Les Mills Sales Training Sales from a Retention Perspective Jan Middelkamp © 2006 Les Mills International Limited

CONTENT Introduction Sales KPI’S Retention KPI’S Prevention and retention Ideas

SALES KPI’S The major sales KPI’S for selling Les Mills are: Numbers: New clubs p/m Extra programs p/m Duration of license-agreement = Total revenue per club per month Gross profit margin Ratio’s: Closing ratio C:A% - A:P% - s:r(referral)%                             

SALES KPI’S 2. Indications of Les Mills in the Netherlands: Numbers: 10-18: new clubs p/m 40-50: extra programs p/m 22.8 m DURATION OF LICENSE-AGREEMENT (cancels) Eur 366: total license revenue per club per month 60%: gross profit margin Ratio’s: 60 – 87%: closing ratio C:A% - A:P% - s:r(referral)%

 RELATIONSHIP SELLING (IMPACT) EIGHT STEPS OF SELLING LES MILLS SYSTEMS Eight Steps of Selling Les Mills Systems Prospecting Initial Contact Qualification Verbal Written Explanation The Solution Price Presentation BPP & Close/Start Overcoming Objections Start Close Referrals  70%

RELATIONSHIP SELLING (IMPACT) Qualification is Key!

RETENTION KPI’S The major retention KPI’S for Les Mills are: Numbers: Clubs cancellations p/m Programs cancellations p/m Duration of license-agreement Ratio’s: Cancel-continue ratio Re-join ratio Competition-re-join ratio

Any Idea how these KPI’s are in your Company?

RETENTION KPI’S 2. Indications of Les Mills in the Netherlands: Numbers: 5.2: clubs cancellations p/m 20: programs cancellations p/m 22,8 m DURATION OF LICENSE-AGREEMENT (cancels) 202 (202:700=29%) clubs are with us longer than 5y Ratio’s: 5-10%: cancel-continue ratio 33%: re-join ratio 45%: COMPETITION-RE-JOIN RATIO (based on CJ: 9 – 20)

PREVENTION AND RETENTION 3. Key elements of a retention ranking system: Amount of programs Duration with Les Mills (longer than 1y) Visits to QUARTERLY workshops Amount of instructors GFM and owner did GFM seminar(s) Visit to LMI in NEW ZEALAND Joins QUARTERLY marketing – join promotions Goal is to prevent cancellations as early as possible 2006

PREVENTION AND RETENTION 4. Tasks of account managers: Build great relationships Do a very detailed qualification Follow up: A. Before first launch B. After first launch C. Service visit after 6 months (sell extra programs) Communicate with retention department every day Follow up cancellation requests Call all ‘’problem clubs’’ every 3 months

PREVENTION AND RETENTION CASE 1. Develop a strategy for a club that is planning to cancel because of……… Lack of instructors

PREVENTION AND RETENTION CASE 2. Develop a strategy for a club that is planning to cancel because of…….. Financial problems in general

IDEAS Start selling a starter pack – EUR 440 Small discount Training checks 2. Call all clubs every 3 months Service goal Referrals – leads                   

IDEAS 3. Send news letters by email: every month To GFM’S To instructors To consumers 4. Install a lm ADVISERY board Every 3-4 months Different type of clubs Different people

IDEAS 2006 5. GFM seminars every month Four modules To help clubs with launch Account managers use it for selling extra programs 6. Hire a consultant for problem clubs Hire a extra consultant on GFM One-on-one coaching INHOUSE

IDEAS 7. Account managers: Do the programs every week Visit QUARTERLIES very often (service and sales) Feel and know the product!

IDEAS 8. Network with chains: Build huge relationships Go for the long term Do GFM seminars INHOUSE – every 6 months (let them pay if possible) Develop a tailor made GFM system Take them to NEW ZEALAND

THANKS!