While drop-in visits and class passes give students flexibility, they give studio owners a reason to worry. You can never be sure how many drop-ins and class passes you’ll sell each month, and that means you can’t accurately forecast future revenue. Even if you’re a well-established studio, this uncertainty eventually becomes a problem.
The solution is to move your students to recurring monthly memberships. With monthly memberships, you can predict future revenue and enjoy a steady and dependable stream of income. Recurring monthly memberships also take the (monthly) decision to renew out of your student’s hands. You can easily move your students away from drop-in visits and class passes by putting some attractive options and key policies in place.
Make it Attractive to be a Member
To start, your monthly recurring memberships need to be the most attractive option for your students. The right pricing is important, and we’ll cover that next. But you can include some perks in your membership packages that will help make them the best option. Try including the following in your membership packages:
- free members only monthly event
- free guest passes
- discounts on workshops
- merchandise discounts (like mats and water bottles)
Offer Tiered Memberships
Setting up tiered membership options gives students the flexibility they desire, while still moving them away from single-visits and class passes. Of course, this suggestion has to work for your studio and sales process. So our advice is to keep the options simple. Look at how often your students come to class, and build tiered memberships to match the most common drop-in frequencies. Here are some common options:
- Tier 1- 1 class per week, or 5 classes per calendar month
- Tier 2- 2 classes per week, 8 classes per calendar month
- Tier 3- Unlimited classes per week and month
Reduce the Commitment Period
If you ask for too long of a commitment, your memberships won’t sell. Consider a 15 or 30-day cancelation option so students don’t worry about being locked-in if their life changes.
Setting up recurring monthly memberships for your students, no matter how many classes per month they contain, are an excellent way for you to better predict your future cash flow. We’ll cover some additional ways you can covert drop-in visitors in the upcoming weeks. Stay tuned!
Once you’ve setup recurring memberships, do you have a plan in place to help retain your students? Get your copy of our guide, Five Simple Ways to Improve Student Retention.