Let’s face it, you love what you do, right?? You get to help people reach their goals and become their best versions of themselves…it’s a great feeling!
BUT, how do we know if our members are doing well or not? How can we determine if what we’re doing with them is actually working?
The answer…we are (hopefully) tracking their progress and looking at certain numbers (i.e. weight, body fat %, circumference measurements, blood pressure, cholesterol, etc).
This is how we can determine not only the health of the member, but also these numbers let us know if we need to make any changes for them.
Well I know you’re probably saying…
“Well, what the heck does this have to do with my business?”
Well, I’m glad you asked!
Just like knowing the numbers for your clients and their progress (or lack of progress) to help guide you to the next best course of action, we need to know certain Key Performance Indicators (KPI’s) in our business to do the same.
KPI’s not only allow us to see the true “health” of our business, but also are key in understanding EXACTLY what’s working, what’s not, what needs to be improved, and what needs to be changed.
Without even knowing just the basic KPI’s, we’re essentially running blind. And while we may be able to sustain this for a short period of time, we will inevitably trip, stumble, and fall in our business.
One of my FAVORITE quotes is: “If you can’t measure it, you can’t manage it.” – Peter Drucker
Now, there are quite a few numbers that we can really get specific with to be able to most efficiently navigate towards your goals. For now we’re going to focus on the CORE numbers that any Fitness Business needs to know to in order to be successful.
These are the MINIMUM numbers we recommend you tracking on a daily, weekly and/or monthly basis:
Level 1: Important Key Performance Indicators:
- Number of People on your Email List – how big is your list? As many people have said before, your list is KING (or Queen)!
- Is your email list growing, are many people unsubscribing, what is your average Open Rate % for your emails?
- At a minimum, make sure you’re documenting the number of subscribers you have on your list each month. If you’re not growing at the rate that you want, come up with 1-3 ways to improve this for the upcoming month!
- (on a side note, PLEASE make sure you’re emailing your list at least once a week!!)
- Number of Leads (track daily, weekly & monthly) – how many people are raising their hand, asking for more information about your business!? This number can really help you get a handle on the effectiveness of your marketing along with your brand awareness. Now keep in mind here, more leads aren’t always better, especially if you’re getting a flood of people that aren’t qualified to be in your program.
- A sub-set of knowing the number of leads you’re getting is also WHERE those leads are coming from…aka lead source. From your FB ads? Walk-ins? Referrals? Workshops? Make sure to track these also.
- Trials or Success Sessions… #Scheduled/# Showed/# Closed – this grouping of KPI’s really speaks to the effectiveness of your Sales System (yes, it takes more than just a sales script to truly maximize these numbers).
- How many leads are you scheduling each week? Lower scheduling rates means you should look at 2 things:
- 1. The quality of your leads
- 2. The quality of your your pre-qualification script and the quality of communication during that conversation
- What’s your show rate…If it’s not near 100%, it should be. Here’s a video that will help you that I filmed for you.
- What’s your close rate…are you wowing them when they come into your facility? Are you over-delivering and really showing the value of what you have to offer? Are you asking for the sale?? Now we get into your ability to connect with your prospects, build that “know, love, and trust”, and how you communicate that your program is the solution to their problem (only presenting it of course, if it’s a good fit.)
- How many leads are you scheduling each week? Lower scheduling rates means you should look at 2 things:
- Number of Active Members – how many clients are currently active in your business? Is that number going up or down each week/month??
- # of Members Who Left – how many people are leaving each week/month
- Your Monthly Revenue $$ – do you know EXACTLY how much revenue you’re bringing in each month?
- Where is that revenue coming from (memberships, apparel, supplements)??
- Your Monthly Expenses $$ – Rent, utilities, payroll, cost of goods sold…
You’ve got goals set for your business…and these numbers help you navigate your way, and set BETTER, more specific goals.
Not only that, knowing these KPI’s allow you to see where your business is doing well and where it might be struggling so that you can then make better quality and more educated decisions in your business.
The more you know these, the better you’ll be able to adjust your systems so that you’re seeing growth month in and month out.
The big takeaway here is to not fly blind in your business, and knowing these core KPI’s will give you a much deeper understanding and clearer picture of your business each month!
What’s mentioned above is the absolute MINIMUM that I recommend tracking in your business. Let’s call this “level 1”.
“Level 2” KPI tracking involves looking at numbers like your margins, lifetime value of a client, client retention rates, etc.
If you need help creating systems in your business and tracking your KPI’s on a regular basis, this is a major focus in my 8-week coaching program. Click HERE to check it out<—-
Hope you found this helpful for your business!! If you have any questions, just post them in a comment below!
(Written by Brian Smith & Alicia Streger!)
