Know-How Exchange : Strategy

Dear Paulus,

It's hard to say what you're doing right or wrong. The best advice I can give you is to look at what the competition is doing. You don't need to to copycat, but look at what strategies similar businesses that have been around for few years are using.

Surely a website is a must, even without too many SEO strategies (since your service is very specific to a small geographic area, it gives the possibility to potential customers to understand what you're doing without the need to walk instore.

The fact that your clinic is located in an area with big pedestrian affluence is good, but not sufficient. If you can, offer one or two sessions, one week or one month free of membership. I'm not an expert in the industry, but try to advertise on the radio targeting specifically your audience(right message on a local radio at the right time).

Also, instead of relying on customers' referrals only, build an affiliate programme with some other local businesses in your industry (they'll be more than happy to help if there is a mutual benefit).

Said this, one last point. Do not sell cheap. You are providing a benefit to your customers, not a scam. It is ok to honorable to refund if no benefit was actually provided, and this pays you back in the short and long term, but do not make it your USP.Help people understand what they get, involve them emotionally.

Hope this helps.

Davide

Ask your past satisfied customers about their experience. Were they overwhelmed by your wonderful offering? If not, what would make it amazing? People provide word-of-mouth for something that's either extremely good or bad - give them a good reason to talk about you.

I wouldn't introduce pricing so quickly into the conversation. First ensure your copy is targeting your prospect's problems, then have them contact you to find out more. During that conversation, find out their financial needs and create a package that suits them. Perhaps a fixed number of visits, or an unlimited visit, etc.

Why aren't your customers bringing referrals? I'd start there and beef up that program. As a baby boomer-- when I find a product or service that helps me look good, you can't keep me off the phone-- to my baby booming gal pals.

There are a few good books on this, one comes to mind
"the urge to splurge" what makes us spend on things based on things other than need.

We buy because of either want or need. Want is the stuff that gives us the warm fuzzies. Need is when we're out of gasoline and have to make it to work. Either way, we buy because of pain or pleasure.

You aren't selling "guaranteed fat reduction". In fact the word turns me off. Although I am considered slim, of course I don't have the perfect body, and I don't want to walk in a place with the "fat" sign over me. You are selling youthful healthy appearance, looking better naked, loving to see yourself in the mirror, self esteem and a long list of others. Today the trend is honoring the beauty of all sizes of bodies. The word fat is belittling and dated. No gym says lose fat,they say lose inches or #'s. No one, no matter their size wants to be called fat.

I don't think the membership is too high, but for it I'd want sustainable results that are different than my gum membership.

To increase your sales I'd be lazar sharp in your marketing and target the baby boomers. We shamelessly spend money on our appearance. I'd also beef up those who want quick fixes for special occasions-- like brides and class reunions. And beef up marketing on those "resolution" types-- New Years and late spring-- bikini season I call it.

It worries me that past customers are bringing in referrals. You need to make a little NPS survey.

Also, it is important to 'pay' your customers for the referrals they bring in. Offer them a fee session or a coupon or nice big discount on their next subscription etc.

Also, really take a very close look at your geographic location and catchment area. It may be that you have already exhausted the market. How many competitors do you have in the region etc? Could be that you need to move to a new location.

Since you are talking about a high end market, don't rule out price increases. You want to earn 30% more then just charge 30% more. It may sound crazy but don't rule it out. THere is a reverse psychology aspect. When users see that is is very expensive, then they tend to believe that it must be better than the others.

Also, scrap the 'we give you back more 10%' thing. It makes you sound desperate to get business. Instead, just offer them a free 30 minute session up front.

Your attitude should be 'we are so confident that you will see dramatic results with our unique technology / scientific breakthrough, that we are happy to let you try it for free.

During the 30 minutes, you have them relaxed and enjoying the environment and the service and that's where you make the sale. A few will abuse and just get the freebie but you can sell many at higher prices. Rasie it to $500 lifetime membership :)))