens is you’re running a nonprofit, or you’re running at like a 4% profit margin, which is not okay. In a pet-sitting and dog-walking business. I want to see you up there like 30%. Yeah, that’s healthy, at least. Okay. And depending on your pricing strategy, you can get even better than that. But when you have that, that gives you the financial and the time freedom that ultimately every business owner wants, I believe that your business should have cash in the account, I believe that you should have a savings account, I believe that you should be able to hang out with your family and have a work-life balance. And that is the premise in which I tell you guys, all of this churn rate is just one of those little tweaks those, those buttons that we can adjust and turn to understand when and where our clients and our employees are dropping off. This is not something for you to just be like,
Oh, that was a good podcast. Well, cool. This is something that if you’re real serious, and you want to make some big changes, this is a really good indicator that I guarantee you, none of your competition is doing. So I want to sincerely thank you for spending this time with me right now, on this episode. Thank you for you know, learning about this next one, where there’s going to be a juicy one. We’re going to talk about asking for feedback. And a while ago we did, how to ask for a testimony, right? But I realized after I recorded that podcast episode that just telling it to you and giving you the script, which I believe I hope works, jumpconsulting.net/scripts, the scripts I gave you for the email, but now I’m going to back it up a minute because it’s not just enough to know that it’s you have to understand the bigger picture of it. And there is a bigger picture. So stay tuned for the next episode. If it hasn’t come out yet. Go ahead and binge on the last episode. We talked about the numbers you needed to know in your business. And before that trends I’m seeing in the pet sitting industry, so you’re not gonna want to miss out. Keep walking those dogs keep driving around, be safe, and remember when life gets you down, always keep jumping bye now.
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