Many studios find themselves struggling to grow due to a combination of some essential factors. Here’s what you should pay attention to if you want your studio to prosper.
Running a successful studio is a challenge, especially when it comes to growing your client base and influence. You might start out with some momentum… and suddenly find that your studio isn’t growing fast enough or at all.
While these issues are common, and many studio owners find themselves stuck at some point, the underlying causes are less complicated than they may seem. In fact, the factors that can hinder growth boil down to only a few fundamental areas.
In this article, we’ll look at the four main areas that can play into your studio’s success and examine how they influence growth.
The Four Areas
Area #1. 80% Rollover
When we talk about rollover, we’re talking about the concept of new people joining your intro program and staying for a full-price membership. Of course, the higher your rollover rate is, the more your studio will grow.
So, why do some studios get up to 80% rollover while others struggle at 20% or 30%?
One thing’s for sure – getting to that 80% doesn’t happen by accident. And it usually doesn’t happen by following the common logic of building up your rollover ratio from a smaller to a greater percentage.
Instead of starting from 30% and working your way up towards 80%, it would be best to start with the highest goal in mind. For example, if you have ten clients, you should start thinking about how to get eight of them to roll over as soon as possible.
In other words, start with the end goal in mind and work backwards from there, setting the desired rollover rate as your weekly goal.
Area #2. Managing in Waves, Not From Your Inbox
One of the greatest pitfalls related to studio growth has to do with managing the onboarding and rollover processes.
People will often refer to their inbox and massive lists of names to figure out where their clients are in the system. However, shuffling through those lists makes it hard to discern who’s ripening as a client and who needs to be converted first.
Luckily, there’s a great example of an alternative way to sort your clients out: you can look at how universities do it and replicate that approach.
Universities separate their students into cohorts and create graduating groups, keeping together the people who are on a similar level and are ready to move on.
You can apply the same thing to your studio. Manage your newly-onboarded clients in groups, a.k.a waves, on a weekly level. Then, you can apply the previous principle we discussed and focus on getting 80% of those weekly clients to roll over.
The main thing is to avoid leaking clients into next week.
If that starts happening, it can continue for weeks on end, making you miss out on both the lives you want to impact and new sources of revenue. And if your process clogs up this way, it can stunt your studio’s growth quickly.
Area #3. Lifetime Value
It’s important to keep track of the lifetime value of your clients. That means when you look at the people in your sessions, you should have a clear calculation of that value.
But this doesn’t mean you should think of people as nothing more than money. Instead, you should be aware of how much you could be leaving at the front door with every newcomer who doesn’t rollover.
Think about every member of your studio. If you’re charging what you should be charging and keep those members for as long as you’re supposed to, you could be looking at a lifetime value of about $2,000. For most studio owners, that’s not a small amount, which is why you should be aware of that value.
It’s of no help to think about newbies as someone who wasted your time or ghosted you after three sessions. The right way to go is to understand their lifetime value and adopt a strategic approach, nurturing your client groups and moving them forward every day.
Similar to the reverse-engineered approach to rollover rate, you should start with the lifetime value of each client and take it into account on a daily and weekly level. For example, if one client cancels and you, therefore, lose their lifetime value, the first order of business would be to make up for it by onboarding another future full-price member.
Area #4. Fill Your Team’s Roles With the Right People
When talking about a strategic approach, the role your team plays in achieving long-term goals is crucial. The best way to employ your strategy is to ensure that the right people are in the right positions in your team, giving it their best.
View your team as participating in a sports championship. Everyone needs to have a role on the field and know how to interact with other team members for maximum effect. If you’re looking to get the best possible results for your studio, you can’t afford to have passengers or unmotivated people in the team.
When you get your team ready and excited about doing the work and changing people’s lives, everything will function like a well-oiled machine. And your studio will be much more capable of managing new and current clients.
Team efficacy has to do in large measure with the energy that goes into it. The more motivation you produce, the better the results will be.
Driving Growth in Your Studio
The aspects of running a studio covered here might sound straightforward, and they mostly are. However, many studio owners disregard these fundamentals at the expense of growth.
If you adopt a sound strategy of team and customer management, you’ll find that most issues commonly associated with slow growth will disappear.
Streamline your studio experience by reverse engineering, and your business will start showing signs of considerable progress.