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Top 5 Metrics for Analyzing Your Gym’s Success & Profitability

Posted by Dave Johnson on Jan 31, 2017 3:52:26 PM


When it comes to running a profitable gym or health club, there’s a lot to consider.  And with so much going on, it’s easy to get lost in day-to-day operations and lose sight of the bigger picture. However, running a profitable business - of any kind - involves constantly analyzing and reassessing your business strategy. And in order to make better business decisions, you need information. Just like stepping on scale, the success of your gym is largely dependent on the metrics you monitor. Usage data for rotation plans are a great example.

In order to help you identify which metrics to measure, we’ve highlighted the top 5 metrics that are most important in analyzing your gym’s success and profitability.

Important Gym Metrics

Usage Data

Analyzing usage data is incredibly important. It gives a gym owner or operator key insights into how their gym is functioning.

By monitoring usage data you can assess the following:

  • Which machines get used most often
  • Which pieces of equipment are in high demand
  • The times of day when specific equipment is being used most frequently
  • Equipment availability

And that’s just scratching the surface. Usage data can even help in determining member satisfaction, which is discussed in detail in a previous post. It can also help in creating and implementing a rotation plan, which can drastically extend the lifetime value of your equipment.


This is pretty much a no-brainer. You need to carefully measure the amount of expenses you have to ensure they aren’t eating into your profit. It’s best to maintain a working spreadsheet that includes every cost you incur as a gym owner. This includes the cost of equipment, labor, maintenance, supplies, software - even new towels and printer paper. It’s important to document everything, this way you can spot spending trends and predict future financial performance.

Average Lifetime Value Per Member

How long do your customers usually stay at your gym? How much does each member mean to you? This is a metric that is often lost at larger fitness facilities but is incredibly important when it comes to measuring the success of a gym. By analyzing the lifetime value of your members, you are able to strategize and plan for growth.

Lead Conversion Rate

How often do leads actually turn into monthly memberships? If you don’t have a good conversion rate, it’s the first indicator that you need to make a change.

A bad lead conversion rate can mean a few things:

  1. Your sales process is flawed and needs some improving
  2. You aren’t acquiring the right leads. This means you’ll have to revise your business plan and determine which is the right demographic to target for your gym.
  3. Your gym is not what they are looking for. If you’re targeting the correct demographic of people but they still aren’t signing up for a membership, it could mean that your gym is lacking specific amenities that are offered at a nearby gym. Do some research to determine exactly why customers aren’t becoming members.

Facility Utilization & Capacity

Your ability to efficiently use your available floor space will directly impact your revenue and long-term success. The best way to determine your facility utilization is to analyze your max capacity with the amount of members you’re actually serving. Within this category, you can also assess revenue per square foot. This allows you to calculate how much money you’re generating from your floorspace.


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