2CONTENT Introduction Sales KPI’S Retention KPI’S Prevention and retentionIdeas
3SALES KPI’S The major sales KPI’S for selling Les Mills are: Numbers: New clubs p/mExtra programs p/mDuration of license-agreement= Total revenue per club per monthGross profit marginRatio’s:Closing ratioC:A% - A:P% - s:r(referral)%
4SALES KPI’S 2. Indications of Les Mills in the Netherlands: Numbers: 10-18: new clubs p/m40-50: extra programs p/m22.8 m DURATION OF LICENSE-AGREEMENT (cancels)Eur 366: total license revenue per club per month60%: gross profit marginRatio’s:60 – 87%: closing ratioC:A% - A:P% - s:r(referral)%
5 RELATIONSHIP SELLING (IMPACT) EIGHT STEPS OF SELLING LES MILLS SYSTEMSEight Steps of Selling Les Mills SystemsProspectingInitial ContactQualificationVerbalWrittenExplanationThe SolutionPrice Presentation BPP & Close/StartOvercomingObjectionsStartCloseReferrals70%
6RELATIONSHIP SELLING (IMPACT) Qualification is Key!
7RETENTION KPI’S The major retention KPI’S for Les Mills are: Numbers: Clubs cancellations p/mPrograms cancellations p/mDuration of license-agreementRatio’s:Cancel-continue ratioRe-join ratioCompetition-re-join ratio
9RETENTION KPI’S 2. Indications of Les Mills in the Netherlands: Numbers:5.2: clubs cancellations p/m20: programs cancellations p/m22,8 m DURATION OF LICENSE-AGREEMENT (cancels)202 (202:700=29%) clubs are with us longer than 5yRatio’s:5-10%: cancel-continue ratio33%: re-join ratio45%: COMPETITION-RE-JOIN RATIO (based on CJ: 9 – 20)
10PREVENTION AND RETENTION 3. Key elements of a retention ranking system:Amount of programsDuration with Les Mills (longer than 1y)Visits to QUARTERLY workshopsAmount of instructorsGFM and owner did GFM seminar(s)Visit to LMI in NEW ZEALANDJoins QUARTERLY marketing – join promotionsGoal is to prevent cancellations as early as possible2006
11PREVENTION AND RETENTION 4. Tasks of account managers:Build great relationshipsDo a very detailed qualificationFollow up:A. Before first launchB. After first launchC. Service visit after 6 months (sell extra programs)Communicate with retention department every dayFollow up cancellation requestsCall all ‘’problem clubs’’ every 3 months
12PREVENTION AND RETENTION CASE 1.Develop a strategy for a club that is planning to cancel because of………Lack of instructors
13PREVENTION AND RETENTION CASE 2.Develop a strategy for a club that is planning to cancel because of……..Financial problems in general
14IDEAS Start selling a starter pack – EUR 440 Small discount Training checks2. Call all clubs every 3 monthsService goalReferrals – leads
15IDEAS 3. Send news letters by email: every month To GFM’S To instructorsTo consumers4. Install a lm ADVISERY boardEvery 3-4 monthsDifferent type of clubsDifferent people
16IDEAS 2006 5. GFM seminars every month Four modules To help clubs with launchAccount managers use it for selling extra programs6. Hire a consultant for problem clubsHire a extra consultant on GFMOne-on-one coaching INHOUSE
17IDEAS 7. Account managers: Do the programs every week Visit QUARTERLIES very often (service and sales)Feel and know the product!
18IDEAS 8. Network with chains: Build huge relationships Go for the long termDo GFM seminars INHOUSE – every 6 months (let them pay if possible)Develop a tailor made GFM systemTake them to NEW ZEALAND