In an ideal world, customers at your dance studio always pay tuition fees on time, credit card information never expires, invoices never go missing, and discounting calculations aren’t confusing.
When those experiences take a turn for the worst, dance studio owners are left in the lurch to collect accounts receivable, manually update data, balance late fees, and do whatever they can to recover revenue.
So what can dance studios do to create a more ideal reality? There are multiple steps that must be taken to get into the groove of revenue recovery. Queue Madonna because in this article we’ll break down how to get the transactions at your dance studio back on track.
How do dance studios lose revenue?
Manual data entry
We all make mistakes. It’s called being human and there’s no mistake in that. Human error only becomes a mistake when you refuse to correct it. At least that’s what Orlando Batista says.
Eliminating the opportunity for human error in your daily dance studio workflow will help you dodge missed revenue so there’s less to recover at the end of the month.
Missed invoices and payments
Remember that ideal world we were just talking about? Snap back to reality. Not all customers will remind you when you haven’t billed them. Chances are you’ve heard a horror story or two about how a family didn’t get charged tuition for a session of classes then the studio owner had to reach out to collect.
Automatically charging customers when tuition and fees are due helps patch the leaking revenue faucet.
Varied discounting requirements
Ask a dancer to count to eight and they’ll do it in a plethora of variations. We’ll 1 E And A until the cows come home. Ask a front desk admin to calculate multi-class discounted tuition on the spot with an angry parent looking on and you’ll get a different experience.
Calculating overcomplicated discounting and prorating structures without a reliable solution will likely result in your dance studio families being billed incorrectly.
Acquiring new students at a high cost
What’s new is not always better especially when it comes to acquiring new students at your dance studio. Keep a pulse on your customer acquisition cost to ensure it’s below your average tuition or purchase price for the same time period to ensure you’re not spending too much to recruit new dancers.
How to recover revenue at your dance studio
- Start collecting online payments to enforce your studio’s tuition and fee policies.
- Routinely check tuition settings for classes at your studio.
- Rely on a solution to calculate your studio’s discounting and prorating rates so you don’t have to.
- Use smart technology to routinely validate credit card data before processing tuition.
- Automate the process of posting and processing tuition fees at your dance studio.
- Create an easy line of communication with customers who have outstanding balances or may need to reagree to payment policies.
- Allow customers a convenient way to update payment information through a Parent Portal.
- Revisit scheduled tuition posting and processing seasonally to adjust your billing processes as needed.