Marketing is a confusing and stressful activity for most fitness professionals. It’s requires a lot of trial and error to get right. Measuring the effectiveness of your marketing will allow you to eliminate the activities that aren’t working and spend more time on those that produce results.
Article Learning Objectives
- Identify the metrics you should be tracking in your fitness business
- Establish a plan for using your marketing data to evaluate performance
- Establish a cycle for optimizing marketing performance and focusing your efforts on the highest return activities
You’re pressed for time, stressed out over the pile of emails and items on your to-do list…
And on top of all that, you need to figure out how to bring in new clients in the shortest amount of time possible.
Sounds familiar, right?
Most fitness professionals aren’t able to spend 4-5 hours a day on marketing and client acquisition. You’re trying to maximize the results you get in the time you have. But, how do you know what activities to spend your time on?
Instead of randomly trying to figure out what works, let the data tell you.
Tracking the Correct Metrics
If you Google “what marketing metrics to track”, 669,000 results will appear. Each of them giving you a different list of numbers to keep tabs on and a long list of items to put into spreadsheets.
Tracking is important, and data can give you valuable insights into your marketing success, but it can also be overwhelming and tedious.
So, what really matters to you?
Four simple numbers in your business will give you a high-level view of the effectiveness of your marketing and sales performance.
They are the 4 Sales and Marketing Pillars:
- Front End Offers
- New Core Offers
- Lost Clients
Leads include any new contact you have collected information from that allows you to follow up with them. This includes email list opt ins, referrals and network contacts.
Front End Offers (FEOs) are an entry point into your program. A low barrier to entry offer that you can use to provide leads an experience in your program if they are on the fence about making a commitment. Examples include trials and challenges.
New Core Offers (COs) are leads that have become clients. A Core Offer is your primary offering in your business, the one you want to be the driver for revenue production.
Lost clients are any cancellations or non-renewals that you occur in a given timeframe. This is important to make sure you are growing your business. More clients going out than coming in indicates a problem.
How to Use Your Data
It’s important that you develop a habit of tracking and reviewing your 4 Sales and Marketing Pillars. You can start by reporting them weekly.
On Monday, review the data from Monday to Sunday of the previous week. It would look something like this:
New COs: 1
Lost Clients: 0
Getting into this habit will allow you to see patterns, but it doesn’t really impact your decision making or give you insight into the effectiveness of your marketing and sales.
To see the full picture, you need to look at these numbers as they accumulate over the month and quarter. Keeping track of your numbers in a dashboard or scorecard will help you organize this data and make it easier to evaluate.
The end goal is client growth. You want to be bringing in more New Core Offers than you’re losing each month, which will result in increased revenues for the business. Your marketing and lead generation should support your growth goals.
Your own marketing performance history is the best indicator of success and improvement, but assuming you are just starting to track these metrics here are the conversion numbers to aim for:
- 50% of your leads should move into an FEO or CO
- 75% of your FEOs should convert to a CO
- 95% or better retention rate (Previous Month Total Clients - Lost Clients/Previous Month Total Clients)
Advanced Metric Tracking
Once you’ve mastered the basics, you can begin looking at other metrics that are more advanced.
Cost Per Lead - If you are paying for advertising, such as Facebook ads, direct mail, etc., it’s important to know what it costs you to acquire leads.
Conversion Rate - You’ll want to begin looking at your Lead to New CO conversion rate over time, usually by month or quarter to evaluate if your sales process is effective.
Lifetime Value of Client - If you know your Cost Per Lead and Conversion Rates, this metric becomes extremely valuable. You will now be able to figure out how much you can spend on your marketing and remain profitable.
Lead Channel Performance- If you are tracking all of your marketing and identifying where your leads come from, it’s possible to breakdown all of your metrics by lead channel. This will allow you to discover where to spend most of your time and money to get optimal results.
These metrics allow you to treat your marketing like an investment instead of an expense.
Evaluate, Optimize, Repeat
Each quarter take a few hours to review your marketing metrics and determine what is working for you and what is not producing the results you want from your business. While the answer may not always be obvious by looking at the data, you will be able to learn what information you need to look for to find your answers.
After evaluating your performance, it’s important to optimize the marketing activities and lead channels that are performing well and get rid of the rest. Put your time, energy and money into your highest return activities to improve your results.
Repeat this process every quarter to dial in your marketing performance and reach your business growth goals.