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
Tuesday, May 27, 2008
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.
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