Mike Andes lost $5 million in net worth because 29% of new customers churned within 90 days. He didn't import their existing CRM data or customize implementations to their workflows, and the onboarding was a confusing maze of support options instead of a clear path to early results.
Chapters
Over the past 90 days, I made a mistake in my business that cost me $5 million in net worth. Why? This ugly word called churn. Customers that should have stayed, but they didn't. I completely overlooked something. 29% of customers left within the first 90 days of joining. And if you never get a real result as a customer, you leave. And so this is really where the mistake, the $5 million mistake was made. I was trying to get customers to the result without enforcing and incentivizing the steps required to get there. And I skipped over two things. The first one was import. These are the steps of the process that we are missing. But the problem is they hadn't imported all of their data from their previous CRM. Implementation. We had not taken the settings, the automations, the templates, and actually customized it to their specific workflow to make sure it was working for their business. And so instead of a clear path, they had options. It was like they were just dumped into this plethora, this maze of like, There's support calls, there's chat, there's HomeWorks Academy, and like, go learn. And they'd even like, I do live calls with every single new member inside of HomeWorks. So even talking to me, it was like, it was still a function of like, there's all these options versus here is the path to be able to get you to where you want to go. If a customer hires you, but you don't show up quickly, you don't deliver value early, you don't set clear expectations of when you're gonna show up and what the schedule's gonna be, you fail early and then you don't show improvement, that's the big one, that's when they cancel. You're going to make mistakes. But if you fail early, make a mistake on the first service and you don't show any improvement on the second, on the third, on the fourth, that's when they cancel.