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Easing the pain of Term Renewals
Phew, it’s over again for a few weeks.
As the end of each term approaches, we have to think about what’s happening next term, what classes are we going to run and which children are going to attend.
There are a number of ways term renewals can be managed and we’re going to look at those in this article.
Automatically subscribe everyone to the next term:
If your classes follow-on from term to term and the expectation is that the vast majority of children will renew each term, then this is the best option. It keeps the workload down, because all we need to do is remove the children who have said they’re not coming back and the full term renewal can be processed and payments collected. It also gives you the highest renewal rates, because the presumption is that children will return each term and parents have to take action to opt out of the next term.
Create the next term’s classes and wait for parents to subscribe again
This is the least effort option, but also the one with the lowest return rate. You are relying on parents making the effort to subscribe their children on the class again and whilst many will, some will also take the least effort option too and not renew.
Somewhere between the two.
A halfway house is to create the classes for the new term and provisionally subscribe the children onto those classes. You then know who you would like to join each class and can actively market to the parent to achieve the renewal. This method benefits from not having the ‘presumption’ of renewal (which some parents dislike), but the active marketing helps keep the renewal rates high.
Having online booking facilities available will help all these options even further (but that’s for another article)
If you can, look at systems which help you manage the term renewal. Look for one that is designed for the franchise market and will allow for variance in terms from franchise territory to territory (for example different half term dates), but which simplifies the process for the franchisees. The system should also be able to automatically email parents with the renewal information, so that you’re not dependent on your franchisees remembering to send it out.
So in summary, pick the renewal method which best suits and then look for a system which can help you manage that in a more automated fashion and so ease the pain of term renewals.
Simon Pullum is MD of Azura Group, a company specialising in Franchise Information Management Systems for activity based franchise networks.