What KPIs Tell You About Your Fitness Studio
As a yoga or fitness studio owner, you understand the necessity for keeping good financial records and understanding your numbers. But do you take the deeper approach to analyze what the metrics truly mean and what they are saying about your business? This is where your KPIs come into play. KPIs are your Key Performance Indicators for your business. They allow you to track your data to identify gaps and growth opportunities for your studio. We’ve found that all too often studio owners rely on gut feelings when making such business decisions as expanding the schedule, changing class times or updating pricing. And while we do want you to listen to your gut, we also want you to take your instincts and back it up with concrete numbers. One of the key fundamentals of the Telomere approach is to look at the data so you can easily recognize areas of opportunity as well as areas of strain.✨
What will your KPIs show you?
Retention:
Retaining your clients is crucial to the longevity of your business. Aim to maintain an 80% retention rate or higher. Many studios are operating closer to 30%, losing nearly 70% of their intro offers and clients within the first three months. Tracking who attends your classes and how often they visit can help you identify areas where you may be losing clients.
2. Client Conversions:
How many prospects actually become clients? Tracking conversion rates will help you optimize your pricing and marketing strategy and improve your sales pitches. This is one of the most important pieces to follow; be sure you can follow how many new clients are retained and what they actually convert to. If you find that you have low conversions or many new clients convert to lower-commitment options, you’ll want to evaluate your pricing and refine it so that you’re keeping your clients on the ideal customer journey.
3. Leads:
Generating new leads is how you grow your business. Tracking where new clients come from (referrals, walk-ins, social media, etc.) can help you focus your marketing efforts. You may find that certain leads are “hotter” meaning you see a higher conversion rate even though there may be fewer leads from that channel. Utilize your software so that you can target your leads through email marketing communications as well as in-person touchpoints.
4. Class Utilization:
Studio space is valuable, so it’s important to utilize it effectively. Aim for at least 70% class utilization. Tracking peak class hours and low attendance times can help you create a more balanced schedule. We suggest that studio owners have a good grasp on the minimum numbers they need to meet their expenses, whether that’s the minimum number of students per class or per day. Either way, it gives you ideal goals and also informs when you need to modify your schedule or add in new classes.
To pull all of these important metrics together you’ll need to start with these KPIs:
Revenue
Expenses
P+L
1st Visits
1st Visit with Intro
1st Visit No Return Rate
Intro Purchases
Intro Conversion Rate
YOY Retention
Membership Growth/Loss
Once you have a good pulse on those, we suggest adding in these metrics:
Capacity Utilization
Net Revenue Per Class/Client/Visit
Actual Cost per Class
Referral Sources
Payroll as % of revenue
Monitoring your KPIs will help you stay on top of the most important metrics for your fitness or yoga studio. Continuously tracking and analyzing these metrics will give you a clear picture of how well your business is performing, and identify any areas that need improvement.
Remember, success is not just about numbers, it’s about creating a community of happy and satisfied clients who love your studio and all it has to offer. Happy customers can be your best marketing tool, so focus on delivering the best possible experience. Create a robust lead generation strategy as well as marketing strategy and you’ll quickly see your conversion rate increase.
Telomere Consulting provides business consulting and marketing services to studio owners in the boutique fitness and yoga space. The Telomere team helps you navigate business strategy from conception to implementation. We provide end-to-end marketing support and would love to hear from you. Click here to book your free intro call. We want you to treat your business the way you treat your body – making the right choices now to optimize its potential for a long and healthy life. Visit us here to learn more.
