The biggest problem most studios think they have?
Not enough marketing.
One of the biggest problems we see that they have when we look at the numbers?
Introductory packages that are failing to convert to long term clients.
Why is that a big deal?
Over the last two years, we’ve kept track of intro package conversion rates.
In yoga and large scale group studios {such as cycling or barre}, an average intro package conversion is 5-15%.
That means that out of every 100 people you sell intro packages to, only 5-15 will actually become long term clients.
And, 1:1 studios don’t fare much better with conversions hovering between 25-35%.
These numbers can certainly make you FEEL like you have nowhere near enough leads, but…
The REAL PROBLEM is that…
The leads you already have just aren’t becoming long term clients.
There are four ways to dramatically change this and quickly as our client Katy Katzmann is proof of.
Katy owns a Bikram yoga studio in Temecula, CA and came to us with a high average intro package conversion rate of 15%.
Just 8 months later, that same intro package is now selling at just under 50%.
That means nearly half of the people to purchase Katy’s package are committing to truly reaching their long terms goals, in this case on 12 month packages. And, her business, it’s thriving, in ways it’s never done.
Step 1: Track every lead coming in: Yes, every single lead. There are always more than you think and with average lead acquisition costs between $10-100, those emails and phone calls are worth a pretty penny.
Step 2: Forgo the industry standard. Those one month unlimited and no expiration 5 packs aren’t just a pain to keep track of.
They’re literally strangling our industry and at the root of why clients aren’t taking leaps ahead.
It’s time to shorten the standard and enforce expiration dates, so people can make decisions while momentum runs high.
Step 3: Don’t ask people to move from bargain basement to Bergdorf’s.
Extreme discounts don’t entice people to move long term. In fact they devalue your full-priced services and make people wonder if they’re really worth it.
Step 4: Take the time to set them on a path.
It’s not enough to just sell a package. It takes understanding your client’s basic needs, schedule and personality, so you can give them a path.
And, that path, that’s the key to their long term success.
- The truth behind post-introduction conversion rates
- Why introduction packages aren’t serving clients to the fullest
- The biggest cost associated with marketing…
- Why it is important to track all inquiries that come through to your business
- AND have a two-week follow-up process with them
- Why you should stop following the “industry standard”
- How damaging heavily discounting can be to your business
With grit + gratitude,
Lisé
