Vanguard Krav Maga®

A Smart Strategy for Krav Maga Business Growth

As a Krav Maga instructor and small business owner, you’re always looking for ways to grow your student base and increase revenue. One powerful yet often overlooked strategy is implementing a referral program. In this blog post, we’ll explore how a well-designed referral program can boost your business, and provide practical steps to get started.

Overcoming Common Objections

You might be thinking, “But won’t offering discounts cut into my profits?” This is a common concern, but let’s break it down:

1. Long-Term Value: While you might offer a discount initially, remember that 75% of referred individuals become long-term members. The lifetime value of these new students far outweighs the initial discount.
2. Increased Retention: Students who refer others often feel more connected to your school, potentially increasing their own loyalty and retention.
3. Expanded Reach: Referrals help you tap into networks you might not reach through traditional marketing methods.
4. Cost Comparison: The cost of acquiring a new student through referrals is often much lower than through paid advertising.

How to Set Up Your Referral Program

1. Define Your Offer Start with something simple, like our model at the Academy of Self Defense: both the referrer and the new student get 50% off one month’s dues. However, feel free to customize this to fit your business model. Other ideas include:
   • A free private lesson
   • Discounted gear or merchandise
   • A month of unlimited classes
     
2. Communicate Clearly Make sure all your current students know about the program. Announce it in class, send emails, and post about it on social media.
   
3. Make it Easy The easier it is for students to refer friends, the more likely they are to do it. Consider:
   • Creating referral cards they can hand out
   • Setting up a simple online form for referrals
   • Using your gym management software’s built-in referral tracking system
     
4. Track and Manage Keeping track of referrals is crucial. If your gym management software doesn’t have a built-in system, a simple Google Sheet can work wonders. Make sure all staff members have access to keep it updated in real-time.
   
5. Recognize and Reward Publicly thank students who make referrals. This not only makes them feel appreciated but also reminds others about the program.
   
6. Follow Up When you receive a referral, act quickly. Reach out to the potential new student within 24 hours to schedule their first class.

Implementing Across Your Programs

While we’ve focused on Krav Maga, remember that this referral program can work for all the classes and programs you offer. It’s an excellent way to cross-promote different aspects of your business.

Measuring Success

To ensure your referral program is effective, track these key metrics:

1. Number of referrals received
2. Conversion rate of referrals to paying students
3. Retention rate of referred students
4. Lifetime value of referred students compared to other acquisition methods

Adjust your program based on these metrics to maximize its effectiveness.

Leveraging Technology

While a simple spreadsheet can work, there are numerous software options designed specifically for referral programs. These can automate much of the process, from tracking referrals to sending out rewards. Some popular options include:

• ReferralCandy
• Mindbody Referral Program
• Birdeye

However, if you’re just starting out, many gym management systems like Mindbody, Zen Planner, or Glofox have built-in referral program features you can utilize. And if you prefer to start off small, you can always utilize a Google Sheet to track a beta version of a referral program.

Conclusion

A well-executed referral program can be a game-changer for your Krav Maga business. It’s a cost-effective way to attract new students, increase retention, and build a stronger community. Remember, people love getting a good deal, and your current students are your best ambassadors.

Don’t let the fear of discounting hold you back. The long-term benefits far outweigh the initial cost. Start small, track your results, and adjust as needed. Your business growth is just a referral away!