CONTEN T 1. Introduction 2. Sales KPIS 3. Retention KPIS 4. Prevention and retention 5. Ideas
SALES KPIS 1. The major sales KPIS 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 Ratios: - Closing ratio - C:A% - A:P% - s:r(referral)%
SALES KPIS 2.Indications of Les Mills in the Netherlands: Numbers: : new clubs p/m : extra programs p/m m DURATION OF LICENSE-AGREEMENT (cancels) - Eur 366: total license revenue per club per month - 60%: gross profit margin Ratios: - 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) Qualification is Key!
RETENTION KPIS 1. The major retention KPIS for Les Mills are: Numbers: - Clubs cancellations p/m - Programs cancellations p/m - Duration of license-agreement Ratios: - Cancel-continue ratio - Re-join ratio - Competition-re-join ratio
Any Idea how these KPIs are in your Company?
RETENTION KPIS 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) (202:700=29%) clubs are with us longer than 5y Ratios: %: 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.
IDEA S 1. Start selling a starter pack – EUR Small discount - Training checks 2.Call all clubs every 3 months - Service goal - Referrals – leads
IDEA S 3. Send news letters by every month - To GFMS - To instructors - To consumers 4. Install a lm ADVISERY board - Every 3-4 months - Different type of clubs - Different people
IDEA S 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
IDEA S 7. Account managers: - Do the programs every week - Visit QUARTERLIES very often (service and sales) - Feel and know the product!
IDEA S 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