Metrics That Matter for Yoga, Pilates, and Barre Studios

Most studio owners focus on one indicator of their studio’s success: the number of members. While it’s certainly important to know your membership numbers, many other metrics are equally important when monitoring the success of your studio. Staying on top of these benchmarks can help you address minor issues before they become major problems.

Every single metric has a corresponding financial impact, either good or bad. By knowing the important metrics and monitoring them regularly, you’ll be able to make the right decisions as they come up, which will improve the health of your business.

In this guide, we’ll go over the top eight operational metrics studio owners should measure and what member acquisition metrics to track. Then we’ll give you specific, actionable advice for improving these important metrics in your studio. At the end, we’ve included a handy checklist for you to use to track your progress!

Operational Metrics

Most small business owners have a handle on the basics of financial management, including a budget, bookkeeping, cash flow projections, and profit and loss statements. If you need help getting your bookkeeping and budget in order, the U.S. Small Business Administration’s website, sba.gov, is full of excellent resources.

Once you’re working with a budget and keeping track of your cash flow, revenue, and expenses, it’s time to get a more detailed and nuanced picture of your studio’s financial health. Your business also has operational metrics that help explain your cash flow or profit.

Operational metrics give you a more granular picture of your studio’s overall financial health. If you understand and use your operational metrics, you can spot issues before they begin to impact your revenue. For instance, if you notice a drop in prospective members, you will be aware of a potential issue before it shows up on your cash flow or profit and loss report. To combat the drop in prospects, you could look for new ways of advertising or ramp up your referral program.

If you don’t know how to monitor your operational metrics, you won’t be able to make adjustments before this issue starts to impact your revenue.

The Top Eight Metrics for Studio Owners

1. Total Members: The most basic number to track to find out if things are going well or if they need a bit of work.
2. New Signups: This fundamental number gives you immediate feedback on your marketing and management efforts.
3. Gross and Net Member Gains: Weekly and monthly, it’s important to look at your gross and net member gains. Understanding the number of gained and lost members provides a good indication of the overall experience your members are having in your studio.
   • Gross Member Gains: Total number of new members
   • Net Member Gains: Total number of new members minus lost members for a specific period
4. Average Revenue per Member (ARM): The average value each member brings to your studio each month and the best growth strategy at your disposal. Knowing your ARM provides a data-driven benchmark to fuel educated decisions and can help you identify ways to increase profitability.
   • ARM = Monthly Gross Revenue / Total Members
5. Average Lifetime Value per Member (ALV): This metric helps you understand how much each member is worth, aiding in marketing and other decisions.
   • ALV = ARM x Average Retention Time (in months)
6. Member Churn Rate: The rate at which you’re losing members, providing a foundation for month-to-month comparison.
   • Churn Rate = (Number of Members Lost in a Month / Number of Members in the Same Period) x 100
7. Annualized Churn: Compare this number year over year as your business matures.
   • Annualized Churn = (Member Churn) x 12
8. Attendance Rate: It’s critical that your scheduled classes are well-attended. A low attendance rate can indicate various problems.
   • Attendance Rate = (Actual Athletes in Attendance / Target Capacity) x 100

Member Acquisition Metrics

When looking at acquiring new members and the effectiveness of your marketing efforts, the following metrics are essential.

1. New Prospects

You’ll know that your marketing efforts are paying off if you see a steady increase in new prospects.

2. Lead Source

Tracking the source of your leads allows you to strategically and purposefully build your marketing efforts. When you monitor these sources, you can see which marketing channels work the best and reallocate resources accordingly.

3. Lead Conversion Rate

If you want to dive deeper, examine the conversion rate of your leads. Marketing efforts bring new prospects in the door, but do those prospects buy memberships? Understanding where you should put your time and efforts involves looking at the conversion rate.

• Conversion Rate = (Number of New Members / Number of New Leads) x 100

I Know My Metrics — Now What?

Once you take the time to calculate your metrics, you’ll have a better sense of the strengths and weaknesses of your business and where to focus your time and money. The most common issues gym and studio owners struggle with are improving their ARM, fighting churn, and converting leads. Focusing on these three metrics will have a big impact on the profitability of your studio and don’t require spending a bunch of money on advertising.

How to Improve Your Average Revenue Per Member (ARM)

Having hundreds of members doesn’t necessarily mean a studio is financially successful. For example, a 300-member studio with a monthly ARM of $150 grosses $45,000 a month. But considering operational costs, it might not be as profitable as it seems. In contrast, a 150-member studio with a monthly ARM of $250 has a gross revenue of $37,500 a month. It likely costs less to run, so the second studio might be more profitable.

Ideas to Improve ARM:

1. Retail Items: Selling gear, clothing, mats, snacks, or beverages with industry markups as high as 100 percent.
2. Workshops: Offering workshops to help members break through plateaus and refine their practice.
3. Teacher Training Programs & Continuing Education: Offering certified programs to increase ARM and provide valuable education.
4. Boot Camps: Offering cross-training boot camps to capitalize on seasonal workout motivation.
5. Retreats: Offering retreats for a unique, immersive experience, boosting retention and attracting new students.

How to Improve Retention and Avoid Churn

Improving communication with members is key to retention. Here are some ways to engage with your members:

1. Conduct a Survey: Use surveys to reveal issues that are easy to fix but have a big impact.
2. Goal-Setting Sessions: Regularly check in with members about their goals to make them feel valued.
3. Use Multiple Methods of Communication: Use every form of communication to reach all members.
4. Share Success Stories: Profile members’ success stories on your website or social media.

How to Convert More Leads

Improving your conversion rate involves better communication with leads. Here are some steps:

1. Reach Out Immediately: Have an automated reply and follow up with a call or text.
2. Check In on the Day of the Appointment: Give leads confidence and support by checking in before their visit.
3. Ask Questions and Listen: Spend time getting to know prospective members and their goals.
4. Focus on Value: Highlight the value of your studio over cheaper alternatives.

Studio Success Checklist

Use this checklist to ensure you have your finger on the pulse of every aspect of your business.

Operational Metrics:

• Total members
• New signups
• Gross and net member gains
• Average revenue per member (ARM)
• Average lifetime value per member (ALV)
• Member churn
• Annualized churn
• Attendance

Member Acquisition Metrics:

• New prospects
• Lead source
• Lead conversion rate

How Zen Planner Can Help Your Business Succeed

Zen Planner has been the expert solution for gym and studio owners since 2006. Our comprehensive studio management solution gives you the vital business tools you need to take your studio to the next level. With integrated payment processing, automated communications, self-service features including a member mobile app, integrated websites, digital marketing, in-depth reporting, and much more, you have everything you need to grow your business and community. Our solution is fully customizable, allowing you to build it out to meet the unique needs of your studio.

Zen Planner is remarkably easy to use and we’re here for you, every step of the way. From the start, our software pros will ensure our solution is the right fit for your studio. Once you join our community, you’ll receive free coaching sessions with a member of our onboarding team to help you master the solution. Our customer success team, with a satisfaction rating of 98%, is available at no additional cost by phone, chat, and email to help you with any questions you may have along the way.

Visit zenplanner.com to learn more and book a demo!