Most of your revenue will not come from new clients, it’ll come from a small percentage of clients who decide to work with you over and over again.

Have you heard of the Pareto principle? Also known as the 80/20 rule, this magic ratio is actually your secret to customer retention. The Pareto principle is the idea that 80% of outcomes are based on 20% of causes. And while the 80/20 rule has many use cases in business, in episode 2 of our podcast, we’re going to be discussing how 80% of your revenue comes from 20% of your clients, along with the ways better systems mean you’re more likely to retain that crucial 20% of loyal customers. 

Here’s what I discuss: 

• Staying top of mind with your clients by creating follow-up systems
• Delivering consistent, high-quality experiences that give clients the familiarity they crave
• Using systems to get better client results 

Links mentioned in this episode:

• Book Our Done-For-You Systems Service

Welcome to the Day to Day Assist podcast.

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I'm your host, Jennifer, here to give

you bite sized tips on how to transform

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your workday with strategic processes,

technology, and human resources.

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My goal is to help you run your

side hustle, six figure, or multi

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million dollar business chaos free.

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Most of your revenue will

not come from new people.

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Instead, it'll come from a smaller

percentage of clients who decided

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to work with you multiple times.

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There's an economist who discovered

this thing called the Pareto

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Principle or the 80 20 rule.

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And it's a concept that basically says

that 80 percent of your revenue will

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come from 20 percent of your clients.

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For you, this may look like 50

clients deciding to repurchase from

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you over and over again throughout

the year, as opposed to you going out

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and finding 250 new clients to buy

your services within that same year.

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Systems are not just designed to help you

operate better internally, but they also

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help your business retain more clients.

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In this episode, we'll discuss how

systems can help you improve your

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client experience and increase

retention so that those 20 percent

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of clients keep driving your revenue.

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You're going to hear me use the word

retention a lot throughout this episode.

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Retention is a word that people use in

a bunch of different industries like

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education and human resources, but in

this case, it just means your ability to

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keep or retain your customers over time.

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There's an entire formula for measuring

your CRR, or customer retention rate.

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But, to keep it simple, you can start

by choosing a time period, like 3

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months or 1 year, and then tracking

how many customers you kept, or the

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ones that came back for more than one

service, throughout that time period.

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Retention matters because it will

make you more money, and it is so

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much cheaper and easier to keep

customers than it is to find new ones.

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Okay, before I get to the first

point, let me start by saying this.

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People already did so much work

to find you the first time.

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And if they had a good experience, the

chances of them spending that much time

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to go out and find someone different

to do the exact same thing are slim.

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So you have to make sure that

you're making their experience

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really good by using systems.

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Systems help you retain clients by keeping

you top of mind and reminding your past

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clients to repurchase your services.

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When it comes to medical

exams, checkups, doctor visits,

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whatever you like to call them.

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I absolutely hate everything about them.

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I hate looking for offices.

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I hate finding a new doctor.

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I hate going to my appointments.

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And honestly, I wish I could exist

without having to go to the doctor at all.

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But I can't do that, especially

with my eye doctor, because

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I don't have 20 20 vision.

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And if I skip my yearly appointments, I

would not be able to see anything at all.

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My eye doctor is so great with

retaining me as a customer.

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He sends me an automated text

message one time every year reminding

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me to book my yearly eye exam.

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If I don't book it at my 12 month mark,

which I've done before, they will continue

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sending me reminders and leaving me voice

messages until I book that appointment.

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An automated follow up system that

probably took them less than 10 seconds

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to add me to has kept me going back

to their office to get my eyes checked

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and purchase contacts from them for

the past three and a half years.

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The same thing applies to

me getting my oil changed.

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No matter what state I'm in when

that oil light comes on, you.

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I will find a Take 5 oil change shop.

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Why?

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Because they send me emails and text

messages every three months with coupons

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telling me that my car is due for an

oil change and that they are ready and

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available to perform that service for me.

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These service providers have done such

an amazing job retaining me as a customer

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by simply staying top of mind whenever

I need an eye exam or an oil change.

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But maybe you're not an eye doctor.

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Or a mechanic.

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And you can't see how this

may apply to an industry or

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business like yours that isn't.

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Quote, unquote, essential.

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You may be thinking, Jennifer, we

have to go to the eye doctor and get

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oil changes, but we don't have to

purchase marketing services or use

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a real estate agent to buy a house.

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Your service will always, always, always

be essential to someone who needs it.

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Technically, I don't have to go to

the eye doctor or get an oil change.

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There are plenty of people walking around

with blurry vision and driving around

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until their oil gets down to one percent.

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And there are people who've

decided to check their eyes and

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change their oil themselves.

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I have never entertained the thought of

doing it myself because I'm constantly

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getting reminders and follow ups from

a professional service provider who can

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do it faster and much better than I can.

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But if you still feel like your

industry is not essential, it's

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all the more reason for you to

use systems to retain customers.

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Why?

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Because they don't have to

come back to you at all.

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But having a system to remind them of why

they should work with you as opposed to

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doing it themselves, or going elsewhere

and how it can impact their life or

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business will keep you top of mind.

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So when they're ready to have

that particular service done

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again, they will come back to you.

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Another way systems help you

retain customers is by ensuring

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you deliver a consistent, high

quality client experience.

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This breeds familiarity and makes

customers trust you enough to come back.

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Client experience is the quality of a

client's interactions with your business.

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It's how they feel about the business as

a whole and the problems they were able

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to solve by investing in your services.

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When clients say they had a good

experience, it means at the core that

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you were able to solve their problem

and that they got value out of the time

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and money they spent working with you.

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Consistency is so important because when

clients decide to come back to work with

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you multiple times, they have already

built an expectation in their minds around

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your business and how you can help them.

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When you're inconsistent, it impacts

their ability to make a sound decision

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about whether your service will be able

to solve their problem the next time.

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Inconsistency makes clients feel

like they're risking time and money

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every time they work with you.

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Let me ask you this.

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How would you feel if you went to a

restaurant like Chick fil A or Ruth's

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Chris, ordered the same exact thing

that you always order, and it tasted

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different the second or third time around?

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I know how you would feel, because I talk

about it with my friends all the time,

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and when a restaurant is not consistent,

we label it as a hit or miss, which means

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that I am taking a risk every time I go

there, because my food has a 50 percent

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chance of being good, and a 50 percent

chance of being mediocre or terrible,

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and I don't know about you, but I hate

spending my hard earned money on bad food.

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Chick fil A and Ruth Chris

are still both in business and

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retaining customers very well.

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So how do franchises that big make

sure that your chicken and steak

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taste the same every single time?

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They have a system that ensures the

food is always prepared and cooked

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following the same steps and ingredients.

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When your business has systems to help

you deliver a familiar, high quality

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experience over and over again, it

reduces your client's desire or need

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to go somewhere else when they're

ready to invest in that same service.

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Clients crave consistency, and you

can create that for them by having

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systems around how you deliver

services to ensure they happen the

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same way or better every single time.

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Your systems will help clients

trust you deeply to solve their

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problems over and over again.

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Please do not take for granted that

there are hundreds of people who

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can do what you do and your clients

can decide to up and work with

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someone else at any given moment.

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Clients will 100 percent choose to

come back and spend more money with you

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when you have a great familiar systems.

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This leads me to my last point.

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Systems help you get better client

results, which increases retention.

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In our done for you system service, there

is a set process that every client goes

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through for them to experience results.

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I have a client in the wedding

industry who works with me a few times

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every year to update their client

relationship management systems.

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And each time I meet with them

to make an update, they have

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the most amazing news to share.

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Over the past two years, their wedding

venue has gone from 40 weddings

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per year to 100 weddings per year.

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And they recently opened up a second

venue that is starting to get booked.

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The system I used to help them improve

the way they manage their client

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relationships got them the results

of more money, more time, and a more

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aligned team and happier clients.

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I helped them automate their client

onboarding so they could set up a

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portal and gather all the information

they need from new brides who booked

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their venue at the click of a button.

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Then I documented it for them so

that everyone knew how to use the

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new tools and follow the process.

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This gave my client the confidence

and capacity to book more weddings

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because the brides were happy with

their experience and the team was no

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longer spending so much time onboarding

clients manually and trying to

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figure out how to use the tech tools.

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Results like that keep them coming back

to work with me multiple times a year.

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Now I recognize that I'm talking about

a system that I used to create a system

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for my client So hopefully you were

able to follow that example but what

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I'm really trying to emphasize here

is that how I work with clients to

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help them get the results is the same.

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If you are reinventing the process for

how you work with clients every time

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they will not all get the same results.

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When you have the same process, and that

process is good, they will get results.

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And when they get results, they come back.

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They tell other people about you,

and you can showcase their results in

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your marketing to attract new clients.

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All of those things will

increase your retention.

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Okay, so today we discussed how systems

help you improve your client experience

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and increase retention by acting as

reminders for your clients to reengage

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with your services, helping you deliver

a consistent, high quality experience

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and helping you produce better results.

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Now that you've listened to this

episode, I want you to think about the

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systems you have in your business and

how they're either helping you retain

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clients or causing you to lose them.

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Are you reminding them to

come back and work with you?

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Are you keeping the experience consistent?

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Are you getting them the best

results over and over again?

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If you are a service provider in the real

estate, consulting or creative industry.

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I know you're always looking for

methods to help you improve your

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client experience, so you can keep more

clients coming back to work with you.

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Now ask yourself, are your systems

helping you meet that goal?

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Are they helping you keep clients

longer and get better results?

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If you're not sure how to answer those

questions, I encourage you to book

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a call with me to find out how you

can get the most out of your systems.

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Day to Day Assist might just

have the right solution for you.

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The nagging operations problems your

business has been experiencing can finally

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be eliminated in three months or less

with our Done For You system service.

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Your processes will be simplified, tech

tools set up, and procedures documented

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so that you can improve the way your

business operates and retain more

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clients all while removing yourself

from the day to day work that you hate.

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You can find more information

about this service and my calendar

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link for you to book a call

today in the podcast show notes.

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Thank you so much for listening and

I will see you in the next episode.