1. CUSTOMER RETENTION YOUR KEY TO GROWTH Julia King Tamang – LERN CPRS Conference 2010

2. Learning Resources Network (LERN) An international, nonprofit, tax exempt educational association offering information and consulting to providers of lifelong learning.

3. Founded in 1974 5,000 Members 1,800 Organizational Members 18 Countries Board of Directors Self Sufficient

4. My goal is to get you out of here with 12 workable new ideas for retention Minimum!

5. The importance of retention

6. Market potential vs. Market share 6  Market potential is the total number of possible participants  Market share is the total number of those people you have enrolled

7. How will you grow?  50% repeat  25% new  25% referral

8. 8 6 times more expensive to get a new customer MAILING RESPONSE RATE AMOUNT 6,000 past participants 6.00% 360 30,000 new participants 1.00% 300 36,000 total 1.83% 660 Assuming the cost of each promotion is $.25, the following is the cost to get a new customer versus retaining a past participant:  $.25 X 6,000 = $1,500/360 = $4.17  $.25 X 30,000 = $7,500/300 = $25

9. A customer is not worth a class fee  A customer is worth their LIFETIME investment  Plus, all the referrals they make

10. Know your repeat rate 300 participants In 2010 500 participants 150 of them came from 2010 In 2011 15/30 = a 50% Repeat Rate 50% - 70% is the benchmark for Repeat Rate

11. 11 Lifetime Value example  If your retention rate is 66% and your average fee is $100, the average Lifetime Value of each of your customers is $300.  If you increase that retention rate to 75%, the average Lifetime Value for each of your customers increases to $400  Thus, a 9% increase in retention yields a 25% increase in Income.

12. You need all the referrals you can get  Most of your new customers will come because of your current customers  How do you get referrals?  You have to ask In person (ask for two) Web Brochure Flyers and ….  Is there any way you can get each “best” customer to refer two or more people?

13. How do you keep people engaged?

14. Engage them every day  Spend 10 minutes each day talking with two existing participants.  Ask them what they want, what they need, and what they like/don't like.  Implement the ideas that work for you.  Broadcast any changes you make in your blog, newsletter, flyers, bulletin boards and so on.

15. Offer a test drive  Invite participants/customers to test a new service before you offer it to the public.  Your best customers will have insight about what others like them want.  This will save you energy and will send the message to your participant that they are the first to experience something new.

16. Show off your participants  Post newspaper/magazine articles about your participants' achievements or stories in your e- newsletter or other promotions.  People love to be acknowledged for their wins.  Be sure to ask their permission, of course.  Tie this in with testimonials and photos.

17. Great customer service  Study the customer service of outstanding companies.  By learning from the pros, you’ll keep those who expect the best.  Nordstrom's is one of my favorites.

18. Keep your commitments  You under-promise and over-deliver  Be accountable and accessible to participants.  Think participant focus first.

19. Get closer  Consider the individuals  People skills create relationships, and people do business with individual and businesses they know and trust.  Build relationships with participants as individuals.  Gather personal information they are willing to share, such as birthdays and so on

20. Be a valuable source of info  Forward useful information  Send links to websites they may find useful. Forward articles, newsletters and handouts (assuming you have obtained permission, of course).  Post valuable downloads on your website and blog.

21. Say thanks  Remember the thank you note  An often overlooked but powerful keep-in-touch strategy is the thank you note.  A timely thank you note stands out: It differentiates you. It is proper business etiquette after any participant meeting or engagement. A stack of plain postcards goes a longs ways on this score.

22. Take responsibility for mistakes  Respond  Everyone can make a mistake. The difference between staff that overcome participant relationship problems caused by mistakes and those that do not is usually related to how you respond the to the mistake.

23. Make retention matter  Reward your staff for participant retention  Set goals.  Celebrate them when you reach them.

24. Talk to the top  Survey your best participants  Get their ideas.  Implement them.  Tell them that the idea was implemented.

25. Ask your participants for help  Get referrals  Those who refer more are more likely to come back themselves because they are networked in to your participant base.

26. E-connect  Send e-newsletters  Monthly  1.5 screens  Make some of the info VALUABLE  Use some intelligent humor  Use color  Be consistent

27. Be there when they need you  Answer your phone  If you don’t, get back within the same business day.

28. Customer loyalty programs work  Reward or recognize frequent participation  Reward or recognize referrals  Reward or recognize

29. Get your brochures and flyers out  In-house Mailing List  Rental Mailing Lists  Carrier Route  Street Distribution  Newspaper Boxes  Newspaper Inserts  Libraries  Special Events  Requests  Partnerships  Staff Distribution

30. Try sold-out courses and events Ballet Cooking Aerobics Book Club Film Festival SOLD OUT!!

31. Have instructors/coaches e-mail

32. Facebook and other social media  New AND hot!

34. First class free works Or do a $2 “Try it”

35. Next course/event recommendations

36. Name tents promote next offerings

37. Registration parties a big hit + Registration = $$

38. Forward this email

39. Organize testimonials around objections

40. Talk solutions

41. Save people time

42. Use someone from the target generation to write your copy

43. Offer downloadable tips

44. Re-evaluate your look every 5 years

45. Certificate programs  Any mechanism for getting people to the next  Really good if they commit financially for multiple classes at once

46. Your best retention ideas

47. Thanks! kingtamang@lern.org