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WHY DOES EVERY OTHER BUSINESS KPI GO OUT THE WINDOW IF SALES ARE DOWN?
Many companies in and out of fitness struggle to keep focus when sales start dropping. The effect of an expanding industry means more competition and more concentration purely on the numbers.
Why does every other business KPI go out the window if sales are down? This is perhaps the most important question that businesses and entrepreneurs should be asking themselves if they’re looking to truly benefit customers, stay relevant and stand out above the noise.
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Sales are down… Now what?
David Stalker pioneered change in the country’s not-for-profit health body for the physical activity sector, bringing a fresh face to its thousands of members. Working with Myzone as CEO of EMEA, he’s passionate about saving communities with fitness technology, experience and understanding.
Watch the video below from the Escape Your Limits podcast that gives great insight into the question: why does every other business KPI go out the window if sales are down?
“I don’t think we can slow down the expansion of the industry,” explains David. What I think… Owners, chief executives and club managers, they have their budgets. Budgets have become harder and harder to hit because you have more competitors. What happens is, you go through the cycle and the KPIs that your staff are being judged on are a number of them. As the month goes on, it just becomes about your sales numbers.
“Have you hit your sales target? Where are we on that? The focus comes down to how many new members we’ve got, whereas we should be talking about how many we’ve lost, how many touches, did the person get their four calls, did they get their free t-shirt, are they coming in?
“We have all the tracking things to do. I think loads of general managers really have that in their heart. They’ve come through the industry and they really believe it, but by half way through the month, the phone is ringing red and the emails are saying you’re behind your sales numbers. So the focus goes back on ‘we’ve got to sell’ and getting people in, and we fall of the track.”
David Stalker of Myzone on the Escape Your Limits podcast.
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