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!