Key reports you should be utilizing when setting a 2023 strategy for your health club.
Another year has gone by and overall, the fitness and wellness industry continue to grow post-pandemic. This presents a great opportunity for growth in the new year. In order to set a sound strategy, however – for both new member acquisition and retention – you need to understand what your data has shown from last year.
Understanding your key performance indicators (KPIs) will be instrumental in uncovering both your strengths and weaknesses moving forward. Let’s take a look at some key reports you should be focusing on in your business from 2022.
Utilization Report
This report is simply the number of total visits clients entered your facility in a given time frame. Why is this so important to review each month? Utilization is one of the best reports to check the health of your business from a revenue standpoint. If utilization is continuing to rise, it means you are attracting and converting more members and client’s month over month.
This could really be beneficial from a marketing and staffing standpoint. Clearly, your staff is well versed in creating a great experience and your marketing dollars are yielding a good return on investment. Pull this report every month to see where your trend lines are headed.
Attrition Report
This report is simply the rate at which members leave your business. There are many studies that show the average length of any member in a health club is around six months before they decide to quit. Although there will be natural attrition, you should have a goal in mind as to what that number should be (i.e. less than 5%).
Viewing this report each and every month is key to making sure you aren’t just celebrating your new member acquisition but making sure you are netting members at the end of that month as well.
Cost Per Lead Report
This report measures how cost effective your marketing efforts are when it comes to acquiring new leads and converting them into members. The ultimate goal here is to lower your cost per lead. For example, if you spent $1,000 on a marketing campaign and it yielded 10 new leads, your cost per lead is $100 ($1,000/10=$100). This information will help in setting a strategy to continue where those dollars are spent or course-correcting depending upon the results.
Setting a 2023 strategy depends upon how well you know your 2022 data. Understanding these reports can truly help you grow your business in the new year.
