If you own a gym, you already know that profit needs to increase to grow a gym successfully. Measuring key metrics for your gym will take your business to new heights, as changes are made for improvement. In addition, using this gym business plan will put the structure in place for long-term growth of your business.
#1 Customer Acquisition Rate
Measuring this metric will provide the cost of your marketing strategies on a per customer basis. Divide the number of new customers in any given month into the total cost of marketing strategies to determine the cost of acquiring customers. If the cost is high, switch marketing methods or increase service prices.
#2 Customer Churn Rate
Measure the churn rate of gym users by dividing the starting number of customers during any period of time into the number of customers lost during that same period. The results will indicate how many customers are retained or lost. Make improvements by training staff in customer service and ensuring equipment is high-quality.
#3 Customer Retention Rate
How many customers renew their gym memberships? This is a critical metric, as the profit of return customers will scale your gym business. Subtract the number of new customers in any period from the total number of customers in the same period. If low, survey customers, check reviews and make changes to improve.
#4 Net Sales Revenue
Track this metric every six months to indicate growth of your gym. Measure by subtracting the cost of lost gym members from the total sales of the gym. The net sales revenue is an indicator of performance overall. If the revenue is low, improve by increasing sales tactics and marketing strategies.
These metrics will identify where improvements are needed; use them to scale profit and grow your company successfully.