Special thanks to guest contributor, Chris Cooper, founder of Two Brain Business and author of Two-Brain Business, Two-Brain Business 2.0 and Help First.
“I’m really pumped about Wodify’s new Business Health Dashboard. Having the knowledge at your fingertips is what’s going to empower you to build a better business”
- Chris Cooper | Founder, Two Brain Business
One of the most important factors of success for any business is the ability to measure & improve key business metrics. That’s why we partnered with Two Brain Business, a leading fitness business mentorship organization, to create The Business Health Dashboard. With The Business Health Dashboard, gym owners using Wodify will be able to see the key metrics for their business at a glance.
In the past, things like “average revenue per member” or “average length of engagement” would have been a cumbersome process of running reports, exporting data, and determining the right calculations.
We hope this new dashboard gives owners a better handle on their business and helps them succeed! Here’s a short video of Chris Cooper, Founder of Two Brain Business, explaining the importance of these metrics:
How it’s calculated: Total revenue brought in to the gym, including all memberships, retail, and other services in the selected time period.
What it means to your business: Before you can spend it, you have to get it. Knowing your gross revenue answers the most basic question: is there enough money coming in?
How it’s calculated: The total dollar amount of the discounts given on memberships, retail, and other services in the selected time period.
What it means to your business: Every discount you give means another client you have to recruit and retain. It means that one client gets a benefit that others don’t. And worst of all, discounts don’t actually improve sales OR retention. It’s important to have this number at your fingertips so you know the missed revenue from your discounts. Here’s more info on why Two Brain Business never recommends running sales or discounts.
How it’s calculated: Gross revenue divided by the average active athlete count in the selected time period.
What it means to your business: You should be able to cover costs, pay a coach or two, and take home a decent income on 150 members. If you have 150 members and you’re not making any money, your ARM is too low. ARM is a measure of your value: are people paying what you’re worth?
How it’s calculated: Total athletes with any membership plan compared to total active athletes (as of today).
What it means to your business: How many freebies are you giving away? How many trades? Can you get that number lower? Is every “trade” delivering? Are they all providing the same value?
How it’s calculated: The average length of time that a member has been active in your gym (as of today), with any membership plan.
What it means to your business: A LEG score lower than 18 months means you’re losing clients to poor delivery. LEG is a measure of operational excellence. The average gym owner could net another $38,000 per year simply by keeping every client 3 months longer. Before you spend too much on advertising & marketing, lengthen your LEG.
How it’s calculated: Simple measure of the average active athletes in your Wodify account, across all locations, in the selected time period.
What it means to your business: Knowing your total client count will keep the other math in perspective. While headcount tends to be the red herring metric (it matters less than you think!) having an accurate client list means you can calculate the metrics that really matter, above.
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If you aren’t yet a Wodify user and want to get access to this dashboard and all the other features to help you run an amazing gym, you can learn more & book a demo here.
