Most gyms and health clubs are packed with new customers in January since it‚Äôs common for people to set weight loss goals in the New Year.¬†
The trick is retaining new customers over the entire year to maximize revenue.¬†
Knowsweat Workouts of Indianapolis is no different.¬† The club offers fitness classes, personal training and weight-loss support all year long.¬†
To increase new customer retention,¬†Knowsweat began selling special heart-rate monitors last month which enable members to measure and track the intensity of their workouts.¬† Named ‚ÄėMyZone data,‚Äô the info is shown on a TV screen during the member‚Äôs workout in the gym and the Knowsweat system uploads results to members‚Äô virtual log books upon check-in.
Although the price for the device is $60 plus an incremental cost of $10 per month to access the cloud-based technology, many customers are adopting the new technology.¬† Co-owner Marcia Erne stated, ‚ÄúIt‚Äôs important to me as a trainer that we‚Äôre helping people‚Ä¶‚ÄĚ¬† As gym owners, ultimately we want to bring more people into the gym. I think this will do that.‚ÄĚ¬†
In addition to adding products and services to keep revenue flowing, many businesses optimize referrals to increase revenue.¬† Butler University management instructor Jim McKneight said, ‚ÄúYour best customer is your current customer.‚ÄĚ ¬†¬†‚Ä¶So why not ask every single customer for a referral?
Best-selling author of the Sales Bible, Jeffrey Gitomer, stated that the most coveted prize in selling besides a sale is a referral.¬† The Dale Carnegie Sales Advantage course teaches the following process to maximize referrals:¬†¬†
- Ask everyone for a referral as soon as the sale is closed and again when the terms of the service level agreement are followed, where applicable.¬† Eventually customers, vendors and collaborators will be willing to provide a few names and numbers.
- Stay in touch with every human being on your contact list on a regular basis with phone calls, direct mailings and e-mails.
- Arrange a three-way meeting in which the satisfied referring customer can sing your praises in front of the person he/she referred.
- Carve out two – four hours per week to focus on referrals.
Many people are too uncomfortable to ask for referrals.¬† One of Dale Carnegie‚Äôs quotes by which all sales professionals should live is, “Do the thing you fear to do and keep on doing it… that is the quickest and surest way ever yet discovered to conquer fear.‚ÄĚ¬† Instead of fear, sales professionals should focus on maximizing opportunities, and revenue, through referrals.¬†
Truth be told, 25% of the people asked will provide at least one referral.¬† The Word of Mouth Marketing Association reported that, ‚Äú76% of consumers don’t believe you.‚ÄĚ¬† It‚Äôs not necessarily that prospects don‚Äôt believe the sales professional specifically; rather they don’t believe the information in his/her company‚Äôs advertisements.¬†
68% of consumers do, however, trust product advice from their peers, so it‚Äôs critical for sales professionals to step outside of their comfort zone sand focus on generating referrals.
This post is brought to you by the good folks at Dale Carnegie Training of Central Indiana, providers of professional development and management development courses and information in Indiana. We would love to connect with you on Facebook.
Photo Credit: Susi D. Jewelry