Saturday, November 14, 2009

Membership Sales - TEST: Truth in Performance

Most health and wellness businesses operate in an inefficient manner and are too close to the trees to see the forest. False assumptions are like a business cancer, yet they are more common than most realize. Professional business coaches can preach the message and no change will ever happen until each business operator takes the time to reveal their own truth in performance. Most business operators anxiously await a message that their itching ears wants to hear, but few await the message that their itching ears NEED to hear.

This is in an effort to remove the blinders and reveal the truth in performance that any business can attain and sustain if they simply stop making the same mistakes over and over and over again and disengage the false assumptions

Step 1. Establish a 100% quantifiable performance tracking system for each department.

Step 2. Establish realistic bench mark performance standards for every department.

Step 3. Engage the bench mark performance standards into realistic goals for daily, weekly, monthly, quarterly and annualized goals.

Step 4. Track goal related performance daily in every department.

Step 5. Hire a professional service to guide you in order to eliminate time consuming and costly "trial and error" efforts.

Step 6. Engage the "test" below in order to illuminate your true performance level by using your actual membership sales numbers. This "test" spotlights membership sales. It can be expanded to track true performance in every department.

Lost Revenues Typical vs. Max Performance – The Cost – Using your clubs actual numbers

Enrollment Fee Collected: $__________

Monthly Dues: $_______x 12 = $________

Enrollment Fee Collected + Monthly Dues x 12 = Annualized average membership value

$__________
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The "lost" incoming phone call


If a health and wellness business is honest about performance, it is easy to imagine "lost" opportunities related to incoming telephone calls about new memberships. The front desk tells the caller nobody is available and suggests the caller try again later. A message is taken and not returned promptly. There are many scenarios that be imagined whereby calls are lost if there is not strong awareness of the fact supported by proactive counter measures designed to reduce the incidents.

Example:

Average – One lost call per day per club

30 Lost calls per month

Incoming membership call to appointment ratio = 80% = 24 lost appointments

Appointment to show ratio = 70% = 17 lost appointment shows

First time closing ratio = 70% = 12 lost sales per month

12 lost sales x $_______ = $__________ Lost per month

12 months x $______ Lost = $__________ Lost per year

12 lost sales x 12 months = 144 people denied the opportunity to change their lives, plus lost personal training, referral, spa services and more lost opportunities

Incoming Membership Call to Appointment Ratio Comparison

The incoming membership call to appointment analysis - Typical

Illustration = 60 incoming membership calls per month

60 calls @ 50% incoming call to appointment ratio = ___ appointments

___ appointments @ 70% show = ___ appointment shows

___ appointments shows @ 70% first time closing = ___ new members

___ new members @ $688 = $____________

$_______________ x 12 = $____________

Plus lost:

Referral revenue

Personal training revenue

Spa services revenue

Renewal revenue

The incoming membership call to appointment analysis - Max Performance

Illustration = 60 incoming membership calls per month

60 calls @ 80% incoming call to appointment ratio = ___ appointments

___ appointments @ 70% show = ___ appointment shows

___ appointments shows @ 70% first time closing = ___ new members

___ new members @ $688 = $____________

$_______________ x 12 = $____________

Plus lost:

Referral revenue

Personal training revenue

Spa services revenue

Renewal revenue

The incoming membership call to appointment analysis max performance - truth

50% =

80% =

Difference = $____________

First time closing presentation efficiency analysis - Typical

Illustration = 70 walk in or appointment prospect shows per month

70 @ 50% closing ratio = ___ new member sales

___ new members @ $688 = $____________

$_______________ x 12 = $____________

Plus lost:

Referral revenue

Personal training revenue

Spa services revenue

Renewal revenue

First time closing presentation efficiency analysis - Max Performance

Illustration = 70 walk in or appointment prospect shows per month

70 @ 70% closing ratio = ___ new member sales

___ new members @ $688 = $____________

$_______________ x 12 = $____________

Plus lost:

Referral revenue

Personal training revenue

Spa services revenue

Renewal revenue

First time closing analysis max performance - truth

50% =

70% =

Difference =

Add all the above listed components together it will illustrate that most clubs lose hundreds of thousands of dollars per year through false assumptions that lead to inferior performance. There is only person who change that cycle...and that person is the business leader!

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If you want to attain and sustain maximum performance potential, even in a downturned economy, you must engage a system that creates the culture that leads to superior performance and ends the false assumption!

Yours in Success and Motivation,

Geoff Hampton

Want to power up your staff teams performance? Try this great new Coaching program:

Program Length – Six Month Program

Cost:

One Time Registration Fee - $150

Monthly Continuation Fee - $500

If you and your staff team want to finish 2009 with an incredible finish and be ready to maximize the 1st Quarter of 2010…learn from the best and make it happen!

Call today for more information: (865) 304-9409

Or e-mail: perform_max@att.net