Want to sell more EFT memberships? Try paying your sales team a commission on each one they sell. It works!
Nothing motivates people more than self-interest, which is why offering salon staff a commission on EFT membership sales is a good idea. Just ask Daniel Mann, Jr., co-owner of the Tropical Tan salon chain based in Seattle, WA. With commissions in place, EFT sales account for more than 30 percent of the salon chain’s UV tanning membership sales. He also says that his team works hard to sell these membership packages and to retain the clients who purchase them.
In other words, this strategy proves the age-old adage that when you give a little, you get much more in return.
When Daniel rolled out his EFT membership program a year ago, he immediately began paying his staff commission on these sales. “When they earn commissions on tanning lotion and upgrade session sales, employees are motivated to sell more of those things, and I didn’t see EFT memberships any differently,” he said. “We offer a one-time, 10-percent commission on each EFT membership they sell, and our managers receive a small residual for each successful transaction. As a result, our staff works very hard to show our clients the savings they’ll receive by becoming an EFT member, and they’re doing a great job of selling these packages. We’re very pleased with their sales numbers.”
In addition to increasing EFT sales, the commissions Daniel pays also motivate the staff to retain the majority of existing members. “We understand that times have been tough for everyone, so we’re not surprised when some clients consider opting out of their memberships,” he said. “When they contact us to cancel, our staff immediately offers them the option to downgrade their membership to a lower level or put a hold on their membership for $5 a month. In most cases, this offers our tanners enough savings to make staying in the system worthwhile. Even if every client chose to downgrade to our most inexpensive EFT package, that would still be an excellent, year-long revenue source in a seasonal industry such as ours.”
Tropical Tan’s EFT membership program operates on a simple philosophy – clients make a two-month commitment that is automatically renewed, unless they choose to cancel it. The prices range from $19.95 per month for a basic package, up to $79.95 per month for a VIP package that includes unlimited red-light therapy and sunless tanning.
“We don’t make it impossible for our clients to cancel a membership,” Daniel explained. “We simply require them to come to the salon to fill out a form at least 30 days before the next billing cycle.”
Daniel Mann, Sr. opened the first Tropical Tan salon in 1982. His sons – Daniel, Jr. and Michael – grew up working in the family business and, as adults, became partners in the venture. Today, the chain includes 13 stores in and around the Seattle area.
A 14-year industry veteran, John "Ribby" Ribner has written hundreds of
articles for IST Magazine and, as Director of Editorial Content, has also
helped guide the publication's evolution. Ribby is a graduate of Central
Michigan University's journalism program and has brought many years of newspaper reporting experience to his position of Head Writer. He is also the author of three novels, "Legacy of the Bear," "Prophecy of the Bear" and "World So Dark."
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