S7E9 | MRR model to increase customer retention and revenue growth
Sandra explores the benefits of using a Monthly Recurring Revenue (MRR) model to increase customer retention and revenue growth. By offering both free and paid content or services, businesses can move customers from the free funnel to the paid funnel where they are more committed to the brand.
“We want people to make the commitment to working with you by opening their wallets even in the slightest.”
Hi again everyone. I’ve been getting a lot of questions about using a monthly recurring revenue (MRR) model, or even an annual recurring revenue model to get people into our world, and to get them from free lurker fans to paid participants who have made more of a commitment. So that’s what this episode is about. Let’s dig in!
So you may have people who have never bought from you. Maybe they’re in your free group, or they follow you on social media. The first step to creating repeat customers is to get someone to buy something from you once. After that, they’re open and more likely to buy from you again. It also costs less to have a repeating customer than to bring in an entirely new customer.
To start this off, you want to get the customer to make a commitment, whether it’s by having them pay for something you sell, or by getting them to put something on their calendar from you. Even if it isn’t paid, it’s still a commitment, which is huge.
There’s more attention being paid after someone commits to something, especially if they’ve paid for it. It’s likely they’re already looking for what’s next, because they’re now ready to move to the next level. It’s much easier to pitch new offers to a paying audience that’s already warmed up.
When I talk about an MRR model at this level, this is not a high cost membership or something that you’ll need to provide hours of support for, but you do want to give these members the experience of working with you or your content.
Remember, you don’t want to give everyone everything all at once, because there won’t be a next level or new offer to give them. You want to take a look at your free content and see how you can level up what you’re putting out there for paid content.
These great benefits are why I’m teaching the Recurring Revenue Roadmap workshops this month, so make sure to check out recurringrevenueroadmap.com.