At one time we were thinking we had been given some information from LERN, about the percentage of classes that should be "new" each season a catalog is distributed. Do you know what that is, and the reasoning behind it?

Also, what does LERN consider a good percentage of classes that are held in each catalog season. We know that there will always be classes that get canceled, but what % is considered a good ratio.

Thanks very much for your help!

Answer:

We recommend that roughly 20% of classes should be new in each brochure. These can be brand new class or re-purposed classes (new name, altered length of class, new price, etc). We feel this is important because you want your programing to look and feel fresh. New classes show that you are constantly updating and improving your programing. This is also important for your best customers. One of the main reasons a best customer would stop taking classes, or as many classes, with a program is that there is nothing left they want to take. Since our best customers make up such a big percentage of our registrations and revenue it is important to cater to them and keep them happy. Constantly providing new programing will help retain these best customers who already spend so much with you.

The number of classes offered in each sessions is a little subjective and, in some ways, is based on budgeting and how much revenue you need to bring in. It also is based on how many catalog sessions you offer each year. On average we find that programs that produce 4 brochures each hear (so a 3 month time period for each brochure roughly), aim for around 125 classes in a brochure. This number can also be effected by your cancelation rate. If on average 15% of your classes are getting canceled and you need 100 classes to run each catalog term to stay on budget, you should offer 115 classes.

We find on average most programs have cancelation rates between 15-20%. If your cancelation rate is going above 20% it should be concerning because you don't want customers to get the impression that their classes are constantly getting canceled. This will lead to customers giving up on you. On the other hand, if you have a really low cancelation rate you probably need to be offering more classes and taking some more chances. Canceling classes in an unfortunate reality in our industry and maintaining a healthy ratio is important.

Hopefully this is helpful, please let me know if it leads to any other questions.