Rec Alley runs its program 50 weeks per year (opposed to term based) for three key reasons:
1) Consistency is important for children.
Children develop emotional security, and subsequent development when their environment is nurturing, consistent, and predictable. Results and skills improve, class progression becomes a higher probability ultimately resulting in higher retention rates.
2) School holidays (average of 10 weeks per year) makes up 20% of our ANNUAL income…
It blows my mind that operators still run term-based programs only or stop their normal service to run a small holiday program. Why would you not run all year? The way I see it, by ceasing classes or your service in the school holidays, you have just scored an ‘own goal’. Furthermore, the time and investment that goes into securing enrolments each term could be much better spent on retention activities, improving service quality, L&D, and more.
3) We keep our team employed year-round.
My first job in the Rec industry was as a swimming instructor. I was 17 years old and had to save throughout the term (cough) knowing I would have no work over the school holidays. School holidays I delivered the yellow pages to thousands of homes or sold birds to the local pet shop for cash because I had no work, or money (and can I say, I loved doing both). In addition to this, each term returning to the pools there would be a bunch of new instructors. Subsequently, staff retention was lower due to the break.
We have a mix of casual and permanent employees, all who know they have a stable income throughout the entire year. Result? Confidence (business and employee).
This week…
On Tuesday morning our management group caught up for our typical ‘Marketing Monday’ meet (this week was Tuesday due to the Public Holiday on the Monday). Looking at the week ahead, we had a total of 18 trials booked in for two locations for the entire week. This is much lower than usual, and without a doubt due to the school holidays (people away, footy finals, etc).
No more than 36 hours later, we had 41 trials booked. For context, this was after the long weekend, and in second week of the school holidays. Note, School holidays typically experience an 11-13 percentage increase in absenteeism.
At time of writing this, we had 29 of the 41 trials for the week attend so far, with a conversion rate of 90% (26 enrolments). We did have 18 cancellations for the week (less than 1% attrition), which is expected at the start of a new season, though had we not been agile and react accordingly we would have certainly experienced a net loss.
In our catchup, we spoke about the psychology and opportunity around term-based activities and how that relates to buying habits. We are creatures of habit, and we also enjoy the beginning and end of something. Every existence has an end because everything in life sooner or later concludes. Even though our program runs all year, consumers love the idea and urgency around a ‘new term’. We know this because we experience growth in the first few weeks of every ‘unofficial’ term, irrespective of us running all year.
How did we do this?
In addition to our daily lead or prospect follow up procedures, we agreed that by Tuesday afternoon (post MM meeting) we would communicate to our audience targeted ads incentivising opportunity or urgency to get in quick and take advantage of the school holidays. Specifically, book a free trial before the ‘new term’ starts, and while the gym is quieter. Again, we don’t have terms though the psychology of our communication was to try the program for free before the new term commences (we had activation activities planned for the first week after the school holidays, but nothing for the last six days).
Furthermore, we also advertised to our members that they can try any other class or program for free throughout the holiday period (space permitted), with intent to add classes to their weekly schedule ongoing, increasing average spend/ yield.
Make things simple. I cannot stress this enough. This includes the process to try, buy, and return. This week we had a win as a direct result of our reactiveness.
Comments