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Need a sounding-board? Want to bounce an idea off someone? If
you take the time to ask, we take the time to answer.
Next, surround yourself with strong people - employees or contractors
(if needed) as well as outside professionals like attorneys and CPAs.
Look specifically for people who will complement your own weaknesses as
a businessperson. This is not the time to hire your brother, a
high school student, or your best friend from college - unless they
truly have strong skills. And before you hire customers, make sure
you can count on them to be solid employees. We often see businesses suffer painful consequences as a result of
hiring people based on enthusiasm for your business or on personal relationships rather than skills and
capabilities.
Finally, make sure you really can afford the time and money it will take to build a customer base.
And have a detailed plan for actually going out and acquiring customers. We hear from many new business owners who
believed that their idea was so good that customers would flock to them.
As a result, they never created a specific plan for attracting business
other than "word of mouth." Even word of mouth requires a detailed
plan and hard work on your part!
7)
Wellness center's customers are steadily trickling away
Our fitness center is
steadily losing members. We're in an upscale area and have a nice
facility, but our customers are just trickling away. We've tried all kinds
of things like new machines and discounts, but nothing's really working. Help!
Struggling businesses often take a
shotgun approach and throw everything at the problem - new equipment and
programs, new staff, dropping prices, rebranding, launching new ads,
etc., etc.
Frankly, that's putting the cart before the horse. It FEELS good - because
you feel like you're really taking action on the problem. But it often
doesn't actually turn the membership picture around, because the root cause
of the problem hasn't been identified and addressed.
The key issue to address first is why you're losing members - or, perhaps,
keeping the ones you've got but not getting many new ones.
Regardless of whether they're independent or part of a national or regional
chain/network, health clubs and fitness centers are fundamentally local, community-oriented
businesses. Hordes of sales reps are far less effective than passionate
word-of-mouth - but that requires actually doing a wonderful job of creating
relationships with members.
And that's pretty tough to do in the health club world, for a variety of
reasons, most having to do with traditional health club management thinking.
Despite the tendency of many club owners/managers to blame fickle members,
it's usually management that's to blame for retention problems.
That's why the key question
is:
Why don't your current members love your club enough to
1) stay and 2) bring
more members just like them?
Your opinion about the reasons isn't really what's important. What IS
important are past and current members' honest answers to those questions.
If you haven't already done this, start by reaching out individually to them
and asking for their help. Make sure you talk to more than just 3-4. By the
time you talk to 7-10 of each type (past and current), you'll really see
patterns in their feedback.
Then you can create the most appropriate
action plan to address their concerns and dissatisfaction.
8)
Should we skip health fairs if we can't afford giveaways?
Are women's expos and
health fairs good places to find customers? I sell a functional food
product, but I can't afford the giveaways that all the other booths have.
It seems like the booths that give away the best items, like iPods, get the
most customers.
Don't confuse people who grab the giveaways with paying customers!
Events like this are tempting
because it seems like you'll be reaching hundreds or even thousands of
potential customers! But if you look at
how many actual customers you get as a result of the event, wellness
businesses often realize that standing in a booth is not necessarily the
same as actually making a sale.
Your objective at an expo should
be getting the names/contact info (e-mail, for example) and permission to
contact them in the future. That way you can send them a short e-mail, for
example, with a customer success story and a link to your website where they
can buy the same product or service that helped your testimonial customer. People
normally need several exposures to something new before they decide to buy,
which is why it's so important that you get their contact info - it lets you
follow up with them after the expo.
For example, let them give you their contact info in exchange for entering a
drawing for one case, let's say, of your food product. That's an
impressive giveaway, but should be pretty affordable (if it's not, offer a
pack of six or whatever you can afford). And give everyone who drops their
name in the fishbowl a discount coupon, say.
Instead of giving everyone a sample of your product, give
away something that will encourage them to think about how wonderful it
would be to lose weight, have more energy, or whatever benefit your product
offers.
For example, offer a fun or interesting
tool that focuses their attention on the problem you product can solve.
For example, if your food product offers more energy, offer a one-page flyer
with a free five-question "personal energy audit" to jumpstart conversations.
On the reverse side of the quiz, put brief information about your product
plus your contact info/website/etc.
Avoid the typical tradeshow giveaways that are unrelated to your actual product.
The problem is that they just attract people who want the freebies. That has nothing to do with
whether they will buy your product or not. In fact, they usually pay no
attention at all to what you're selling - they just grab the freebie and
move to the next booth.
And contrary to popular belief, just imprinting your company name on a
trinket that will hang around on someone's bathroom counter or desk will not
result in a sale a year from now.
9) Growing a chiropractic practice without repeat
customers
What marketing approaches work for a chiropractic office focused
on relieving pain and showing patients how to stay out of pain so that they
don't become patients for life?
We think you need two strategies:
one strongly focused on building referrals and word-of-mouth, and a second
focused on adding some kind of product or service that will create repeat
business. If you only transact once with each client, you're leaving
money on the table. Moreover, you're not building lasting value in
your practice.
First, focus on a niche -- it's often
easier to promote a specialty. Examples: low back pain, sports injuries,
women's health. Choose one based on your own interests/capabilities and the
clients you're most effective with.
Then, reach out to docs and other health professionals who focus on related
areas. Some are resistant to chiro, but many understand the role and respect
it.
Consider rewarding each client who refers others. This is especially
important because your practice approach means you probably won't see a lot
of repeat business. If you
specialized in women's health, for example, a referral incentive for a
complimentary skin treatment provided by one of your networking contacts
might appeal.
Seek out local groups tied to your niche.
We know of a chiropractor who specializes in working with performance
artists and has connections with the professional musicians' union, among
others.
And consider whether a local newspaper or community "shopper" would be
interested in doing a feature on a patient success story with strong human
interest elements.
Start thinking about related
products or services you could incorporate in your practice so that happy
clients have an opportunity to continue their relationship with you.
The possibilities are limitless, so
don't just copy what you've seen other chiropractors do. Choose products and
services that are true to your business philosophy and values and
that will appeal to your specific client base.
10) Turning a one-location business into a
franchise
How do we franchise a successful wellness business?
We've operated a program focused on women at our location and it's
really popular. Everyone says we ought to franchise it and be the next
Curves.
We've worked with several
businesses who were interested in franchising their operations as a way to
grow.
First, we encourage you to add a
second local site and then add a more distant site, so you get real
experience in what it takes to successfully operate a site that you can't
watch over throughout the day. That's probably going to take you a
couple of years.
That'll also force you to look at
your team and make sure you have the people in place that can keep your
original location going while you expand into Sites 2 and 3. That's
important, because you've got to be able to keep your original business
healthy while you expand.
If you can't do that, how will
you be able to take on the extra burden of creating a franchise model and
selecting and supporting your franchisees?
You'll need a day-to-day operating model that is well-documented, so you can
train others.
The customer experience needs to be IDENTICAL (not just "kinda close") from
location to location. That means that
all of the day-to-day details need to be consistently followed by
your franchisees. Pricing
structure should be consistent. The way you clean the equipment every night
needs to be the same. The credentials for staff need to be the same. The
quality of the toilet paper needs to be the same. The services, programs and
products you provide need to be consistent. You get the idea.
Have a clear set of marketing messages and a promotional plan that is
proven to actually work. By "actually work", we mean that it must successfully
attract customers at a cost per customer that works within the overall
financial model.
And make sure that your day-to-day operations are consistent with the
marketing message. That's part of why training is so important.
For example, if you promote yourself as having "sparkling clean facilities"
but the operations manual is silent on how often the treadmills get cleaned,
customers will quickly spot the gum stuck in the cupholders.
Your franchisees will probably fail if the franchisor (that's you) doesn't drive the
marketing plan. Most franchisees aren't sales and marketing gurus.
Plus, they generally have their hands full just managing the
day-to-day operations. Providing them with a bare-bones marketing plan (say,
a standard newspaper ad or two) usually doesn't work well.
We've seen quite a few health and wellness franchises that were primarily
focused on getting the upfront franchise fee - and then left the franchisees
to figure out the actual business.
Unhappy franchisees either sue or sell. One metric that potential
franchisees usually check out is the churn rate among your existing
franchisees. If lots of them are selling, that's a red flag and potential
buyers will shy away from your business model. So you need to create a model
that really does help your franchisees succeed.
Last, remember that franchising is a heavily regulated legal relationship. Do your homework, both
with an attorney and checking out the franchise scene informally, before you
get started. Some franchise developers will tell you that you can
avoid state and federal franchise regulations by structuring a "licensing"
relationship rather than a franchise. However, for legal purposes, licensing
and franchising relationships are often identical.