7 Key Insights: Pricing Your Activities
Top tips from Perform, diddi dance, The Little Foxes Club and Amanda’s Action Club on all things pricing: what works, what doesn’t and how to avoid common pitfalls - whatever kinds of activity you run.
On the 5th of December 2018, Hoop hosted a panel discussion with experts from the family activity sector, looking at the benefits and challenges of paid vs free trials when trying to attract new customers.
The panellists included Lucy Quick, co-founder and Principle of Perform, Anne-Marie Martin, founder of diddi dance, Amanda Frolich, founder of Amanda’s Action Club and André Moses, Head of Growth at The Little Foxes Club.
In a wide-ranging discussion, the founders shared insights from their own experiences, revealing the things that work and how to avoid potential pitfalls when pricing your activities whatever the types of class you run.
Below are some of their top tips from the panel. Find the full discussion here.
The quality of your class will keep parents coming back
‘I think it's just about the enjoyment of the class. It's about giving parents the information when they come to the free trial, so finding out why they want to come to Perform.’ - Lucy Quick, co-founder and Principal of Perform
‘I just think as an instructor if you've got that enthusiasm and you're very sociable, you can work well with the parents, you make it fun for everybody. I just hope that it's engaging enough for them to return week after week.’ - Amanda Frolich, founder of Amanda’s Action Club
Understand the lifetime value of a customer
‘So if you're looking at it from a trial, they might pay £10 where they're actually then staying another four years. So you do have to look at it, and think, what is the long term value of that customer, and also what additional business that customer may bring ... Especially if you offer different services like birthday parties or if they work at schools. Look at the actual lifetime value of a customer rather than just focusing on that trial price, or if it's free or paid.’ - André Moses, Head of Growth at The Little Foxes Club
Don’t undervalue and under price your activities
‘You've got to do your market research, so make sure you're on par with everybody else in your area. Don't devalue what you're doing. Believe in what you're doing.’ - Anne-Marie Martin, founder of diddi dance.
Question your data to understand what’s working
‘Look at the data. Is a parent more likely to book if it's free during the summertime vs. autumn time or springtime? Analyse when parents are more likely to book your activities.’ - André Moses, Head of Growth at The Little Foxes Club
Remarket to free trials customers
‘You might get a child who comes for a free trial and doesn't sign up, but they're on your database so on your mailing list (to remarket to in the future for other classes and workshops)’ - Anne-Marie Martin, founder of diddi dance4.
Get your customers recommending new customers
’We also do a "recommend a friend" system. It's called a personal recommendation. If you come to my class and you recommend a friend, you get a voucher and the friend gets a voucher when they sign up.
You can do as many of those as you want. It can be off the Perform classes, birthday parties, holiday courses, anything. Incentivise parents to bring their friends along …. If you listen to your friend and your friend says something's good, that's better than the teachers telling you in some ways’. - Lucy Quick, co-founder and Principal of Perform.
Create trials that fit your audience
‘We are toying with going from free trials to paid trials or a three-week trial block, because as we know under fives, you can't always get a feel for it in one class.’ - Anne-Marie Martin, founder of diddi dance