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Welcome to Pilates Elephants, I'm Raphael Bender. What to do if your classes are not full?
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All right, so this one's going to be for both studio owners and instructors,
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and I'm going to run you through the checklist that I use and the troubleshooting
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process I use when I work with studio owners and their classes are not full.
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And this checklist is not just something I made up, it's based on the data I've
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seen, 100 plus financials for studio owners.
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I currently work with over three dozen studio owners on a regular basis,
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and I see all of their numbers. I talk with them all on a regular basis.
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And so the studios that are doing the best amongst all of those ones, that's what these.
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Checklist is made up of, this is what I see those studios doing.
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All right. So if you want to be in the most successful studio group,
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these are the numbers you hit.
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All right. So first visits, 40 plus per month. Now, 40 first visits, what's a first visit?
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It's just the number of people who stepped foot into your studio for the first
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ever time in that month. Now, they could come in on your intro offer.
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They could come in on a drop-in, casual drop-in visit.
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They could come in as a referral as a visitor with an existing client,
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first class free, doesn't matter how they come in.
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It's people who stepped foot into studio for the first time in a month.
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And consistently, the most successful studios all do 40 plus first visits per month.
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And if your studio is not doing that, almost certainly you're either not running
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paid ads, or if you are running paid ads, you're not running enough paid ads.
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So if you're not running paid ads, well, there's your problem right there because
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all of the most successful studios run paid ads.
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Now, is it possible to get 40 first visits per month without paid ads?
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Sure, it's possible. But if you're a regular studio and you want more first
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visits, what the absolute easiest, most high probability,
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most consistent, repeatable way to get new clients into the studio every month
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is paid ads. Are there other ways? Yes.
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Are they as easy as paid ads? No, they're not.
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So you've got to run paid ads. Now, if you're running paid ads and you're not
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getting 40 first visits, it's almost certainly because you're not running enough paid ads.
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How do you know if you're running enough paid ads? Very, very simple.
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And this is the same way you know your ads are working or not as well. It's very simple math.
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The cost to acquire one first visit,
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is less than the cost that that person pays you for the first visit.
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Let me give you an example.
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Just say people come to you typically on a $49 intro offer.
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Just say your intro offer is $49.
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Well, if you spend $49 or less in ad spend to get that person to buy a $49 intro
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offer, your ads are working.
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How do you know how much you're spending per intro offer? Well, very, very simple.
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Let's just make your intro offer $50 to make the math nice and simple.
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If you spend $100 on ads and you sold two intro offers, each intro offer cost you $50 in ad spend.
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So it's just your total ad spend divided by the number of intro offers that you sold.
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Now, if you only sold two intro offers and you spend $100 on ads,
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well, congratulations, that's why you're not selling 40.
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So how much do you need to spend on ads to sell 40? Well, if it costs you $50
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in ad spend to sell one intro offer and you want to sell 40, you just got to do $50,
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how much it costs you to buy one customer, times 40, how many customers you want, equals $2,000.
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So you need to spend $2,000 a month on ads if it costs you $50 per first visit,
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which is about what it usually costs.
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So if you're spending less than $2,000 and you're not getting 40 first visits, that's why.
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And if your ads if you're spending more on ads to get that first visit so just
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say you're spending a hundred dollars to get someone to buy a fifty dollar intro
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offer well your ads are not working you need to fix your ads,
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before you spend more. All right. So that's the first thing.
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You're going to have 40 first visits coming into your studio.
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Now, instructors, I know that's not in your control.
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And even if you're in a studio that has less than 40 first visits per month,
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your classes, your individual classes as an instructor can still be full. So keep listening.
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All right. So the next thing after you're getting your 40 first visits is your
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conversion of those first visits into long-term members.
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So whether it's either a subscription or whether they buy a 10-pack,
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20-pack, whatever it might be, should be 50%.
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So half of those people within the intro period, so just say you sell an intro
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offer that's a two-week intro offer,
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within the two weeks, 50% or more of those people should convert to either a
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subscription or a long-term pack, which I define as a 10-plus pack.
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So not a three-pack, not a five-pack, a 10 or more pack.
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Now, if you're not converting 50%, there are several steps to troubleshoot this.
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I'm not going to go into depth into all of them.
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It's a whole episode, but essentially first look at the intro offer.
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If your intro offers less than $49, probably the intro offer is part of it because
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if you're attracting, if you're selling a $25 intro offer or first class free
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or someone one class for $19 or something,
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you're just attracting tire kickers and people who are mildly curious.
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You're not attracting people who are seriously trying you with the view to actually
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finding a forever Pilates studio.
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So put your intro offer up to a minimum of $49.
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And really the sweet spot I see for most studios, $49 can work,
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but really 70 to $100 is the band where I see the most successful studios clustering.
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I've got a couple I work with where $49 intro offer for two weeks does work.
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So that's possible, but really 70 to 99 is ideal.
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And minimum of three visits in your intro offer should be three,
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four, eight, or unlimited.
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Those are the successful ones that I see. And there's a lot of psychology behind that.
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But at a very basic level, we see,
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So statistically, clients that attend at least three sessions in their intro
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period are substantially more likely to convert.
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So if you don't offer them the opportunity to do three sessions,
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you're basically preventing them from doing what they need to do to convert.
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And also, they need to feel like they got value from the intro offer.
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So if you give them like five sessions or six sessions in two weeks,
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and then they only use three of them, then they have the unused visits,
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which they think, oh, well, I didn't really even get the full value for the pass.
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So I probably won't get the full value from the membership. So there's not any
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point buying membership.
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So it's much better to give them three or four where they're more likely to
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use it or unlimited where they can't calculate the value and they can't say,
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well, it was unlimited, said, but I only did three, so I didn't get the value.
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So those are the ones that work. Don't give them five, six, seven,
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eight works if you do it for a month.
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So this would be like $99 for a month, eight visits or $99 for a month unlimited.
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But probably the best one to start with would be something like three for 49
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or four for 69, something like that.
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Somewhere in that four for 79, somewhere in that vicinity is probably your best place to start.
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That'll bring the right people in the door, people who are interested in actually
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finding a long-term Pilates practice, not just people who are bargain hopping
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and trying the latest cheap thing.
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And then you need a conversion offer after that to convert them into a membership or a pack.
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And the one that I see working the best across all the studios I'm working with is either half or,
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100% of the intro offer free. So essentially what you do is you credit them
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back either half or all of the cost of the intro offer against their first 10
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pack or month of subscription.
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And whether you choose half or the full, just depend on the price of your subscription,
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the price of your intro offer.
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So if you did a $99 intro offer and then your subscription is like 120 a month,
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I wouldn't give them full price back or give them half of it back because it's
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just, You're giving them like 85% of the membership for free,
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which is too little, too cheap.
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But if your intro offer is like $49 and your membership is $120,
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I'll probably give them the full price of the intro offer for free when they
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sign up for that subscription or 10-pack only during their intro offer.
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Do not extend it one second past the end of the intro offer.
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You have to have that time pressure there.
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And that is just off the first month of the membership or their first 10-pack or whatever.
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All right. So you have to have that. And then the third thing is,
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and this is instructors, this is where you get to fill your classes.
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And Studio Owners, this is a massive one for you guys as well. Service quality.
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You need to give those people a positive experience in class.
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What's a positive experience? Well, firstly, there are three components.
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One is the experience in the class, like the physical aspect.
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One is the social aspect, and one is just the service aspect.
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So in terms of the physical aspect, the class needs to be not too hard, either physically.
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So not like they're burning, they're dying, they're sweating,
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they're turning red, they're shaking.
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None of that. or technically there's you
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know kneeling on a reformer box
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with one hand on a ball one foot in a strap etc
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like not too hard physically or technically simple and moderate intensity so
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they should feel good during and after if they wake up tomorrow they can't cough
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or roll over in bed or get onto the toilet they're not going to want to come
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back it's not fun being that sore especially as a beginner.
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So make it, give them success, make them feel like they're good at it.
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Give them simple moves that anyone can do.
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You don't need to be coordinated or strong or flexible and give it like,
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stop them several reps before the burn.
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Don't push them into the burn because you're just making it not fun.
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Now, people have been with you for ages, love the burn.
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People on the very first class after they've been sitting on the couch for a
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decade, don't love the burn.
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They fear the burn. So make it pleasant physically for them during and after.
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Second, the social aspect, make them feel welcome. How do you do that?
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You smile and greet them with eye contact within two seconds of them walking into the studio.
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You show them around. This is where you put your shoes. This is where you get
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a drink. This is the change room. This is how you adjust the foot bar.
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You introduce them to other members. This is Sally. She's been with us a year.
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I'm going to put you next to her.
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If you get lost, follow along. She's really good. She knows what she's doing.
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Sally, would you look out for Mary, please? Use their names. Use their names.
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Walk past them, tell them they're doing great. Make sure that they know that
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you see them and care about them and approve of them and want them to be part of the club.
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All right, so those are the things that will bring your conversions up to 50%.
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And dear instructors, if that's you, guess whose class they're going to want to come back to.
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All right, the third big pillar. So we've been through first visits,
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we've been through conversions.
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The third big pillar is churn. And churn is just a measure of the percentage
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of your long-term users, so whether that's 10-plus packs or subscriptions,
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who cancel or fail to renew in any given month.
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So if you've got 100 members, so, you know, 100 members on 10 packs slash subscriptions,
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at the start of the month, if 10 of them cancel, that's 10% churn.
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Now, the best studios average 5% to 7% churn.
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Per month. And the biggest factor in churn is service quality.
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Now, service quality, again, I divide into those three areas,
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which is, actually, I didn't touch on the third area for.
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Conversions, which is the same
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as the third area for service quality for churn, which is convenience.
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So I'll just go through them again. So the first one is the physical outcomes.
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Now, for long-term, this is not the same consideration as for new people.
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So for new people, we want to give them a moderate intensity experience where
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it feels achievable, a little bit challenging, but not painful during or after.
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It feels good during and after, where they feel that they are winning because
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you gave them simple moves that they could achieve regardless of their level
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of flexibility, strength, or skill.
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Okay, and then they don't wake up tomorrow unable to breathe or laugh.
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Whereas with long-term members, what they actually want and what will keep them is getting results,
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getting stronger, getting more flexible, becoming able to control the reformer
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more expertly, be able to do more advanced moves that they couldn't do before.
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So those results, so not actually just like fun classes.
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I mean, that's the price of admission, but they need to get the results.
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People don't come to reformer to have fun. and they come to get stronger,
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to feel better physically.
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So getting results. The second one is community. Feeling that they are part
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of a connection, they have relationships with you as the trainer,
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with their fellow clients, you've introduced them, you use their names,
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remember their dog's name, their cat's name, their kid's birthdays, all of that stuff.
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And then the third one is the third aspect of service is,
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It's just all of the factors around just the mechanics and the logistics of using your studio.
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So the booking system, how easy is it to use?
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Can you use it easily on a phone?
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Capacity, can they get into the classes they want to get into or is everything waitlisted?
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How do the waitlists work? Is your cancellation window optimized so it actually
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is user-friendly for both people cancelling out of the class and the people who are on the waitlist?
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How easy is it to purchase? You know, do they have to, you know,
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go through 77 steps every time they want to renew their pass or is it just like easy peasy?
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Are your change rooms clean and do they have to wait in line?
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Like, can they actually get into the change rooms, the bathrooms, et cetera?
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What's the parking situation like? So all of these things collectively make up the user experience.
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And there are a bunch of other things in there. Are the, you know,
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are the floors clean? Are the bathrooms clean?
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All of this stuff. but essentially you know the user experience unrelated to
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the fact that it's a plati studio,
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all of those things collectively do really influence
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churn as well so those are the steps that i go through to troubleshoot firstly
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first visits at least 40 if you're not if you don't have that you've got to
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spend more on paid ads and you've got to spend whatever it costs you to buy
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one customer spend 40 times that and that number should be less than what the customer pays you.
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And hint, it's much easier to get that number that your ads working properly
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if you sell like a $49 plus intro offer because you get more money from each person.
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Second is your conversion. So you should convert 50% of those first visits into long-term users.
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So whether that is 10 pack, 20 pack, or whether that's a subscription,
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you should convert half of them to long-term users within the intro period.
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And the way to do that is, number one, have a conversion offer,
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which should be half or all of your intro offer,
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credited against your first month of membership or your first 10-pack, first 20-pack.
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And then you also got to have great service quality. And what does that look like?
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That looks like having a positive physical experience, not too hard. They feel successful.
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They don't feel sore for the next three days.
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And they feel welcome. They feel part of the club straight away.
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They feel like that you want them there. There are people who are glad to see them.
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And the third thing is just the normal convenience, you know,
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how easy is the booking system?
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How could they find it easily? What's parking like, et cetera.
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And then in terms of the third thing, which is churn, the benchmark is no more
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than 7% of your long-term users.
00:16:38.867 --> 00:16:41.907
Either cancelling or failing to renew their pass within a given month.
00:16:42.127 --> 00:16:45.387
Now, of course, in any one month, that's going to fluctuate a little bit,
00:16:45.467 --> 00:16:48.727
but when you average it out, it should average to 7% or less.
00:16:49.167 --> 00:16:53.887
And if it's more than 7%, that's probably a factor of why your classes aren't full.
00:16:54.227 --> 00:17:00.107
And the reasons that, or the things that you can do to impact churn are number
00:17:00.107 --> 00:17:02.047
one, getting people results.
00:17:02.227 --> 00:17:04.487
So they need to get stronger. They need to get more flexible.
00:17:04.607 --> 00:17:07.967
They need to be able to control all their bodies better, they need to be able
00:17:07.967 --> 00:17:13.087
to do, you know, things they couldn't do before or things, more intense things
00:17:13.087 --> 00:17:13.967
that they couldn't do before.
00:17:14.327 --> 00:17:17.467
The second thing is community, so your friendliness, connection,
00:17:17.747 --> 00:17:18.667
relationships, all of that.
00:17:18.827 --> 00:17:21.667
And then the last one is just that same convenience, the bookings,
00:17:22.167 --> 00:17:26.547
the schedule, capacity, purchasing, how easy it is to get into the change rooms,
00:17:26.667 --> 00:17:28.067
the parking, all of that stuff.
00:17:28.847 --> 00:17:32.927
All right. Now, I know that kind of was a lightning round,
00:17:33.567 --> 00:17:37.087
so I'm not sure if you want to play that back on half speed but
00:17:37.087 --> 00:17:39.907
I promise you dear listener this is not
00:17:39.907 --> 00:17:43.167
just a list that I made up out of thin air this is
00:17:43.167 --> 00:17:46.347
just based on the data I've seen 100 plus sets
00:17:46.347 --> 00:17:50.307
of financials for Pilates studios I currently work with over 30 studio owners
00:17:50.307 --> 00:17:55.227
one on one I see their numbers on a daily basis I talk with them on a weekly
00:17:55.227 --> 00:18:01.127
basis I know what the most successful studios look like i see the patterns these
00:18:01.127 --> 00:18:04.627
are the patterns so if your classes are not full.
00:18:06.720 --> 00:18:11.800
Anything I didn't say on this list is not one of the things that is going to fix it.
00:18:11.960 --> 00:18:16.980
So things that are not on this list that I see commonly people trying to do
00:18:16.980 --> 00:18:23.080
in order to fill classes that do not work or do not work for the majority of
00:18:23.080 --> 00:18:25.360
people, posting more on social media,
00:18:25.840 --> 00:18:30.580
adding extra modalities like bar or mat pilates or 77 different types of reformer
00:18:30.580 --> 00:18:35.820
classes, you know, burn and stretch and challenge and strength and sweat and cardio and all that.
00:18:38.180 --> 00:18:41.940
Doing special promos. Now, promos have their place, but they generally just
00:18:41.940 --> 00:18:45.440
provide a short-term boost and then a bit of a dip for the next couple of months after.
00:18:45.560 --> 00:18:47.800
They're not going to long-term fill your classes.
00:18:48.920 --> 00:18:54.080
Doing super low-priced intros. Having more than one intro offer.
00:18:54.220 --> 00:18:56.820
If you've got a one-on-one intro offer and a small group intro offer and a clinical
00:18:56.820 --> 00:19:02.960
intro offer and a casual visit pass and a bring a friend pass and a group intro
00:19:02.960 --> 00:19:08.360
offer, you're that doesn't, that isn't going to help. In fact, it's hurting you.
00:19:08.780 --> 00:19:13.740
So what I would say to you is this is the distilled, I wouldn't really call
00:19:13.740 --> 00:19:17.000
it wisdom, it's the distilled data of all of the studios I've worked with and
00:19:17.000 --> 00:19:17.920
I'm currently working with.
00:19:18.980 --> 00:19:24.180
Do the things on this list and don't do things that are not on this list and
00:19:24.180 --> 00:19:27.460
you will thrive and prosper and your classes will be full.
00:19:27.760 --> 00:19:30.700
All right, that is it. Much love and I'll see you in the next one.
00:19:34.340 --> 00:19:34.700
Bye.