The primary focus for fitness clubs right now is recovery. The first and most important part of a recovery strategy is to understand your numbers. If you don’t have the key numbers tracked and easily available to you, you can’t track improvement, notice trends, or foresee any dips or shortfalls in the future.
Revenue and profit are both vital, as in any business, but there are some other key metrics that are crucial for any gym or fitness club to track over the coming months and beyond. That’s where Key Performance Indicators (KPIs) come in. We’ve outlined 5 of the most important KPIs you should be tracking, right now:
Most gym owners don’t know this number, but It’s super important for identifying how many members have returned to your club after COVID. Large numbers of members canceled their gym memberships during the lockdowns due to a variety of reasons, including uncertainty, ill health, and finances. Now that things are looking brighter and people are starting to gain confidence, it makes sense to set up a system to try to reverse or overturn cancellations. You can also set up systems to reach out to past members and set up a reactivation campaign.
2. Conversion Rate
You’re no doubt be focused on driving membership sales right now, so it’s important to track your conversion rates. By doing so, you can identify which marketing initiatives and specific activities are resulting in new members. Having this insight means you can manage marketing costs more effectively and attribute your marketing dollars to the initiatives that are generating the best results.
3. Active Members
This metric will provide you with a fantastic, big-picture way to track where you are. It will allow you to measure and compare the growth and decline of members alongside data from previous, pre-pandemic years, giving you excellent insight into how your business is recovering.
At this point, your active members metric is probably low compared to 2019. This is completely understandable and expected. However, tracking this metric over the next six months will help you identify growth and prompt a focus on increasing your membership base through marketing efforts or by reducing attrition.
4. Revenue Per Member
This KPI will help you understand how much your average member contributes to your bottom line. Simply divide your total number of members by your annual revenue. If this number is low, start looking at ways to increase membership yield by providing additional chargeable services. Some ideas include providing personalised health assessments using body composition analysis or driving more Personal Training clients your way. For more ideas on increasing membership yield, read our recent blog post: Easy to deploy tactic to drive loyalty and increase current membership yield.
5. Retention Rate
It’s no secret that member retention is a challenge. It’s also no secret that good retention is the foundation of a successful club. In general, having a strong retention rate means that you are delivering a great member experience. A good retention rate is a huge indication that members are happy, engaged, and motivated to keep visiting your club. It is important to track this metric so you can analyse why members leave and take action to reduce attrition. You can measure your retention rate over the course of a month, quarter, or year.
With these five numbers, you should be able to keep a pulse on your business and move the bottom line in the right direction, helping you create an effective and agile recovery strategy.
For information on how ClubWise can help you keep a pulse on your fitness club recovery and effectively manage and grow your business, request a no-obligation demonstration today!