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Tips on how to measure your success in your gym management software

Implementing a gym management software to your business strategy is a great way to help to run and continuously grow your successful health club.

Measure your success in your gym

Implementing a gym management software to your business strategy is a great way to help to run and continuously grow your successful health club. When you are looking for a gym software program for your fitness center there are some of the key features you should look for and evaluate. Every club owner and manager wants to keep the track of all the aspects of their facility and this is why being able to receive and monitor regular reports to track important numbers and figures is a must. Reports can range froma very basic to highly detailed, depicting your revenue, attendance, retention levels, cash flow versus budgeted or forecasted values.Going forward, those measures will help you to manage your business plan and quantify your success. This is another very important factor when choosing the right gym management software for your club. And we consider PerfectGym management software the one to be.

Many gym owners select few crucial KPIs in their opinion and set them as main metrics on the dashboard in their administration paneland they come back to them very often. When choosing your indicators you have to think closely about your business objectives and decide which metrics measure best your business performance for each goal.

Financial metrics

  1. Revenue, revenue stream, expenses, net profit– revenue is a sum of all money taken in by the club. It is often compared on a monthly basis to spot seasonality and versus last year to evaluate overall growth trend. If we look closer on  where the money comes from we receive the revenue stream – revenue divided between different sources such as money from memberships, bar sales, personal training etc. What is obvious expenses will be a totalmoney outflow, cost – fixed and variable. Having deducted expenses from revenue we end up with net profit on hand. You can always check what source of revenue generates the highest profit margin.

Member metrics

  1. Total members and new signups- two easy and straight forward numbers. You get immediate information on very general level. To have better understating on retention subject you have to dig deeper.
  2. Gross net and net customer gains – in weekly, monthly and yearly perspective, it’s a necessity to look at your gross and net customer gains.Those numbers will tell much more about retention at your gym – how many members you are able to keep with you for longer, and how many you lose. You do not want high turnover ratio as it means you gain a lot but also invested much in order to gain new customers.
  3. Average revenue per member – customers pay their monthly membership but also invest in extra services such as personal training, healthy snacks and shakes at the bar, massages etc. Studies show that anticipated rate of club members spending more on extra services ( than just on usual contract) is 20%.
  4. Attendance –immediate information on how many customers are on the spot at the moment. Looking at this indicator in long time perspective it provides information on facility effective utilization. It helps to evaluate success of your group classes schedule and also plan working hours for your staffbetter. It gives immediate answer when you have peak times and when you can promotionally boost the attendance rate.

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