Finding the Pulse of Your Fitness Business

A Fitness Business Blog Post by Bedros Keuilian

Imagine that you’re 36,000 feet up in the air,
hurdling through space at 570 MPH in a Boing
737 with 250 passengers on board.

Oh yeah, one more thing…

You’re the one piloting the Boing 737 and you
have no clue what those gauges, switches and
levers mean.

Wouldn’t you be a little concerned about your safety
and the safety of the folks on the plane right about now?

I wouldn’t want to be on that plane.

If you think that this story sounds unrealistic, I have
news for you…

…many fitness pros run their business like a jetliner
pilot who has no clue how to read the gauges or what
they mean.

In fact, a few years back at Fitness Business Summit,
one trainer told me that she gauges her business and
it’s success based on what she sees on the receipt she
gets 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 captains chair of a boing 737.

Scary stuff!

Having your finger on the pulse of your business
means knowing your number, your metrics.

It’s no surprise that business owners who know
and track their metrics make an average of three
times more income then those who fly by the seat
of their pants.

Here are the four critical metrics that you’ll want
to track for your fitness business.

1: Set, Show, Close.

This metric is the lifeblood of your business.

How many consultation appointments do you SET
each day?

How many of the “set” consults actually SHOWED up?

And how many of the “showed” prospects did you
close and convert into paying client?

See when you track these metrics you can improve
each of them substantially by tweaking your processes.

And that results in more clients and higher profits.

2: The lifetime value of a client.

How much is each client worth to you?

If you know what each client is worth to you
then you’ll know how much you’re willing to pay
to acquire a client.

Here’s how you track the lifetime value of a client.

Lets assume that your average client pays you $220.00
a month. And lets assume that you keep you client for an
average of eight months.

Then we know that each client is worth $1760 to you.

So what does that mean?

That means that you can increase the lifetime value of
a client by increasing retention, and selling them other
products or services that will take them faster to their goals.

Plus if you know that each new client is worth $1760 to
you then you can make better marketing decisions in your
fitness business

For example, I’d be willing to pay up to $1760 to run
an ad in a local publication that served affluent homes
in my area knowing that even if I only got one client
out of it, I’d break even.

Ideally, I’d probably end up with 3-5 clients and 8-10
solid leads from that one publication.

Not too shabby at all.

But most people would look at a $1760 ad in an ideal
publication as “too expensive” – not if you know you
metrics.

3. Attrition rate. This metric is the rate at which you lose
clients.

All businesses have attrition, but in our industry attrition
rates are all over the map.

For my locations, when I tracked attrition the goal was to
keep attrition under 5% each month.

So if I had 100 clients in July, then I wouldn’t panic if I
lost up to four clients that month.

If however a location had over 5% attrition each month then
there was something royally wrong.

In fact one of my locations had an 11% attrition rate at one
point.

The problem was not the type of clients or the location
we were in, even though that’s what I was being told.

As it turned out after spending several days straight
in that location we had a slew of problems…

– Two trainers were training under the table.

– One trainer was in a weird relationship with a client.

– And almost all trainers in that location sucked.

Tracking the attrition rate is what gave them away.

4: MWA Conversion Rate of your website.

Most Wanted Action metric 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…

1. A sale.
2. A lead.

For every 100 people that land on your fitness business website, how
many of them opt in for a free ebook, report, or consultation?

And if you have a low barrier offer on your site, how many
of the 100 people who hit your site, end up buying your low
barrier offer?

See, once you start tracking your MWA conversion rate then
you can…

1. Increase conversion by improving copy, opt box, and offer.

2. Get better sources of traffic so that you have better qualified
people landing on your site.

Like I said, it’s not by accident that those who track their metrics
and have their finger on the pulse of their business make an
aver of three times more than then rest of the industry.

That which gets measured gets improved

Committed to your success,

Bedros Keuilian