Sales from a Jan Middelkamp © 2006 Les Mills International Limited Retention Perspective Les Mills...
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Transcript of Sales from a Jan Middelkamp © 2006 Les Mills International Limited Retention Perspective Les Mills...
Sales from a
Jan Middelkamp© 2006 Les Mills International Limited
Retention Perspective
Les MillsSales Training
CONTENT1. Introduction
2. Sales KPI’S
3. Retention KPI’S
4. Prevention and retention
5. Ideas
SALES KPI’S
1. The major sales KPI’S for selling Les Mills are:
Numbers:
- New clubs p/m
- Extra programs p/m
- Duration of license-agreement
- = Total revenue per club per month
- Gross profit margin
Ratio’s:
- Closing ratio
- C:A% - A:P% - s:r(referral)%
SALES KPI’S
2. Indications of Les Mills in the Netherlands:
Numbers:
- 10-18: new clubs p/m
- 40-50: extra programs p/m
- 22.8 m DURATION OF LICENSE-AGREEMENT (cancels)
- Eur 366: total license revenue per club per month
- 60%: gross profit margin
Ratio’s:
- 60 – 87%: closing ratio
- C:A% - A:P% - s:r(referral)%
Eight Steps of Selling Les Mills Systems
RELATIONSHIP SELLING (IMPACT)
Prospecting
Initial Contact
Qualification
Verbal
Written
Explanation
The Solution
Price Presentation BPP & Close/Start
Overcoming
Objections
Start
Close
Referrals
70%
EIGHT STEPS OF SELLING LES MILLS SYSTEMS
RELATIONSHIP SELLING (IMPACT)
Club Name _________________________________________ Contact (Owner /Manager)__________________________________
Activation Date _________________________________________ Contact (GFM) _____________________________________
Address _________________________________________
P’Code _____________ __ State __________________
Phone ____________ ___ Fax ___________________
Email ________________ www.http________________
How did you hear about Les Mills Body Training Systems?
Referral Convention Trade Ad Flyer Web Magazine
Have you ever had a management or marketing system installed at
your club before? Yes No If yes, type(s) of system?
Size of Membership __ _____ _____________________________
Type of Memberships _____% ____% ____ % ____ %
Annual Membership Fee ______ Monthly Membership Fee_______
Retention Rate % Avge Sales/Month ( ) Tour to Sale %
Size of Facility ____ (m²) Fitness Floor ____ (m²)
Studio A ____ (m²) Studio B ____ (m²)
Studio C ____ (m²) Studio D ____ (m²)
Creche ____ (m²) Other ____ (m²)
Number of Classes/week ( ) Number of Instructors ( )
Types of Classes Offered
How would you describe your 3 strongest business activities? __________________ __________________ __________________ Why is that? ______________________________________________________________________________________________________ What 3 areas of your business are a concern or challenge to you? __________________ __________________ __________________
Why is that? ______________________________________________________________________________________________________ How would you describe your clubs overall group fitness performance now? Poor Average Good Excellent Why is that? ______________________________________________________________________________________________________
How does this compare with previous years performance? Better Same Worse If worse what were you doing differently before ? _________________________________________________________________________ Two most popular programs? __________________ ___________________ (Why)________________________________________ Two least popular programs? _ _________________ ___________________ (Why)________________________________________
What is your number 1 priority? Recruit Better Staff Improve Club Position Increase profit margin Improve Staff Skills Reduce Staff Stress Increase Member Retention Increase Staff Retention Improve Staff Morale Increase New Sales Improve Productivity Staff Accountability Reduce Cost per Head
When would you like to achieve this by? ( )Month Scale of 1 – 10 how important is it to achieve these results? ( ) How long have you been looking at starting this type of program?( ) Scale of 1 – 10, how serious are you about starting now? ( ) What has kept you from starting sooner? Staff Shortage Too Busy No Time Working yourself Procrastination Finances Apathy Approval Is this still a problem? Yes No Do Staff/or partners support you in starting? Yes No
Group Fitness Revenue Potential
a) Current Total Weekly Attendance _________ b) Maximum Weekly Attendance _________
c) Missing Attendance{ (b-a ) ?1.75} _________
d) Group Fitness Income Potential {c x annualised membership fee} _________
e) Investment Options _________
f) Total Return on Investment ________ %
Qualification is Key!
RETENTION KPI’S
1. The major retention KPI’S for Les Mills are:
Numbers:
- Clubs cancellations p/m
- Programs cancellations p/m
- Duration of license-agreement
Ratio’s:
- Cancel-continue ratio
- Re-join ratio
- Competition-re-join ratio
Any Idea how these KPI’sare in your Company?
RETENTION KPI’S
2. Indications of Les Mills in the Netherlands:
Numbers:
- 5.2: clubs cancellations p/m
- 20: programs cancellations p/m
- 22,8 m DURATION OF LICENSE-AGREEMENT (cancels)
- 202 (202:700=29%) clubs are with us longer than 5y
Ratio’s:
- 5-10%: cancel-continue ratio
- 33%: re-join ratio
- 45%: COMPETITION-RE-JOIN RATIO (based on CJ: 9 – 20)
PREVENTION AND RETENTION
3. Key elements of a retention ranking system:
- Amount of programs
- Duration with Les Mills (longer than 1y)
- Visits to QUARTERLY workshops
- Amount of instructors
- GFM and owner did GFM seminar(s)
- Visit to LMI in NEW ZEALAND
- Joins QUARTERLY marketing – join promotions
Goal is to prevent cancellations as early as possible
2006
PREVENTION AND RETENTION
4. Tasks of account managers:
- Build great relationships
- Do a very detailed qualification
- Follow up:
- A. Before first launch
- B. After first launch
- C. Service visit after 6 months (sell extra programs)
- Communicate with retention department every day
- Follow up cancellation requests
- Call all ‘’problem clubs’’ every 3 months
PREVENTION AND RETENTION
Develop a strategy for a club that is planning to cancel because of………
Lack of instructors
CASE 1.
PREVENTION AND RETENTION
Develop a strategy for a club that is planning to cancel because of……..
Financial problems in general
CASE 2.
IDEAS
1. Start selling a starter pack – EUR 440
- Small discount
- Training checks
2. Call all clubs every 3 months
- Service goal
- Referrals – leads
IDEAS
3. Send news letters by email: every month
- To GFM’S
- To instructors
- To consumers
4. Install a lm ADVISERY board
- Every 3-4 months
- Different type of clubs
- Different people
IDEAS
5. GFM seminars every month
- Four modules
- To help clubs with launch
- Account managers use it for selling extra programs
6. Hire a consultant for problem clubs
- Hire a extra consultant on GFM
- One-on-one coaching INHOUSE
2006
IDEAS7. Account managers:
- Do the programs every week
- Visit QUARTERLIES very often (service and sales)
- Feel and know the product!
IDEAS
8. Network with chains:
- Build huge relationships
- Go for the long term
- Do GFM seminars INHOUSE – every 6 months (let them pay if possible)
- Develop a tailor made GFM system
- Take them to NEW ZEALAND
THANKS!