Let’s imagine for a second that you’re 25,000 feet up in air, traveling at 600 miles per hour in a Boeing 737 with 225 passengers on board. Oh, and did I mention you actually have no idea how to fly a plane? You are responsible for 225 lives, and yet you have no idea what any of the levers, switches and gauges are used for.
That’s a scary thought, isn’t it? I’m going to take a wild guess and say that you might be a little concerned with your safety and oh yeah, the other 225 people on the plane depending on you, isn’t that right? That’s a lot of pressure for someone who really has no idea what they’re doing…
I know you’re probably thinking, “What exactly does this have to do with fitness marketing?” but you would be amazed at the number of fitness ‘professionals’ running their fitness business much like a jetliner pilot who has no idea how to read any of the gauges on a Boeing 737. Here’s an example for you. A few years ago, I was at a Fitness Business Summit when a trainer started talking to me about the success of her business. I engaged in the conversation, talking about successful business tactics, and suddenly she got that ‘deer in a headlights’ look… She then continued to tell me that the only tactic she used to gauge how successful her business was was by the number at the bottom of her bank statement. I was so shocked that I was the one rocking the deer in a headlights look. I couldn’t believe that that was the one and ONLY way she looked at the success of her business. After this encounter, I started talking to more trainers about fitness marketing, and realized how many people were in the same boat – basing their success solely on what they see on the receipt they get from the ATM machine.
Listen, if you don’t have your finger on the pulse of your business then you may as well be an amateur pilot siting in the captain’s chair of a Boeing 737.
Now, it’s no surprise that business owners who know and track their metrics are, on average, three times more successful than business owners who fly by the seat of their pants. This is what I mean by having your finger on the pulse of your business.
That being said, here are four critical metrics you’ll want to keep your fingers on the pulse of your fitness business:
- Set, show, close
How many consultations do you SET up each day? How many of the set consultations actually SHOW up? Out of the people that came for consultations, how many of them did you actually CLOSE with and convert into paying clients?
This metric is the ‘blood’ to your business. It is crucial to keep track of these metrics in order to improve upon your sales techniques and gain more clients, ultimately leading to higher profits.
2. The lifetime value of a client
Here’s how you track the lifetime value of a client.
Let’s say your average client pays you $200 per month, and let’s assume you keep a client for an average of 8 months. Well this means that your average client is worth $1600 to you.
Knowing that each client is worth approximately $1600, you can make better marketing decisions in your fitness business. For example, I would be willing to pay up to $1600 for an add in a local newspaper served to affluent homes in my area knowing that if I gain just one client from that publication, I’d break even. Ideally however, it is likely that I would gain 3-5 paying clients, and 8-10 leads. Not too shabby!
Most people would look at a $1600 add and think that’s far too much to spend on one add alone, but as I just explained, it really isn’t when you know the metrics of your business.
At the end of the day, knowing what each client is worth to you is vital because then you’ll know how much you’re willing to pay to acquire and/or keep a client.
3. Attrition rate (the rate at which you lose clients)
All business have attrition – it’s normal although it does suck. Instead of panicking over losing clients, set an attrition goal. Mine is to keep attrition under 5% each month, meaning that if I have 100 clients, I would start to worry if I lost more than four in a month.
If you are far over your attrition goal, then you need to start investigating as to why you’re losing more clients than you should be. Here’s an example. At one point, one of my locations had an attrition rate of 11%; more than double what it should’ve been. When I did my research however, this wasn’t because of the type of clients or location we were at, but a slew of problems with the trainers, including training under the table, and trainer-client relationships that I was unaware of. As you can imagine, I put a stop to both these things right away, however I never would have been able to had I not been keeping track of the attrition rate.
4. MWA Conversion Rate of your website
Most Wanted Action refers to the action you want most from your fitness business website when you get traffic to it.
TYPICALLY, the two most wanted actions are a sale, and a lead.
For every 100 people that visit your website, how many of them opt for a free eBook, consultation, or report? And if you have a low barrier offer, how many of those 100 people take advantage of that offer and become paying clients?
It’s easy to see that once you start tracking your MWA conversion rate then you can increase conversion rate by improving your opt box, copy, and offer, as well as get better sources of traffic so you have more qualified people landing on your site.
Trust me folks, you will not be disappointed by the improvements you’ll see if you start tracking the metrics of your fitness business. Using these tracking tactics, your business will be soaring like a Boeing 737 in no time.