If you are new to life coaching, you have likely considered how to make this a sustainable career. One key factor is attracting new clients, but the biggest is retaining clients once they are in your service. Customer retention is something life coaches should track and measure to ensure they are providing the best service and are mindful of their profit margin. Customer retention is directly related to a coach’s profitability and growth potential. Although life coaches often begin their careers for the heart of it, choosing a career that is solely dependent on one’s ability and effectiveness in serving clients can be a valuable tool when used correctly.
There are factors in this calculation that can be adjusted to yield different results. Understanding the elements empowers life coaches to take control of their futures. When you get your life coaching certification through an established provider like Life Purpose Institute, you have a team of support throughout the process. Figuring out how many clients a life coach can handle, whether they want to specialize in one area, and how to retain customers in the long term are incredibly relevant to the success of a life coaching career. These are skills that are taught in high-quality certification programs, such as those offered by the International Coaching Federation (ICF) through a provider, which is what Life Purpose Institute leans into. Working with your support experts draws on decades of experience and knowledge in the life-coaching industry.
Retention vs New Clients
One of the key takeaways that life coaches realize when calculating client retention rate is that it is significantly less cost to retain clients than to acquire new ones. According to the Harvard Business Review, increasing customer retention by as little as 5% can significantly boost profits. It can cost a life coach upwards of 500% to gain new clients than to retain existing ones, which is a major component of profitability. Most life coaches are not in the field to get rich, though some do achieve great financial success. Instead, they often begin because they have some of the critical characteristics that naturally lead to an interest in coaching. However, once you choose this career, get certified by ICF, and begin practicing and marketing to clients, cost becomes more relevant as it becomes clearer that it directly impacts your profit margin. So, in the end, learning to retain clients will be a cost-saver and increase profits for life coaches.
Relationships Lead to Retention
In life coaching, it is all about relationships. Relationships can lead to word-of-mouth referrals, unique opportunities, and clients who want to keep coming back. Holding a certification in life coaching is the foundation of marketing to and getting new clients, but once they are in the door, relationships must be established, along with trust and value added.
When clients pay for coaching, they want to feel they are getting value for their money. Whether relational, spiritual, health and wellness, corporate, or leadership coaching, everyone wants to feel they are getting some bang for their buck. If one of the key factors is missing, customers will walk. Maybe they won’t go to another life coach, but they may walk away completely. Customers want skill, expertise, and experience in their coach. They want to know that their coach has the training to help them and a support team to draw from. High-quality service at the right price is how life coaches keep their customers happy and returning.
Minimize Churn Rate
The churn rate is the percent of customers who fall off in a specific time period. Whether calculating quarterly, annually, or some other measurement, stay consistent. As life coaches begin their businesses, they may experience higher customer loss, but setting goals is what life coaches do well, so working to lower the rate in future years is achievable with the right support team! In some cases, using promotions for existing clients can be an incentive for them to stay. Referral programs or special events can be effective in adding value for long-term clients. Remember that sometimes life coaches must invest in their clients to retain them. The relationship needs to be mutually beneficial for long-term clients.
The career of life coaching is incredibly rewarding and can be fruitful! Retaining existing clients is a significant factor, and the team at Life Purpose Institute continues to support life coaches who go through their certification programs. When looking to start, build, or enhance life coaching careers, Life Purpose Institute is the best provider. Contact their team today for a free life coach consultation and find out how to grow your life coaching business through client retention.
