One of the best things you can do for your business is to report and track key performance indicators that help drive the growth of your business.
Whether you are a swim school, gymnastics center, or other class-based business there are only a vital few metrics that are the foundation of your business model.
It is likely you already know their metrics and their importance, but we ask- Are you tracking them?
Do you track your key metrics each month?
Are you able to compare your key metrics from the same time last year?
If the answer is NO, then you are likely leaving growth opportunities on the table.
Tracking your KPIs is extremely high leverage. It’s one of the best things you can do if you want to grow your business to the next level.
To make it easier for you to track your KPIs, we have created a FREE KPI tool that allows you to track your metrics each month.
You can set up a FREE account here.
Let’s explore our 6 key metrics and get an understanding of how they work together.
1. Starting customers (current enrolment)
This is the number of active students or enrolments in your business. Ideally, we want this number to increase as it will mean higher revenue.
2. New customers (customer acquisition)
New customers are the number of new customers you have acquired for the period (month) This is a measure of your sales and marketing capabilities.
3. Cancelled customers
Canceled customers are how many customers canceled or dropped out during the measurement period. Customer retention is critical to the class based business model so we want this number to be as small as possible.
4. Attrition rate
The attrition rate is the measurement of our customer dropout. We calculate it by taking the number of canceled students and dividing it by the starting enrolment number.
5. Occupancy rate
This measures our class efficiency. An occupancy of 100% would mean we have no spaces left to fill in our classes. A high occupancy typically means a more efficient and profitable class business.
Revenue is arguably the most important metric because its money in the bank and the end result of the metrics that come before it.
By tracking these 6 metrics on a monthly basis you will start to see the relationship between these key metrics.
The biggest benefit of tracking these metrics is that you will start to see areas for improvement.
Are you strong in customer acquisition but poor in retention?
Is your occupancy lower than it should be?
Without having this data in front of you and seeing how it’s evolving each month you are operating your business in the dark.
By setting up our class business KPI tool you can easily update these metrics each month and our system will save them for you and chart out your progress.
Set up your account here.
If you subscribe to one of our premium accounts this information will automatically be collated from your classes.
You can learn more about our class management software for swim schools, gymnastics centers, martial arts centers, and other sports class businesses here.