This is a true story about Ana and her yoga studio in the heart of a wealthy neighbourhood of our capital.
Being an ethical yogini, like many yoga businesses Ana was mostly relying on word of mouth marketing and sometimes leaflet distribution.
It looked as if all was going great…but the reality was her word of mouth marketing was bringing about 10 new clients… a YEAR! in other words less than one a month.
It is a fact that most referrals hardly bring consistent number of new clients every month, UNLESS done the right, correct way, but this is another topic, you can read about it in our previous blog posts!
Back to Ana’s story, and what she did…
What Ana realized was that over the years, even though she was teaching AND marketing for 12 years… really she only had one years of marketing experience she kept repeating for 12 years…
The Result? End of every week, she would feel burnt out, stressed, because as you are aware, if you miss a studio rent one month, you are out in the street next month, and sadly many yoga businesses go out of business just because of that.
Another fact is that average yoga studio will lose around 12% of old clients! That means you have a responsibility to at least replace that 12%. In addition due to rising cost of living, including your studio rent, TAXes, which has gone up in the UK just recently, you must at least double your income!
How do you achieve that?
Simple solution is to work smart vs hard. Finding new students are no longer enough, to compensate for the inflated prices, you need to start maximizing sale from existing students.
The truth is, there are only 3 proven ways to increase your business?
1. Increase the number of clients.
The other two I’ll share in parts 2 and 3.
Great news is these marketing can be done in alignment of your yogic lineage.
So let’s go back to Ana’s story.
Ana focused on the implementation of the proven marketing steps above, and this is exactly how she did it.
ONE: How to Increase number of clients
Figure out how much cash each client brings you every time you get a new client.
For example, if each NEW client brings you £10, you can comfortably invest £10 in paid advertisement to acquire that client.
You may ask, like Ana did in the beginning “If I invest £10 and the client only spends £10, I am only breaking even, where is the profit”?
The answer is simple.
If you have a great offer to make to your first time yoga joiners, (typical yoga studio class packs, or workshops, retreats…) you can then continue marketing and promotion to same students without spending any money, whilst they are in the studio, or keep them informed about your offers via regular newsletters.
Now, let’s recap and break down
- You spend around £100 and you get 10 students a month
- 50% Signs up for your next class pack of 6 for £100, this is your £500
- 20% joins your next yoga retreat weekend at £500, here is your additional £1000
Total of £1500 net after you breake even on your advertising investment!
This is exactly what Ana focused in her studio to maximize her advertising efforts. In other words.
Continue reading part 2, and 3 to find out how Ana now holidays 2x a year, in her own terms, works her chosen hours and pays all her bills 3 months in advance!