Two of the biggest and most successful strategies in reducing your cancellation rates are: 1. Make the right cancellation decisions. 2. Do more analysis of your courses by Division.
Let’s take a look at both.
Cancel based on money, not registrations
Too many programs cancel courses based on a one-size fits all registration requirement, such as 12 registrations. This hurts your program both in registrations and lost revenue. Cancel courses that have not covered Production costs (mainly teacher). Do not cancel based on meeting budget. You will lose more money and customers.
Class Income ____
Promotion Costs ____
Production Costs ____
The big item in your Production costs is your teacher pay. Other production costs, usually minor, costs, such as handouts or equipment or classroom rental.
So, if you can cover your Production Costs, you run the class. That doesn’t mean you run it again. But you lose less money, and you keep more customers, if you run a class that has covered its Production costs.
Do more Division Analysis
This is an important and essential task your top programmer does every session. There is no substitute or alternative to analyzing your classes by Division. It is that critical.
Analyzing your course cancellations by Division is essential for reducing your cancellation rate over time. Develop more new courses in Divisions with low cancellation rates. Develop few or no new courses in Divisions with high cancellation rates.
A “Division” is a group of classes that has one thing (only needs to have one thing) in common: subject, audience, or format. So your Arts classes are a Division (subject), your courses for Seniors are a Division (audience) and your one-night classes and special events are each different Divisions (format).
LERN has developed highly advanced and successful strategies for analyzing your Divisions. Take our New Course Development Institute online, or ask us for more tips on how to analyze your Divisions.