Retention Is Broken and Here’s the Real Reason People Are Leaving

0:00Think about retention as how do you offer somebody a series of programs that meet the needs of a series of transitions. Instead of thinking about it as what else can I charge for, if you start with transitions, you will find the unlock for retention.

0:23Hey, I'm Gina Bianchini and this is People Magic, where I show you the easiest way to a$1 million community. Let's have the next question. Hey, Gina, I've built a successful membership that I love. My challenge, though, is that I'm stuck at 200 members. Every time I get more, I lose roughly the same number of people. What can I do to break out of this cycle? I love this question because you're tackling a really important piece, a membership business, which is retention. You're losing people. Another way of saying that is churn or churning people. You're not retaining them. And then you're working hard to bring new people in.

1:08And then after a certain period of time, you lose the same number of people. The fact that the math is just so clean here is kind of interesting. And we certainly did not plan on that. But I think the things that I would want to do in diagnosing what's going on, if we take a step back, the first thing I'm going to ask is what is your transition? Are you tapping into a transition in a set of people where after a certain amount of time, they've actually achieved their best year ever and they are like moving on and they've had a great time. It was super valuable, but now the value of your membership is over.

1:56That is my hunch about what's going on here. So the number one thing that I would start with is, is there a transition for people after a set period of time? So for example, if they're coming to your membership for one transition, how are you mapping out their value journey? what I call their value journey. Other people will call it their value ladder. And a lot of times when you talk about a value journey, it's around, well, what else can I charge for? Instead of thinking about it as what else can I charge for? Think about it as everything is through the lens of transitions. So what is the first transition that they come in for?

2:39Are they still in that transition? Or what are the milestones of that transition after 90 days, or let's just even say six months. And so you want to have a map that you have like written out. Maybe I'm the only person who's a fan of like writing things with pen and paper, but map out what happens during that transition so that you know what is the next transition that you can help people navigate. So for example, if your framework or the reason you're bringing people together is that they are a first-time engineering manager. Well, you want to map out what are those milestones in being a first-time engineering manager.

3:23And then when they're kind of like, great, I think I got it. What's the next transition? Well, the next transition might be how they start to oversee two teams or two squads, or they move from having five or seven individual reports to managers of those reports. What is that next leveling up? Build a program or part of your membership for that so that then you're like, hey, this is the next level. And then you have the next level or the next transition and the next one. People's lives are transitions. We, if we don't have them, you know, naturally or thrust upon us, we go find them. We want to learn a new skill.

4:15We want to tackle new practices and build new habits in our lives. So it's really about how can you think about your offering through the lens of transitions. And then here's what is so great about this. Not only thinking in terms of transitions, not only will it help you with your retention, but now you can bring people who are new into each of the transitions that you offer. So you take that first cohort and you just work with them through their transitions. You now have you go from one to two, two to three, three to four. And then you can you can potentially market all four of those transitions as long as they're related to more people.

5:15I think looking through the lens of transitions is more effective than simply thinking about it as like, oh my gosh, my offer is not good enough. That's the next thing that you probably want to look at. Like, what else do you need to add to your offer, especially your offer over time? Because it sounds like you can get people in. What does your offer over time look like? The way your offer over time becomes valuable is another transition, not throwing more content at it, not throwing more of your time at it, but thinking about this person has grown. This person has leveled up. The other thing you might even want to think about, what about a program that lives within your membership for people who are stuck?

6:07People who are stuck. So one of the things that we've launched and I launched really successfully was what I called a refresh. So like, you know, you've been working with your community for a while and like then you like life gets in the way and you go do other stuff. Well, what do you need at that point if you want to come back and just sort of figure out like, OK, what did I learn from that? What would I actually, you know, reimagine and start again? Well, that's when you want to refresh. refresh and our refreshes have been extremely successful. So you think about like the person that's like going to just continue along the course, they're going to stay regardless, but then you want to add new transitions and new levels.

6:51So that's what's in your value journey. And then think about how do you create something for the people who are struggling and that who would otherwise turn out because they're struggling. And then you have a much richer picture with your offer. Think about things your members can do with each other. How do you create accountability groups? How do you create, you know, mini masterminds? How do you create new quests that they can go on with each other versus what's such a normal thing to have happen is if you are like, oh my gosh, people are leaving. I have to do more. I have to create, as I said a moment ago, like more content.

7:39That is just going to bum you out. It's not going to be that effective. Transitions and offers of introduction to other members and who they bring in, those are so much more effective, such a more effective way of addressing retention and growing faster. So if you have a series of transitions, that is how you continue to keep people engaged. Because when they're through one transition, you have them ready for the next transition. They're able to level up. Think about it as like, how are you creating a value journey? In video games or any games, they call this the elder game. So you level up and then you become an elder in that game and you help other people along their journey.

8:32So think about retention as how do you offer somebody a series of programs that meet the needs of a series of transitions. If you start with transitions, you will find the unlock for retention. So hopefully that is a helpful framework for you to go and apply in your specific situation. I'm really excited to see what will happen. And please let me know as you approach your opportunity for retention as a series of transitions that you can offer your members. That's really where this works. And it works extremely, extremely well. I'm Gina Bianchini. This is People Magic. Thanks for being a part of it.

9:47Thank you.