In a candid conversation, the host emphasizes the importance of consistently delivering value to customers and employees, drawing parallels between business practices and marriage commitment. By sharing a core tenet of his gym business, "own it," he advocates for a mindset shift from relying on contracts to fostering ongoing satisfaction and loyalty. He illustrates that high churn rates signal a failure to meet expectations and underscores the necessity of daily efforts to retain both customers and employees. The host's personal anecdotes about his marriage to Layla and his approach to customer service highlight the principle of treating every interaction as crucial to maintaining strong, lasting relationships.

Summary Notes

Core Tenets and Business Philosophy

  • Layla introduces the concept of core tenets in business.
  • Core tenets serve as a reference for decision-making and define the identity of a business.
  • Layla specifically mentions "own it" as one of the five core tenets at their gym.
  • Having core tenets is crucial for guiding both personal actions and those of employees.

"So we have five core tenets at gym, lunch, rather than go through all of them. I'll tell you what one of them is, and it's own it."

This quote highlights the importance of having foundational principles, like "own it," that shape the culture and decision-making within a business.

Customer Commitment and Expectations

  • Layla discusses the issue of customers signing up for long-term memberships but quitting early.
  • The hypocrisy of business owners trying to exit franchise agreements while being upset about customers doing the same is highlighted.
  • This comparison draws attention to the need for consistency in honoring commitments.

"A lot of people get really upset about their customers who sign for a twelve month membership and then quit after three months."

The quote emphasizes the frustration business owners feel when customers do not fulfill their contractual agreements, a situation that parallels business owners' own actions.

Churn Rate and Customer Retention

  • Layla mentions their gym's low churn rate, especially within the most expensive group.
  • The personal fear of rejection and desire to deliver on promises are cited as reasons for their success.
  • Providing continuous value is seen as essential for customer retention.

"We have ridiculously, ridiculously, almost zero churn on our highest level group."

This quote signifies the success of Layla's gym in retaining customers, particularly in the premium segment, which is often the most challenging to maintain due to higher expectations.

Fear of Rejection and Insecurity

  • Layla candidly shares a personal fear of rejection and insecurity.
  • These feelings drive a commitment to fulfilling promises to customers.
  • The perspective shift from merely securing contracts to actively fulfilling them is emphasized.

"Honestly, I think it's just because I'm incredibly insecure deep down and I have this huge fear of rejection."

The quote reveals a personal motivation behind Layla's business approach, showing how personal traits can influence professional behavior and success.

Contractual Agreements vs. Value Delivery

  • The discussion moves towards the importance of providing value beyond the contract.
  • Layla argues that relying solely on contracts for business success is a flawed strategy.
  • The need to perform and provide continuous value to customers is stressed.

"But if you ever rely on your business because of contracts, you will lose always."

This quote underlines the belief that the true foundation of a successful business is not legal agreements but the actual value provided to customers.

Personal Relationships and Business Analogies

  • Layla draws a parallel between personal relationships, like marriage, and business relationships with customers.
  • The same commitment and immediate confrontation of issues are necessary in both.
  • Treating customers with the same respect and dedication as one would in a marriage is recommended.

"And so if you treat your marriage right, you've got that contract. You're like, I got a contract. You got to be with me."

The quote compares the binding nature of marriage to business contracts, suggesting that a genuine commitment to the relationship is more important than the document itself.

Concept of Commitment and Performance

  • Layla jokes about commitment being month to month, highlighting the importance of continual performance.
  • The idea that one is only as good as their last paycheck or last day.
  • Resting on laurels or getting lazy can lead to being surpassed by someone more driven.
  • The importance of staying committed and diligent in both personal and professional aspects.

"You have to stay here. You have to pay me. You will lose, and life will suck, right? But if you consider it as week to week, like, I consider us day to day."

This quote emphasizes the necessity of maintaining commitment and the potential consequences of failing to do so in contractual or personal relationships.

"You're only as good as your last day. And the moment you rest on your laurels, the moment you get lazy, is the moment someone else who's hungrier will take you."

Layla points out the competitive nature of life and the need for consistent effort to prevent being outperformed by others.

Marriage and Business Analogies

  • Shared principles and commitments are foundational in both marriage and business.
  • Consistency in actions and efforts are critical in maintaining healthy relationships and customer satisfaction.
  • The comparison between expressing appreciation in marriage and customer engagement in business.
  • The necessity of aligning relationships so that mutual self-interests are met.

"Now, obviously, we have commitments. We have shared principles that we never want to believe in. The, I don't want to get biblical on you, but we believe when you get married, you stay married."

Layla discusses the foundational commitments and shared principles in marriage, which are also applicable to business partnerships.

"The marriage and business are so similar because you have to do the stuff sometimes you don't want to do, and you got to be consistent you got to do it every day."

This quote draws a parallel between the commitment in marriage and the dedication needed in business to perform tasks consistently, even when they are undesirable.

Self-Interest in Human Behavior

  • The predictability of people acting in their own self-interest.
  • Aligning relationships to ensure that staying committed is in everyone's best interest.
  • The importance of making one's business or value proposition so compelling that customers or partners choose to stay.
  • Recognizing customer churn as feedback on not meeting their interests.

"If you always predict that people will act in their own self interest, he's like, you'll always be right."

Layla conveys a mentor's advice on the predictability of human behavior, emphasizing the importance of understanding self-interest in relationships and business.

"I have to make legacy so freaking good that their best interest is staying and paying me, right? I'm being super real with you."

This quote highlights Layla's strategy of ensuring that her business offers enough value to align with her customers' self-interest, thus retaining them.

Customer Retention and Accountability

  • The fallacy of blaming customers for lack of commitment when the issue may lie with the business not meeting their needs.
  • High churn rates as an indicator of a business's failure to maintain relevance or value to customers.
  • The need for businesses to honor their commitments to remain in the best interest of their customers.

"You probably didn't honor your word, right? Because you're no longer in their best interest anymore."

Layla suggests that businesses often lose customers not because the customers are disloyal, but because the business failed to remain advantageous or relevant to them.

Engagement with the Audience

  • The podcast's efforts to connect with listeners through LinkedIn.
  • Encouragement for listeners to reach out and connect with the hosts.

"So send me a connection request and note letting me know that you listen to the show and I will accept it."

This quote is an invitation from Speaker C to the listeners to engage with the podcast hosts on a professional networking platform, fostering a community around the podcast.

Importance of Delivering Daily Value to Customers

  • Customer retention is not guaranteed by contracts but by daily satisfaction with the service provided.
  • Consistency in delivering a high-quality experience is key to preventing customers from leaving.
  • Any sign of neglect or poor service can be a reason for customers to leave, regardless of contractual agreements.

"And so despite you, despite signing the twelve month contract without signing the 18 month contract, whatever it is, live, week to week, live, workout to workout, because the real contract that they have with you is for today..."

This quote emphasizes the importance of treating each interaction with a customer as if it's the only one that matters, because customers' ongoing loyalty is based on their daily experiences, not on the formal contracts they've signed.

Customer Relationships as Personal Relationships

  • Customer loyalty is likened to personal relationships, where ongoing effort is required to maintain interest and satisfaction.
  • The speaker suggests that businesses should aim to make customers feel valued and irreplaceable, just as one would in a romantic relationship.
  • The analogy extends to suggest that customers should feel proud of their association with the service, much like a partner in a strong relationship.

"They'll come up with their reason. They'll say they got busy. They'll work or they're moving. Their friend's a doctor or a nurse. They'll get the fake note. It doesn't matter. Someone wants to leave the relationship, they'll leave."

This quote draws a parallel between customers leaving a service and a person leaving a relationship, highlighting that the underlying reason is often dissatisfaction, and the excuses given are just a cover for the real issue.

Daily Appreciation and Communication

  • Expressing appreciation and communicating value to customers regularly is crucial for maintaining a good relationship.
  • Just as in personal relationships, frequent and sincere expressions of gratitude and recognition can solidify loyalty.
  • The speaker shares personal practices of appreciation to illustrate the level of commitment required for successful customer relationships.

"I tell her every moment, I'm, baby, I love you. I'm like, you're awesome. You're so good. I was like, you managed our team so well. I could never do this without you. And it's true."

This quote demonstrates the speaker's personal approach to expressing appreciation in a relationship, suggesting that a similar level of engagement and recognition should be applied to customer relationships to ensure their ongoing satisfaction and loyalty.

Employee Engagement and Leadership

  • The attitude and performance of employees are reflective of the leadership and investment they receive.
  • Employees are likely to leave if they feel undervalued or if the work environment is negative, taking customers with them.
  • Leaders should strive to create a positive and mutually beneficial work environment to ensure both employee and customer retention.

"My employees don't work hard enough. They don't care about my customers... Well, how are you showing up as a leader?"

This quote challenges business owners to reflect on their own leadership and the environment they create for their employees, implying that dissatisfaction among employees can lead to a loss of customers if not addressed.

Value Discrepancy and Pricing Strategy

  • Providing significantly more value than what customers pay for can lead to a perception of getting a great deal, which encourages loyalty.
  • The speaker advocates for raising prices while simultaneously increasing the perceived value of the service.
  • The concept of an "unfair advantage" is introduced, where customers feel they receive more than what they give, creating a strong incentive to stay.

"People go to Chipotle because they pay seven and they get a $20 meal. That's why they go to Chipotle."

This quote uses Chipotle as an example of a business that has successfully created a value discrepancy in the eyes of their customers, where the value of the product is perceived to be much higher than its cost, reinforcing customer loyalty.

Importance of Not Taking Things for Granted

  • Layla emphasizes the importance of not taking customer loyalty for granted.
  • She highlights the presence of competition as a constant threat and a motivator for innovation.
  • The focus on customers over competition is mentioned as a key to creating valuable products and services.

"I never want that to happen. And so if you think about that with your customers, you will always be ahead of your competition."

This quote underscores the idea that by prioritizing customers and their needs, a business can maintain a competitive edge.

"I'm only as good as my last paycheck, right? I can only provide for Layla if I provide for you stuff that makes you money."

Layla conveys the notion that her success and ability to provide are directly linked to the value she delivers to her customers.

Continuous Improvement and Innovation

  • Layla discusses the necessity of constant innovation to stay ahead.
  • She associates innovation with the fear of competition copying her ideas.
  • The drive to innovate is rooted in the desire to retain customers and provide value.

"We're constantly innovating because I'm like, shit, everyone's going to copy my stuff."

This quote captures Layla's urgency to innovate as a response to the threat of imitation by competitors.

Perception and Memory in Relationships

  • Layla talks about the human tendency to remember our own contributions more than others'.
  • She points out that people often forget what others do for them and that this can lead to unrealistic expectations.
  • Layla suggests focusing on one’s own actions and contributions as a strategy for improving relationships.

"We don't remember what we did. We don't remember all those things. Like, every time I can't tell you how many times my wife has taken the trash out. I always remember when I take it out, right?"

This quote illustrates the common bias of remembering our own actions more vividly than those of others.

Adapting to Human Nature

  • Layla advises accepting human nature rather than lamenting it.
  • She encourages proactive adaptation as a means to succeed in both personal and business relationships.
  • Layla emphasizes the importance of interpreting signs of discontent as opportunities for self-improvement.

"You can either lament how human beings are or you can react and win and just adjust."

Layla highlights the choice between complaining about human nature and adapting to it in order to succeed.

Meeting Needs in Business and Personal Life

  • Layla stresses the importance of fulfilling the needs of customers, employees, and partners.
  • She mentions the significance of understanding and catering to individual love languages and needs.
  • Layla connects the concept of service in business to the idea of serving the needs of those around us.

"Especially since we're selling service. Most of us are selling service. And if you're selling service, you need to fulfill the person's needs."

This quote links the success of a service-based business to the fulfillment of customer needs.

Gratitude for Attention and Engagement

  • Layla expresses gratitude for the attention of her audience.
  • She acknowledges the value of the time her audience spends with her content.
  • Layla closes with an offer of help to gym owners, positioning her service as beneficial to their success.

"As always, thank you very much for your attention. I know that you have many things to spend your attention and eyeballs on."

This quote shows Layla's appreciation for her audience's choice to engage with her content amidst numerous alternatives.

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