5 Key Metrics for Success
As we are nearing the end of the second quarter of 2022, I have to ask, which type of studio owner are you?
Do you LOVE talking about 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. I am a unicorn...I always enjoyed analyzing my studio numbers...it's my happy place. Weird? Maybe...but it makes me really good at my job.
But the truth is, even if it 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.
Do you know why? You have heard me say this before...
#1 – You can’t grow what you can't measure.
#2 – You can't fix a problem that you don't know you have.
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 robust the reporting of your studio software is, there are likely HUNDREDS of metrics you can track. But who has time for that? Not me, and I LOVE running reports.
You have 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 business.
Revenue by Category
Recurring Revenue
Attendance (total, visits per class and visits per unique client)
Introductory Offer Sales
Conversion from Intro Sales to Membership
There are so many additional KPIs you can, and should track … including revenue by category, revenue per class, payroll as a % of revenue....
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, you gotta start somewhere, right? Keep it simple and track just a few in Google Sheets or Excel. 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? Download my editable templates to easily track a few of the most important KPIs in your studio business.