Gym sales funnel metrics you should be tracking
Marketing is an integral part of every successful business. Regardless of the kind of sales, constant improvement is necessary to ensure you don’t fall behind. So, how effective is your marketing? Needless to say, boosting gym sales completely depends on your gym sales funnel.
If you can measure it, you can improve it. Gym sales funnel metrics will help you identify problem areas and address them so that you can focus on impactful and effective refinements. With this, you will have a secret weapon that will give you an edge over the competition.
Most gym owners rely on referrals to attract additional members to their gym. Word-of-mouth advertising is one of the most undervalued and profitable advertising techniques that can determine a gym’s success.
However, if you can’t track your gym’s performance, you won’t improve your business results. Below are six gym sales funnel metrics you should be tracking to improve membership sales and increase your overall profit.
Generate leads with your gym sales funnel
How many people are you reaching that have an interest in your gym?
Before jumping into profits, you must understand that sales are multi-level and involve different elements. Nonetheless, sales start with a solid building strategy. The lead metric calculates the number of people your fitness center reaches out to who show interest in joining.
If you want to create content that will attract people to your gym, it must be structured to deliver relevant and eye-catching content. For example, if you want to generate leads through Google or your website, you must first understand what attracts gym users. This way, you can focus your attention on optimization.
Lead tracking helps you track how your time and money are spent, set reasonable goals, and work towards achieving said goals. You can focus on generation techniques like targeted advertising, lead capture, blogging, etc. Therefore, if you generated 20 leads last month, you can set a reasonable goal of 30 leads next month.
Focus on gym sales funnel conversion rate
How do you turn leads into gym members?
Your conversation rate indicates how well your fitness center is gaining members. The easiest way to calculate this metric is to divide the total number of new members by the total number of leads generated within a specific period. Or, divide the number of gym visitors by the number of people who take action.
Your conversion rate will depend on your goals and lead strategy. It will also depend on your sales ability, size, and offerings. For example, if you offer a free consultation and class as part of your recruiting process, you will likely convert one of those free visitors into a permanent member.
Of course, your business will have various conversion strategies. However, with this metric, you will be able to track multiple strategies and how well they are converting. If one of your strategies has a low conversion rate, you can eliminate it and save money and time. You can also create a different offer that will achieve more results. Traffic comes from different sources. Therefore, track and identify the sources that are top converters. Then, improve them.
Maintain retention rate for your gym sales funnel
How long will a new gym member stay after the initial registration?
Take the number of existing clients at the end of a period and divide it by the total number of clients at the beginning of the period, expressed as a percentage.
Customer retention will affect your revenue. You can measure your retention rate over different periods, including weeks, months, quarters, or years. Suppose the benchmark retention rate for your business is 90%. In that case, you automatically know that anything below that percentage means you must work smarter and harder to retain existing clients instead of acquiring more.
Again, you must pause acquiring new members and focus more on retaining existing members if your retention rate is too low. You can offer bonus information or other values that members don’t need to pay for to increase the retention rate.
Average membership length
How long do you retain your members?
When the length of membership is low, it means members are not encouraged to stay around for long, which signals a problem for gym management strategies. However, if the length of membership is high, your clients are happy about your services and are willing to continue their membership.
Divide the total number of periods that members were retained by the total number of members for that period to find the average length of membership.
How often do your members use your fitness center?
Besides calculating the length of membership, you must also pay attention to membership usage. If members are no longer visiting your gym as often as they should, this may be a problem.
When most of your gym members use your fitness center regularly, they will likely continue their membership. However, if the usage is low for a specific member, you can identify ways to make that customer use your gym more frequently. You can split membership usage into various categories, such as early-stage and late-stage usage, to calculate use during the initial and later months of signing.
Divide the total number of periods a member attends your gym by the total number of days in that period to calculate the membership usage. Knowing your membership usage will allow you to build an effective gym sales funnel.
Are your members satisfied with your services?
Actionable data that reflects the level of member satisfaction should be included in your gym sales funnel. It will help you determine how you can improve your services. Apart from this, satisfied customers can also refer other members to your facility.
You can conduct a satisfaction survey to track the level of satisfaction within your gym. Ensure the survey covers all areas, including equipment, cleanliness, quality of services, etc., to learn which areas need improvement.
The key to improvement is tracking and analyzing your fitness center’s performance through gym sales funnel metrics. How effective are your strategies? What percentage of your revenue are you using to run the gym?
Simple and cost-effective changes to your gym sales funnel can help you acquire new members, retain them as active users, and improve your services to meet demands.