Strategies for Sales Success

2. Strategies for Sales Success New Orleans – Sept 07

3. Video Scenarios • Each agency will video the six sales scenarios that follow. They will be shown throughout the three days of our training together. You must be done with all six scenarios by 2pm on Friday. The goal is for all reps in your agency to have an opportunity to be represented on film, therefore, you should not have one rep doing the “selling” all the time in the film. You will be given feedback on how well you did, what needs to be changed and how realistic both the sales rep and the buyer are in the scenarios. • Scenario #1: This is the first telephone call actually connecting with the decision maker – how do you get and keep their attention? The goal is to have enough value in the conversation so that they will schedule a face to face meeting with you. • Scenario #2: The person you had a meeting with is not there and will not be in today – what do you do? • Scenario #3: This is the first meeting with the decision maker – how do you customize the meeting based on the first phone conversation? What is your goal for this meeting?

4. Video Scenarios (continued) • Scenario #4: Your goal each month includes getting 4 referral leads from your current happy licensees to make more sales. In this scenario, demonstrate how you get the referral lead. • Scenario #5: In this scenario, you are following up on a hot lead that has grown cool – demonstrate how you get the love back and get the sale moving forward. • Scenario #6: In this scenario, you are speaking with the decision maker and they are directing you to speak with the club GFD instead of themselves (the GFD is not a decision maker). Demonstrate how you graciously move the sale forward.

5. Professional Basis Assessment • Please describe what you are selling: • What is the LM mission? • What is the main feature of the mission as described on the website? • How do you personally demonstrate the concept of life changing experiences with prospects that immediately aligns you with who we are as Les Mills and shows that we walk our talk? • How many elements are there to world class GF management? • What are the key elements to world class GF Management? • What are the four solutions that Les Mills offers to clubs? • When does auto ship occur, how much does it cost and is there a time commitment? • What are the five key elements for Instructor development? • What is the role of the Assessor? • Regarding Instructor training, what is the pricing? • Regarding program license fees, when is the first fee due?

6. Professional Basis Assessment (continued) • What is the role and benefit of the Club Coach? • To date, how many clubs in the system worldwide? • How do you utilize Group Fit Profit in your selling process? • When do you first guide a licensee through e-club? • In your opinion, what is the most valuable aspect of the website for licensees and how do you guide them to maximize it for themselves? • What does BLAH stand for? • What are the top three differentiators from our competitors? • How many phone calls do you make on average daily? • How many sales appointments do you have on average each week? • On average, how long does it take you to close a sale? • Regarding your sales cycle, why is it what it is? • On average, how many referrals do you get each month? • Regarding referrals, why?

7. Professional Basis Assessment (continued) • What is the intention of the phone call? • What is the intention of the face to face sales meeting? • What is the goal of the one hour GFM? • What are the average weekly attendances for group fitness based on IHRSA stats? • What are the average weekly attendances based on LM stats? • Demonstrate how to calculate the size of the prize:

8. Professional Basis Assessment • Please describe what you are selling: • What is the LM mission? • What is the main feature of the mission as described on the website? • How do you personally demonstrate the concept of life changing experiences with prospects that immediately aligns you with who we are as Les Mills and shows that we walk our talk? • How many elements are there to world class GF management? • What are the key elements to world class GF Management? • What are the four solutions that Les Mills offers to clubs? • When does auto ship occur, how much does it cost and is there a time commitment? • What are the five key elements for Instructor development? • What is the role of the Assessor? • Regarding Instructor training, what is the pricing? • Regarding program license fees, when is the first fee due?

9. Professional Basis Assessment (continued) • What is the role and benefit of the Club Coach? • To date, how many clubs in the system worldwide? • How do you utilize Group Fit Profit in your selling process? • When do you first guide a licensee through e-club? • In your opinion, what is the most valuable aspect of the website for licensees and how do you guide them to maximize it for themselves? • What does BLAH stand for? • What are the top three differentiators from our competitors? • How many phone calls do you make on average daily? • How many sales appointments do you have on average each week? • On average, how long does it take you to close a sale? • Regarding your sales cycle, why is it what it is? • On average, how many referrals do you get each month? • Regarding referrals, why?

10. Professional Basis Assessment (continued) • What is the intention of the phone call? • What is the intention of the face to face sales meeting? • What is the goal of the one hour GFM? • What are the average weekly attendances for group fitness based on IHRSA stats? • What are the average weekly attendances based on LM stats? • Demonstrate how to calculate the size of the prize:

11. Les Mills Sales Rep: Job Description • Objective: Your contribution is to license new facilities in your region with LM programs. Your prime directive is to meet and or exceed sales targets consistently each month. • Game plan: • 1. Sell 6 licenses each month. • 2. Have a minimum of 6 sales meeting each week. • 3. Make a minimum of 70 calls per day to schedule 6 meetings per week. • 4. Sell 2 – 3 programs per new licensee. • 5. Sell a total of 10 new programs per month to include current licensees. • 6. Establish long term relationships with licensees to insure their success with our programs. • 7. Understand the market and the industry by spending 30 minutes daily studying the trends and issues.

12. Les Mills Sales Rep: Job Description (continued) • 8. Generate 4 referral leads per month from current licensee base to generate additional sales. • 9. Provide life changing experiences everyday with all of your prospects as well as licensees that demonstrates the LM ethos and purpose. • 10. Coordinate and fill GFMs with a minimum of 10 qualified prospects to sell LM programs. • 11. Maintain database daily for accuracy of lead follow up. • 12. Manage your business by the numbers by doing your daily sales tracking, analysis and adjustments. • 13. Meet with your sales manager daily to discuss sales tracking, needs and action points for success. • 14. Attend all sales meetings and trainings. • 15. Work to include a minimum of 45 hours per week and evenings and weekends when necessary.

13. B2B vs. B2C sales • The major differences between B2B and B2C: 1. 2. 3. • The crucial qualities that you must possess to be successful with this sale: 1. 2. 3. 4. 5. 6. • What do you struggle with and why?

14. Diagnostic selling vs. Presentation selling • Characteristics of diagnostic selling 1. 2. 3. • Presentation selling 1. 2. 3. • Which style describes the way you sell? • Benefits to the prospect include: 1. 2. 3. • Your advantage in becoming a diagnostic partner:

15. Learning how to confidently diagnosethe major problems of club operators • Know the industry • Know your regions specific issues • Read industry publications • Read your local papers • Attend management sessions at conferences • Network with clients • Network with industry professionals • Host a roundtable for current licensees to discuss issues • Host a roundtable for prospects to discuss issues • Send out an email survey to all prospects and/or licensees with the promise to share blind info

16. Club Operational Issues • Deficit in Revenue • New Member sales low • Revenue per Member too low • More competition in market • Lack of Profit • Revenue too low • Operating costs too high • Retention issues • Not providing value for Members • Increased competition

17. Club Operational Issues (continued) • Staffing Issues • No consistency with staff quality • No training systems • Under-staffed • Marketing Issues • Does not know how to market effectively • No market differentiation • Not spending enough on marketing • Management Systems Issues • No management systems • SOP operations • Mucho brain damage

18. Script • “Good Morning Bob; • This is Karen with Les Mills. (Pause for response – see if they are familiar with us. If they are you might say something such as “it sounds like you are familiar with us – what do you know about our services?” or “It sounds like you may not be familiar with us – we provide four key solutions to clubs – in fact 11,000 clubs throughout the world. • Those solutions include marketing materials to increase new member sales as well as current member participation in group fitness, management and tracking tools for objective and profitable decisions about your group fitness programs, instructor training so that all of your instructors are great rather than just two or three being the dominant instructors and of course we also offer a system of on going and updated choreography and music for all of your instructors so the program stays fresh and continuously inviting to Members”. • The reason for my call today is to discuss how our services can affect four areas of your operation: 1.) increase your new membership sales, 2.) increase your retention, 3.) increase your group fitness program participation and 4.) provide tools to manage the program more effectively rather than “Maintain” the program. • Out of those four areas, which ones) interest you the most? • Tell me more about that. (discuss, get clarification, etc.)

19. Script (continued) • How would you describe your group fitness program as a consistent driver of new membership business for the club? • How would you describe it as a conscious, systematic way to retain current members? • What is your membership retention rate? • How long does the average Member stay at the club? • What is the average cost to acquire a member at your club on a monthly basis? • How are you calculating that? • What is the strongest aspect of your group fitness program for the club? • What would you say is the weakest aspect of the program? • Thank you for being so open and sharing this information. Based on our conversation, I have some tools I would like to share with you and I also want you to know that I have done my homework prior to this call and have found some areas that if done differently would have a significant impact for the club. • I am scheduling to be in your part of the region the latter part of this week – does Th or F work better for you?”

20. Sample Retention Calculation • Beg.Memb. New Reinstated Dropped End • Jan 2000 85 0 60 2,025 • Feb 2,025 65 10 60 2,040 • Mar 2,040 90 40 110 2,060 • Apr 2,060 80 25 75 2,090 • May 2,090 40 20 50 2,100 • Jun 2,100 70 15 60 2,125 • Jul 2,125 55 10 60 2,130 • Aug 2,130 50 10 50 2,140 • Sep 2,140 65 5 60 2,150 • Oct 2,150 85 10 70 2,175 • Nov 2,175 70 15 70 2,190 • Dec 2,190 80 10 60 2,220 • Total 25,225 785 • Monthly Average = 25,225/12 months = 2,102 • Membership Attrition = 785/2,102 = 37.3% • Membership Retention = 100% - 37.3% = 62.7%

21. Calculate Your Member Retention Ratefor the First Two Quarters • Beg.Memb. New Reinstated Dropped End • Jan • Feb • Mar • Apr • May • Jun • Total • Attrition: • Retention How do you want to effect his number?

22. How Much Does Each Lost MemberCost in Terms of Revenue? • Assumptions: • Joining Fee = $75 • Monthly Dues = $50 • Average Stay of Members = 4 years • Referrals per Member during that time = 4 • Non Dues Revenue per Member per year = $1,000 • If a Member cancels at month three, the club has lost: • Dues = $2,250 • Referrals = $9,900 • NDR = $4,000 + $16,000 = $20,000 • Total Revenue Lost = $32,150

23. New Member Cost Recap Month of ___________ • Total new Members ___________ • Total commissions • for month $__________ • Advertising costs • for the month $__________ • Administrative cost • for new Members $__________ • Integration costs • for new Members $__________ • Other directly related • costs $__________ • Total $__________ • Cost per Member $__________ • (Total costs divided by total new Members) • Projected # of months to profitability for this month’s • Members __________

24. Manage or Maintain? • We have calculated the max capacity for each class in our group fitness studio • 70% of our classes are consistently at max capacity • We have a systematic recruitment process to get new participants into the program • We market our new classes by creating a sense of anticipation, flare and promotional launches rather than just flyers • We grow participation by a net 20% per year • We track program growth, losses and changes systematically • Our male population participation continues to grow • We consistently utilize our Group Fitness base to grow our new Member sales • Our Group Fitness program is well integrated with other departments in the club to create a consistent flow of new participants • Our Membership sales department knows how to create desire, differentiation and value when presenting our Group Fitness program to prospective Members • Our Reception Desk staff knows how to create desire, differentiation and value when answering questions about our Group Fitness program

25. ROLE PLAY EXERCISE

26. Review • 1. • 2. • 3. • 4. • 5. • 6. • 7. • 8. • 9. • 10. • 11, • 12. • 13. • 14. • 15.

27. Shortening the sales cycle • How long is it and why? • Are you a sales leader or a visitor? • The intention and outcome of every conversation • Do we plan to close on the first appointment? • How to create urgency and move the sales process forward faster: 1. 2. 3. 4. • Getting agreement on closing dates

28. The GFM – intro or closer? • The real purpose – the intention and the outcome: • Who is in the seats? • Getting the right audience • Are watering the “plants”

29. Script • The purpose of this script is to make sure we get the right people (facility directors, owners, etc rather than group fitness managers) at our GFMs that can make buying decisions which will ultimately shorten our selling cycle. The GFM is a perfect opportunity to get our prospects motivated enough to buy whether we have been developing a relationship with them or we are introducing ourselves to them at the GFM. I encourage you all to go into the GFM with the intention of making sales that day. That can only happen if you have buyers in the room. • This scenario takes place on the phone where the LM rep has the interest of the director/owner and has had a conversation about the club’s issues and our solutions and is inviting the facility director to be our guest at the GFM. • LM rep: Bob, it sounds like the next logical step is to have you attend our Group Fitness Management program on July 21st. I would like to invite you to be my guest. • Bob: Karen, I am interested. I will make sure my GFM, Susan, is there.

30. Script (continued) • LM rep: Bob, we definitely want Susan to attend with you. Here is why I am emphatic about Susan attending with you rather than Susan attending without you: in the past, we have had Group Fitness managers attend and we find that the business of Group Fitness is not something that is intuitive to most group fitness managers. The programming side is more intuitive to them. What you and I have been discussing is how to make your group fitness program more profitable which is what we go into much more detail about in the program on the 21st. • To get the full benefit of the program, Susan will need access to numbers that we find most group fitness managers do not have – that is why it is important for the two of you to attend together. What most other facility directors/owners find is that after the program, all of those business concepts that you have been trying to get your group fitness manager to think about and act on -- now make more sense. With you there, helping Susan with these numbers, the process happens that much faster. Ultimately, getting Susan to see the group fitness program as a business driver for the club is the result and that happens faster when the two of you are doing these formulas together. Do you feel that that outcome would make it worth it to free your schedule? • Bob: OK, Karen that makes sense. I will be there with Susan. • LM rep: Excellent – I know you will not be disappointed.

31. ROLE PLAY EXERCISE

32. Characteristics of Consistently Successful Sales People • Passion • Work • Curiosity • Ability to push ourselves mentally and physically • Turn failure into a laboratory • Focus • Willingness to serve • Innovation • Conquer adversity and disappointment • Solve problems early and completely • Resourcefulness • Fulfillment

33. Comprehension Quiz • 1. • 2. • 3. • 4. • 5. • 6. • 7. • 8. • 9. • 10. • 11, • 12. • 13. • 14. • 15.

34. Professional Sales Rep or a Job? • Consistent habits • What day of the month do you consistently plan to hit goals • Follow a plan, consistently (70-6-6) • Business development • Research time • Phone time • Face to face sales meetings • Core issues • Urgency • Follow up • Close sales • Referrals

35. Research time • Spend time in the morning or later in the evenings researching your prospects • Group the research before you make phone calls • Call the club and ask the reception staff questions about the group fitness program • As a very interested prospective Member, call and ask the membership rep questions about the group fitness program • Visit their website and review their schedule for liabilities • Develop your profile which is the info you will share with the club operator

36. Business Building Activities • Get out of the office and into the clubs. • One day per week, four clubs • Build the relationship • Schedule appointments to meet with key decision makers • Take their classes • Evaluate their classes • Evaluate their clubs • Provide value • Then schedule a sales call

37. Maximize Your Phone Success • Understand the points of hesitation • Decision making ability • Time frame for purchase • Financial • Urgency • Other factors

38. Maximize Your Phone Follow Up Success • Schedule a phone meeting time • Utilize the 3 Round Call System • Be effective with your messages not efficient with your messages • Don’t spill your candy in the lobby • The “something interesting call”

39. How to make the call… • “Something Interesting” Call • starts positively • avoids objection • mystery/intrigue – leaves a reason for them to call back • schedule next action • Something interesting list “Hey There Bob, This is Karen Woodard with LM. After thinking about our phone conversation the other day, I have developed something interesting for you. I think you will like this. It is important that we speak by 6pm on Tuesday. My number is 303.417.0653. Can’t wait to speak with you. Bye!”

40. Face to Face Sales Meetings • Intention and outcome of the meeting? • Be the leader – move it forward • Be prepared prior to the meeting – build reasons to say yes and solutions to their nos based on your previous phone conversations and research • Provide value based on their issues • Create urgency based on their issues • Be prepared to handle concerns/objections • Close the sale or… • Create closing dates

41. Keys to Effectively Handling Objections • Find out early: “ What would your hesitations be with going forward with LM?” • Know as much about your prospect as possible before hand • Be prepared • Find out what would make them go forward with us: “What made you agree to meet today?” • Speak with the final decision maker from the start. If you are speaking with someone who cannot make the decision independently, always ask “If this were your decision entirely, would you go forward with LM?” • Utilize the 7 Step process to make sure you are clear what the real concern is before you offer a solution • ALWAYS move the process forward to the next step

42. Keys to Effectively HandlingObjections (continued) • “My competitors have you guys in their clubs – why would I want to do the same thing? I want to be different” • I understand the importance of creating differentiation. I want to address that in a moment. Two bigger questions come to mind for me: 1.)With your current program can you create an equally competitive playing field? This question relates to having the equipment and the programs that the market recognizes as desirable and demands. You would not consider operating the club without strength training equipment or cardio equipment because your competitors offer that equipment. And /or… • 2.) Does your current program allow you to consistently deliver on your promise to Members about an excellent life changing experience every time or is that up to the instructor (or not) on any given day? Those two things are really what this decision should be about. Regarding differentiation, it may suit the club best to create differentiation in areas that cannot be duplicated such as your club culture and how you create a sense of welcome. Let’s move forward with this so your club does not step back, competitively speaking.”

43. Keys to Effectively HandlingObjections (continued) • “The program costs too much” also can be used for “not our budget allocation time” • It sounds like your main concern is financial. Other than your financial concerns, is there anything else that is causing hesitation to go forward with LM? Would it be alright if we took a few minutes to see if there is a solution that works for you? Good, I was hoping you would say that. • OK – how much is too much? • It sounds like you would like to start with your first program and get it for the fee of the fourth program or $150. OK – so you are comfortable with $150 per month. Let’s look at this – right now, with your current GF program, you expressed that you would like to see more Members participating – which is why you would choose to go with us. If you do choose to go with us, we know that we can increase your participation by ____ visits per week of existing Members as well as increase new Members at club because of the program by ________ per month. If all that happens is that we increase participation with current Members by ____ and because those Members remain at the club longer because of the program then that translates into $____ more per month. Additionally, by adding ________ new Members per month at your dues rate of $_____, that more than makes up for the $300 fee per month. I believe it costs too much to not go with the program. Shall we go forward?.

44. Keys to Effectively HandlingObjections (continued) • “I don’t know if my instructors will support it.” • It sounds like you are concerned with alienating some of your Instructors. I understand that. Two things come to mind for me when you say that: 1.) Not all of your Instructors need to be a part of the program. However, there will be some that are verrrry receptive to the program and want to grow and really want training and those are the Instructors that are going to raise the level of your program to a new height as well as provide more consistency in the excellence of the experience. • The second thing that comes to mind is a question and that is – why should the quality, success and consistency of the experience for the Member be left up to the style of each individual Instructor? Shouldn’t that be something that is decidedly a brand of the club that stays with the club regardless of who is teaching? • Let’s raise the experience level of the GF program for the Members, the Instructors and the future of the club to consistently excellent – let’s get you started.

45. Keys to Effectively HandlingObjections (continued) • “The financial commitment for training is not in our budget right now” • It sounds like your main concern is the initial cost of the training. Is there anything else that is causing hesitation to go forward with LM right now? Ok – If we can spread out the cost of the training so that it is not a big chunk for you, would you like to go forward? • Here is what we can do – we will host an open training which means ----------------------------------. How does that sound to you? • Excellent – let’s go ahead and get you started with your programs and we will get the training scheduled.

46. REFERRAL CONVERSATION • (TELEPHONE) • HEY SUSAN, THIS IS KAREN WOODARD WITH LES MILLS – HOW IS LIFE AT THE CLUB TODAY? • I would like to ask a favor of you… • I know that you are well networked and respected in the region and in the industry and I would like your help in connecting with other clubs to grow the LM brand. I am curious, what five clubs would you recommend that I give a call to? • CAN I ASK YOU TO SHOOT OFF A CALL OR AN EMAIL TO LET THEM KNOW I WILL BE CONTACTING THEM? • THANK YOU SO MUCH – I WILL GIVE THEM A SHOUT AND KEEP YOU IN THE LOOP ON WHAT IS HAPPENING. • HOW ARE THINGS progressing AT THE CLUB?”

47. ROLE PLAY EXERCISE

48. Do You Want to Win? • 1. • 2. • 3. • 4. • 5. • 6. • 7. • 8. • 9. • 10.

49. Self Assessment • After participating in the program the past two days, it has become clear to me that the three areas of my performance in which I excel are: • 1. • 2. • 3. • Conversely, after participating the past two days, it has become clear that I need to work on the following three areas: • 1. • 2. • 3. • I will define my improvement in these areas when the following changes/results happen: • 1. • 2. • 3.

50. Self Assessment (continued) • My time frame for seeing these changes/results is: • 1. • 2. • 3. • I will commit to these results for myself and for LMNA by practicing and perfecting the following: • 1. • 2. • 3. • 4. • 5.