How many times have you really considered the financial impact of a player leaving your programme? The reality is that every single player has a value far beyond the income you receive directly from them. In this video (approx 6.5 minutes), Richard Marklow (a Director of i2c) guides you through a detailed analysis of how to calculate player’s true value.
Understanding the potential revenue that your coaching business can earn from every customer will help you to prioritise spending time on activities to retain your existing players and cross-sell tennis to your customer’s as a life-time sport.
Our 8 year old player
To start, consider the “add-on customers” of an 8-year-old player having lessons in your programme. In many cases, that player will have:
- Brothers and sisters
Those are all potential customers that can come through your programmes.
The 8 year old player’s personal lessons
Even if your 8-year-old player isn’t currently doing more than an individual lesson every week – you have the potential to build the 8 year into a committed player. So, the paying programmes that they could participate in are:
- Individual lessons (£20/week for 44 weeks of the year)
- Group lessons (3 terms a year at £100/term)
- Tennis camps (3 camps at £90/camp)
Brother or sister’s lessons
It is very common that more than one of the family’s children will play. So, next we add on the income we could make from our 8-year-old player’s brother or sister:
- Individual lessons (£20/week for 10 weeks of the year)
- Tennis camps (2 camps at £90/camp)
With some encouragement, one of the 8-year-old’s parents could also join your programme to play and improve their fitness:
- Parent takes 3 courses (3 courses x £36/course)
- Individual lessons (10 lessons x £20/lesson)
Over 3 years the family could spend £6414
Based on the family scenario just described, the 8-year-old who just joined your programme can realistically bring you £6414 over 3 years if they stay with your coaching for a normal length of time.
It makes good business sense to build strong relationships with the parents of your junior players. Not only does it cost more to attract a new customer than it costs to keep an existing one – but by selling tennis to your existing customers, each customer is potentially worth a lot more to your business than the income from their current programme.
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