Last Monday, we had 21 new clients walk through the door.
This may sound like a positive - what Affiliate wouldn't want even HALF that number to wander in and try CrossFit? Jim Collins argues otherwise.
One of the most important concepts in Great By Choice is the 20-Mile March: consistent, slow growth. He repeatedly makes the case that slow growth is more predictable, solving staffing costs; it's more reliable, because fast growth in January usually predicates no growth in February; it avoids the herd mentality of shifting alliances; it allows each client to experience our service on their own terms.
For our sake, my own experience in gaining (and losing) hundreds of members is this: it's easier to create a relationship in slow months than in busy months. When three people sign up, I have time to learn about each. I can find out about their families; I can find their Bright Spots. 20 people, in one day? I can't even remember their names. Three is about my limit.
Our growth target for 2012: three new members per month. That's it. 36 this year, total. We can set a low target because, at close to 90% retention, that means we'll keep 33 of them into 2013. When our monthly signups rise, our retention rate goes down.
This may not appeal to you. You may be reading other blogs who trumpet, "40 new people in OnRamp this month! Woohoo!" that IS a sexy achievement. How many stay?
I'm not suggesting that you turn anyone away; of course not. What I am suggesting is that you focus on building a diesel engine, constructed to stand up to the elements and last a long time, instead of shooting all your fireworks in January and waking up alone in March.
Agree totally Chris. We have over 30 scheduled to start Intro Programs next week, and although we've been experiencing 80-90% retention with our month long induction, I have a feeling it wont be the same this time through thanks to a sudden surge in knowledge about CrossFit (and possible new fad perception by the hungry public) and New Year Resolutionitis (which we try to minimise by not having an Intro in January). Solutions I am thinking about include price rises, only taking referred prospects, and some sort of pre-sign up screening process to keep tire kickers at bay.
Posted by: Darren | 01/24/2012 at 11:14 AM
We are experiencing an explosion of growth as well, and struggling to find ways to handle it... We already raised rates (right before this explosion happened in January), we are capping classes, have added 2 new classes per day, added an open gym time, have several people in training now to become "assistant coaches".... but short of hiring a third full-time trainer (and we don't know where to find one?!) we're running out of ideas... what other suggestions do you have? We're the only CF gym in a 50-mile radius at this point, and are actually hoping another one opens to relieve a bit of the pressure! Thanks in advance for any tips...
Posted by: Allyson | 02/15/2012 at 08:05 PM
Hi Allyson! This is a common problem with successful Affiliates: they want to grow, but they're not completely prepared for the influx (their infrastructure isn't set up.) This means that they don't have policies, procedures, job descriptions, etc. setup in advance to make hiring and expansion easy. I've had the opportunity to speak with many Affiliates lately, and this is a very common problem; however, as the saying goes, the best time to plant a tree is 30 years ago. Next-best time is today. I'd pick up Michael Gerber's book, "E-Myth Mastery" and start working ON your business instead of IN your business (sorry to use Gerber's catchphrase there, but it's come up a LOT this week.) Best of luck! If you'd like me to help, just ask.
Posted by: Chris Cooper | 02/15/2012 at 08:15 PM