churn rate

Watch the YouTube video of this episode HERE

"You will know and understand what your cap rate or your hypothetical max is for your business simply by doing the math." Today, Alex (@AlexHormozi) breaks down three primary methods for calculating customer Lifetime Value (LTV) — lifetime earnings, churn rate, and sales velocity — and their impact on strategic business decisions. The discussion emphasizes the importance of LTV in projecting business growth, enhancing customer acquisition strategies, and improving profitability, making it a must-listen for businesses aiming to optimize their growth trajectory.

Welcome to The Game w/Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned on his path from $100M to $1B in net worth.

Timestamps:

(0:54) - Three different ways to calculate LTV

(1:21) - The significance of LTV in business growth

(2:19) - Calculating LTV based on churn

(4:23) - Calculating LTV based on sales velocity

(6:19) - The impact of LTV on business decisions

(10:18) - Strategic business decisions based on LTV

(12:23) - Conclusion: The power of LTV in business scaling

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(This episode is a re-run. Original airdate was on May 19, 2022)

I don't know what an LTV is. Today, Alex (@AlexHormozi) talks about the different ways you can calculate your company's LTV and why this is an important aspect to know about your business.

Welcome to The Game w/Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned on his path from $100M to $1B in net worth.

Timestamps:

(1:00) - Know important entrepreneurship metric; 3 ways to calculate it.

(7:49) - Basics of using LTV to project; deeper look.

(11:23) - Fix churn, reach $1 Million/month; 3 ways to get there.

(12:59) - Acquisition.com approach to business problems.

Follow Alex Hormozi’s Socials:

LinkedIn | Instagram | Facebook | YouTube | Twitter | Acquisition

Get them to care by showing you actually care. Today, Alex (@AlexHormozi) shares with us his story of how he solved the churn in the gym industry, and the process he did to achieve this goal!

Welcome to The Game w/Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned on his path from $100M to $1B in net worth.

Timestamps:

(1:03) - Alex shares backstory and struggles during Gym Launch.

(4:14) - Gathering gym owners to discuss customer surplus and focus areas.

(8:06) - Five factors in group discussion: accountability, feedback, community events, personalization, consistency.

(11:33) - Solve problems: consult experts, find solutions, consolidate findings, explore industry efforts.

Follow Alex Hormozi’s Socials:

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It all boils down to how you can push more through this machine. Today, Alex (@AlexHormozi) talks about understanding what you think is considered “good enough” for your business growth, the drivers that actually help you work towards that growth, and when is the right time to step on the gas for your business to move forward.

Welcome to The Game w/Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned on his path from $100M to $1B in net worth.

Timestamps:

(1:10) - Growth realities: face challenges, avoid bottlenecks, push sooner

(4:53) - Knobs for growth: 30-day goals, pricing, conversion, churn rates

(7:19) - Assess knobs, focus on high impact, handle the rest

(11:37) - Push more, know when it's good enough, increase spending

(13:45) - Guide questions, exercise to check progress and move forward

Follow Alex Hormozi’s Socials:

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People are paying for accountability. Today, Alex (@AlexHormozi) discusses the cost of retaining gym customers and retention strategies to triple lifetime value, including reaching out to customers who are not showing up, sending handwritten cards, and contacting all customers twice a month.

Welcome to The Game w/Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned on his path from $100M to $1B in net worth.

Timestamps:

(0:27) - The cost of retaining customers.

(2:25) - Retention strategies to triple lifetime value of customers.

(7:13) - The benefits of investing in customer retention.

(8:36) - The cost of retention and how to foster relationships.

Follow Alex Hormozi’s Socials:

LinkedIn  | Instagram | Facebook | YouTube  | Twitter | Acquisition