A Fresh Take on Studio KPIs: The Best Numbers to Watch at Your Studio

What are the best numbers to watch (and analyze) at your fitness studio? In an insightful webinar with Lauren Schoenfeld, a fractional CFO and founder of Active Core Consulting, she sheds light on the essential Key Performance Indicators (KPIs) that studio owners should prioritize. The discussion is particularly relevant for those who find themselves inundated with a myriad of business metrics and seek clarity on which numbers truly drive performance.

Here are the key takeaways that apply to having a successful fitness business:

1. Simplification of metrics

Lauren emphasizes the importance of focusing on a few KPIs that provide actionable insights rather than getting overwhelmed by an excessive array of metrics. This approach enhances decision-making processes and operational efficiency while analyzing numbers that might not make a real difference.

2. Weekly and monthly tracking

It is crucial in your studio to monitor KPIs regularly, weekly, and monthly. By instituting this practice, studio owners can identify trends early, adjust strategies promptly, and ensure continuous improvement in performance.

3. CORE method framework

A highlight of our webinar is Lauren's introduction of her signature CORE method framework. Her strategic tool aligns financial performance with broader business goals, aiding studio owners in making more informed and strategic business decisions. The CORE method simplifies the complexity of financial metrics and translates them into actionable business strategies.

4. Financial performance focus

What KPIs directly impact profitability and operational efficiency? The numbers that count include metrics related to revenue streams, cost management, client retention, and utilization rates. By honing in on these areas, studio owners can significantly (and sustainably) improve their financial health.

5. Practical implementation—the best part! 

Lauren provides practical tips on how to implement these KPIs effectively. This includes setting up regular data collection, analysis, and reporting systems. The goal is to create a streamlined process that integrates seamlessly into your studio's daily operations.

For a deeper dive into these strategies, watch the full webinar here!

Additional detailed insights that can help:

Revenue metrics

Understanding revenue patterns is fundamental. Lauren advises tracking metrics such as total revenue, revenue per client, and revenue per class. These indicators help identify the most profitable services and customer segments, enabling targeted marketing and service optimization.

Cost management

Managing costs is equally important. Key metrics include fixed and variable costs, cost per class, and cost per client. By analyzing these numbers, studio owners can identify areas where expenses can be reduced without compromising on service quality.

Client retention and acquisition

Client-related KPIs, such as client retention rate, new client acquisition rate, and client lifetime value, are crucial. These metrics provide insights into the effectiveness of marketing efforts and client satisfaction.

Utilization rates

Monitoring the utilization rates of classes and facilities can help optimize scheduling and resource allocation. High utilization rates indicate efficient use of resources, while low rates may highlight opportunities for improvement.

Profitability analysis

Ultimately, the goal is to improve profitability. KPIs such as profit margin, net profit, and break-even analysis are vital. These metrics offer a clear picture of the studio's financial health and the effectiveness of its business strategies.

Lauren Schoenfeld's webinar provides a comprehensive guide for studio owners to navigate the complex landscape of business metrics. By focusing on a few critical KPIs and utilizing the CORE method framework, studio owners can make informed decisions that enhance both financial performance and operational efficiency.

Check out Lauren’s KPI worksheet here!