This article ended up much longer than I originally thought. I’ve split it into 2 parts. If you want to be notified of Part 2, sign up for our newsletter.
Peter Drucker, the Father of Modern Management said: “What gets measured gets improved.”
Just like how it would be difficult to help a new student to improve if you don’t know his current grades… without having these metrics in mind, it’s difficult to grow your tuition or enrichment centre’s brand.
If you want to grow your centre’s brand and bring it to the next level, then here are 9 metrics you need to always have at the tip of your fingers.
1. Annual Revenue
This metric should be self-explanatory. Basically, it’s the total amount of money your centre receives in one year.
Every centre manager’s primary role should be to make sure that the centre is growing consistently every year. And the easiest way to do that is to look at the annual revenue
Just by looking at the annual revenue every year, you can easier tell whether your centre has been growing from year to year.
How to calculate: It’s fairly common for students to come and go every month. So a simple way to calculate is to calculate the number of students you have each month multiple by your price point.
Month of January: 200 students x $200 = $40,000.
This will give you the monthly revenue. Then simply add all the monthly revenue for each month and you will have the revenue for the year.
2. Average Number of New Sign-Ups Per Month
If you want to grow your centre brand very quickly, then this is the most important metric you should be looking at.
By looking at how many new students you have per month on average, you can predict how much your revenue for the year will be.
For example, if you get around 3 new students per month, then in one year you should have about 36 new students.
Assuming that the number of students who drop out is zero (for simplicity’s sake):
If your price is $200 per month,
36 x $200 x 12 = 86,400
That means in one year your centre would have grown by about $80,000!
One of our “Market Domination Circle” (MDC) clients called Knowledge Trial increased their student enrolment from 70 to 140 in just 2 months.
Assuming that they have no new students and none of their current student leaves,
70 x $200 x 12 = 168,000
Their revenue grew by $168,000!
3. Average Number Of Enquiries Per Month
Besides looking at the average number of new sign-ups per month, another metric you should be looking at is the number of enquiries.
This metric is one of the most neglected among many centre managers. Often in their head, this number is grossly overestimated.
One of the simplest ways to increase the number of new students is to break it down. Let me show you what I mean with a simple formula:
Number of new students = Number of enquiries x conversion rate.
For example, if you have 100 enquiries per month, and your conversion rate is 20%,
Then number of new students = 100 x 20% = 20 students
By now you should already be aware that if you want to increase the number of students, you can either:
- Increase the number of enquiries
- Increase the conversion rate
An easy way to track the number of conversions is to create an excel sheet and ask your admin staff (or front counter) to calculate these sub-metrics below:
- How many phone calls a month:
- How many walk-ins per month:
- How many emails per month:
One of the fastest ways to get more enquiries is by leveraging on digital marketing, or more specifically, Facebook advertising. Another one of our MDC clients called Vivian from Le Xue (Chinese tuition) managed to get 96 leads in just 1 month. If we take her conversion rate to be 20% (a very conservative number), she would have gotten about 20 new sign ups in one month.
20% is actually a very conservative number. Vivian’s conversion is actually much higher and managed to get $35,000 within just 60 days!
4. Average Number Of Trial Classes
After a parent enquires at your centre, usually the next thing they like to do is to send their child for a trial class. And if the child enjoys the class, they should be convinced to sign up for the regular classes.
To increase the number of new students, we can break down the “Number Of Enquiries” metric further. Here’s a simple flow chart of a parent’s Customer Journey:
Enquire at the centre > Sign up for trial class > Sign up for regular class
You can put the number in a table to see how many enquiries eventually end up signing up for the regular class.
|No. of Enquiries||20|
|No. of Sign up for Trial Class||15|
|No. of Sign up for Regular Class (Student Enrolment)||3|
Looking at the data above, you can see that out of 15 students who sign up for trial class, only 3 eventually sign up for regular class. (Conversion rate around 20%)
Assuming that your admin’s sales conversion rate is consistent, by convincing more people to sign for trial classes, you can increase the number of enrolment.
There are many ways to increase the number of sign-ups for trial class. The easiest way would be to give a free trial to “persuade” parents to give it a try. (Most parents usually won’t object to a free trial).
However, even though trial class is one of the most common methods educators use to convince parents to sign up for the regular classes, it’s not the most efficient.
What if I tell you that there’s actually a much easier, faster and better method to get more new student enrolments?
With this method, it’s very common to get about 6 new sign ups a week, or 24 sign ups per month.
That works out to be more than $50,000 a year.
[24 students x $200 x 12 months = $57,600]
There are still 5 more metrics to talk about. However, this article ended up much longer than I originally thought. I’ve split it into 2 parts. If you want to be notified of Part 2, sign up for our newsletter and I will let you know once it’s up!