How to Drive Your Fitness Business Forward with Data

The fear of failure can paralyze business owners from making changes needed to grow
their bottom line. Fortunately, we have access to more data than ever before, which
helps us uncover trends, identify growth opportunities, and navigate major business
decisions.

According to Gallup, businesses that leverage their client behavior data outperform
others in sales by 85% and more than 25% in gross margin. With capacity down and
expenses up, it’s critical to make decisions based on key performance indicators (KPIs)
to drive your business forward.

Business success coach, Nicole D’Andrea, was recently featured on WellnessLiving’s
Live Your Dream webinar series, where she discussed how to use data to drive your
business decisions. Nicole has a reputation for working with yoga studio owners and
wellness practitioners, helping them change their mindset, think bigger, work smarter,
and obtain commercial success in their business. In fact, her business—Nicole
D’Andrea Consulting—was built on the success of her own studio’s (Black Bird Yoga
Studio) impressive growth.

What KPIs will help your business achieve long-term success?
Nicole says that most wellness business owners are passionate about their work, but
they often lack proper business operations, sales, or marketing to make educated
business decisions. Boutique fitness owners often make business decisions based on
their competitors and not what is good for their business.
Here are the top 4 KPIs you need to start tracking to understand your business’s unique
needs better, adopt best practices, and set you up for long-term success.

1. Profit Margin (PM)

Profit Margin is a measurement of profitability, the amount of revenue generated that
exceeds your business costs. One of the largest expenses that affect the profit margin
for most boutique fitness studios is payroll. Nicole recommends that your payroll
shouldn’t represent more than 30% of your monthly expenses.

2. Recurring Revenue

A predictable revenue stream is the single most effective strategy for small businesses
to grow. In fact, 80% of your studio’s revenue should fall in that category, with 30% of
your introductory students converting to autopay members.

3. Average # of Classes Attended per Month

It’s important to know the average number of classes your clients attend each month.
By evaluating how often your clients attend classes each month, you’re better equipped
to identify at-risk clients and develop strategies to prevent churn and boost average
class attendance.

4. Client Retention Rate (CRR)

Customer retention measures a studio’s ability to retain its customers over time. Many
studio owners place most of their focus on attracting new members. But did you know
that it costs 5-25x more to acquire a new client than it does to retain an existing one?
Before you consider building a retention strategy, it is important to understand your
client retention rate.

Want to learn more of Nicole’s data-driven methods? Watch the full episode of
Live Your Dream: Using Data to Drive your Decisions on demand.

Make data-driven decisions for your business
KPIs are essential for growth and taking your business to the next level. Did you know
that Wellness Living’s advanced reporting feature allow you to track various types of
data within your business? Our reports can be used to track your payroll, sales,
projected revenue, attendance, client retention rates, and more.
Interested in learning more about how WellnessLiving can help grow your business?
Remember, WellnessLiving supports the WIFA community by offering 50% OFF the
Professional Plan when you book a free demo.

Author: wellness living.com