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Retention Top Stories

How One Studio Achieved a 2% Churn Rate (And What You Need to Do to Get Results)

You want to see results in your studio as soon as possible. But things just aren’t going along as fast as they should. And opportunities get missed constantly.

Such issues are usually the result of a lack of organisation. 

One of our clients was in this very situation. They struggled to get more traffic, gather leads, and raise engagement in their studio. The client’s membership was down by 150 people and their visits were only twice on average. 

When we started working with this studio, it turned out that all they needed was some structure and better organisation. That’s why from the moment our client became more organised, things took a turn for the better. 

In fact, the results were astounding.

Their membership started growing despite the disruption that was going on due to the global pandemic. The visits jumped up to 4.8 and the engagement soared.

And none of that happened by accident.

See, our client took action to remove one of the main causes that prevent studios from taking advantage of opportunities and getting results:

They got rid of the drama and the disorganisation it brought. 

You can do the same.

This article will show you how to make your studio more organised, approach your business with a clear head, and start reaching your goals.

Drama Makes You Miss Opportunities

New studios struggle with a particular issue that ends up keeping them down:

They spend most of their time on the urgent rather than the important.

Worst of all, that situation tends to carry on as people get accustomed to living in a world of urgency. At that point, there’s so much focus on the drama that studios miss key periods of the month and even the entire year.

In other words, you’re so caught up in urgent matters that you don’t think about tackling the important moments. This reduces your overall impact and causes you to make less money.

Drama can also cause you to neglect crucial aspects of business, such as getting more flow in your studio and making your team more organised and effective. As a result, nobody, including the owner, understands their role.

Of course, all these changes when the studio gains clarity on its goals and what needs to be done to achieve them. 

And getting your calendar on point is the first step toward that clarity.

The Calendar Is Your Friend

Much can be said about your cash flow from the way your calendar looks. But ultimately, if you don’t apply time blocking, that usually means bad news for your studio.

Now, the main benefit of time blocking is that it helps you single out the most important things that will generate wealth and cash flow and build up your assets. It’s the time you book for yourself to do all of the things that will drive your bottom line.

To put it simply, your calendar isn’t only for marking meetings. In a sense, it can become a logbook for your success.

The problem is that many studio owners don’t view their calendars as the powerful tools that they are. They don’t really understand that the point of a well-organised calendar isn’t only to keep track of your daily activities. It’s also to stay focused on the quality of tasks that take priority in your day, month, and year.

Seeing the calendar as your ally will allow you to carve out the time you need to improve your studio. And focusing on the right tasks might turn out to be just the boost your business needs.

Creating Your Own Luck

Tying in with time blocking, another critical aspect of your studio business is to be prepared and plan your actions.

Truth is, the most important things in business happen by design and intention, rather than mere luck. You might even say that relying on luck is often the worst choice a studio owner might make.

But luck in business is a bit more of a complex notion. In fact, we could talk about two distinct types of luck: dumb luck and the other kind.

Dumb luck is something like when you find $50 under your seat at a cafe. It’s something good that happens to you without any input or direction on your part.

However, the other kind of luck doesn’t work like that. Instead, it’s the luck that you create for yourself.

Imagine doing all of the necessary preparations for your studio. You come up with a formula, and you might’ve seen it play out with success all around you. Then, you see an opportunity appear. Finally, you take action.

Suppose you’re successful. 

In that case, it would be easy to attribute your success to business luck. After all, you’ve come across a perfect opportunity. And when you acted upon it, you actually got the results.

Now, most people would describe that as the “right place at the right time” type of luck. But the truth behind it is different.

What people call business luck actually consists of three key factors:

  • Thorough preparation
  • Spotting the opportunity
  • Taking massive action

Your team needs to be trained and your systems in place. Furthermore, you must be prepared mentally to jump at an opportunity. Then, when the time comes to act, you know precisely what to do and have all the mechanisms in place and ready to go. Finally, once you start acting, you have to do it consistently and with great scope. 

When all of these factors come into place, great results become possible for your studio. 

And that’s the luck that you create yourself, not a game of chance.

Let Go of the Drama, Organise, and Jump Into Action

Being prepared and focusing on the important aspects of your business are, without a doubt, the crucial aspects of your business. 

If you can learn to let go of the drama around urgent matters and pay attention to the key points, everything will start to fall into place. You’ll create a sound foundation for a well-organised studio that works like clockwork and reaches goals without issues.

Categories
Operations Top Stories

Two Things You Can Do Right Now to Generate a Healthier Bottom Line

If you went around and ask studio owners one of the worst feelings they can experience, many would probably give the same answer:

Missed opportunities.

Studio owners share this pain point with other businesses, and it’s particularly pronounced with new studios. 

But that doesn’t mean more experienced studios don’t miss out on an opportunity every now and then. In fact, you’d struggle to find a studio immune to the issue.

However, new studios have a more challenging time when they can’t seize opportunities promptly. This is because missed opportunities hinder growth, which is the primary goal of every new studio.

Luckily, there’s a way to resolve the issue. And it comes down to executing key tasks every month.

This article will break down two vital components to make that happen. These components will help you run a successful studio and never miss an opportunity again.

The Captain’s Checklist

This checklist serves to keep your crew, i.e., your team organised and functional.

The captain’s checklist is entirely focused on what happens within your business weekly. And this person-oriented aspect sorts out the crucial tasks your team members have every week.

Essentially, this checklist serves to avoid the constant “Did you remember to do that?” questions. That’s because forgotten tasks can pile up quickly if you don’t have a system to organise them.

That said, coming up with a functional checklist will require some careful consideration on your part.

First, you’ll need to break down everything that has to happen during the week. Then, you’ll need to split all of the crucial tasks into different days. Finally, you’ll have to outline which team member is responsible for which task.

Clearly, the captain’s checklist is an excellent organisational tool. But it provides another great benefit: 

At the end of each week, you can take the checklist and check for any problematic entries. And once the month is over, you can compare all checklists to spot potential issues with specific tasks.

Essentially, the captain’s checklist doesn’t only tell your team who should do what and when. It also tells you how well your team is handling particular aspects of your business. As a result, you can tweak certain processes and establish better work habits that the team can stick to consistently. 

You can make your checklist even more effective by marking key performance indicators or KPIs. Finally, if you want to get into the details, you could create multiple checklists to handle the finer aspects of complex tasks.

At the end of the day, the captain’s checklist will be your best friend when it comes to organising your studio for maximum efficiency.

Start Harvesting Correctly

When we talk about harvest, we’re referring to the last three days of the month. These three days are a critical part of your calendar when specific actions will be necessary. 

In particular, you’ll need to do three things during these days:

First, you’ll send out a new offer to all of your lead lists. 

When sending offers to your newest leads and people who haven’t bought anything from you yet, you’ll give them the exact same offer that they received the last time. The purpose of this is to freshen up these leads with the same message but with a new wrapper around it.

For example, if you had a Valentine’s Day or spring head-start offer, you’ll send out the same content. The only difference will be that you’ll rephrase the offer to make it fresh.

The reason behind this approach is to take away the monthly operational drag that can happen when you need to come up with new service promotions every time.

Doing this regularly will create an atmosphere in which people will automatically raise their hands when the end of the month comes. Then, you’ll have an easier time bringing those people out and making sales.

In essence, this task will set your studio up for the upcoming month while closing the current one.

Second, you’ll do blitz rollovers. 

In other words, you’ll dedicate a day to focusing on anyone who hasn’t rolled over so far during the month. This even includes people who have just arrived.

The vital point here is to gather everything that worked previously and go all out to try and get everyone on board using it. After all, there’s no point in keeping things in the drawer at the end of the month. 

So, don’t hesitate to offer every incentive you can to get people to roll over. Take note of all the freebies, giveaways, vouchers, and every other resource at your disposal and use them to your advantage.

Finally, the third thing you’ll need to do at the end of the month is to take care of the bulk stuff.

This mainly refers to nurturing your important business relationships. For example, you should reach out to your joint ventures, schools, sports teams, businesses, physios, and anyone else that you talk with.

Ideally, you’ll already have a tally of what you’ve done on that front during the month. This will make it easier to share relevant stories with them and let them know that everything’s working correctly.

Now, this task will be made more straightforward by getting it done in a single day. This way, you won’t have to take note of every contact you’ve talked to.

Remember, these three things are essential to wrap up your month. But there’s one bonus thing you should do come the end of the month:

Put the time aside to plan out the next month.

Once you get all of this done, the harvest period will be over, and your studio will be ready to take on the period ahead in full strength.

Learn to Organise and Wrap Up Every Month

The captain’s checklist can help you bring a high level of organisation into your business, with precise tasks for every team member.

In addition to that organisation, if you make sure not to miss harvesting on the last three days of the month, you’ll enter every period as prepared as you can be. With these aspects covered, you’ll give your studio the boost it needs to become as effective as possible. 

Careful organisation will be your best friend on the road to success.

Categories
Operations Top Stories

The Top 3 Mistakes to Avoid in Your Studio

Retention.

As you know, a large part of growing your studio has to do with getting your members to stay for long. After all, if they’re happy with your services, they may recommend your business to other people. Not to mention they’ll willingly pay the full price. 

You can use several strategies to improve your retention rate, such as auditing your newbie member acquisition process. Unfortunately, many studio owners overlook this step, causing their businesses to underperform. 

This article will dig deeper into why you can’t ignore auditing your newbie member acquisition process and two other mistakes you need to avoid. 

The 3 Mistakes

Mistake #1. Using The Word ‘Trialers’

As previously discussed, you want to audit your newbie member acquisition process to support your studio’s growth. But you also want to ensure your team is invested in the acquisition process by shifting their mindset. 

One of the shifts you should make is to stop calling your new members ‘trialers.’ It has a negative connotation because it means you don’t expect them to stay. 

Remember this:

Your new members aren’t trialers – they’re just new members. They’re yours to lose, and you will lose them unless you treat them as your customers. 

Unfortunately, many studio owners ignore this part of the acquisition process. They consider their new members as trialers, so they typically provide them with subpar services. 

What’s the result of this? 

A low rollover percentage, usually around 30%. They may hit 50% if they’re lucky, but they’ll get nowhere near 80% or higher numbers. 

You can only have a high rollover percentage if you audit your acquisition process and stop viewing your new members as trialers. 

So, adopt a different mindset.

Your studio’s new members are here to stay, and you need to make them stay if you provide them with high-quality services. 

Mistake #2. Not Changing Your Beliefs

The reality is that studio owners share certain beliefs that hold them back. 

For example, they’re not confident enough about their studio. While they become a coach or manager, they don’t think they’re cut out for it. 

Also, they want to help people, but they believe they will let them down. And they feel that they’re out of their depth because they can’t figure out how to approach their customers. 

If you share this attitude, you need to change it as soon as possible to prevent new members from leaving your studio. 

And the best way to do so is by getting coaching. 

Those who are experienced in this industry can guide you through client interaction and any other aspect you’re not confident about. 

As you train harder and harder, the conversation with your customers will be more authentic. They’ll trust you more and be eager to stay with your gym. 

Another belief studio owners have is that they need to talk to their prospects like they’re selling their services. They think this is the only way to persuade potential customers to become full-time members. 

But that’s not what you should do. 

Rather than cutting a deal with people, listen to their needs and accommodate them. 

Remember, you have something to offer to these people. But don’t make it sound like you’re only interested in selling your services. 

Instead, put yourself in their shoes. 

They want to exercise, but they don’t have support at home pushing them to sign up for a studio. Their family may not be interested in their well-being, which can be a huge setback. 

So, they need someone to provide the support… 

And that someone is you. 

Position yourself as a lifesaver. You can help your members become healthier, lose weight, gain muscle, or achieve any other goal. 

Once the conversation takes this direction, you’ve moved past the price and are now focused on the outcomes your prospect is looking for. They’ll realise your mission is to help them and not take their money. 

Such wholesome interaction is conducive to faster studio growth. 

Mistake #3. Not Converting at the Studio

Making sales calls isn’t the only way to get more members. Nevertheless, most studio owners only rely on this method to seal the deal. 

This is the wrong approach. 

Yes, making sales calls should be a big part of your sales strategy, but it shouldn’t be the only part. You should also convert at the studio. 

In fact, getting new members might be even easier on the floor. 

Think about it.

If someone walks into your studio because it’s an open week or you’ve set up an appointment, it means they’re interested in your services.

They think your studio might be perfect for them. But you’ll still need to convince them of that.

Not trying to convert is a wasted opportunity, which is one of the reasons most studios don’t grow fast enough. 

See, prospects enter their studio, but they let these prospects leave without attempting to sell. They’re reluctant to propose despite doing the hard work of getting prospects to visit their place. 

Here’s the thing:

Clients perceive their hesitance and lack of confidence, so they leave. 

This hesitation usually happens because selling is a weak spot for many studio owners. And they naturally avoid what they’re not good at. Also, they never address the issue and improve their skills, which makes them lose numerous members. 

Some owners also depend on their talent only. Talent may indeed deliver some success, but it’s not sustainable for long-term growth. 

The only way to overcome this obstacle is to invest in proper training. 

As you learn more about the sales process, you’ll know what you need to say at any given moment once your prospect enters your studio. 

Additionally, you shouldn’t be the only one who can make sales. 

You should have at least one or two converters on the team who are confident enough to sell on the floor. This way, you’ll always be ready to convert. 

Set Your Studio Up for Success

Mistakes can happen to anyone. However, you can’t ignore them and leave the growth of your studio to chance. 

Whether you’ve adopted wrong beliefs, treated your new members as trialers, or failed to convert at the studio, tackle the issue head-on. 

An optimised sales strategy and improved client interaction can make your membership go through the roof. And, of course, getting some guidance always helps.