Hormozi Retention System

Core Principle

"It is five to twenty-five times more expensive to acquire a new customer than to retain an existing one, and increasing retention by just 5% can increase profits by 25% to 95%." THE POINT OF CANCELLATION: "Churn occurs when the perceived value of the product drops below the price paid." Value > Price = customer stays. Value < Price = customer cancels. THE INVERSION METHOD: Ask "What would make my customers leave?" Answers: ignoring them, breaking promises, miscommunicating, making the product hard to use. Then do the exact opposite: talk to them, keep promises, make value consumption easy.

The 5 Horsemen of Retention

HORSEMAN 1 — TRACK ATTENDANCE

"Monitor product usage. In a gym model, members attending 3+ times per week stay, while those attending 2 or fewer are at risk. Reach out the moment usage drops to rescue the customer before they cancel." For digital products:

• Day 3: "Did you get started?" email