New Student Value Secrets Revealed
How do you determine how much time, money, and energy to invest in enrolling new members in your yoga studio to be sure to get a return on your investment?
When you're running a yoga studio, determining the amount of money, time and energy to spend on enrolling new students can be baffling.
There are always opportunities for advertising, marketing, and getting the word out in your community, but, it's not easy to figure out how much it makes sense to spend.
The first thing to know when making these important decisions is understanding your NCV - New Student Value. The New Student Value is equal to the average revenue a new client brings in over a lifetime.
It's not difficult to calculate this number. Take your total annual gross revenue and divide by the number of members who are enrolled in your studio. For example, if you have 100 students and you have $100,000 gross revenue. Your NCV is $1000 per student.
It's essential to know this number.
You can increase your NCV by working on retention as well as increasing the commitment of each member. The longer the members stay with your studio, the greater their NCV becomes. This is one of the simplest (and lowest stress) ways to increase your revenue and NSV. Consider including more high-end programming and additional services. Be sure that you're keeping students engaged in the studio and in their own growth and practice.
When Lara Alexiou first started looking into ways to make her business more profitable, she repackaging her existing offers. She didn't increase her prices. She didn't have to provide additional services. She didn't have to hire more staff or offer more classes. She simply offered her students a longer-term option that included a paid-in-full 3-month package. (They called it the 90-day Transformation Program.) When she did this her NSV almost instantly tripled!
There's also a huge spiritual benefit to understanding the New Student Value. Each time the phone rings, you realize that that phone call could bring in a lifetime value that is significant. When you spend money on advertising, you know that your marketing dollars are well spent. The greater the New Student Value, the more you're helping each person who walks in the door. We want students to stay, to engage more deeply, and to reach their goals. Framing an increased NSV with a greater transformation helps you directly associate increased revenue with better and more fully serving.
