You don’t have to be a studio or gym owner to understand the financial roller coaster that is involved with running a fitness business. From managing huge numbers of new members after New Year’s to handling the daily ups and downs of your business, there’s a lot to worry about. As more members enter your gym with high hopes for toned muscles and healthier lifestyles, naturally, you’ll experience an increase in revenue and business growth.
Unfortunately, new memberships at fitness centers almost always start to dwindle as the year goes on. In fact, 80% of new members will quit within five months and approximately only 18% hit the gym consistently. What exactly does this mean for your bottom line?
Like any membership-based business, your members are the core of your operations and, if they are leaving, so will your revenue. Therefore it’s crucial to place an emphasis on retention efforts and staying on top of industry trends to underpin business decisions.
So, how exactly do you do that?
Today, if you want to stand out from the competition you have to embrace things like automation, data and analysis of your business’ metrics. Oh, and staying on top of (and growing) your monthly and annual revenue. No big deal.
The first step is to develop a better understanding of your business’s current and future financial status by creating financial reports and data analysis processes. You can accomplish this by implementing a fitness studio software – which can deliver over 30 types of different reports – and begin to determine if your efforts are effectively generating constant cash flow. You can also understand where potential issues can arise and how to prevent, or at least minimize, them.
The next step is automating those reports. You run a fitness club, you don’t have time to be crunching the numbers. Having the ability to get a quick rundown of all your financial data through constantly-updating monthly reports is a simple way to get into the world of insights and analysis for your business.
Getting a handle on automation will help you spend more time on execution and scaling your business.
Speaking of execution, how many hours a week do you spend manually processing your payments, invoices, and collecting payments from members? A lot, right?
Manual payment processing is extremely time consuming as well as prone to human error and delays, which can quickly lead to member dissatisfaction.
To say manual processing is problematic for businesses would be putting it lightly. So why waste time and resources, when technology can automate the whole process? Fitness Studio Software is the perfect tool to help you streamline your payments and never miss a thing.
The simple act of shifting from a pen and paper to electronic payment processes, you can drastically reduce costs, save time, minimize the risk of manual errors and duplicate payments, increase visibility, prevent fraud, and more.
Just as you’re beginning to embrace technology more through reporting and automation, now is also the time to move out of the manual and analog world and let the studio platform take your business to the next level.
While it’s true that businesses grow by generating new leads and acquiring customers, the real growth comes from retaining current customers.
In fact, acquiring new customers can cost 5-25 times more than retaining one and current customers statistically spend 67% more at your business than new customers.
There’s really no doubt that emphasizing retaining customers is key for your finances – and all it takes is focusing on your member experience.
You can streamline member nurturing efforts by creating interactive forms and surveys to discover what your members like, dislike, and what’s missing from your services – and accommodate accordingly. Track class attendance and send push notifications to secure fluid communication and prevent membership cancellations. Provide your members with a fast and intuitive mobile app where they can easily book classes, manage their membership, get help, make payments, and more, all conveniently through mobile phones.
In short, fitness studio software will smooth out all member interactions with your business to ensure they are satisfied and always coming back for more.
Automation for Success
Streamlining processes and efforts, be it payments, overall efficiency, communication, retention, sales, and so on, all contribute to your continued success and increasing your cash flow. Implementing the Arbox fitness management system will help in this journey to full automation and will enable you to focus more on scaling your business.
This is just the start of understanding Arbox can help take your business to the next level. To learn more, schedule a demo and a member of our team will help get you onboard.