What are the most important KPI’s for your Gym?

KPI’s

The amount of data that gym managers have access to is increasingly higher. But with a large number of issues to manage, keeping track of this data can prove to be quite a challenge. Even more so when you need to connect marketing actions and strategies to real-world results.

There are many ways to measure the performance of a gym, but it is important to know which metrics are most important. It is not always easy to decide which key performance indicators (KPIs) are most important. So how can you select the most suitable ones? In this article, we will talk about 4 KPIs that are essential and play a vital role in the success of the gym.

The importance of KPIs in the management of the gym

What is a key performance indicator (KPI)?

A KPI is essentially a way of measuring the success of an organisation or department by quantifying the most important metrics. Every business has its own KPIs based on its objectives, as is the case with gyms. These act as a barometer, allowing you to track the progress of the business and adjust strategies more effectively.

In gyms, as in any other business, KPIs are the key to success. To be financially efficient, a gym needs to know how to recognise the most important numbers and how they relate to pre-established targets. In addition, KPIs can be a great aid to managers in decision making.

 

KPI #1: Turnover

Turnover is an important KPI because it reveals how many members are quitting the gym. If you are a gym manager it is essential that you take the time to analyse this data. Clients come and go and that is a normal part of running a business. However, if turnover shows an upward trend, you need to quickly identify the factors that may be contributing to this. Does the competition have a more competitive offer? Is there any dissatisfaction with the quality of the services provided? Consider the SWOT Analysis to diagnose your gym.

KPI #2: Customer Retention Rate

Retention rate measures the percentage of customers who stay in the gym after a certain period (i.e., yearly). This is a KPI that measures “loyalty” and satisfaction towards your gym. This is without a doubt a fundamental KPI since it is linked to the medium- and long-term viability of the business. When the retention rate is low, you need to quickly find a solution in order to prevent future losses.

As soon as a member walks out of the door it is imperative to ask yourself some questions. Are you providing an effective service? Does the space still provide the best conditions for exercise? Do you invest in the training and the continuous improvement of your staff? Should you use some kind of promotion? Retaining customers is a guarantee that your gym will continue to thrive year after year.

 

KPI #3: Revenue per costumer

Revenue per Customer is obtained by dividing annual revenue by the number of customers. Often, gym managers measure their success by the number of customers, but this is an incomplete approach. The number of members is important, but more important is how much that member “brings” in revenue to the gym. With this KPI you can quickly diagnose your gym and determine how many customers you need to be profitable. That way you can get more clarity on future strategies and goals.
 

KPI #4: Average Attendance in Group Classes

Average attendance in group classes is an important part of the management of the gym. This KPI should be evaluated because group classes are one of the biggest selling points for many gyms. From CrossFit to Cycling or Aerobics Classes, many customers choose gyms for the specific service they are offering. By monitoring this KPI you can identify which classes are the most profitable and which need a different strategy. You can also measure which schedules best suit your members’ needs.

Conclusion

As a gym manager, you have the passion, commitment and dedication to offer your customers an excellent service. To continue to lead your gym to success, you need to satisfy members and match their needs with your best offer. With these 4 KPIs you will get essential information to make the best strategic decisions, set goals for your business and manage them effectively. Put them into practice and share your feedback with us.