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Are You Measuring the Wrong Metrics in Your Business?

By January 14, 2019Uncategorized

We recently hosted some of our top affiliates from all over the map, we actually brought them to the Fast Factory and conducted something we call our Inner Circle. It’s an awesome opportunity for affiliate owners to actually present us with a problem they’re having in their business, and what’s really great is their peers are able to give them feedback. Topics covered can range from the lofty, like struggling to be a better leader, to issues a bit more tactical and granular.

Speaking of, I want to dive into a topic that stands out to me from the course of two days of listening to all these different presentations. Something that really stuck in my mind, is, “Are we measuring the wrong things in business?” Often, we begin delving into the data that matters to us, rather than data that matters to the member. Think for a moment about how most businesses are tracking metrics, such as how many enrollments they have, how many leads they have, how many members they have. They’re looking at what I’ll call lead indicators, some are end results. And yes, those are traditionally great things to measure and actually something we’ll use on a tool we call our scorecard.

But here’s the key: Our scorecard is designed to both track business metrics to grow our business and help obtain better results for clients. Your scorecard should have metrics on it like how many leads we’re generating, how many sales consults we had this week, how many new members we have, how many clients we lost. And those are just a handful. Ideally, we’re going to have somewhere between 5-15 numbers on there that will give us the pulse of the business, how we’re doing each week.

But, think about this. If those are the business metrics, there’s a radically different metric I want you to consider. Instead of focusing solely on business metrics, broaden that focus to include your client metrics. Simply phrased, “Did you or did you not deliver the package, did you or did you not deliver the transformation?” One of the things we teach at Factory Forged is that all of our companies evolve beyond just a coaching company to focus on what the transformation is that we’re giving. So pause for a moment, consider that concept as a metric.

The next step: When somebody joins your gym, they’re joining because they have a specific problem, right? And, during your coaching phase, you’re looking for a solution. Your number one job is to identify the shortest term to deliver that solution. This is why a 45-day challenge works. You may hate them from a business model perspective. Yet what the market tells us is prospects love them, because what it tells them is, “In 45 days, I will lose X pounds of weight.” It’s very clean. It’s very clear for them to understand what they’re buying. They’re buying the end result. This is why a lot of you who sell CrossFit right now can’t get members to join. CrossFit doesn’t sell an end result, at least not to the prospect. It’s how you deliver that end result. But what they’re trying to buy is that delivered end result. If that’s the case, it would then make sense to attach your concept of success for your business to how many people you actually get there.

Here’s an easy way to set this up: If you have 30 members join your gym in a month, at the end of the month how many of them reached that transformation, reached their goal? Let’s use another analogy. You have 30 people who start to climb Mt. Everest. Your company’s job, as the sherpa, is to deliver them to the top of the mountain. You only get 10 people to the top of the mountain. Well, that means your program only has a 33% success rate. If that’s your business right now, you’re not going to be very successful long-term.

Having said all of that, I do think it’s great for a business to measure leads, to measure consulting appointments, to measure sales. It’s great to measure how many members we lost, how many members we currently have. Those are all great business metrics.

But.

The other side of the equation is becoming more member-focused. How many people start the program and, in that defined period, how many people are actually reaching that end result? Are we delivering on time? This is exactly the same as when FedEx says the package is going to be there in seven days. Is it there within seven days, or does it arrive on day eight? When you begin to examine it from this angle, your business becomes extremely dangerous, because you’re doing what your competitors are not doing. You’re thinking differently.

My advice to you then, is: Rather than the enrollments, you need to measure the transformations. You might say, “John, I don’t even know where to begin. I don’t have a way to even understand.” I’d say that’s the foundational problem of your business. Because once you understand how to measure the transformations, every time the member re-ups for that coaching membership, you should set another transformation deadline. The goal isn’t always a physical fat loss transformation, but those are the metrics we have to insert into the business so you can say, “Look, my program works. Here’s the transformation you were after when you purchased our coaching, and here’s when you received it.” Now, insert case study testimonial, rinse, and repeat. Dislike the 45-day challenge model, but understand the principles of why it works and why your market loves it. The market decides what they want. It’s our job in turn to understand it, reverse engineer it and say, “How can we apply this to our business?”

What I’m doing in my business is, within a one-year period, outside of that initial membership, I’m actually selling four transformations. Transformation Q1, transformations Q2, Q3, & Q4, and then I rinse and repeat. If you’re measuring purely data, leads, sales, current members, lost members–those are great business metrics, but they don’t necessarily make your business better. They help you understand where you’re weak. When you start to look at whether or not you’re delivering transformations every 90 days to the person re-upping, you’ll never lose a client again, because you’re delivering the package on time.

People are buying the result. They’re not buying your process. People are buying the transformation of who they want to become. They’re not buying CrossFit. Now your tools and your vehicle, your mode of delivering that transformation–that is CrossFit. For all of you right now who’re running an intro to CrossFit, it’s why nobody joins your gym. The only time somebody joins a gym from an intro to CrossFit is when they already know the vehicle. CrossFit can get them that result. But if you want to be able to fish in the mass market, to fill your business with new members, you have got to be able to sell the end result.

One of the most important things we actually do in the Enrollment Machine is to teach you how to identify the result, who to put that result in front of, how to think of the result as the lure. I just posted a video titled Niche 2.0 on the topic of catching a very specific fish (i.e. your niche). Please forgive the fishing analogy, my Minnesotan heritage is showing, but if you want to catch a very specific fish, you’re going to use a very specific lure. That specific lure is going to attract a certain type of fish into your business. Now it’s on you to be able to reel that fish in and orchestrate that transformation. Your business should be a transformation machine.

It’s the same for you–when you joined Factory Forged, our promise was that in 16 weeks, we wanted to add $50,000. That’s the actual transformation. $50,000 of brand new revenue. I’m not talking upping your memberships to charge your current members more. We want to add $50,000 of new revenue to your business. That’s the transformation. Somebody comes to me and they have a zero in their ledger, and at the end of 16 weeks, I want to add $50,000 to their business. It’s the same in the gym. Somebody joins my gym, I’m going to help them lose 20 pounds in 45 days. That’s my transformation.

So what do we sell at Factory Forged? We sell cash in your bank. And we have a proven process to do it. We have a set way to onboard a client. We have set methods to help you identify your niche, to restructure your pricing, to help you get better at coaching your clients.

That’s how we do it. But the truth is, you watching this video right now, you simply don’t care. If I said, “Hey, take this pill. I’ll put $50,000 in your bank in 16 weeks. Are you in or out?” You’d be like, “I’m in,” if your pain, your desired state is to have more cash. Now, not everybody in here wants to have more cash. Some people want to have more time. Well, we also have a program for that. We have a transformation to help you build your team so you can have your freedom. Right? These are the stages and cycles of a business’s evolution.

You have to think of your clientele in the same manner. “Why are they coming through the door? What is their desired stated? And how do I deliver them there with complete consistency?” I’ll go back to my Mt Everest analogy. If 30 people climbed the mountain, if you only get 10 to the top, that’s only 33%. Not great. Somebody else in your market walks onto the scene and begins sherpa’ing people up the mountain, and they’re able to get 60% of their clientele to the peak. Obviously, they’re going to be far more successful because they’re going to get more referrals.

So here’s the last piece of what I’m trying to convey today: When the transformation happens, do you have a means to allow them to rave about your business? That’s how we start to fill the business. Not just via Facebook advertising, no. With the whole marketing system. Your business’s success is predicated by your ability to create the transformation. Because if you can get 60% of the people who work with you to become raving fans, they’re going to add 20 new clients to your business. Take that increase and stack it with your marketing; now your business is filling with members.

This is how I approach building a world-class company. I look at what the desired result is that my prospect wants, and that’s what I serve them. If somebody walks into a steakhouse and they want to order fish, I’m not going to try to force them into something else. I’m going to say, “Okay. They want fish.” I’m going to serve them what they want. Don’t try to talk them out of it. If somebody’s a vegetarian, don’t try to press them into eating steak. Feed them because they’re hungry. What they’re looking for is to feel satisfied.

We’ve covered a lot of ground. I hope this impacts you. Hopefully, going into the new year, this gets you to think about your business a little bit differently. I can honestly tell you this is not something I was born with, and even when I started my company, I didn’t understand. I was once the person who wanted to sell healthy habits. I wanted to sell functional fitness. I wanted to sell the intro to CrossFit. I was trying to sell all these things, and it never occurred to me why people weren’t joining. Thankfully–and this is going to sound odd–thankfully, I nearly went bankrupt. And I say thankfully because that was the one thing that actually got me to wake up. When I almost went bankrupt, I came home crying to my wife that I was going to have to close my doors. But it finally forced me to realize what I was selling was wrong. I was trying to sell how I was going to make them no longer be fat. I was trying to sell them my methodology, rather than just putting the lure (the transformation) in front of them. Here’s your answer. “Do you want to lose 15 pounds? If you do, comment yes. I have a proven process.”

If you read this and it got you thinking about your business a little bit differently, brought some value, drop a like or a comment, and then tag somebody in it as well. And then finally, if you want one hour of our time, we schedule so many hours per week where we sit down and we conduct a break-through session. That break-through session is very similar to this, except it’s just about you. We want to help you identify who your perfect client is, how to attract your perfect client, and what your program is actually worth. What’s pretty awesome is that after an hour, you understand exactly who you should serve because those are the people you can help achieve their transformation. It’s going to fill your business: where to find them, how to find them–now you can actually get them into your business. And finally, knowing what to charge allows you to actually charge what you’re worth so that, as you grow your business, you have enough money to actually build your team.

I’ll be talking soon about why you actually have to charge more, because one of the trends I’m noticing in the current market is how hard it is to find great coaches. Have you noticed, too? We’re not seeing job offers over $50,000 to get started. Think about that. Is that more than you’re currently making? There are companies out there who are starting coaches at $50k. If you’re able to actually charge more and build your business, you can then build your team. But if you’re not charging enough, you’ll never be able to actually go hire your next team member because the market is becoming extremely, extremely hungry for good coaches.

That’s all for now. Again, drop a like, drop a comment. And if you want to schedule a call, go to Enrollmentmachine.com/call and we’ll set up a time to talk.

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