How to Grow Your Fitness Business Using Financial Data
There's a probably-not-entirely-incorrect stigma around how exciting crunching numbers can be, but that lack of energy doesn't mean lack of purpose. Underlying your financial and performance data are customer decisions that when dusted off and analyzed can provide you with the conclusions that will drive future business, operational, and marketing decisions.
The most common thing I see around the fitness industry is misunderstanding or misconstruing growth as success. While there's business tactic involved in driving more people through your doors, it's essential to stay focused on who the customer is, and also how they're getting into your gym.
In New York City, my arch nemesis and fake-discount-provider ClassPass is the best representation of this growth fallacy. Marking down prices 40-80% of the actual class value, studios that submit to their hold on the consumer marketplace may suddenly think, oh shit, these spots are filling up fast, we unlocked the cheat code without realizing they're slashing into their longer term success and loyal customer following.
This is where data is so so so important - stratifying your revenue channels to understand important levers in your business:
+ How customers are booking class
+ How often they're coming to class
+ How long they're sticking with the business
+ ...and how much value they contribute to their business over a lifetime.
No matter what platform you use to control reservations - whether your own, MindBody, or a third party - owning and understanding the customer data funneling through it is a critical tool in your intelligence arsenal.