Client Retention Techniques for Yoga Studios: Build a Thriving Community and Sustainable Revenue

By Dennis Bluthardt, Namaste Studios®

Most yoga studios today spend their marketing dollars on acquisition. The problem with this approach is that there’s already a whole community of clients who join the studio. Yet, due to the lack of focus on the existing community, turnover at the studio is very high. What if studios knew that by making a slight increase in the amount of 5% retention, there would be a significant increase in profit? The cost of acquiring new customers is high, while the price of marketing to existing customers is relatively low. Plus, people know the brand and are likely to be “fans” of it, meaning they probably have friends who are like them and will, therefore, talk about the studio when it’s brought up in conversation.

Here’s the deal:

Yoga studios must be strategic again. That means the studio considers which classes a student typically takes and then makes the following recommendation. Additionally, it could be at the next check-in, when staff see someone, they receive an in-person invitation to an event. Some workshops should be open to anyone who also recommends them.

Be strategic about what a student WANTS TO SEE.

Here are a few additional ways that yoga studios could focus on retention

Foster a Community: People don’t want to be “alone”. That’s why there are things to focus on, such as events, group challenges, or even “member appreciation days”. At the studio, which centers around the theme of yoga, members can focus on being part of a positive community and enjoying a stress-free practice.

Make sure to check out the other “Retention Strategies” articles that have been written here.

Lost post: We all have the choice to decide exactly how we want to live every day, or even every second. Sure, there are ups and downs in life, we have “challenges,” but that doesn’t lessen the…” Most yoga studios today spend their marketing dollars on acquisition. The problem with this approach is that there’s already a whole community of clients who join the studio. Yet, due to the lack of focus on the existing community, turnover at the studio is very high. What if studios knew that by increasing the 5% retention rate by just a slight amount, they could see a significant increase in profit? The cost of acquiring new customers is high, while the price of marketing to existing customers is relatively low. Plus, people know the brand and are likely to be “fans” of it, meaning they probably have friends who are like them and will, therefore, talk about the studio when it’s brought up in conversation.

Why Client Retention is More Important than You Think

It is easier, and possibly smarter, to retain a client than to acquire new business. This is mainly true for anyone running a yoga business. The cost of acquisition, whether of an influencer or a person interested in your business, can be incredibly high. So, when someone likes your studio, you should aim to retain that person, rather than finding new ones. Once your classes start to fill consistently, your finances will become more predictable. Then, you can run your business more intelligently by allocating resources based on future knowns (as opposed to “monthly unknowns”).

One concept that resonated with me upon reading is the idea of emotional loyalty, rather than transactional engagement. The theory, as it applies to yoga studios, is that you want your clients to be emotionally bonded to you, not just for the transaction (as in “attending a class for money”). Someone who is “transactionally” bonded to your yoga business may attend for a few weeks, or even for a few months. However, those who are emotionally connected are likely to continue participating for a very long time. In short, create an atmosphere that your clients like (imagine yourself in their minds, and they will want to attend), and be very involved in community events.

Remember, your business is not just yoga. I mean, continue to practice yoga if you enjoy it, but a good yoga studio is a “people business”, a “relationship business,” a “retention business”. Retain your loyal visitors (the “super-elite” version of a “visitor” is a “client”), refer their friends and family, and allow your studio to grow organically (well-liked members that you know by name, in a community-based, sustained environment; ask any open-ended questions, when appropriate) (the “word-of-mouth” effect).

The “partially open” business plan hasn’t worked well for years, if ever (although perhaps for a very brief period). The fact is that a yoga studio is essentially a “event business”. So, be kind to people (show respect; really, don’t talk much at all), and be a little empathetic when giving your “advice” (remember, the “monthly check” is still the real “victory”).

Core Retention Techniques That Work in Yoga Studios

The process begins with “welcome,” those first crucial moments when you can create a profoundly positive impact. School lunches were the most talked-about “meal” where I used to work. Negativity bias (a “glass half empty” feeling) is a psychological certainty.

Knowing this, the only area where we “over-invested resources” was around our free lunch program. The upside was enormous–for the price of a public school “hot lunch,” we would guarantee “complaint-free” days. It cost about $50 per week for 25 of us. That’s $2 for an all-but-guaranteed happy day. Try it. It worked for two completely different cultures in turn. Probably the best “management tool” I’ve ever bought for my use.

Automation Tools That Support Retention Without Losing Soul

Automation enables many businesses to maintain a personal touch while efficiently managing client relationships, thereby revolutionizing their retention strategy. Platforms like ConvertKit allow businesses to segment their audience and tailor communication to their specific preferences and behaviors. This ensures that clients always receive information tailored to them, and it helps companies to stay in touch more effectively, playing a crucial role in the customer experience and, thus, the retention they’re able to provide.

Another vital client retention strategy that many businesses have adopted is automating the sending out of email sequences. What’s particularly beneficial about this method is that not only can it be the most time-saving, but it can also have a significant impact. Some key email sequences to send at high-impact times for members are the welcome email, a new series of introductory offers specifically tailored to the new client, and a post-first-class follow-up email.

Suppose a new business follows your example and implements just three automated email touchpoints like this. In that case, it set them up to do everything they need to stay in touch with clients, allowing them to reach clients with the exact words they’d love to say to them about whatever it is that the client values most. This kind of automation dramatically reduces the time new business owners need to spend thinking about how they’re niching down, once again allowing them to focus on their core work and more easily attract clients who are genuinely interested in precisely that.

Experiences created for clients with automation through Piston and, more affectionately, completely custom mobile applications. Heavy use of CRM tools, as well. Businesses offering popular organized fitness classes attract clients through third-party platforms, such as ClassPass, and have a very high usage of the brand’s custom mobile application. This alone heavily encourages client retention by creating a “club-like” effect, allowing the brand to connect with its clients physically in person while also delivering a virtual product – the best of both worlds in the eyes of some people, in some cases. Sounds right when you first think about it, an interesting concept, there.

Mistakes to Avoid

Focusing solely on price to drive brand loyalty can inadvertently lead customers to prioritize the amount of the discount they are receiving over their actual feelings about the business. The mentality of race-to-the-bottom pricing incentivizes customers to be more loyal to the discount than to the brand itself.

A reengagement strategy applies to brands across the board. Every B2C and DTC brand in the world has a healthy list of customers who have made a purchase before but have since become inactive. Winback and reactivation email campaigns are a great way to continue to promote the “V2B” mantra by essentially “doubling down” on your perception of providing value. If you need to make a phone call, create one.

Staff who are trained in a recurring, retention mindset will prioritize building relationships over simply closing sales. Staff don’t have to understand the ARPA (average revenue per active customer), but they must grasp the importance of achieving full-funnel customer satisfaction. Customers who are delighted by service have often graduated from the “trust” phase to significant brand loyalty.

Case Study or Example

An example that provides an interesting case study is a yoga studio. Through strategic, retention-centered actions, their lifetime value increased by 30%. They put in place some initiatives to improve the overall experience at the studio and to create a “community” atmosphere. They instituted a point-based loyalty program, wherein clients earn points not only for attending class but also for bringing in friends. This immediately incentivized people to come more often and created an organic word-of-mouth system. They also added “community events” for natural networking among the clientele (workshops, hanging out). From this, they sent out generic automated recurring retainer emails to clients who haven’t come and even introduced a discount on a client’s birthday.

Not bad, right?

Clients are “stickier”; they are more likely to continue paying for the membership past the point at which they want to stop attending. They feel more pressured to keep up payments for semi-private services as the stickiness of the business relationship is higher. Afterthought: Increasing community is a key way to increase stickiness as a yoga studio or any similar establishment. So, if you don’t want to improve the community, you shouldn’t sell yoga.

In a sea of yoga studios, how do you not only get students but keep them coming back? The secret to retention comes down to a few key factors: creating a sense of community, personalizing your students’ experiences with you, and maintaining an open line of communication. In other words, make your students feel so loved that they can’t help but stay long-term students.

There’s no grand gesture that you can make to turn your yoga studio into a yoga community. It takes due diligence. It also takes acting! 

Don’t wait on this! Build your community now and cultivate a sense of “om” that keeps students coming back to your yoga.

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