How to Price an Intro Offer
For class-based businesses, the most effective way to attract new clients is to market with an irresistible introductory offer.Irresistible refers to price as well as length of offer.
Length of Offer
The month long offer has the best retention, as it guarantees the new client will return to the business more than once or twice. One month is also easy to sell. It gives the client enough time to create a new habit of going to the business, allows them to try different instructors, class times, class levels, meet other clients, as well as start to see some physical and mental benefits. The month long offer also allows the business owner enough time to follow up with the new client and promote a package or membership to continue practice.
The price of a month long offer depends on a few factors. The size of the practice space is important as it determines number of clients accommodated. If the space is big, the price can be lower whereas if the space is smaller, the price would be higher. Location also determines price, for example a business in NYC would likely have a higher intro offer than one in the suburbs ofSacramento, CA. Another factor is whether the business is new or established, whether the demographic is educated on the service (they know what it is and why it’s great), as well as competition. The price should qualify clients to buy other packages, but shouldn’t be a barrier to entry. Common intro offer prices for yoga studios range from $30 - $59 whereas, Barre classes range from $50 - $99.
When clients are new to a service, they aren’t sure if they will like it or not. New clients also have high attrition, industry average stats are 50% will not come back after the first visit. It’s nearly impossible for new clients to know if they want to continue with the service after one class. In a class based business, they don’t receive personal attention and 9 x out of 10 they wound up in a class that was too hard for them. In order to retain them, increase attendance, and maximize the chances of staying with the service, 30 days has proven again and again to have 70% or more retention with new clients. It’s just long enough for them to practice enough and see a few benefits to increase chances of converting.
Implement a 30 day irresistible intro offer and market it via flyers, website, online search, signage, and open houses. Intro offers go on all marketing materials and should be sold to every new client who visits the website or stops in the business, if local to the area. Education is paramount so that new clients understand that one time in your classes will not give them the results they seek. Because of irresistible price in comparison total other prices, the intro offer becomes the best deal.