EFC is selective about the schools it takes on, and it recommends that you follow certain ethical guidelines it has established. In today's transparent world of consumer websites such as Yelp.com
and Google Reviews, it is very hard to expunge negative comments about your school on the Internet, and so it is imperative that you keep your reputation pristine.
Chairman Cokinos has always advocated for retention and locking the backdoor. In the past, martial arts schools pursued hard collections but this strong position can easily be counter productive.
Now a different position is taking the field by storm, which is so beneficial that it protects schools' reputations. In fact a number of EFC's Board Members have installed the "30 or 60-day option to cancel" As we do in Australia. (This has become a great re-activation tool!)
Our Director Dave Durman has spoken at several international conferences on this exact subject. Here are some points.
1. Students can cancel with 30 or 60 days' written notice, which must be seen not as 60-day option to cancel, but a 60-day chance to reactivate. The school should encourage students to attend classes during the 60-day notice period to see if the situation can be reversed.
2. The 60 day-option (paying two more payments) also carries an additional $99.00 cancellation fee. Which gives you the option to cancel this to incentivise the student to train during the notice period.
This is an effective way to turn an issue into an opportunity. Clients who use this method successfully have noted that they are even able to upgrade some students, thanks to the 30 - 60 day option, which allows them to pay extra attention to the student!
The EFC Management team highly recommends that you adopt this policy in order to avoid litigation and protect your good name and business and more importantly, retain happy students.
Communicate with your account executive and authorize them to use this procedure when needed. If you need more information about how to use this to your best advantage, come to the Summit in February.- EFC Management