Key indicators for managing a gym

The current trend indicates that the center of any digitized gym's strategy has to be the customer and their experience. Measuring customer emotions and perceptions in relation to your fitness center will allow you to discover where you can improve in order to succeed. Did you know that customer experience directly influences the economic results of a gym? For this reason, it is essential to take care of and enhance all aspects related to customer satisfaction and objectively analyze specific indicators through an appropriate software for gyms.

The performance indicators or KPIs (Key Performance Indicators) are the metrics used in a business to know the state of the company. They also help to check the effectiveness of the actions carried out through the strategies. These indicators must be specific, measurable, assignable, realistic and established in a specific period of time to allow you to know the strength of your gym and the degree of satisfaction of your customer.

The importance of customer experience

It has been proven that the key to customer loyalty in a gym is to make their experiences there positive. To improve their experience it will be necessary to have tools in the center that help and add value to the customer, as does a software for gyms such as Trainingym.

All the processes, products and services of the gym must be oriented to customers and their needs to enrich their experience, but it is useless if these actions are not measured. To do this, it is necessary to use performance indicators that tell us to what extent customers are satisfied with our center, our services and our staff.

Trainingym will allow you to automate the collection and analysis of data easily. Through a practical control panel you will be able to visualize the most important KPIs for your sports center. In this way, you will achieve a balance between what your customers are looking for and what your gym can offer them.

Know the status of your gym easily

The use of indicators in any gym is essential to know the health of the business. The data that these KPIs offer will be of great help to make the right decisions and improve results. For these data to be reliable, the same time measures must always be used in the values we are going to compare.

Each area of the gym needs indicators that streamline processes and decision making at each level. At Trainingym we recommend working with three levels to prioritize and optimize at each stage the information provided by each level for the efficient management of the gym.

It is not possible to influence these indicators directly, but they will help to better guide the strategy that your gym follows and can be improved by enriching the customer experience.

Level 1 | Lifetime Value

Lifetime Value (LTV) will certainly be the key indicator for a fitness center that bases its business model on the collection of recurring fees month by month. This indicator shows the value that a customer brings to the business over the lifetime of the business. By applying this value to your gym you will be able to determine the real value of your customer based on their relationship with the center.

LTV = Average Lifetime x Average Ticket

For example, if the average lifetime in the gym is 20 months and the average ticket is 40 MU (monetary units): LTV = 20 x 40 = 800 UM

In order to arrive at the Lifetime Value of the customer, it will be necessary to previously analyze indicators of other levels, such as the average life, which is obtained through the Churn Rate.

Level 2 | Churn Rate

The Churn Rate or churn rate measures the number of users who have unsubscribed in a given period of time. It allows you to know the percentage of abandonment or turnover of customers in your gym. In addition, you can find out at what point losses are generated so that you can rectify your strategy.

Churn rate = churn for the month / Total active customers

For example, if your gym has 1000 active customers and this month 50 have dropped out: Churn Rate = 50/1000 = 0.05

Level 2 | Average Life

This indicator lets you know how long the customer stays in the gym on average since he/she joins.

Average life = 1 / Churn rate

For example, if your Churn rate is 0.05: Average life = 1/0.05 = 20 months.

Level 2 | Average Ticket

Through this indicator it is possible to know the average investment made by the customer in the sports center.

Average ticket = Monthly invoicing / Total active clients.

For example, if your memberships for the month are 40000 UM and you have 1000 active customers: Average ticket = 40000/1000 = 40 UM

Level 2 | Use of technology

Introducing technology into a gym, as we have been saying, is fundamental. However, it is necessary to know whether the investment made in it has been worthwhile. That information can be obtained through this KPI that shows how many people are making use of the technology.

Technology penetration = Unique access to your technology / Access to your center.

For example, if your gym is accessed daily by 500 people and 300 use the technology you have contracted: % Penetration = 300/500 x 100 = 60%.

Level 2 | Net Promoter Score

This KPI is responsible for measuring the loyalty of a customer to your gym based on the likelihood that he/she will recommend it to others. It is achieved using a scale from 0 to 10, where 0 represents a very low probability that he/she will recommend the gym and 10 a very high probability.

NPS = Promoters - Detractors

For example, if you send your NPS survey to 1000 customers and 700 are promoters, 100 passive and 200 detractors: NPS = 70% - 20% = 50

With the results of this indicator you will be able to know which are the promoters of your gym and guide your actions to get more positive experiences and recommendations. At the same time, if customers have a positive experience in your gym, they will tend to buy more and will not mind investing more money in your services.

Measure the quality and quantity of your services

Level 3 | Daily operation indicators

Quantitative

It is extremely important to quantify and qualify the services your digitized gym offers. Creating a positive customer experience is not only about what the gym itself does, but also how it does it. It is key to measure KPIs related to the quality of services and to know how customers feel about this in order to offer the best experience.

A very influential aspect in this regard is the interaction of the team of technicians with your customers. The gym staff is in charge of approaching and selling the center's products and services to customers. Therefore, these interactions must have the highest possible quality to generate a positive customer experience.

With our software for gyms you can get the ratio of customers per trainer, as well as measure the number of initial interviews and workouts performed by each of the employees. It will also allow you to follow up with clients and give them feedback on their progress to keep them motivated. At the same time, you will be able to evaluate how many classes each employee gives and their quality.

With Trainingym you will be able to control the capacity by measuring the percentage of attendance to the different areas of the gym and to the group activities. In this way, you will be able to know which classes work best and at what times of the day. It will also allow you to organize your staff more efficiently depending on the volume of attendance of customers at the center.

Qualitative

Improving your gym's results will be easier if you know the customer's opinion. With Trainingym you will be able to analyze different performance indicators of your gym that will help you to know the quality of your services. Thus, it will be easier for you to make decisions to meet customer needs.

You can achieve this by conducting satisfaction surveys after interactions with staff, such as the ones Trainingym allows you to send. In addition, getting feedback from customers after the use of the facilities, after a weighing process or after the consumption of group activities will allow you to get more out of your services.

Now you know, with the right digital tool you can know the state of your business and measure the degree of satisfaction of your customers. Discover all that Trainingym gym software can do to maximize different aspects of your fitness center.