Forget the complex business jargon.
We’re here to show you the KPIs (key performance indicators) that matter most for your personal training business. Here’s a sneak peek at what we’re covering:
Let’s do it.
Profit Margin
Profit margin is the % of income you take home after accounting for all expenses. One reason why we like this metric is it forces you to track revenue and expenses.
The percentage format allows for easy comparison with industry benchmarks. And comparison month-to-month.
Calculate it using the formula: Profit Margin (PM) = ((Revenue – Expenses) / Revenue) x 100.
For example, with $5,000 in revenue and $500 in expenses, your PM would be 90%.
We made a calculator for you! Get free access here.
Client Acquisition Cost (CAC)
CAC represents the total cost to acquire a new customer.
By tallying up marketing expenses and dividing by the number of new customers, you get your CAC.
For instance, if your marketing efforts total $1,700 in a month and you gain 13 new customers, your CAC is $130.
A lower CAC in relation to LTV signifies a sustainable growth path for your business.
Lifetime Value (LTV)
LTV is the total revenue you can expect from a customer throughout their time with your business.
It’s calculated by multiplying the Average Revenue Per User (ARPU) by the average customer lifespan.
High LTV indicates a healthy business model conducive to growth.
Client Retention Rate
High retention rates reflect client satisfaction and can also predict stable revenue streams.
Calculating CRR involves comparing the number of clients at the start and end of a period. And adjusting for new sign-ups.
Here’s the formula for finding CRR:
((# of clients at the end of the month – # of new clients added that month) / # of clients at the start of the month) x 100
Calculate CRR in this template!
Customer Satisfaction
Understanding client satisfaction levels is important for minimizing churn and maximizing referrals. Surveys and interviews can offer insights into client experiences and areas for improvement.
Remember, a satisfied customer is your best advocate. And referrals come at no additional acquisition cost.
Wrapping Up
While no single metric offers a complete picture. Collectively, these metrics give an overview of your business’s health.
Use these metrics to understand your business better than most personal trainers. And even many business professionals.
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