Stats Off-Pace  

Commentary 

Business statistics presented at staff meetings serve a dual purpose. They foster friendly competition among locations, motivating managers to improve when their performance is compared to peers. Additionally, these metrics provide a comprehensive overview of the business’s overall health, enabling management to identify areas needing improvement. By sharing these numbers, the company can facilitate learning opportunities for all locations and address shortcomings highlighted by upper management.

 

 

In-House Off-Pace  

Discovery Questions: 

  1. Appointments set for today?
  2. Appointments set for the rest of the remainder of the week? 
  3. Leads called since the last meeting?
  4. Show rate? 
  5. Closing percentage? 

As an upper manager, it’s crucial to understand each location’s month-to-date performance to assess their progress toward goals. Managers are responsible for holding locations and their leaders accountable for achieving these numbers. When a location is underperforming, it’s essential to ask probing questions to identify the root cause.

Inquiring about the number of daily and weekly appointments reveals the sales pipeline’s health. Lead call volume indicates the team’s proactive outreach efforts. Appointment show rates measure the effectiveness of scheduling and lead qualification. Finally, closing percentages reflect the sales team’s ability to convert opportunities into sales. By analyzing these metrics, managers can pinpoint areas for improvement, such as increasing sales opportunities, enhancing lead quality, optimizing scheduling practices, or refining sales techniques.

 

 

Auto Collect Off-Pace  

Discovery Questions: 

  1. Quit rate? If below 7%, have you been making MIA calls? 
  2. Number of delinquencies? Have you been making delinquency calls?

When a location’s auto-collect numbers for EFTs or monthly withdrawals deviate from expectations, it’s crucial for managers to conduct a thorough investigation. This discrepancy often signals underlying issues that require immediate attention. By examining the location’s quit rate, the effectiveness of outreach to missing students, the number of delinquent payments, and the overall collection rate, managers can gain valuable insights into the location leader’s performance. These metrics collectively reflect the location leader’s ability to execute their responsibilities and drive results. Early identification of problems through close monitoring of these indicators allows managers to take corrective action, improving performance and revenue generation.

 

Upgrade Sales Off-Pace  

 

Discovery Questions: 

  1. Appointments set? 
  2. Closing percentage?

During sales upgrades, a location should aim to transition at least four individuals per month from basic programs to higher-tier options like Black Belt Training or Legacy. Achieving this target typically requires scheduling between eight and ten appointments monthly. If a location falls short of the upgrade goal, there are two primary possibilities: either the sales team is not setting a sufficient number of appointments, or they are not converting appointments into upgrades at a rate exceeding 50%. An upper manager must recognize the implications of these scenarios for overall business performance and provide necessary retraining to address the root cause of the issue. 

 

 

Renewals Off-Pace  

 

Discovery Questions: 

  1. Expirations this month? 
  2. Number of progress checks to renew? 
  3. Closing percentage?

During sales renewals, the focus is on retaining existing students whose memberships are nearing expiration. These individuals are contacted to either renew their current program or explore potential upgrades. Renewal rates serve as a critical indicator of class quality and instructor performance. A high number of non-renewals suggests dissatisfaction with either the class itself or the instructor’s efforts to retain students. Maintaining a strong student base is essential for the overall health and sustainability of the business, making renewal rates a crucial metric for upper management to monitor.

 

 

Poor Quit Rate 

 

Discovery Questions: 

  1. Have you been making MIA calls? 
  2. Active count last month? Active count this month? 

A healthy industry standard for student attrition, or quit rate, is generally considered to be 7% or below. Some level of attrition is expected and even necessary to accommodate new student enrollment. For instance, a studio with 150 students should anticipate losing approximately 10 students per month to maintain a 7% quit rate, which aligns with the target of 10 new student enrollments. When quit rates exceed this benchmark, it often indicates a breakdown in student retention efforts. Instructors may be neglecting to follow up with missing-in-action (MIA) students or providing subpar class experiences, as evidenced by declining class attendance.