Done right, everything an instructor does contributes to retention. I think the challenge is in having a very clear vision of your brand/message and communicating it well. Long term retention results from consistent high quality product (instruction) that results in high perceived value...not watering down to meet the wishes of those who are a mismatch with your brand. While I think Taekwondo can be good for anyone, I know that not everyone is ready for Taekwondo. The key to preventing mismatch is to be clear about what you do and do not...that communication is essential. This is an art, not an assembly line.
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