Tony writes:
I have been selling membership for over a year and I am very successful selling 35-50 members a month. I recently transferred to a new club, where I thought it would be a better opportunity but I am struggling at about 20 a month. My prospecting is not working and I am struggling with leads and show rates. The manager here thinks I am not trying. Everything seems different in this club and I am giving a good effort. Any suggestions?
Tony,
Changing from one club to another will result in your basically starting over; new relationships with members for referrals, empty lead pool, and potentially a selling environment that could be radically different than what you were accustomed to (this could be internal among the sales staff or simply socioeconomically with the prospects walking through the doors). I do not know how long you have been at the new club but everyone must be patient and give the transition some time.
That said, there are some key questions that need to be asked. First of all, what is your closing ratio? If your closing ratio is between 60-70% then you are facing a lead generation challenge, not a closing problem.
Next, when you look at the number of tours you are giving each month, do you know how many are walk-ins and how many are self-generated leads? If they are all walk ins then you move to the next question; what type of lead generation activities are you doing every single day and—more importantly—are you documenting your efforts?
I’m going to go out on a limb here and assume that you aren’t having a closing problem but rather a prospecting problem given your comment about “nothing you are doing is working.” Therefore, the most important thing you should be doing is documenting your daily activities. Write down every single thing you are doing each and every day to generate leads. This means everything; new member referrals, existing member referrals, guest passes handed out, lead boxes placed/serviced, flyer postings, joint marketing relationships with other businesses, etc. Once you have tracked your activity then you can go to your boss and show him/her “see, I really am trying.” From there you can better diagnose where the problem exists and what you need to do to try and fix it. For example, if you aren’t getting any POS referrals then I’d want to role play with you your presentation to make sure you are asking correctly.
The great thing about sales it is a numbers game; the more you make the more you make. This applies to both prospecting and presentations. So, if you manage your daily activity and talk to enough people you will eventually succeed (unless you have a closing problem, which is another discussion for another day).
Hope this helps. Happy Selling!
Casey
Saturday, August 2, 2008
Friday, June 6, 2008
Club Sales Training: Clarifying Referral Urgency
I received some feedback on my last e-tip that discussed the need to create urgency with POS referrals. This person e-mailed me back but because I think they brought up such a good talking point I am including it here. If you want to receive my free weekly e-tips on health club sales please visit www.HealthClubSalesTraining.com and simply fill out your name and e-mail.
June 6, 2008
Charles wrote in:
I disagree that referrals MUST be done at the POS and need to be presented as a “today only” option. This "Now or Never" philosophy increases the chance that the person will either tell you no, or you will receive watered down leads.As a savvy consumer and a sales manager I see a lot of tricks, ploys, and tactics that sales persons and companies use to enhance new business. One of the ones I feel discredit honesty and integrity is the use of the "Now or Never" demand which only masks the "Now or Later" request.
Charles wrote in:
I disagree that referrals MUST be done at the POS and need to be presented as a “today only” option. This "Now or Never" philosophy increases the chance that the person will either tell you no, or you will receive watered down leads.As a savvy consumer and a sales manager I see a lot of tricks, ploys, and tactics that sales persons and companies use to enhance new business. One of the ones I feel discredit honesty and integrity is the use of the "Now or Never" demand which only masks the "Now or Later" request.
“I work by appointment only; this is the last day; or you have to give me your referrals now”, are cheap ploys that focus more on getting the next sale than on the next individuals’ experience.Some people use tricks and gimmicks because they lack the substance needed to establish quality rapport, build trust, show value, and create a vision, and posses an excellent knowledge and sincere interest in their craft.If we worked by appointment only then what's the point of a walk in? If they can only give us referrals now then why do we call for them a few days later and ask for that very referral that we told them, today only. If today's the last day, what's tomorrow?I was watching an episode of Family Guy a few weeks ago. A little part of the episode was of Stuey who went to get a gym membership. So he goes into a club where he's encountered by the membership person who starts yelling really fast "Great, we have a special going on for the next 17 minutes," "You need a free t-shirt, gym bag, how about tanning?"It hilarious yet if got me thinking, is that the perception of who we are?
First, Thanks for your honest feedback. Let me start out by saying that I don’t disagree with your ethical position. That is, using a “now or never” approach if it isn’t really the case is a tactic and a ploy that will only lead to customer dissatisfaction. Given that these Blog postings and tips are only snippets of entire philosophies and strategies, let me further flesh out my points as it relates to urgency and the POS.
When I say that a club should have POS referral program that offers is used only at the POS, I am not saying that the salesperson or the club won’t ask for some type of referral in the future—because they will. What I am saying is that the club should have some kind of referral program for brand new members that really is for new members only.
Therefore, if your club asks for referrals frequently by giving away a 7-day pass, make the POS passes 14-days. This simultaneously increases the value of the pass and the urgency for the member to give names. Certainly, no strong-arm approaches are used; either they want them or they don’t. By ensuring that this type of pass or gift is only available at the POS a club will increase the likelihood of POS referrals.
Let me give you a very specific club example. I worked with a club once that decided to stop giving any free visits to the club. Didn’t matter what the situation was—out of town guest, interested prospect—they decided that anyone who wasn’t a member that wanted to use the club would pay $15. Further, instead of “requiring” the guest to go through the gyrations of speaking with a salesperson, the front desk simply asked the guest, “Did you want to speak with someone about membership today?” If the answer was no it was not a problem; they signed their waiver were shown around and they could enjoy their visit.
The club thought for sure that this would negatively impact their sales. They were surprised to find out that it did the opposite. Because people didn’t “have to” talk to a salesperson the quality of tours went up and so did the number of sales.
What does this have to do with referrals? Simple, because they had a $15 per visit guest policy the club began offering each new member the opportunity to get two one-day passes at the POS. Since the policy was upheld the passes became tremendously valuable and they average something like 1.5 referral names from new members. This is not a gimmick or a ploy—it is the policy.
So, what is the bottom line? There is no question that too many clubs in our industry are using tired, unethical practices to sell memberships. I do not believe that creating urgency or a promotion has to be synonymous with unethical. To the contrary; I believe that well thought out membership and referral promotions can further your good reputation and help your club build a strong community alliance.
For those of you reading this Blog who may not have ever attended one of my sales training sessions let me end with this. Selling health club memberships is a privilege. It should not be taken lightly. We are in the business of helping people improve the quality of their life. We need to develop long-term relationships with customers, not sell “wham, bam” memberships and not care whether someone uses the club or not. Unethical business practices don’t work for organizations that want to stay in a community long term. When creating all your clubs’ policies, marketing and sales materials you must have the customers’ interest at heart. Finding ways to accomplish that AND help build your business at the same time is truly a win-win situation.
Happy Selling! In good health,
Casey
Tuesday, May 27, 2008
More on referrals
In my last posting I discussed in detail why you should be asking for point of sale referrals and I outlined some of the components you need for a good system. I got a follow up question from one of the readers so I thought I’d flesh this topic out a bit more since it is so important.
The question was, “How can I get more new members to give us names at the enrollment process; we get a lot of people saying, “I can’t think of anyone right now.” This is a good question and one I hear often. So, let’s take it step by step.
Remember I mentioned in the last posting that there were three elements you needed for a good referral program? Those were value, scarcity and urgency.
If you want more new members to feel compelled to participate in your point of sale referral program you MUST have all three elements in the campaign. Here’s how you do it.
Value. If a person doesn’t see the value of doing something for them they simply won’t do it. Therefore, in order to create value in a point of sale referral presentation you must be able to show the customer that it is worth their time and effort. One way you can do this is by “bribing” them with some sort of gift. Inexpensive $5 T-shirts work great and so long as you’re getting at least 3 qualified names AND your sales team is following up on those names, this is a cheap lead.
Another way to create value is through contrast. That is, showing the new member that a visit or a pass to the facility is usually X dollars and by giving you the names today they get the passes for free. This strategy only works if your club has some control on guest policies—i.e. if you give out one week passes like candy, don’t think a one week pass at the point of sale with motivate someone!
Scarcity is next. Scarcity is really nothing more than a driver to create more value. When something is limited consumers perceive a higher value. Therefore, whatever your point of sale referral promotion is going to be, make sure the new member gets a limited number of the opportunities. So, if you are giving them one-week passes, limit it to three or four.
Urgency is last. Urgency is probably the answer to Bob’s question. Most clubs have some level of value in their point of sale referral program but they do not put any sense of urgency on the new member because they are fearful of upsetting them. This is unfounded. People understand and appreciate bargains and deadlines and limits. They may not like them but they understand them.
Therefore your POS referral presentation must be available ONLY at the point of sale, end of subject. If the new member chooses not to take advantage of the program then a manager should be the one to follow up with either a phone call or e-mail to try and take one more bite at the apple—i.e. use their authority and curiosity to say, “Gee, I noticed you didn’t take advantage of those passes. May I ask did Casey fully explain them to you and their value?” You would be amazed at home many new members have a change of heart when this type of follow up happens. It is also interesting to see how much better salespeople get at their presentation when they know they could potentially lose those referrals!
By making sure your point of sale program and presentation has value, scarcity and urgency you will be able to generate more referrals at the time of enrollment.
SPEAKING OF URGENCY
There is only one spot left in the e-marketing course that starts this Thursday, May 29th.
If you want to learn how to use the Internet to drive more prospects through your club doors, go to www.SmartClubMarketing.com/techclass.
In good health, Casey
The question was, “How can I get more new members to give us names at the enrollment process; we get a lot of people saying, “I can’t think of anyone right now.” This is a good question and one I hear often. So, let’s take it step by step.
Remember I mentioned in the last posting that there were three elements you needed for a good referral program? Those were value, scarcity and urgency.
If you want more new members to feel compelled to participate in your point of sale referral program you MUST have all three elements in the campaign. Here’s how you do it.
Value. If a person doesn’t see the value of doing something for them they simply won’t do it. Therefore, in order to create value in a point of sale referral presentation you must be able to show the customer that it is worth their time and effort. One way you can do this is by “bribing” them with some sort of gift. Inexpensive $5 T-shirts work great and so long as you’re getting at least 3 qualified names AND your sales team is following up on those names, this is a cheap lead.
Another way to create value is through contrast. That is, showing the new member that a visit or a pass to the facility is usually X dollars and by giving you the names today they get the passes for free. This strategy only works if your club has some control on guest policies—i.e. if you give out one week passes like candy, don’t think a one week pass at the point of sale with motivate someone!
Scarcity is next. Scarcity is really nothing more than a driver to create more value. When something is limited consumers perceive a higher value. Therefore, whatever your point of sale referral promotion is going to be, make sure the new member gets a limited number of the opportunities. So, if you are giving them one-week passes, limit it to three or four.
Urgency is last. Urgency is probably the answer to Bob’s question. Most clubs have some level of value in their point of sale referral program but they do not put any sense of urgency on the new member because they are fearful of upsetting them. This is unfounded. People understand and appreciate bargains and deadlines and limits. They may not like them but they understand them.
Therefore your POS referral presentation must be available ONLY at the point of sale, end of subject. If the new member chooses not to take advantage of the program then a manager should be the one to follow up with either a phone call or e-mail to try and take one more bite at the apple—i.e. use their authority and curiosity to say, “Gee, I noticed you didn’t take advantage of those passes. May I ask did Casey fully explain them to you and their value?” You would be amazed at home many new members have a change of heart when this type of follow up happens. It is also interesting to see how much better salespeople get at their presentation when they know they could potentially lose those referrals!
By making sure your point of sale program and presentation has value, scarcity and urgency you will be able to generate more referrals at the time of enrollment.
SPEAKING OF URGENCY
There is only one spot left in the e-marketing course that starts this Thursday, May 29th.
If you want to learn how to use the Internet to drive more prospects through your club doors, go to www.SmartClubMarketing.com/techclass.
In good health, Casey
Thursday, May 15, 2008
How to Get Referrals at the Point of Sale
I was asked, “How do you get referrals at the point of sale?” Unfortunately the person did not leave their e-mail so I hope they eventually find the Blog answer. LOL
This is a great question and one that, believe it or not, has a simple answer; ASK! I’m not joking. The primary reason that most salespeople don’t get referrals is that they don’t ask for them. This happens for a number of reasons. First, often the salesperson is nervous asking for referrals, believing that if they upset the customer now that perhaps they will decide not to go through with their purchase. This is an unwarranted concern. Another reason salespeople fail to ask for referrals is simply the fear of rejection. Some salespeople don’t feel comfortable asking for referrals at the point of sale because they have a belief system that says, “I can’t ask for referrals yet because I haven’t provided any service to them yet.” This is a classic case of how one’s own belief systems get transferred onto the client. If a salesperson believes this—even if they ask for referrals—they will decrease the likelihood of getting names because unconsciously they are sending bad vibes to the new member. Still another reason why salespeople don’t ask is they just don’t know how. Hence, they don’t want to sound silly and avoid it all together.
When a salesperson doesn’t ask for referrals at the point of sale they miss a tremendous opportunity to turn one sale into many because when someone is enrolling they are most likely to give referrals for several reasons. First, this is when the customer is most excited about their purchase. The club (and hopefully you) have not done anything to upset them and they have a positive association. Second, people have a need to justify their purchases. By getting others involved in a product or service they have purchased the customer feels better. Finally, referrals help a new member stick with their exercise program by creating a support system. For all of these reasons and others that I won’t even get into, asking for referrals at the point of sale is important.
The good news is that asking for referrals at the point of sale is not difficult. You only need several things.
A system that outlines the referral program at your club, ensuring it has value, scarcity and urgency.
A referral form to use with members at the point of sale.
A script so you can memorize the presentation.
Referral passes to use once you have obtained the referrals.
The basic philosophy and approach is outlining to the member that they have guest privileges to the club at a certain rate per visit (for example, $15 per visit). Next, offering the member a certain number (3-5) of special guest passes that allow their select friends to try out the club for free (1 day to 1 week).
Because these passes have value and without them the member has to pay for their friends to try out the club, there is a strong incentive for the new member to give the referrals.
Of course, there are many, many details about a referral program that will impact the success of getting names. Perhaps in future Blog postings we can address those specific issues and concerns. In the meantime remember the basic rule to getting referrals at the point of sale—ask!
I have posted a great article on an in-club referral program with a twist on my website. The link to the page is www.healthclubsalestraining.com/referralprogramwithatwist.html
In good health, Casey
This is a great question and one that, believe it or not, has a simple answer; ASK! I’m not joking. The primary reason that most salespeople don’t get referrals is that they don’t ask for them. This happens for a number of reasons. First, often the salesperson is nervous asking for referrals, believing that if they upset the customer now that perhaps they will decide not to go through with their purchase. This is an unwarranted concern. Another reason salespeople fail to ask for referrals is simply the fear of rejection. Some salespeople don’t feel comfortable asking for referrals at the point of sale because they have a belief system that says, “I can’t ask for referrals yet because I haven’t provided any service to them yet.” This is a classic case of how one’s own belief systems get transferred onto the client. If a salesperson believes this—even if they ask for referrals—they will decrease the likelihood of getting names because unconsciously they are sending bad vibes to the new member. Still another reason why salespeople don’t ask is they just don’t know how. Hence, they don’t want to sound silly and avoid it all together.
When a salesperson doesn’t ask for referrals at the point of sale they miss a tremendous opportunity to turn one sale into many because when someone is enrolling they are most likely to give referrals for several reasons. First, this is when the customer is most excited about their purchase. The club (and hopefully you) have not done anything to upset them and they have a positive association. Second, people have a need to justify their purchases. By getting others involved in a product or service they have purchased the customer feels better. Finally, referrals help a new member stick with their exercise program by creating a support system. For all of these reasons and others that I won’t even get into, asking for referrals at the point of sale is important.
The good news is that asking for referrals at the point of sale is not difficult. You only need several things.
A system that outlines the referral program at your club, ensuring it has value, scarcity and urgency.
A referral form to use with members at the point of sale.
A script so you can memorize the presentation.
Referral passes to use once you have obtained the referrals.
The basic philosophy and approach is outlining to the member that they have guest privileges to the club at a certain rate per visit (for example, $15 per visit). Next, offering the member a certain number (3-5) of special guest passes that allow their select friends to try out the club for free (1 day to 1 week).
Because these passes have value and without them the member has to pay for their friends to try out the club, there is a strong incentive for the new member to give the referrals.
Of course, there are many, many details about a referral program that will impact the success of getting names. Perhaps in future Blog postings we can address those specific issues and concerns. In the meantime remember the basic rule to getting referrals at the point of sale—ask!
I have posted a great article on an in-club referral program with a twist on my website. The link to the page is www.healthclubsalestraining.com/referralprogramwithatwist.html
In good health, Casey
Wednesday, May 7, 2008
Should MOD's sell?
Karen asked the following question.
Currently we allow our Manager’s on Duty to work with prospects. This accounts for 17% of our total club tours. I want to change this completely to where only our Sales Team does tours because they are the experts and can create a great first step. My question is what do we do when membership is not available or not here for a Sunday walk-in?
First let me commend you on your decision. I personally think it is a wise one. Let’s face it; it is difficult enough to get fulltime salespeople to have good closing percentages—and these are the people who are in the profession of selling. Asking MOD’s to sell typically puts them in a position of discomfort. Being knowledgeable about the club and passionate about fitness does not make them good salespeople! This is NOT to say that some MOD’s won’t be good salespeople—they may be—but only the numbers can give you the real answer. That means measuring the closing percentage of everyone who works with prospects—including the MOD’s.
In today’s hyper-competitive environment it is imperative that you maximize every single lead that walks through your club doors. Having a policy where only fully trained and qualified salespeople work with prospects will go a long way to achieving this goal.
Now that I have validated your choice, let’s move on to your specific questions. You have actually asked two, slightly different questions. First, what happens when a tour arrives at the club and the sales staff is unavailable because they are either out to lunch or working with another guest?
In these instances you must train your front desk to be able to make a quick decision—i.e. does it appear that the salesperson would be available in the next 5-10 minutes? If the answer is “yes,” then I suggest you have some sort of procedure in place where the MOD’s begin the Needs Analysis questions with the prospect, clearly communicating to them that they are only “getting things started for John who is finishing up with another guest.” Or, “John will be back from lunch in a few minutes, let me at least get you started.” Then, when the salesperson is available, they transition into taking over the tour.
Conversely, what if the salesperson just started a tour or just left for lunch and won’t be back for an extended period of time? In this instance you must train your staff to try and book the person to come back for an appointment. “I’m sorry, John won’t be available until 2:15, is it possible that you can come back then or would you prefer to set up an appointment for another time?” This alternate of choice (classic selling skills) helps to maximize the appointment setting.
If the guest does not want to book an appointment then you MUST train your staff to try and get the contact information. This is really the key strategy. Specifically, whether the sales unavailability is due to being busy, being on a break or being hours/days when there are no salespeople on site, front desk staff (or MOD’s) need to be trained to capture the guests’ information. This can be accomplished first by training them on how to book appointments (discussed earlier) or, as a last ditch effort, asking for the guests’ contact information so materials can be e-mailed to them. “I’m sorry, we don’t have anyone from the membership department in today but I can have them e-mail you some membership information tomorrow morning when they arrive; let me just get a piece of paper to get your information.”
It goes without saying that training staff to be confident in either asking for the appointment or asking for the contact information is critical. Without contact information no sale will ever be made.
Of course, the converse argument is “a bird in the hand is worth two in the bush.” Why let a potentially “ready to buy” prospect walk out of the club; let the MOD tour them and perhaps a sale will be made. For some club operators this may work. For me, when my sales staff has a 74% closing ratio, it doesn’t. Almost no MOD (unless they came up the ranks as a successful salesperson) will have a closing rate much over 45%. Personally, I’d rather take the chance at losing the prospect by not coming back for a tour versus losing them because we did a poor job of selling.
Oh, sure, you can also argue that you’ll have your salesperson follow up after the MOD tour but in today’s day and age it’s hard enough to get people to answer their phone when they want something from you—never mind when they are avoiding you!
In closing, Karen I commend you for your decision. Now you need to put the training in place to maximize appointments booked or contact information obtained on prospects that walk through the doors during uncovered sales time.
Currently we allow our Manager’s on Duty to work with prospects. This accounts for 17% of our total club tours. I want to change this completely to where only our Sales Team does tours because they are the experts and can create a great first step. My question is what do we do when membership is not available or not here for a Sunday walk-in?
First let me commend you on your decision. I personally think it is a wise one. Let’s face it; it is difficult enough to get fulltime salespeople to have good closing percentages—and these are the people who are in the profession of selling. Asking MOD’s to sell typically puts them in a position of discomfort. Being knowledgeable about the club and passionate about fitness does not make them good salespeople! This is NOT to say that some MOD’s won’t be good salespeople—they may be—but only the numbers can give you the real answer. That means measuring the closing percentage of everyone who works with prospects—including the MOD’s.
In today’s hyper-competitive environment it is imperative that you maximize every single lead that walks through your club doors. Having a policy where only fully trained and qualified salespeople work with prospects will go a long way to achieving this goal.
Now that I have validated your choice, let’s move on to your specific questions. You have actually asked two, slightly different questions. First, what happens when a tour arrives at the club and the sales staff is unavailable because they are either out to lunch or working with another guest?
In these instances you must train your front desk to be able to make a quick decision—i.e. does it appear that the salesperson would be available in the next 5-10 minutes? If the answer is “yes,” then I suggest you have some sort of procedure in place where the MOD’s begin the Needs Analysis questions with the prospect, clearly communicating to them that they are only “getting things started for John who is finishing up with another guest.” Or, “John will be back from lunch in a few minutes, let me at least get you started.” Then, when the salesperson is available, they transition into taking over the tour.
Conversely, what if the salesperson just started a tour or just left for lunch and won’t be back for an extended period of time? In this instance you must train your staff to try and book the person to come back for an appointment. “I’m sorry, John won’t be available until 2:15, is it possible that you can come back then or would you prefer to set up an appointment for another time?” This alternate of choice (classic selling skills) helps to maximize the appointment setting.
If the guest does not want to book an appointment then you MUST train your staff to try and get the contact information. This is really the key strategy. Specifically, whether the sales unavailability is due to being busy, being on a break or being hours/days when there are no salespeople on site, front desk staff (or MOD’s) need to be trained to capture the guests’ information. This can be accomplished first by training them on how to book appointments (discussed earlier) or, as a last ditch effort, asking for the guests’ contact information so materials can be e-mailed to them. “I’m sorry, we don’t have anyone from the membership department in today but I can have them e-mail you some membership information tomorrow morning when they arrive; let me just get a piece of paper to get your information.”
It goes without saying that training staff to be confident in either asking for the appointment or asking for the contact information is critical. Without contact information no sale will ever be made.
Of course, the converse argument is “a bird in the hand is worth two in the bush.” Why let a potentially “ready to buy” prospect walk out of the club; let the MOD tour them and perhaps a sale will be made. For some club operators this may work. For me, when my sales staff has a 74% closing ratio, it doesn’t. Almost no MOD (unless they came up the ranks as a successful salesperson) will have a closing rate much over 45%. Personally, I’d rather take the chance at losing the prospect by not coming back for a tour versus losing them because we did a poor job of selling.
Oh, sure, you can also argue that you’ll have your salesperson follow up after the MOD tour but in today’s day and age it’s hard enough to get people to answer their phone when they want something from you—never mind when they are avoiding you!
In closing, Karen I commend you for your decision. Now you need to put the training in place to maximize appointments booked or contact information obtained on prospects that walk through the doors during uncovered sales time.
Friday, April 18, 2008
Selling Against A Low Cost Competitor
Hello from Club Industry in the Big Apple!
I was the moderator today for a panel entitled "How to Compete Against Low Cost Competitors." It was a great group of operators who are all faced with the situation many of you are--that competitors are popping up all around you that are 50-75% less expensive than you are. Club operators are freaking out, asking themselves, "What do I do?" Some wonder if they should also drop their price to be competitive while others consider selling out in one way or another.
What the salespeople want to know, of course, is how do you literally sell against a low cost competitor. Although it is a complex answer, let me try and give you the overview here.
1. Know who you are and how you are different.
Let's face it, although the consumer may not know the difference between two fitness boxes (it all looks like torture to them), your club should be different than a low cost competitor. It it's not, you certainly are in trouble! But here's the question, "do you know with certainty and clarity how you are different?" This is key to succeeding in a hyper competitive as well as low cost market place.
2. Educate your staff on your differences.
It is one thing for you the owner/operator to know how your club is different than the LCC but does your staff know what those differences are? More importantly to they believe in those differences! Everyone from the sales staff down to the janitor needs to be clear on this and believe in what you are offering.
3. Train your staff to "tell the story."
Once you staff knows the story about how you are different the next step is training them on how to clearly communicate that story to prospects and members. This is crititcal because if the consumer isn't being told the story from the employees and then the members in turn tell that story to their friends, it will be an uphill battle.
4. Educate consumers with your marketing.
The final step is to make sure that all your marketing efforts are telling the "difference" story. Every ad, every press release, every sign,--everything to do with marketing must be in alignment with this goal.
Of course, this is not some simple process, but then nothing is. The reality is that the face of the health club industry as we know it has changed. Low cost competitors bring more people into our market that may eventually come to your club. They are NOT going away and if you think so then you are in denial and should go seek professional help. Don't waste time bad mouthing your competitors--use that time and energy to put together a plan for differentiating yourself. If you do that you will not only retain your market share but may find that you can increase it in the process.
In good health,
Casey
I was the moderator today for a panel entitled "How to Compete Against Low Cost Competitors." It was a great group of operators who are all faced with the situation many of you are--that competitors are popping up all around you that are 50-75% less expensive than you are. Club operators are freaking out, asking themselves, "What do I do?" Some wonder if they should also drop their price to be competitive while others consider selling out in one way or another.
What the salespeople want to know, of course, is how do you literally sell against a low cost competitor. Although it is a complex answer, let me try and give you the overview here.
1. Know who you are and how you are different.
Let's face it, although the consumer may not know the difference between two fitness boxes (it all looks like torture to them), your club should be different than a low cost competitor. It it's not, you certainly are in trouble! But here's the question, "do you know with certainty and clarity how you are different?" This is key to succeeding in a hyper competitive as well as low cost market place.
2. Educate your staff on your differences.
It is one thing for you the owner/operator to know how your club is different than the LCC but does your staff know what those differences are? More importantly to they believe in those differences! Everyone from the sales staff down to the janitor needs to be clear on this and believe in what you are offering.
3. Train your staff to "tell the story."
Once you staff knows the story about how you are different the next step is training them on how to clearly communicate that story to prospects and members. This is crititcal because if the consumer isn't being told the story from the employees and then the members in turn tell that story to their friends, it will be an uphill battle.
4. Educate consumers with your marketing.
The final step is to make sure that all your marketing efforts are telling the "difference" story. Every ad, every press release, every sign,--everything to do with marketing must be in alignment with this goal.
Of course, this is not some simple process, but then nothing is. The reality is that the face of the health club industry as we know it has changed. Low cost competitors bring more people into our market that may eventually come to your club. They are NOT going away and if you think so then you are in denial and should go seek professional help. Don't waste time bad mouthing your competitors--use that time and energy to put together a plan for differentiating yourself. If you do that you will not only retain your market share but may find that you can increase it in the process.
In good health,
Casey
Monday, April 14, 2008
Hard vs. Soft Selling
Jeffrey asked the following question:
“As a Club Manager, how do you teach your Membership Sales Staff the difference between a ‘hard sell’ and a ‘soft sell’?”
This is a very interesting question given the current climate of consumer expectations. On one hand consumers expect more for their money; on the other hand consumers belief in getting “good customer service” is almost non-existent, with the number of consumer complaints at an all time high. Let’s face it, whether it’s the endless loop of pre-recorded phone messages that don’t allow you to talk to a human being or the inability to find an associate while shopping in a store, as a consumer it can be pretty frustrating when you’re trying to buy something.
Of course, not being able to talk to someone is different than dealing with some slick, fast talking salesperson that has come out of the “Tin Men” mold. (If you never saw this hilarious movie with, if I remember correctly, Danny DiVito you should.) Today’s consumer won’t put up with “What’s it going to take to get you into this car today” statements.
So, first, what is the difference between a hard sell and a soft sell? In order to answer that let me go into the archives of my law school days and utilize a quote by Supreme Court Justice Stewart in 1964 when trying to define obscenity said, “It’s like pornography; I can’t define it but I’ll know it when I see it.”
I know, I know, more of my smart a$$ humor but it really is a perfect quote for a couple of reasons. For one, what is a hard sell to one person may be seen as good salesmanship to another. For another, each person’s experience with a salesperson will be based on their perception of the situation in context.
Because perception is reality to the customer, your top salesperson may endear themselves to many but piss off a few in the process. On the other extreme you may have a salesperson that everyone loves but can’t sell a thirsty person a glass of water at a discount. So, instead of saying “this is hard selling” and “this is soft selling,” (because I don’t think either is accurate), let’s talk about approaches.
For me the right selling approach is what I refer to as “pull selling,” versus push selling. Nobody likes to be pushed into buying something. You want to feel as though you made the decision and it was of your own free will. And this is what I mean by “pull selling.” You actually pull the customer in your direction, NOT push them. This takes a special kind of leadership.
The only way you can lead an individual to want to buy is by asking them questions. Lots and lots of questions because when someone answers a question they are basically selling themselves. Where most salespeople get into trouble in their presentations and come across as pushy is when they begin to “tell” the customer, “This is what you want in this product,” or “You should buy this one because,” etc.
By taking the time to ask the customer lots and lots of questions, the customer almost leads themselves to the right buying decision. Where salespeople have a hard time is in conditioning themselves to ask questions throughout the sales process—not just in the qualifying stage. In fact, a good salesperson will have pre-designed questions in all the following stages:
Pre-Qualifying
Qualifying
Touring
Membership Presentation
Overcoming objections
If you came into this industry like most salespeople—i.e. without any formal training—take some time now to sit down and write out all the questions you can ask a prospect during your time together. If you train yourself to stop telling and start asking effective, empowering questions, pretty soon you will have a fabulous closing percentage without the need for any “hard” selling techniques along the way.
Let me close by saying this, “If you have to close hard, you haven’t done your job up front.” You are in the profession of helping people realize that they need to modify their lifestyle so they can enjoy the many benefits of regular exercise; if you approach each sale with the goal of motivating someone to want to exercise for their reasons, not yours, you will rarely come across as a pushy salesperson.
In good health, Casey
“As a Club Manager, how do you teach your Membership Sales Staff the difference between a ‘hard sell’ and a ‘soft sell’?”
This is a very interesting question given the current climate of consumer expectations. On one hand consumers expect more for their money; on the other hand consumers belief in getting “good customer service” is almost non-existent, with the number of consumer complaints at an all time high. Let’s face it, whether it’s the endless loop of pre-recorded phone messages that don’t allow you to talk to a human being or the inability to find an associate while shopping in a store, as a consumer it can be pretty frustrating when you’re trying to buy something.
Of course, not being able to talk to someone is different than dealing with some slick, fast talking salesperson that has come out of the “Tin Men” mold. (If you never saw this hilarious movie with, if I remember correctly, Danny DiVito you should.) Today’s consumer won’t put up with “What’s it going to take to get you into this car today” statements.
So, first, what is the difference between a hard sell and a soft sell? In order to answer that let me go into the archives of my law school days and utilize a quote by Supreme Court Justice Stewart in 1964 when trying to define obscenity said, “It’s like pornography; I can’t define it but I’ll know it when I see it.”
I know, I know, more of my smart a$$ humor but it really is a perfect quote for a couple of reasons. For one, what is a hard sell to one person may be seen as good salesmanship to another. For another, each person’s experience with a salesperson will be based on their perception of the situation in context.
Because perception is reality to the customer, your top salesperson may endear themselves to many but piss off a few in the process. On the other extreme you may have a salesperson that everyone loves but can’t sell a thirsty person a glass of water at a discount. So, instead of saying “this is hard selling” and “this is soft selling,” (because I don’t think either is accurate), let’s talk about approaches.
For me the right selling approach is what I refer to as “pull selling,” versus push selling. Nobody likes to be pushed into buying something. You want to feel as though you made the decision and it was of your own free will. And this is what I mean by “pull selling.” You actually pull the customer in your direction, NOT push them. This takes a special kind of leadership.
The only way you can lead an individual to want to buy is by asking them questions. Lots and lots of questions because when someone answers a question they are basically selling themselves. Where most salespeople get into trouble in their presentations and come across as pushy is when they begin to “tell” the customer, “This is what you want in this product,” or “You should buy this one because,” etc.
By taking the time to ask the customer lots and lots of questions, the customer almost leads themselves to the right buying decision. Where salespeople have a hard time is in conditioning themselves to ask questions throughout the sales process—not just in the qualifying stage. In fact, a good salesperson will have pre-designed questions in all the following stages:
Pre-Qualifying
Qualifying
Touring
Membership Presentation
Overcoming objections
If you came into this industry like most salespeople—i.e. without any formal training—take some time now to sit down and write out all the questions you can ask a prospect during your time together. If you train yourself to stop telling and start asking effective, empowering questions, pretty soon you will have a fabulous closing percentage without the need for any “hard” selling techniques along the way.
Let me close by saying this, “If you have to close hard, you haven’t done your job up front.” You are in the profession of helping people realize that they need to modify their lifestyle so they can enjoy the many benefits of regular exercise; if you approach each sale with the goal of motivating someone to want to exercise for their reasons, not yours, you will rarely come across as a pushy salesperson.
In good health, Casey
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