The Eight Biggest Mistakes Gym Owners Make – Part 4
The Eight Biggest Mistakes Gym Owners Make – Part 4
7. Tracking Numbers
Daily reporting and the numbers that keep everyone in the club on track to drive your revenue. What gets focused on, gets done. Monthly, weekly, and daily goal-setting should be the foundation of the club’s revenue stream. The club should keep a running total every day to see where they are in relation to their goals and have industry bench marks as to where they should be in relation to other clubs of the same size and in similar markets.
The club should have goal boards on a wall in the club where all staff can see them that show daily projection for income, memberships, and profit centers. Daily Prospects, sales, appointment ratio, closing ratio, referrals, and renewals should also be tracked.
Goal boards and tracking create urgency and everyone in the club should know where the club stands every day in relation to the monthly goals. If the numbers are not made a priority and if management doesn’t make it a priority for the staff, It’s too easy to lose sight on production because we are too busy getting “work” done every day.
Learn how to drive production rather than riding the wave of the revenue flow. Looking at the P & L at the end of the month to see where the revenue ended up at is not only a bad business plan but it is also the most stressful way to run a business.
8. Member Retention
How many members signed up this same month last year and how many are still with you? It’s tough to get new members and it’s just as tough to keep them. Motivation, time, energy and money are just few of the reasons members drop out.
Renewals should not be passive. Your programming, your interaction with current members, your events to keep members engaged, your follow-up process and your membership pricing will all factor in to give you a drastically higher renewal rate.
The gym must implement a formal renewal plan with the staff in order to keep the member engaged and we must continue to reach out to the members outside the gym no matter when they signed up. Avoiding this interaction because you fear a cancellation if you reach out to them because it reminds them that they haven’t been coming is a pretty scary plan. Start with the new members you signed up last month and going forward work like crazy to get and keep them involved.
