Loyalty: the hidden bottom of the funnel

5 minutes · 7 steps · workout 5 of 6 in this module

What you'll be able to do

By the end of this workout, you'll be able to calculate a customer's lifetime value (LTV) and plan the steps that bring customers back after their first purchase.

A first look: Warm-up: The sale isn't the finish line

Most businesses end the funnel at the first sale. But the second sale is usually easier than the first. The customer knows you, trusts you, and you don't have to find them again with ads. A happy customer also recommends you to friends, writes reviews, and brings new people to the top of the funnel for free. The metrics you watch at this stage: repeat purchase rate, churn, lifetime value (LTV), and Net Promoter Score (NPS).

What this workout covers

Warm-up: The sale isn't the finish line
LTV: how much is one customer worth to you in total?
Case: Balance Pilates' leaky bucket
Set complete: The funnel is really a loop

A question from this workout: Balance Pilates' leaky bucket

Balance Pilates gets 40 new members a month from ads, but by the third month most of them have quit. Sofia, the studio owner, says, “Let's spend more on ads and bring in more new members.” In short calls with members who quit, the most common answer was: “In the first few weeks, I felt alone and behind.”

New members per month: 40
Still coming in month 3: 14 (35%)
Ad cost per new member (CPA): $60
Monthly package price: $240

What do you change first?

Double the ad budget so 80 new members come in each month
Give every member 30% off for three months
Design the first 30 days: a personal message from the instructor after the first class, a progress check in week 4, and a friendly reminder for anyone who misses two classes
Post more class videos on Instagram

Pick your answer first, then open the reasoning below.

Show the answer and the reasoning

Answer: C. Design the first 30 days: a personal message from the instructor after the first class, a progress check in week 4, and a friendly reminder for anyone who misses two classes

The problem isn't finding members. It's keeping them: 26 out of 40 don't make it to three months. Raising the budget is the most common mistake. Every member costs $60 to bring in, and most of them still leave. Members talk about feeling alone in the first weeks, and designing the first 30 days solves that directly. Only send these messages to members who have given permission.

The other steps work the same way: you decide first, then see why each option is right or wrong.

How you practice here

3 short concept cards
1 multiple-choice question
1 campaign case with real-looking numbers
1 matching exercise
1 guided calculation

Part of the module: The Marketing Funnel

The journey that turns a stranger into a customer, and a customer into a loyal fan, plus the metrics that measure each stage.

More workouts in this module

Programs that include this workout

See plans Try the free first workout