I Saved A Business $2,000,000 in 6 Months To Show It’s Not Luck

Summary

• In six months, I saved a portfolio company $2 million by fixing onboarding, reducing churn, and improving customer satisfaction.
• Onboarding 24-48 hours post-purchase is crucial; it frames the entire customer experience and can add 2-3 months to LTV.
• Initially, onboarding faced issues like one-to-many calls with 25 customers, broad content, password resets, and hard selling at the end.
• We conducted a pilot with 15% of customers to test a new process, shifting from one-to-many to one-on-one onboarding.
• By using the Clos framework, we reinforced decisions and related onboarding steps to customers' goals, significantly increasing follow-through.
• Onboarding included quick wins like setting up passwords and immediate connection to support, doubling the uptake of upsell offers.
• Scripting and aligning expectations upfront improved the entire onboarding experience without lowering close rates.
• We created a dedicated escalations team, aligning incentives with a 10-15% commission for saving customers, and scripted the process.
• The new process resulted in a 61% reduction in cancellations, 25% taking higher service levels, and a 2.4x increase in overall ascensions.
• Key takeaways:
  • Expect a cost of change with any new implementation.
  • Tracking metrics like customer satisfaction can itself be an intervention.
  • Even large companies must ensure excellent customer service.
  • Talking to unhappy customers provides valuable insights to improve business.
  • Follow-up frequency should match the customer's profile.
  • Retention is as important as acquisition; it fuels sustainable growth.
  • Proactive customer support, like downgrading unused services, can increase LTV and customer loyalty.
  • Small-scale pilot tests are essential before large rollouts to validate solutions.
• Lowering the grade level of language increases customer understanding and satisfaction across all communications.

Video

How To Take Action

I would suggest implementing a few simple yet effective steps to improve your onboarding process, reduce churn, and boost customer satisfaction.

First, focus on onboarding. Make sure every new customer gets personalized onboarding within 24-48 hours post-purchase. This can make a huge difference in how long they stay with you. Start by switching from one-to-many onboarding calls to one-on-one sessions. This way, you can address individual customer needs and solve any issues, like setting up passwords, right away.

Next, use a framework like 'CLOSER' during onboarding. Reinforce why the customer chose your service and link the onboarding steps to their personal goals. This can significantly improve follow-through and satisfaction. Also, give them a quick win, like helping them set up their account or showing them how to use a key feature. Immediate successes build confidence and increase engagement.

Another great low-cost strategy is to script all customer interactions. From sales to support, having scripts ensures consistency and quality in communication. Practice these scripts so your team can handle any situation smoothly.

Improve your customer support by offering immediate help and clear next steps. Create a dedicated escalations team to handle high-priority issues and compensate them for retaining customers. Align their incentives with company goals, like offering a 10-15% commission for saved accounts.

Pilot these changes with a small group of customers—around 15%—before rolling them out to everyone. Track metrics like customer satisfaction and cancellation rates to measure the effectiveness of your changes.

Lastly, lower the grade level of your communication. This makes it easier for a broader audience to understand, improving satisfaction and reducing confusion.

These steps are simple but can make a big impact on your customer experience and overall business growth. Implement these changes, track your results, and adjust as needed.

Quotes

"Nailing that next 24 to 48 hours will increase how many people take your upsells, how long they stay"

– Alex Hormozi

"Metrics and tracking itself can be a powerful intervention overall in any business for something that you want to improve"

– Alex Hormozi

"We want to be as fast or faster reaching out to customers as we are with leads"

– Alex Hormozi

"If you believe in what you sell and someone has a problem, then it's my belief that you have an ethical duty to present them the offer"

– Alex Hormozi

"If you want to destroy your sales team and annihilate any kind of Goodwill and Morale on that team have them talk to all the dissatisfied customers that they sold last week"

– Alex Hormozi