Retention of new clients is by far the simplest way to increase monthly and yearly revenue.
As 50% or more new clients do not come back after the first visit, it’s imperative that business owners create a strategy around the process of retention. A focus on new clients yields the best results and is most often overlooked.
With all the competition in boutique fitness, it’s imperative to follow up with new clients in a systematic way with a time-sensitive discount that not only gets them to come back after the first visit but also motivates them to commit long term at the same time. Most frequently this takes the form of an upsell from the intro offer entry point. A new client buys the intro offer, and right away the process begins with a series of emails and in person or phone check-ins.
This serves two purposes, one is to get to know the new client and make them feel acknowledged, welcomed, and encouraged. Two, it motivates them to come to class a lot in the first month. When new clients feel comfortable, welcomed, encouraged and they attend several classes in the first month, they are much more likely to buy a package of classes or unlimited membership options. When a time-sensitive discount is offered at the same time, urgency is created to make a decision.
Packages and membership encourage commitment, which keeps new clients from going to the studio down the street and staying within your community. It also allows them to develop a practice, whereby they see and feel results, which increases commitment.
The more a new client sees and feels in their body and mind, the more they attend. The more they attend, the more they buy. The more they buy, the more committed they are to you and the community. The more they come, the more people they meet at your studio and that also increases loyalty. The more they feel good, have community and are committed to your studio the more they refer their friends and family. It’s the single most powerful way to build your business.
Good targets to shoot for in terms of intro offer retention fall within 40 – 60%, while auto-pay membership conversion over 20% every month pretty much guarantees fuller classes and increased revenue, month over month and year over year. The most effective intro offer for a class based business is a 30 day unlimited at a good price, and as such your window for measuring conversion should be 90 days out from date of purchase.
Nicole Chetaud is an international business consultant, customer success expert, trainer, advisor, and sought after speaker specializing in the wellness/fitness industry. She has spent the last 7 years traveling the globe, in partnership with MINDBODY, Inc., training clients on business best practices to audiences of 150 at over 40 international events, conferences, and festivals inclusive of MINDBODY University, Yoga Journal, and Wanderlust. She is frequently interviewed by online news outlets, presents at private retreats, and has advised MINDBODY, Inc. partner companies on strategy, customer success, and industry trends. Her clients generate up to 125% + more revenue year over year, open additional locations, identify new revenue streams, and expand their businesses in a sustainable, profitable way utilizing her proprietary formula for business success. www.nicolechetaud.com