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
