Posted by Mike Massie on April 14, 2010
If You Don’t Think Honesty Is The Best Policy In Customer Service… Your Days Are Numbered
"What do you mean you want to cancel your membership?!?!?"
I am simply amazed that certain less-than-ethical practices still persist in the martial arts industry… especially in light of the fact that now, more than ever, we exist in “the age of the consumer.”
What do I mean by this?
Well, observe the very website you are reading this article on… you’re reading a blog, also known as a “web-log.”
Blogs were one of the first “web 2.0″ applications that allowed the general public to quickly and easily share information on a mass-scale. Other web 2.0 applications include:
- Social networking sites
- Micro-blogging (Twitter)
- Social video sites
- Social bookmarking sites
- Review sites
- Local business listing and “maps” sites
Every single one of the above allows the consumer a near-instant and virtually unlimited ability to influence the public for or against your business.
Review Sites Spell Doom For Unethical Martial Art Schools?
Think about it; everyone knows how important it is for local marketing purposes to have your business listed in Google Maps and Yahoo Local. But have you given serious thought to the review function of these sites?
Anyone can login to their Yahoo or Google account and post a review of your business – one that will remain online for an indefinite period of time, and that you have almost zero chance of getting rid of once it is published online.
Moreover, those reviews often get copied and aggregated by other “knock-off” sites… meaning the negative review may very well show up all over the internet.
And with the advent of Facebook and Twitter, with a few keystrokes a single consumer can almost instantly spread their discontent about a business to thousands of other consumers. It also deserves mentioning that Twitter and Facebook content is increasingly being used by Google to serve up information in their search results pages.
With nearly 100% of consumers searching online when shopping locally, it’s no small leap of logic to assume that too many negative reviews and opinions posted online about a martial arts school can have a very negative effect on business.
The Positive Side Of Consumer Influence
Of course, this can be a very positive thing… if you’re an ethical business owner who treats your customers the way you’d want to be treated were you in their place.
However, as my blog readers and newsletter subscribers are all too aware – unethical and “grey area” business practices seem to be the accepted norm in many martial arts schools in America.
However, I don’t totally hold the individual school owner to blame for the vast proliferation of shady business policies in martial arts schools. That’s because you’ve been fed a lot of really bad ideas about how to run a business over the last two decades – ideas that originated with the martial arts billing companies.
You see, these companies have a vested interest in seeing to it that their clients (martial art schools) stuck it to their students, since they are paid a flat percentage of the gross income they collect.
So, it works to their advantage to influence school owners by telling them that they should:
- Sign new students up on the longest possible contract -
- Hold students accountable for paying their contracts, even if they move, or have to drop out of classes due to a legitimate health issue, or lose their job -
- Use a collection agency to chase delinquent accounts to the four corners of the earth -
- Use a billing company to handle their accounts in the first place (a service that technology has made obsolete in recent years, as I recently pointed out in this article) -
The fact remains, however, that the above policies represent a really crummy way to treat your customers. Maybe shady martial arts schools could get away with this stuff in the past, but those days are numbered (well, at least we can hope… but you know how cockroaches always seem to keep coming back).
The Potential For Abuse Of Social Media
Yes, there also remains the possibility of abuse of this new technology. In the past, we (the honest school owners) had to put up with petty little underhanded business tactics being used against us by our less-than-ethical competitors.
This may have amounted to little more than having our brochures or lead boxes stolen (this actually has happened to me on numerous occasions), or having competitors openly trying to “steal” your students and prospects through promises of rapid rank advancement or by other means (again, I’ve had to put up with these tactics as well).
But in this day and age we have to be aware that our competitors can easily create false profiles on social networking sites and other web 2.0 properties, and create fraudulent negative reviews of our schools. You may think this couldn’t happen to you, but believe me, it’s already happening right now.
(A little side note… when I released Small Dojo Big Profits 6 years ago, I almost immediately faced a slanderous smear campaign that was run against my book on the martial arts internet forums – the social networking sites of the day. My guess is that certain interests in the industry didn’t like what I had to say about the state of the industry, so they put their cronies up to it. Well, it’s six years later, I’m still here, and now there’s no way any one single entity can control the information that is disseminated in our industry…)
So, What Steps Should An Honest School Owner Take?
Here’s my advice to ALL school owners regarding the effects of social media on our industry:
- Treat ‘em right - First off, STOP TREATING PEOPLE LIKE A PAYCHECK! What I mean is that you need to start acting as an advocate for your client, from the moment they contact you to the moment they move on from your school. Always, always, always act in the interest of the client, period. You can’t go wrong by doing right by people – make that your motto.
- Make sure you’re spreading the right “idea virus” - Second, realize that you need to have public perception and opinion on your side. And, the best way to do that is to refer to item #1 above. Social media is viral, ideas are viral, everything moves at the speed of bits and bytes these days… so start an idea virus about your business that says you treat people right and offer the best possible instruction to your students. Once it spreads, the effect it will have on your business is immeasurable.
- Encourage your students to tell others - Remind your students that you’d appreciate it if they reviewed your school on sites like Google Maps, Yahoo Local, Yelp, and so forth. Remember, first you have to be listed on those sites!
- Be aware of what’s being said about you online – Don’t obsess about this, because there are always going to be a few dissatisfied customers in the crowd. However, you should occasionally monitor review sites for signs that false negative reviews are being posted about your business. If you feel that’s the case, it’s your right to take it up with the site administrators, and to ask them to take any such reviews down. Be persistent; it may take numerous requests and lots of correspondence before you get results.
Final Thoughts
In the long run, I think social media will be instrumental in forcing businesses to adopt business practices that level the playing field for consumers… and the martial arts industry is no exception.
However, the bottom line is that you need to treat your customers right. It’s always a better policy to treat people fairly and deal with them in an honest fashion.
And, by doing so you may very well be cementing a positive public opinion regarding your school that will reap positive benefits for your business for years to come.
Posted by Mike Massie on December 9, 2009
A Fall Enrollment Season Like No Other?
If the recession has gotten you to tighten your belt, perhaps you should consider sticking to those habits once things improve
It looks like consumer confidence may be picking up, based on what I’ve been hearing from school owners around the country.
After a relatively flat October, enrollments increased sharply in November and the upswing is continuing into December… all factors that point to this being a highly unusual fall season for many schools around the nation.
However, it also could indicate that consumers are feeling more confident about the economy and are becoming more willing to spend money on luxury services again, in spite of the holiday season.
And, although the consumer confidence index has only seen a slight uptick since September (although it has increased dramatically after it hit near record lows earlier this year), it bears mentioning that at least in our industry there are plenty of schools that are going great guns despite the recession.
(Note: My take on this is that people are looking for something to take their minds off everything going on in the world, and activities like martial arts and fitness classes are a great way for them to do so. So, make sure your ads are focused on how fun and enjoyable your programs are – many people are more than willing to pay for escapism during difficult times. – MM)
If You’ve Tightened Your Belt A Notch Or Two, Don’t Start Loosening It Yet…
What this all means to those who have survived this recession is that you’ve developed some really good business habits in order to keep your martial arts businesses going.
That means you’ve been…
- Creating and following a marketing plan each month that includes multiple marketing methods, instead of cutting back on marketing to save money (this is so backwards, I can’t believe it when people tell me they’re planning to cut back on marketing to save money – that’s like saying you’re going to quit your job to cut back on your fuel bill)…
- Doing online marketing on a daily basis (blogging, articles, press releases, etc.)…
- Keeping your overhead costs as low as possible without sacrificing customer service or comfort…
- And, working your hardest to keep the students you have through showing them that they are valued members of your school!
Good Business Practices Should Be Adhered To In Every Economy
The fact is, the economy goes through regular cycles of highs and lows. Remember when the dot-com bubble burst back in 2000? How about the unusually harsh recession in the early eighties?
Knowing this, it only makes sense to stick to sound financial practices in your school during both strong financial times and lean.
So once this recession blows over, don’t do what most school owners will do and start to coast… or worse yet, to bog your business down with excess spending and overhead bloat. Instead, stick to those good habits so they become second nature… and then sock that extra money you make during the “good times” away so you are ready for the next low period.
By doing so, you’ll be protecting your business against any future economic dips… and at the same time you’ll be maximizing your profits while decreasing your liabilities.
Sounds like the smart way to go to me.
Until next time,
Posted by Mike Massie on October 27, 2009
Have you ever experienced this?
You make a seemingly insignificant change in your martial art school operations… maybe it’s a small change in your schedule, or you change the fee structure, or you change your hours, or you hire a new instructor to help you out with the class load.
Regardless of what it is you’ve changed, you suddenly are on the receiving end of a ton of resistance from your students. All at once, it seems like everyone is complaining and your students on the verge of mutiny…
Resistance Is A Common Occurrence In Businesses Like Ours
Sometimes it may feel like you're getting resistance from out of nowhere, but you should view it as a positive thing.
I see this often with the people I provide online business coaching to on my member site. They start off following some of my advice, notice some growth in their school, and then they start implementing the ideas and advice they get from me left and right.
Before long their school is growing at a much more rapid pace. Out of necessity, they find themselves in the position of having to change some policies here and there to accommodate the growth. And that’s when it happens…
Suddenly, the grumblers and complainers show up. If you run a school, I’m sure you know the type. They are the first and loudest to complain about everything, no matter how good your overall customer service and actual classroom instruction may be at the time.
Now, there’s a reason why we’re more likely to hear this sort of grumbling and complaining directly. In businesses like ours (including martial arts schools, gymnastics centers, personal training facilities, boot camps, dance schools, and so on) we tend to develop our business relationships with our clients on a very personal level.
That’s not to say you should get personal with every single client; on the contrary, the more professional (yet friendly) you keep your business relationship, the less likely you are to be on the brunt of this type of abuse from your clients when you have to alter your policies.
Enter The High-Maintenance Client…
Even so, there is a certain type of client that seems to suck the life out of a school. These are what I call “high-maintenance students.” They’re sort of like driving an old British sports car – you do derive some benefit from the experience, but the frequent problems that constantly require your attention make it almost not worth the trouble.
They tend to be only a small percentage of your enrollment, but they can take up the bulk of your time and energy… if you allow it.
In previous articles I’ve discussed how these types are a cancer in your school, and how it may be your best policy to find a polite way to fire these types of clients (read The 4-Hour Work Week
by sometime MMA practitioner and full-time globe hopper Tim Ferriss for more on this topic).
However, what I’d like to discuss with you today is that when this happens, it is a good thing – a very good thing. Let me explain what I mean…
Here’s The Paradigm Shift: Resistance Is A Sign Of Good Things To Come!
That’s right… think about it a second and it’s not all that hard to reach that conclusion. Here’s the breakdown:
- Complaints are a result of Resistance
- Resistance comes from Fear
- Fear comes from Change
- Change is a (necessary) result of Growth
And, growth means your school is showing definite signs of health. This must mean that, when you meet with resistance, it’s a good thing – because good things are happening in your school!
Look, people are always going to complain and grumble when things change. It’s a fact of being in business, so get used to it. And, you know what I’ve found about this? When you simply reply with, “That’s our policy… now, is there something else I can help you with?” in a very matter-of-fact, unapologetic manner it tends to squash it in short order.
Sure, some of those people will leave; but then again, that’s the nature of the business, too. Students leave all the time for all sorts of reasons, most of which have nothing to do with being disgruntled. So, if a few grouchy students leave of their own accord – well, that just means the issue resolved itself, right?
And chances are good that those students will be replaced by others who don’t complain about every little policy change you make… which is yet another positive thing.
You see, resistance really is a good thing.
Posted by Mike Massie on April 8, 2009
This cat knows where its attention should be focused on - she knows where the payoff is at...
It’s so easy to lose focus and get distracted from your primary mission in your martial arts business – especially if you haven’t defined it yet.
One of the most basic things I teach my members at the SAMAS site is that, until you reach your ultimate enrollment goals, your primary job function as a school owner is NOT:
- Revising curriculum and class content;
- Customer service;
- Cleaning your school;
- Coaching students for tournaments;
- Taking students to tournaments;
- Winning tournaments;
- Getting new certifications;
- Getting more rank;
- Or learning how to use some new-fangled school management software.
Instead, until you hit your ultimate enrollment goals, your number one primary job function is recruiting new students…
Or, more specifically, building revenue.
That’s it. Anything you do that doesn’t directly impact your enrollment and income numbers is secondary or tertiary – and, should subsequently be way down on your list of “to-do’s”.
Of course, that doesn’t mean you just ignore all those things… but what it does mean is that you need to focus the majority of your time and energy on getting more students.
Why? It should be obvious, but for those of you who haven’t clued in yet -
It’s because without a sufficient, stable, and steady income… your school is sunk!
It doesn’t matter how many trophies you win, how cool and complete your curriculum is, how fancy your school is, how cool your uniforms are, how sharp your demo team is, how tough your black belts are, or how worshipped you are by your students…
If you don’t have enough students to pay the bills and pay yourself at the end of the month, none of that other stuff is worth a hill of beans.
...and the payoff is readily apparent.
So, while you’re in your growth phase – and until you hit your ultimate enrollment goal, you’re always in your growth phase – stay focused on:
- Marketing -
- Advertising -
- PR -
- And getting referrals -
Whether you like it or not, and whether you accept it or not, your first job title as a school owner is “Professional Marketer”.
Accept it, embrace it, and watch your school thrive.
Posted by Mike Massie on March 19, 2009
It's no wonder consumers are skeptical about things that are "free"...
The other day, I spent about 45 minutes on the phone helping a school owner trouble-shoot his operations.
The thing is, he didn’t pay me for my time, and I don’t really know him from Adam.
So, how’d he get such a big hunk of my time… for “free”?
He said the magic words:
“I bought your book a while ago…”
Allow me to interpret that, so you’ll understand the psychology behind why I was so willing to provide this individual with my time…
Basically, when I heard those words, my mind interepreted it as, “Mike, I am more than just interested in you and your company… in fact, I’ve taken the extra step to do something that benefits you before I ever contacted you to ask for your help.”
This is what is known in marketing as “reciprocation” – you do something nice for me, and I’ll naturally be compelled to do something nice for you back. And, it’s a powerful sales tool that can “get your foot in the door” with your customers.
Now, I should add this caveat regarding reciprocation… after years of having this principle used as a form of overt manipulation, consumers are rather skeptical regarding anything that is “free”.
So, you should exercise this principle with caution… or, rather, with courtesy.
Here’s what I mean:
Instead of overwhelming your prospect with seemingly unbelievable offers of “FREE! FREE! FREE!”, you should instead overwhelm them with outstanding courtesy, professionalism, and customer service – and then as a “by the way” type thing, you give them something for free that they never expected nor requested.
That’s powerful, and it works because it’s a marketing tactic that is based on building relationships and doing things in a way that is at once selfless while at the same time potentially serving you and your school.
So, in case you missed it, here are those magic words:
“How can I help you?” (Hint: They only work when you mean it.)
Wow, what a concept. 
—
Mike Massie is the author of Small Dojo Big Profits and runs a martial arts business coaching website for new instructors and small school owners, StartingAMartialArtSchool.com.
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