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Why Knowing Your Numbers Can Save Your Fitness Studio

The Hidden Power of KPIs in Operating a Local Gym

Author

Cardy Brothers
July 07, 2024

Read time: 2 minutes

Dear Fitpreneurs,

The most successful studio owners realise one thing:

How valuable a client is to their business.

With a monthly recurring model, it’s easy to get complacent.

But this newsletter will show why you’ll lose if you don't pay attention:

NEW EPISODE

The Fastest Way to Launch Your Gym

Launching a gym can be really exciting, and we’ve found a way to make it faster and easier. In this episode, we share one of our favourite strategies for getting your gym up and running quickly. We talk about our personal experiences, funny stories, and give you practical tips that you can use right away.

By the end of this episode, you'll have a clear plan to launch your gym quickly and successfully.

In this episode you’ll learn:

  • Our secret launch framework revealed.

  • How to find the perfect gym location.

  • The marketing “hacks'“ that actually work.

  • How to create an unforgettable customer experience.

  • The common launch mistakes (and how to avoid them).

#1 - Know Your KPIs

KPIs (Key Performance Indicators) are the compass for your business.

They keep you on track and help you measure success.

We gathered a year’s worth of data from our clients. Here are the average percentages:

  • Leads → Appointments Booked (25%)

  • Appointments Booked → Appointments Sat (50%)

  • Appointments Sat → Front-End Sales (75%)

  • Front-End Sales → MRR Members (50%)

We get our clients to track their numbers using our KPI dashboard. Whenever a percentage falls short, we work together to fix it the following month.

#2 - Set the Targets

Now that you have the KPIs, it’s easy to reverse engineer your success.

For example, let’s say you want 5 more monthly members.

Using the percentages from above, here’s what you need:

  • Leads Required: 107

  • Appointments Booked: 27

  • Appointments Sat: 14

  • Front-End Sales: 10

  • New Members (MRR): 5

Every 6 weeks, we work with our studio owner clients to set a plan using their own data.

#3 - Blend Your Marketing

At our gyms, we run paid ads because they are the most predictable way to get leads.

We put money into Meta and get leads out.

But we don’t stop there.

Since we know our numbers, we also use organic methods.

  • Local Events

  • Text Messages

  • Instagram Stories

  • Email Broadcasts

  • Affiliates & Referrals

  • Business Partnerships

This adds more attention, trust and profit to the business.

#4 - Sweat The Small Stuff

When it comes to paid ads, we've found gyms usually spend about £10 per lead.

Some months are better, but £10 is the average.

What does this mean? Let’s look at two made-up examples:

Steve:

Steve runs paid ads and relies on his systems to do all the work.

He spends £1066 on ads (£10 per lead) and signs up 5 members totalling £1100 per month. Not bad!

Bryan:

Bryan has a studio 5 miles away from Steve.

They’re both competing for members.

Bryan runs paid ads, hits his KPIs, and also posts on Instagram and Facebook every week.

He spends £1066 on ads too.

But because he puts in extra effort with social media, he gets 10 more leads.

The result? He signs up 6 members, one more than Steve.

This small change adds £2,640 to Bryan’s business over the course of the year.

He uses this extra money for client events and gift vouchers, which boosts his retention rate by 5%.

With the higher lifetime value, Bryan can now spend more than Steve to get new clients.

So, he increases his ad spend and puts Steve out of business.

All because Steve didn’t see the point of sharing content on Instagram or in his local Facebook group.

Final Words…

This is the tough truth for many studio owners.

After talking to hundreds over the years, most don’t even know their numbers, let alone know what to improve.

If that’s you reading this, you are the Steve in this story.

Start paying attention before it’s too late.

And remember, small hinges swing big doors.

That’s it from us. Reply any time…

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