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7 Business Metrics of Highly Successful Club Owners

Posted by Dave Johnson on Jul 25, 2017 9:00:00 AM

For some of us, when we hear the word "metrics" our eyes immediately begin to glaze over. If you're one of those people, chances are looking at spreadsheets and databases doesn't exactly fill you with excitement. 

But whether you love punching numbers or not, there are a few metrics that every club owner can get excited about. These are the kind of metrics that put money directly into your pocket. And who doesn't like the sounds of that?

Stick with us for the next few minutes and we'll show you how just seven business metrics can help you grow a highly successful health or fitness club.

1. NET Revenue

Net Revenue is the most basic, but also the most important metric of any business anywhere in the world. For your health club, this means total income from members minus any and all deductions for overheads (rent, utilities, staff, equipment etc.)  This is what makes your business a success, and yet a surprising amount of gym and health club owners don’t actually track it on a monthly basis.

2. Leads Generated per Month

A Health club is like any other service or product, it requires customers in order to make a profit, and acquiring leads is the first step in acquiring customers. Luckily, checking this metric is pretty simple, and can be done by focusing on marketing expenses in your financial accounts. Your goal is to identify which advertising sources generate the most leads at the best cost per lead in order to double down on investment in those sources whilst eliminating the less profitable options.

3. Conversion rate of leads

Getting leads is something most health clubs can do fairly easily with various forms of paid advertising, but where most fail is knowing what to do with those leads to turn them into paying members. Tracking what percentage of leads become paying members is a great place to start. From here you can narrow down areas for improvement, such better sales scripts, a different style of gym tour and so on.

4. Attendance per member

This handy little metric is simply the average number of weekly visits per member. More visits mean members like your club and want to spend time there. Fewer visits might be pointing to some potential issues that need addressing. This is also a basic way of tracking how much club capacity is used across the week.

5. Average membership length

It’s tempting to focus purely on getting members, but if there’s a hole in your bucket it doesn’t matter how much water you pour in! Using average membership length as a metric should give you a clearer picture on how long your members stay as members. If you don’t like the results then you can look for ways to improve this. We recommend starting with a questionnaire for active members, as well as a questionnaire for all members leaving the club.

6. Peak machine usage

Peak machine usage is essentially an analysis of when your machines get used most frequently. Remember, the biggest reasons for member cancellations is the equipment being broken or unavailable.  But by monitoring your usage data you can drastically improve customer satisfaction and decrease member cancellations. 


7. Equipment Rotation Plan

Our last and perhaps, most important metric is equipment rotation. Equipment rotation metrics can literally save you thousands of dollars every month. The rate at which you rotate your equipment is essential to maximizing the profitability of your gym. It might be hard to believe that something so simple can be so effective, but it's true! A data-driven rotation plan can extend the life of your equipment by 18 months. Rotation planning prevents unexpected breakdowns, which ultimately saves you time and money.

What these metrics mean to you

With these 7 metrics, you can keep your health club full of happy members and healthy equipment, which means lower advertising costs, lower overheads and increased profit.

Put simply, there’s never been a better time to start tracking these metrics in your health club.

Topics: Owning a Gym

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