In this video, I’m going to share the three metrics that every class business should be measuring.
In fact, if you’re not measuring these things, chances are your competition will be getting further and further in front.
Metric number one is active students. So, this is a very simple measure of how many students you have actively enrolled. It’s not the number of classes, that you’re doing it’s just how many active students you have in your program. So, for simplicity, let’s say you have 1000 students, then that is your active students. So, you want to know that at any time, you want to measure that each and every month, and whether it’s putting it in a spreadsheet or recording it in some way, in your software, it’s really important to have records of that for future comparison.
The second thing we want to measure is new customers. So, each month, how many new customers are we bringing in? And this is really measuring our sales and marketing strength and our customer acquisition engine, obviously, the more new customers we have coming in, that’s great because we’re adding that to our customer base.
The third metric that you should definitely measure is canceled, customers. So, they’re the customers that drop out of your program in any given time period. So, if we look at that, in terms of a month or a term, we can measure and see how many people have dropped out of the program.
Now, these all work together, these three metrics work together. So, for example, if you have 1000 customers, you add 100 new customers but lose 100 customers, and you stayed in the same position without growing your enrollment or your revenue. So, this is why it’s important to measure these three because you could be very strong at sales, marketing, and customer acquisition, but really poor retention. So that is an inefficient way to run your business. You want to be good at acquisition and retention. And when you’re good at both, that’s when your active enrollment numbers grow.
So, if you’re not measuring those three metrics in your business, give it a go. And let us know your feedback. If you have any other metrics that you measure in your business, we’d love to hear from you. Feel free to comment and let us know what’s the best metric that you measure in your business.