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Tag: Profitability

How FitGrid Can Help Grow Your Revenue

How FitGrid Can Help Grow Your Revenue

How FitGrid Can Help Grow Your Revenue

SOFTWARE FEATURES

FitGrid | September 22, 2021

Community management software that helps fitness studios increase their bottom line

Do you struggle with finding the time to do everything it takes to build a thriving fitness business? FitGrid, a smart community management software developed with the fitness studio owner’s specific needs in mind, can help. By connecting staff, instructors, and clients through a powerful learning and recommendation grid, FitGrid helps you leverage the power of your community to drive your studio’s profitability.

Here are four ways that using FitGrid can help you grow your fitness studio’s revenue, right now:

Save time and energy, while increasing revenue

According to Campaign Monitor, marketers who use segmented campaigns see huge boosts in revenue, some note as much as a 760% increase! Knowing that segmentation is a foundation of email marketing success, FitGrid created an automated outreach platform that allows you to divide your client base into segments so you can intervene with at-risk clients and recognize your most loyal ones. FitGrid sends your staff daily recommendations on who and how to reach out to your customers. Much of the outreach is automated, helping save you precious time and energy, while allowing you to customize messages to give them a personalized touch. 

Cultivate community to keep clients walking through the door

People want to feel that they belong to something bigger than themselves. Nurture community at your studio, and your business can thrive. From creating in-depth client profiles that allow you to understand your clients’ goals, preferences and habits, to a consumer-facing app that allows studio-goers to connect with other clients online, to a feature that allows instructors to communicate with their students, increasing engagement, loyalty, and revenue, FitGrid has created several solutions that help you cultivate community. Sending instructor follow-ups from the FitGrid Pro App, for example, can increase the number of first-timers who come back to your studio by up to 65 percent.

Empower your clients to be your biggest advocates

Word of mouth referrals are widely considered to be the most effective form of marketing. People might not trust marketing messages from a company, but they do trust what their friends love and recommend. The FitGrid Class App makes client referrals simple and intuitive, allowing people to invite their friends and family to class with a simple click of the button. We’ve found that about 1 of 6 members referred via FitGrid end up joining the studio.

Use your resources wisely to decrease customer churn

Research indicates that it is much easier and more cost effective to regain a past client than to find new clients. FitGrid empowers you to easily connect with past clients and get them back in your studio. Our clients have seen real success in driving revenue by winning back clients. For example, Cindi Nikituk who owns four locations of Farrell’s eXtreme Bodyshaping sent out messages to 1,277 unique clients who had not been in the studio in 7, 30, 60, 180, or 365 days through the FitGrid Win-Backs function. 392 of these communications turned into return clients –a conversion rate of 31 percent, without offering discounted programming. The FitGrid Pro App elicits similar results, with 65.3 percent of first-time clients came back to the studio after receiving an instructor follow-up message.

FitGrid knows the fitness business and has developed community management solutions with your success in mind. What are you waiting for? Let FitGrid fuel your studio’s success today. Try FitGrid for free for 14 days. 

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Rebuilding and Streamlining Your Studio's Pricing Strategy

Rebuilding and Streamlining Your Studio’s Pricing Strategy

Rebuilding and Streamlining Your Studio’s Pricing Strategy

PROFITABILITY

Chris Beer, founder of B.Well Consulting | June 7, 2021

Why a two-week membership strategy might be the best solution for your studio

After a 20 year career in finance, I began to work with fitness and wellness owners to help them make data-driven decisions that propel their organizations forward. I’m a member of FitGrid’s operations team, a Certified Mindbody Business Consultant, and the founder of B. Well Consulting. Numbers are my thing and I’m definitely known as a mathlete, not an athlete. I’m here to share simple tips for creating pricing options that are attractive to your clients in the current environment.

As studios begin to reopen for in-person classes, many businesses are struggling with how to organize their pricing options, given that so many things have changed in the last year. Keep in mind that intelligent pricing is so much more than a numbers game. When thought about correctly, your approach to pricing is a powerful way to build your brand and drive more profits. 

How do you access the full power of gym membership pricing? The key is to understand the psychology that goes into a pricing strategy.

Membership pricing can depend on a number of factors, including your customers’ current habits, what your break-even point is, your ideal profit margin, and your competitor’s pricing structure. 

The first thing you want to do is understand your current revenue and costs, you can figure this out by using FitGrid’s Profit Calculator tool. Once you understand how many people you need in your classes to break even, you can set your profit goals and can start exploring options for membership pricing. One benchmark for membership pricing is attendance data – how many times per month are clients coming to class on average, and how much they are paying each time. From there, you can determine a membership price that will be a good deal to your customers and still bring in your desired profit.

There is no one-size-fits-all approach to membership pricing. Once you know your break-even and profit margin numbers, you may want to explore innovative approaches to membership pricing that will incentivize your customers to sign up and keep your profits high. Implementing a new approach to memberships could be especially appealing right now during this transition time following pandemic lockdowns. 

One fresh way to frame membership pricing is the two-week membership strategy, a recurring membership that renews every two weeks.

A two-week membership to a fitness facility is not a new concept (heck, Bally’s offered it before some of you were born), but it’s an approach that will help you re-engage some of your clients and attract new ones. Here’s why this gym membership pricing model might be compelling to your clients:

  • Lower barriers to entry – It might be overwhelming to think about life in 30 day chunks of time after all the change we experienced in the last year. It can be a lot easier for a client to visualize how your business fits into their life for the next two weeks than a large frame of time right now.
  • Cash flow – Many people are paid twice a month, and would rather spread out their expenses to match the flow of their income.

Let’s look at the benefits of the two-week membership strategy from the perspective of the owner/operator:

  • Cash flow, from the business perspective – Recurring memberships give a business a more consistent revenue stream than just class packages, and a two-week cadence can give you a more regular stream of income, allowing some cushion for payroll and other expenses.
  • The rule of 4.33 – Most people think of a month as having four weeks, but with 52 weeks in a year, there are actually 4.33 weeks in a month. I know, you’re thinking – stop being such a mathlete–but hear me out. For a client who is in the mindset of four weeks equals a month, a “$99 for 2 weeks of unlimited classes” membership equals roughly $198 per month when in reality, you’re collecting $214.50 per client per month. Every bit counts, and that’s why it might pay to look at things differently.

It can always be beneficial to evaluate your business and revenue from new perspectives. This is especially true in an environment in which so much has changed, and the path forward is less than crystal clear. I recommend trying the two-week membership strategy, it just might be the right solution for you.

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How to Generate Fitness Studio Leads While You Sleep

How to Generate Fitness Studio Leads While You Sleep

How to Generate Fitness Studio Leads While You Sleep

BUSINESS OWNER INSIGHTS

Mike Arce | January 15, 2020

As a studio owner, isn’t it a dream goal to end each day with your head on your pillow knowing that your fitness studio is financially secure—and that you have plenty of potential members in the pipeline to convert into paying members?

But… the question is, how do you get from dream to reality? Here are the steps to take to realize your fitness studio’s membership growth and revenue potential—while you’re sleeping.

Always be advertising on Facebook and Instagram

Just because you’re done working, doesn’t mean your potential members are. So, make sure you’re running Facebook and Instagram ads around the clock, 24/7. Then, make sure you’re retargeting people who engage or show interest to get them to the final step: scheduling classes and purchasing memberships. Getting in a flow and system like this will start automating your lead generation and inevitably lead to increased memberships. 

The most common question fitness studios ask is, “But what if someone sees our ad and wants to call us but we’re not open?” It’s a fair question, but Loud Rumor’s data shows fitness studios generate leads at a far lower cost by running ads during off-hours. How? The math is in your favor. If your fitness studio only runs ads when you’re open, that means you’re running a lower number of active campaigns and getting in front of fewer potential members… leading to far fewer leads generated.

Think about it this way: If you were to see an ad at 11 p.m., would you assume the company is open? Probably not, right? That’s just when YOU may happen to be most active on social media, making it the best time to reach you.

Not only are you getting in front of potential members when they’re most active on social media, you’re also getting in front of them when other fitness studios that only run ads when their doors are open are NOT active. Meaning, there’s less competition.

If you do get messages or questions during off-hours, follow up with people first thing in the morning and you’ll have generated far more leads than nearby competing studios, which brings us to step #2.

Follow-up fast and frequently

Leads can end up being leads for a long time or a very short time. In an ideal scenario, however, the follow-up time on your end will be very short. These potential customers want and deserve attention, follow-up, and guidance from your fitness studio. Reward their social media interest immediately with a follow-up call.

If a potential member fills out your landing page form during business hours, your goal should be to follow-up in real-time. Why? In a fascinating MIT study, they found that the opportunity to contact leads plummets 900% if you don’t follow up within just 5 minutes—that is when their interest is at its peak. Acting quickly will not only increase your chances of getting them on the phone, it will also help move leads from “cold” to “hot” much faster, increasing the likelihood they’ll convert (i.e. purchase a membership).

It’s also important to use automation, especially for those leads who fill out a landing page form during off-hours, to make sure they get an email immediately explaining the next steps and expressing your gratitude for their interest.

What’s the goal? Get them in front of a salesperson who can convert them into a paying member.

What should happen while you’re sleeping

These steps will take your lead generation to brand-new heights and guide your leads along their member journey. Before you know it, you’ll wake up every morning with tons of leads in the pipeline, which is more membership opportunities, then you’ll know what to do with, which leads us to the next question.

Should you hire someone or DIY (do it yourself)?

This is the ultimate debate. You’d think—since we’re in the business of partnering with fitness studios—we’d jump at the chance to say, “Hire someone!” but we think it depends on you, where your fitness business is at, and what you’re capable of producing on your own within your budget versus what working with an outside company will cost.

There are two key factors here: time and money.

First, let’s talk about time. Based on where your fitness business is now, do you feel you have the time to dedicate to lead generation, running successful ad and retargeting campaigns, and staying on top of what works and doesn’t work, along with keeping up with the latest advertising trends?

If so, great! You’re way ahead of the game. Now, let’s say you have time for all of that, and you’re implementing your own campaigns, what’s your cost per lead (CPL)? If your CPL is high, something’s amiss in your campaign. If it’s low, then that means your time has been well spent.

Here are the advantages of hiring someone for lead generation: 

  1. They know how to keep your CPL low…it’s what they do.
  2. They free up your time so you can focus on closing the leads they generate.
  3. They free up your time so you can focus on client services and operations.
  4. They’re not as expensive as you might think, especially compared to the new business you might gain.

So really, the debate comes down to you. What are you willing to sacrifice? Time? Money? Both? If you hire someone, you’re sacrificing money upfront with the goal of earning it back and reaping the rewards of profit (ROI). If you do it yourself, you’re sacrificing time (there’s no ROI for that) and you’re potentially sacrificing money if you have a high CPL and low lead conversion.

Whichever route you choose, the steps above are still the best ways to generate and close leads as well as to create brand awareness separation between you and your local competition. Take these steps and you’ll become the go-to fitness studio in the minds of the local community and that’s exactly how you grow your studio while you sleep.

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FitGrid is a community management system designed for boutique fitness studios to engage clients on a personal level

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