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Maximise Your Sales Yield & Retention - Steve Jensen

Maximise Sales Yield & Retention – PART 2

PART 2: – See PART 1 here.

Additional reasons to have a secondary and tertiary spend include:

  1. Your secondary spend can be a USP (unique selling point, which no one else in your demographic offers). This then increases the reason to join your facility (i.e. the primary spend).
  2. It makes the primary sell easier because if they don’t want the extras, then you can drop back and sell the primary spend only.
  3. It creates the perception (and remember, perception is reality), that your business is up-to-date and competitive.
  4. It keeps your team excited because they feel pride at being part of a business that is leading the marketplace.
  5. It keeps your members and clients feeling excited and interested, because the business appears innovative. So they say to others “my club/my trainer/my facility has the latest way of doing things”.
  6. It can be used for a reactivation of previous clients or members, by announcing to them that you have something new to offer. You can re-offer them the primary spend and with it they can get discounts on the secondary or tertiary spends.
  7. They can help close a sale; use them as an add-on or giveaway to help sell the primary spend.
  8. It increases income – just make sure it’s not the only reason you want to introduce secondary or tertiary spends.
  9. They can improve the tour and presentation experience for prospects.
  10. Clients who spend more will stay with you for longer.

Measurement tools

When you update your sales process to include secondary or tertiary spends, you will need to implement measurement tools.

These can be a lot of data-driven processes but one key element is KPIs (key performance indicators), which will measure their success.

KPIs will indicate how many people buy more. Some of the common and recommended KPIs include:

  • Presentation to primary and secondary spend percentage: How many people during a presentation actually buy primary and secondary spends?
  • Secondary spend presentation to sale percentage: How many times do you present your secondary spend, and how many times are people buying it?
  • Sale to secondary/tertiary spend: How many are people are actually buying – do they buy one thing or two?
  • Average yield per sale: Start measuring how much each sale is worth. For example, if someone goes onto direct debit for a membership plus secondary spend, then the yield will be higher than if they bought only the primary spend.
  • How many secondary spends were made at the initial sale versus after sale?

Because what gets measured gets done, if you measure how many secondary/tertiary spends you’re getting with each primary spend, and how many you’re getting on a weekly or monthly basis, then having a target for these types of numbers will result in big differences to your profits.

If you want to increase your yield or primary spend, then present more spending options. Just make sure if you do that, that your team know how to drop close so they can close the primary spend if people don’t want to buy anything additional.

Marketing Secondary / Tertiary Spend

Secondary or tertiary spend may be nutrition services, programs, massages, one-to-one coaching or training, coffee club, running club, bike club, weight loss programs, challenges, wearable technology, etc. be really clear about all the extras that people can utilise, and make sure access is very easy for them to participate.

Essentially, you want to sell whatever will help them achieve their results more quickly and keep those results for longer so they don’t have to go elsewhere.

Secondary spends can also be things like technical equipment like heart rate monitors or wearable technology.

Your marketing should mention the secondary and tertiary spend that you have, and with each mention you must attach a benefit and a feeling. So if someone wants to lose weight and get bigger or stronger or faster, you can tell him or her you have great facilities to help them (primary spend) but you also have a great program that will help them get great results that they will keep for longer (secondary/tertiary spend). This gives the prospects peace of mind, and you’re pre-framing your secondary spends in your marketing.

As a solutions-based business, pre-framing is when you find the prospect’s problem/challenge/frustration and then talk about the programs and services that can help them. This should happen while you’re on the phone or in communication with them, before they turn up in person for a tour/demonstration/experience. You should aim to get confirmation on the phone that they would like to use these secondary/tertiary options, and let them know you’ll talk more about them when they pop in. This helps ensure they are not surprised when you present your entire package to them in person.

It’s always recommended that you have something you can give a prospect when they show up for their appointment, as a tour is no longer sufficient on its own, to truly engage people.

Be sure to personalise the meeting, so when booking in the appointment tell them “you’ll meet me there and I’ll come up with an action plan to help you achieve XYZ.”

Then when you have something tangible to give them – like a primary, secondary or tertiary spend material – you’ll be providing them with a higher value, which will help them make the decision to buy.

Your salespeople will, naturally, know all about the core products (e.g. membership, personal training services, classes), but something that is often overlooked but which is important, is having your team members use the secondary and tertiary spend items. Because if they use it themselves then they’ll have genuine belief in the product, program or service. And while it may cost you a little bit of money to make it happen, the results from them having experienced it first-hand, will deliver a sure-fire return on your investment.

Meeting in person

Your team members need to make sure you have all the information ready for your prospect before they arrive for their tour / trial / demonstration / explanation / experience.

Qualification requires you to have an initial sit down so you can chat and determine their primary and secondary objectives (always try and identify two or three things they want to achieve). You then need to talk about the primary and secondary spend that will help them achieve those objectives. Teach them things they don’t know during qualification and they’ll get excited about it, which leads in nicely into taking them through the tour.

Interestingly, the tour is rarely trained and rarely inspected but it’s essentially the end of the sale and where the magic happens – so it’s important!

If you want to increase your yield and secondary spend, then this is the time when you need to prove what you’ve said is true.

You need to have opportunities to show and let the people experience what you’ve spoken about; and then they’ll believe you.

Consider having a “giveaway café” where you stop and pick up information that offers the prospects discounts or giveaways on different items such as coffee, merchandise, programs or similar. You could sign each piece of paper and tell them that you can activate all these savings and offers when they join up.

On the way back from the tour – and on your way to the price presentation – always confirm they have the time to come in, the days they’ll visit, that they’ll use the secondary spend, and confirm they’re excited about it.

It is critical to confirm this before you sit back down.

Then, when you deliver your price presentation it will be quite swift. The key is to always present your secondary spend first. For example, “We’ll definitely get you ready for your honeymoon! Now, your nutrition program is $X, and you have this 40% voucher which is going to save you $Y, how good is that? Now there’s a couple of ways to do this – ABC is a way I don’t suggest, but CDE is my recommendation, so let’s do it!” Always present your secondary and tertiary spend first, and then ask them to join (i.e. your primary spend).

Once you fully understand how to create and implement a secondary spend culture within your business, you’ll see great improvements in sales, member/client retention and staff morale.

To learn more about how to maximise your sales, yield and retention, book in for a no-obligation FREE Sales Growth Plan with Steve Jensen.

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