Ask the average school owner what it would take to be more successful and 9 out of 10 times, they would say that they need to attract more new students. In fact, one so-called “martial arts business guru” claims that “it is impossible to grow your school without attracting more new students”–that getting new students is the “single, most important factor to more school income.”
He is wrong. They are all wrong.
While I will agree that attracting more new students is important to the success of a school, it is not THE most important factor. The real secret to having more students in your school is simply keeping the students that you already have.
Let me explain by first showing why most students leave and how important it is to keep them.
Many instructors/school owners spend a lot of time and effort trying to get new students. However, once they get them, they either pay more attention to the new students than “old” ones or just throw the nubies into class and ignore them. This is the perfect recipe for turning current students into former students (which would then require you to get even MORE new students to compensate).
According to a study revealed by the Better Business Bureau, 61% of clients who leave a business do so because of the “company’s indifference or lack of interest” towards them. That means nearly 2/3rds of the people who leave your school, new students or old, do so just because you are not giving them enough attention.
Therefore, instructors who lavish attention towards new students (like adapting the lesson plan to only cover basics every time a new person enters the class) at the expense of the current students, is in danger of losing the students they have already put so much time and effort into training.
When it is the new students being ignored, the attrition rate is even worse because they have less time and effort invested.
The simple solution is to just make sure that your students, both new and old, get what they need in the way of training, goal achievement, and personal attention. According to the study, this kind of attention may mean that 61% of your students who would have left will stay instead.
That’s the big secret to truly increasing your revenue.
Don’t believe me? Think about this. Imagine how full your school would be if, since Day One, you kept ever single student who tried just one of your classes? Even if you have only been in business for just a few years, your dojo would be overflowing. You would probably need more locations and more instructors. Plus, you would never have to advertise again!
Here’s a graphic example. Let’s say that you get only one walk-in student off the street every month and your tuition is $100 a month. The first graph shows what happens when that walk in student comes in, pays for one month, and then leaves. The second shows the massive difference to your bottom line when those students decide to stay, month after month.
(click to enlarge)
One New Student a Month Who Tries a Class and Leaves
One New Student a Month Who Tries a Class and Stays
That’s a 650% improvement!
Some schools already know how important it is to get new students to stay… or, at least continue to pay. That’s why many of them they try to lock new students into a 3-year contract before any classes are taken.
However, you don’t have to trade good instruction for hard, “used car” sales tactics and iron-clad contracts. Simply shift some of your focus and effort from acquiring new students to keeping the students you already have.
Remember, a little attention goes a long way.
©Copyright 2008 -Larry D. Escher
Posted by ldescher 
