In this episode, Matt and Rick define TTV (Time to Value) and give examples of how it can help your personal training business.

Time to Value (TTV) is a business concept that measures the time between when a customer purchases a product/service and when they receive value from the product or service. The shorter the TTV period, the better the perception of customer experience and the longer they stay as a customer. In the fitness industry, it is one of the most critical metrics for client longevity, customer retention, and leads to a higher lifetime value of a client.

The Alloy Personal Training Franchise has one of the fitness industry’s leading client retention rate of 97%. One factor that contributes to our high customer retention rate is the low TTV. The Alloy small group training model allows for the coach to create value quickly for the client with the personalized protocols, prescriptive training programs, along with the personal training attention and accountability.

Read How To Make Personal Training Small Groups More “Personal” to learn how the Alloy customer service experience. It allows clients to quickly feel comfortable and gain value. This helps to create the low TTV and creates a “stickiness” for the client to stay for a longer period.

It’s not an accident that Alloy has the processes, systems and programs in place to get our client up to speed quickly, delivering a more valuable service, creating “stickiness”, and finally resulting in higher retention. It also drives inherent trust higher if they receive a quicker return on value.

As a new owner coming on board as an Alloy franchisee, an example would be the leasing and site selection process. Leasing space for your fitness studio can be frustrating. Some landlords are not responsive at all or they move slower. It is a dynamic and crowded market where they may sit on an offer to wait for a better offer. Their lack of responsiveness is really just a strategy for them to see if they can get a higher bidder. With the Alloy model and process, we have put things in place to speed up the process. We don’t want to slow the process down for the new franchisee, because you just signed the franchise agreement and you are at the peak of excitement about getting started. In Setting Business Expectations With Kanter’s Law, we discuss how the beginning of a business is super exciting, but the between part can frustrate people dealing with the details. We mitigate delays and keep excitement high by helping to keep the process moving forward with the Alloy model and systems.

The earlier we can provide value to a new franchisee, the better. We get site searches going early and have a complete real estate process to move faster. We help you navigate the details and challenges of opening a brick and mortar business. Landlords aren’t fun to deal with, but we’ve already put things in place to speed up the process. And to make that time to value quicker.

Other examples include an orientation call within a day or so of your signing. It’s a big deal in the beginning to get franchisees started quickly and help you manage the details with real estate and construction. Consider the value for a franchisee to speed the process up by a couple of months, or cut site searches in half the time. That creates higher value to keep the momentum going and moving closer to pre-sales and the grand opening to make sure you have a faster ROI. 

There are two ways to think about value, there are tangible and intangibles. We can measure some things, while other things can not be measured. 

Tangible things that can be measured are things like a client’s progress with weight loss. We have systems and tools in place for the tangible stuff, like we can measure your numbers with a full fitness assessment to show you results in 30 days where a client can see the progress and the value.

Intangible things we have in place include how to build and foster your community? Winning and cultivating your community is important to create value. With the Alloy model, we build a ” small tribe” of people in group personal training where everyone works to a group goal while having personalized attention. The Alloy model provides for a coach to client ration of 1:6. The small tribe helps to create a team working toward common goals and creates a support/cheerleading network. That’s what makes it sticky. We help you build that tribe of people working towards the same goal and they stay around longer. 

In how to build a Consistent Customer Experience, we discuss the Alloy 7 Core Tenants that help to create that value, like when to use people’s names. Your name is one of the most valuable things a client has. There are certain tips we have about introducing them to the group. We are great at facilitating community, but that is an intangible. Customers don’t know that they’re coming in for community. We facilitate that sense of community and tribe quickly, because that’s going to make it stickier for them long term. Why would they want to cancel their membership if they are getting excellent results and feeling like they are part of a supportive community?

Franchisees also want to know how fast they can get a return on their investment? When does it start? How quickly can I get there? If you have a quicker TTV, higher client retention, and a longer client longevity rate, then your ROI will be faster. Other benefits include you are not spending a lot of extra money on new client acquisition and your churn rate is lower.

As a fitness entrepreneur, check out this podcast to help you work to decrease Time to Value to the shortest window of time possible to have a strong fitness business.

Key Takeaways

  • What is Time to Value (01:26)
  • Why you need to bring TTV to the smallest window possible (02:12)
  • Kanter’s law (05:40)
  • Measuring the tangibles that affect TTV (07:33)
  • The intangibles that impact TTV (13:50)
  • How building a community shortens TTV (15:42)
  • Increasing stickiness in your business (18:29)
  • Why TTV is one of the most important metrics (20:2

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