Hey studio owner!
We are just about to wrap up the summer of 2023, and I am curious…what type of studio slash wellness business owner are you?
👉 Do you LOVE talking about the numbers, metrics and data in your business? Do you get excited to run your KPIs each month to see in black and white the growth in your business?
👉 Or are you more interested in being face-to-face with your clients, and can’t find a lot of joy in boring spreadsheets? And what the heck even is a KPI?
I get it…most wellness business owners didn’t open up shop to run numbers and dive headfirst into spreadsheets on the regular.
But the truth is, even if tracking your numbers isn’t the most fun you have each month…
It’s something you NEED to do in order to grow and scale, and here’s why:
#1 – You can’t grow what you can’t measure.
#2 – You can’t fix a problem that you don’t know you have.
Looking to create a website for your business? OfferingTree’s all-in-one software can help.
KPI stands for Key Performance Indicator, which is fancy talk for the numbers that measure the health and growth of your business.
Depending on how detailed you want to be with your studio reporting, there are several metrics you can track in your business. But who has time for that? Even those of us who love running reports and analyzing data want to be able to hone in on the most important metrics quickly and with ease, so that we can get on to doing what we need to grow our businesses.
It is key to identify the MOST IMPORTANT metrics for your studio, and run them consistently. You can add more over time, but only if they actually add to your ability to make good, timely and strategic decisions for your business.
Here are a few of the KPIs I recommend tracking in your studio or wellness business, that are easy to get with just a few clicks in your OfferingTree software:
Revenue by Category
Total revenue is important, for sure, but it is also important to know where it came from, so that you know if you have your attention in the right place. Track your revenue by categories such as Group Classes, Teacher Trainings, Privates, On-Demand Video, Retail, etc.
Recurring revenue, or your auto-pay membership, are the bread and butter of a studio business. Keep a close eye on this number, so that you can make decisions about pricing, conversation strategies, and special offers.
Attendance (total, visits per class and visits per unique client)
This may seem like an obvious number to track, as without attendance there is no business, but look at attendance not just in total for the month, but by class and by unique client. Attendance by class lets you know when it is time to pull the trigger on adding or dropping classes, and attendance by unique client lets you know how often your regulars are coming to class, which lets you get your pricing just right.
Introductory Offer Sales
How many new people came to your studio last month for the first time, and how many of them came on an introductory offer? Strong intro offer sales increase conversions to memberships, so it is important to know if folks are coming to their first class via an intro offer, a drop-in, or a freebie.
Conversion from Intro Sales to Membership
And last but not least, you need to know every month what your conversion rate to membership is…are you growing? Or are folks doing an intro offer and then not coming back? When you know what this percentage is, it gives you information on what your best next step is to increase conversions.
Tracking your numbers gives you knowledge, and we all know the saying, knowledge is power.
When you have the knowledge about your business metrics, you don’t have to guess about what is working, or see what feels right.
How something feels is not a success strategy.
Don’t get overwhelmed if you don’t have a system in place just yet, you gotta start somewhere, right? Use your Offering Tree software to track your metrics each month, and keep it simple by recording them Google Sheets or Excel to start. Make a note in your calendar and do it every month. Add a new one to track each month. Better yet, get someone on your team to do it, or hire a consultant to do it for you if spreadsheets make you crazy.
As one of my favorite mentors says, “you don’t have to get it perfect, but you do have to get it going.”
Need an easy place to start? Register for the upcoming webinar with Kristin on this very topic! Register via the webinars page here.
About the Author
Kristin @ Kristin Abel Consulting is a Yoga Business Coach, based in Houston, Texas. Having owned and managed a boutique yoga studio for 16+ years, Kristin has lived the challenges of running a small business through recessions, hurricanes, and pandemics. Kristin works one-on-one and in small groups with yoga studio owners, to help them see through the weeds of their business and identify solutions and implement strategies so that they can grow their businesses and enjoy more free time for themselves. Her specialties include KPI analysis, optimizing pricing, sales processes and email marketing.