Do you know what the lifetime value of a student is? Have you thought about how important that figure is? Do you have upgrade programs for your students or does the tuition stay the same forever?
Myself I have 3 different programs in the school. The first is the Trial Program, the place were all new student start. If they make certain qualification they are eligible to upgrade their program to either Black Belt Club, or Master's Club. BBC is a commitment to train to 1st Dan Black Belt and Master Club is to 4th Dan. There is a price pump in both programs. So what is the value of your student?
If you have a student come in and sign a one year agreement (contract) and you are charging lets say $99 per month (too low in my books). The student value is 12 time 99 or $1188. The lifetime value is then based from here on your retention.
Now the next question is what is the cost of enrolling a new student? We will get into this in my next posting.
Yours for building a strong school,
Master Art Mason
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