If you’re looking to tone your profits without pulling a muscle, these are the five essential KPIs your gym needs for measuring success.
1. Number of gym members: This is your headline figure and your priority. At its core, every gym depends upon its subscription-based revenue. This is the lifeblood which ensures rent can be paid and that employees can be remunerated. It’s essential you place this at the heart of your strategy for growing the business.
2. Growth in members: The success or failure of your strategy is shown in your membership growth. If you have more members this month than last, that’s great. You’re building your revenue stream. The larger the growth percentage, the more successful you have been at doing so. If that number is falling, think how you can improve customer retention, and re-engage lost customers.
3. Churn rate: Even if you’re gaining more members than you’re losing, you may still need to work on customer retention. This looks at how many members you’ve lost during a period vs the members you had at the start of your chosen reporting cycle. The lower the number, the more successful your business is at retaining customers.
4. Weekly usage: Measure this to proactively monitor the signs of future churn. The most effective way of doing this is by measuring customer engagement. By recording weekly gym usage, you can identify those members who have been cutting down on their sessions and those who haven’t visited since Christmas. You can then start re-engaging those users at risk.
5. Average lifetime value: How much revenue should you dedicate to retaining customers? Or on winning them back? Or on gaining new ones? To get the answers to these questions, measure your customers’ average lifetime value. It shows the amount of revenue you earn on average from each member for the duration of time they use your service.
Visit our KPI Library for more metrics to help your business grow.
Learn to measure gym members here.
Find out how to calculate growth in gym members here.
Learn to measure churn rate here.
Calculate weekly usage here.