# of Leads

# of Trials

Show Rate

# of Enrolments

Attrition Rate

These tell us where the problems are in terms of students. (Not finance, although they are connected)

If you get 100 leads per month and book 60 trials, that’s 60%

Of those 60 if 45 show up thats 75%

And of those 45 that show up, if you sign up 30 that’s a 67% close rate.

100 x 60% x 75% x 67% = 30 New Members

Now if we bring those percentages up by 10% each. A little more follow up on leads, a little more follow up before appointments, a little better sign up process…

100 x 70% x 85% x 75% = 45 New Members

Didn’t need more leads, just a refined process.

To get more members it’s just looking at those 4 numbers and seeing where the most room, the low hanging fruit is. And dialing that in.

It also affects our advertising. If a lead costs $20 in ad spend, and every 30 out of 100 leads ends up a member, I have a cost of acquisition of $66.66.

It also affects our advertising. If a lead costs $20 in ad spend, and every 45 out of 100 leads ends up a member, I have a cost of acquisition of $44.44.

Knowing the approximate “cost” of a new member lets me plan out promotions and advertising.

This does change based on lead source to some degree as well. A lead from a Referral > a lead from organic search > a lead from advertising > a lead from an event. You’re not likely to hold a Easter Egg Hunt, collect 600 leads, then sign up 270 new members from it.

Attrition lets me know another important number. If I have a 10% attrition in a school with 150 members, I need to sign up 15 new members every month just to stay the same.

Or from the other side, if I sign up 15 members a month and have a 10% attrition rate, I would level out at 150 members. (15 / 10%)

Dropping that by 2% to 8% means even if I sign up the exact same number of members, my school will now max out at 187 members instead of 150 (15 / 8%).

A good attrition target is actually 5%, which would be 15 / .05 = 300 members before maxing out.

As you get bigger, attrition becomes more and more of a priority as it becomes harder. It is much easier to maintain 5% attrition in a 80 member school then it is in a 300 member school.