Recurring Revenue

Getting a new booking is an amazing euphoric feeling… but turning that new booking into a recurring client is even better. A recurring client means a person who already knows you, marketing dollars already spent, and a higher lifetime value for your business. A strong base of happy recurring clients is the difference between a 5 figure business and a 7 figure business and since growth is key, I started looking at my recurring numbers with Enjoy Maids and put together a strategy to increase my recurring customer percentage for the month of May.

While I was doing a great job in attracting new clients, my recurring client retention rate was suffering. Because each new lead cost me between $30 and $60… my profit margin was little to none and the end of the month didn’t feel so great. In fact, it is six to seven times cheaper to keepa customer than it is to acquire a new one and my bottom line felt every bit of that statistic.

So what’s a healthy recurring revenue rate? According to Rohan (owner of Maids in Black and Launch27), an ideal recurring revenue percentage to get you to a million dollar business is upwards of 50%. 

So in order to save my business, I have to take steps to turn one time clients into recurring clients. While I am not exactly where I need to be, here are the 5 steps I took to increase my percentage of recurring clients by 26% in less than one month.

1. I simplified my booking form

We took a look at the booking form and how it was converting, and decided to simplify it even more. We removed any barriers to book and focused on increasing our overall conversion rate which ultimately increases our recurring rate and was our first step in success.

2. I placed my emphasis on booking recurring services

I highlighted the discount and benefits of booking a recurring service vs. just a one off. I tell the customer the action I want them to take and more often than not, they try out the recurring services.

3. I provided better service

To increase the likelihood that they wouldn’t cancel their next service, I make sure my teams wow the client. This is one of the main keys to recurring services. Even if you complete each step, without great service, you can’t retain clients.

4. I called all new clients and upsold them to recurring

If my booking form didn’t convert them, my friendly sales pitch after the service does. I call all clients and ask them about their appointment which allows me to deal with any potential issues, answer any questions, upsell recurring and encourage them to leave a glowing review.

5. Provided leave behinds

I didn’t just leave my clients with a clean house… I left behind material that talked about my recurring services (on my checklist) and included a fridge magnet that reminded them of us every time they walked past their refrigerator door. I wanted them to remember in two weeks when their home is dirty again that we were the ones to make it sparkle.

6. Created a follow up campaign

Yes, we mentioned this in an article before, but setting up a follow up campaign has recovered a number of customers who haven’t booked with us in a while giving us an opportunity to collect revenue and also to turn them into a potential recurring account.

I send both follow up emails and replenishment emails (a friendly reminder about my services when I know they have a dirty house again and they may need a cleaning).

So what has worked for you? What are your recurring numbers? Share with us!