It’s a dark scary night with only one source of light your computer screens flickering light, you are analyzing your reports and find your darkest nightmare, The Churn.
For those who don’t know churn is the percentage of customers, you lose after they have subscribed to your services. Now, this article solely focuses on ideas to reduce the churn ratio in dance classes/ dance studio.
First, let’s check how to calculate a churn ratio
(Number of Customers Lost) ÷ (Original Number of Customers)
Start conversations on social media:
Social media is the hub of everything. Say you are this dance studio owner, and you find a tweet saying, “should I join a gym or a dance class?”
This is a great opportunity to start the conversation, you are not supposed to directly start advertising, but to gradually start with talking a comparison and directly jumping to how satisfied people feel after a one hour session of dance class.
This conversation puts in front of the eyes of all the people who might have an interest in joining a fitness class.
Give free trials:
When finally someone has decided on taking a healthy way of life, this big decision is hardly followed by a determination to where and what this fitness institution will be.
A solution to this is free trial classes, every week keep a fixed day, say Saturday, so every Saturday ask your existing clients to get their friends and family, and advertise that there will be a free trial class.
According to human psychology, the term ‘FREE’ has 65% more chance of attracting new clients and these activities also motivate the existing clients, and reduce your churn ratio.
Buy customer retention and management software:
Staying on the client’s mind plays the biggest game. A business usually runs on returning revenue basis, especially when it comes to the service industry.
Buying software for management, more popular ones available in the market are gym management software. Sending SMS to clients on their birthday, anniversary. Sending reminder SMS for pending payments, renewals, irregular clients is as easy as a few clicks.
Say, you are planning to celebrate the World Dance Day, for which you have this special discount offer, on paying for 12 months you get 15 months membership. Your gym management software has a list of all the clients active or inactive or potential, allowing you to ping all of them in a go about this bonanza offer.
Set the target customer, and make concentrated plans:
It is important to judge the regular and irregular clients, to know who is on the verge of canceling membership in advance, lets you give more importance to them. A gym management software can help you with it let me tell you how.
Taking an example of a Dance Class that I was a part of around 4 months back, my friend and I were quite regular in the beginning but towards the end of my third month, I kind of lost interest and also got busy in some office work. After I missed my third session I got a call from the representative asking me if I was okay or if there was some specific reason for my absence.
To be honest I was happy that they realized that I was not present and felt like a VIP. But work caught me badly and missed another session as well, this time I got an email and SMS asking to be regular for my health benefits.
Yes, I made it a point to go for the third session. Clearly, the main reason for not giving up on my membership was the special treatment they gave me.
The cost of acquisition of new clients is 70% of the total expense made. May it be in advertising, the cost of running or trainers cost. Getting a new client is always expensive and profits come from the revenue generated because of an existing client. Owning a gym management software can be of great help, increasing your profits at least by 40%.