Introduction
Personal training services are becoming increasingly popular as people seek more effective and efficient ways to achieve personal health and fitness goals. As such, it is important for personal trainers (PTs) to track the performance of their services in order to optimize the effectiveness of their work. To do this, they need to be aware of the Key Performance Indicators (KPIs) that are highest in importance and success. In this blog post, we will discuss the top seven personal training service KPI metrics that should be tracked and analyzed for the best results.
These KPIs are:
- Average cost per session
- Average number of customers per session
- Average revenue per new customer
- Average Customer Lifetime Value
- Average customer retention rate
- Training session No-show rate
- Average net profit margin
For each of these KPIs, we will discuss how to track, calculate and analyze them to better understand and appreciate the performance of the personal training service.
Average cost per session
Definition
Average cost per session is a key performance indicator (KPI) that measures the average amount spent on each personal training session. It is calculated by dividing the total cost of the sessions by the total number of sessions.
Benefits of Tracking
Tracking the average cost per session KPI has several benefits for personal training services. This metric provides insight into business profitability and can help inform decisions on pricing and marketing strategies. Additionally, tracking this metric can help identify areas where costs can be reduced, such as renegotiating service contracts or streamlining processes.
Industry Benchmarks
The average cost per session varies by region and type of personal training service. Generally speaking, the average cost per session can range from to 0, depending on the service provided. It is important to note that the average cost per session is not necessarily indicative of overall business profitability.
How to calculate
The average cost per session KPI can be calculated by dividing the total session cost by the total number of sessions.
Calculation example
For example, if a personal training service has a total cost of ,000 for 100 sessions, the average cost per session would be 0.
Tips and tricks
- Track the average cost per session over time to identify trends and assess the impact of price or service changes.
- Compare the average cost per session to industry benchmarks to make sure you’re competitive.
- Identify ways to reduce costs without sacrificing quality of service.
Average number of customers per session
Definition
Average number of clients per session (ANCPS) is a key performance indicator (KPI) that measures the average number of clients a personal training service has per session. This is a metric used to track and measure the effectiveness of the personal training service in terms of customer satisfaction and revenue.
Benefits of Tracking
Tracking and calculating ANCPS is beneficial for personal training services as it allows them to measure their performance in terms of customer satisfaction and revenue. It also helps them identify areas where they can improve their services and make necessary changes to increase their customer base and profitability.
Industry Benchmarks
The industry benchmark for ANCPS is typically around 4-5 clients per session. This means that a personal training service should aim for at least 4-5 clients per session in order to be competitive in the industry.
How to calculate
To calculate the ANCPS, you must divide the total number of clients by the total number of sessions. This can be expressed in the following formula:
Calculation example
For example, if a personal training service has 10 clients in total and they had 5 sessions, the ANCPs would be 2. This means that the personal training service has an average of 2 clients per session.
Tips and tricks
- Be sure to regularly monitor the ANCPS to identify any changes in the performance of the personal training service.
- Identify areas where ANCPS can be improved and make necessary changes to increase customer satisfaction and revenue.
- Compare your personal training service’s ANCPs to the industry index to measure your performance.
Average revenue per new customer
Definition
Average revenue per new customer (ARPC) is a key performance indicator (KPI) that represents the average amount of revenue generated by a single new customer. It is a measure of how much money a business makes from each new customer it acquires. This metric is useful for understanding the financial impact of customer acquisition on a business.
Benefits of Tracking
Tracking average revenue per new customer can provide a business with valuable insight into the effectiveness of its customer acquisition efforts. It can be used to measure the success of marketing campaigns, identify opportunities for improvement, and make informed decisions about how best to allocate resources. Additionally, it can be used to compare the performance of different customer acquisition channels and determine which channels are most effective for the business.
Industry Benchmarks
The average revenue per new customer varies from industry to industry and even from company to company. Generally, the higher the ARPC, the more successful the customer acquisition efforts. As such, it is important to benchmark your ARPC against similar companies in your industry to ensure you are meeting industry standards.
How to calculate
To calculate the average revenue per new customer, you need to divide the total revenue generated by the number of new customers acquired. The formula is:
Calculation example
For example, if your business generated 0,000 in total revenue from 100 new customers, your ARPC would be ,000. The formula for this calculation would be:
Tips and tricks
- Track ARPC over time to spot trends and identify opportunities for improvement.
- Compare ARPC across different customer acquisition channels to determine which channels are most effective.
- Prepare your ARPC for similar companies in your industry to ensure you meet industry standards.
Average Customer Lifetime Value
Definition
Average Customer Lifetime Value (ALVC) is a key performance indicator (KPI) that measures the total revenue generated by a single customer over the lifetime of their relationship with your business. This is an important metric for personal trainers because it provides insight into the long-term profitability of each client.
Benefits of Tracking
Tracking average client lifetime value can provide personal trainers with valuable insight into their overall client base. It helps trainers identify the most profitable clients and can even help them identify where to invest additional resources and marketing efforts. Knowing about the ALVC can also help trainers make informed decisions about their pricing and customer service.
Industry Benchmarks
The average ALVC varies depending on the type of personal training service. Generally, a good ALVC should be around ,000 per customer per year. However, this number can vary significantly depending on the services offered and the customer’s willingness to pay.
How to calculate
Calculation example
For example, if a customer has been with your business for five years and has generated total revenue of ,000, the ALVC for that customer is ,000.
Tips and tricks
- Track ALVC for each customer, rather than the entire company.
- Follow the ALVC over a longer period, such as five years.
- Analyze ALVC in combination with other metrics, such as customer satisfaction and number of referrals.
- Focus on providing excellent customer service and creating an experience that will keep customers coming back.
Average customer retention rate
Definition
The average customer retention rate is a metric used to measure the overall customer health of a personal training service. It is calculated by dividing the number of customers retained over a given period by the total number of customers acquired during the same period.
Benefits of Tracking
Tracking and calculating the average customer retention rate for your personal training service is a great way to better understand customer loyalty and engagement. It can help you identify and address all areas of concern and recognize all areas of success. Additionally, tracking this metric over time can help you gauge the effectiveness of any customer retention or engagement initiatives.
Industry Benchmarks
The average customer retention rate will vary depending on the type of personal training service you offer. In general, a retention rate of 75% or more is considered excellent, while a rate of 50% or less is considered poor.
How to calculate
The formula for calculating the average customer retention rate is:
Calculation example
For example, if your personal training service acquired 500 customers in the past year and retained 375 of those customers, the average customer retention rate would be calculated as follows:
KPI Tips and Tricks
- Develop strategies to increase customer loyalty and engagement.
- Identify areas of success and areas for improvement.
- Evaluate customer feedback to determine areas for potential improvement.
- Implement customer loyalty initiatives to increase customer retention.
Training session No-show rate
Definition
Training session No-show rate is a key performance indicator (KPI) that measures the rate of customers who do not show up for their scheduled training session. This metric helps personal trainers gauge the effectiveness of their training services, as well as the reliability of their clients.
Benefits of Tracking
Tracking the training session no-show rate allows personal trainers to identify areas for improvement in their training services. By analyzing the no-show rate, trainers can better understand why customers don’t show up and what can be done to improve their customer experience and increase footfall.
Industry Benchmarks
The average training session no-show rate for personal trainers is typically between 5-10%. However, this number may vary depending on the type of services offered and geographic location.
How to calculate
The training session no-show rate is calculated by dividing the total number of no-shows by the total number of scheduled sessions. This can be expressed as a percentage or as a decimal.
Calculation example
For example, if a personal trainer has 20 sessions scheduled and 4 clients fail to show up, the no-show rate is 20%.
Tips and tricks
- Send reminder emails or text messages to clients before their scheduled sessions.
- Offer incentives to clients who show up for their scheduled sessions.
- Be flexible with clients who need to reschedule or cancel their sessions.
- Set realistic expectations for clients and ensure they are aware of the commitment required for training sessions.
Average net profit margin
Definition
The average net profit margin is the ratio of the average profit to the average revenue of a personal training service. It is used to measure the efficiency of the business in terms of profit generation.
Benefits of Tracking
It is important to track the average net profit margin of a personal training service in order to measure the success of the business. By tracking this metric, it is possible to identify areas of the business that need improvement and take corrective action accordingly. Additionally, tracking this metric provides valuable insight into overall business profitability.
Industry Benchmarks
The average net profit margin for personal training services varies depending on the type of services offered and the size of the business. Typically, small businesses have an average net profit margin of around 10-15%, while larger businesses can have an average net profit margin of around 25-30%.
How to calculate
Calculation example
For example, a personal training service has a net profit of ,000 and total revenue of 0,000. The average net profit margin can be calculated as follows:
Tips and tricks
- Tracking the average net profit margin of a personal training service can provide valuable insight into the overall profitability of the business.
- It is important to compare the average net profit margin of a personal training service to industry benchmarks to identify areas for improvement.
- The average net profit margin of a personal training service should be monitored regularly to ensure that the business is operating efficiently.
Conclusion
In conclusion, personal trainers should regularly track the seven key personal training service KPIs, metrics outlined in this blog post in order to optimize their service performance and make better decisions. By understanding and calculating the average cost per session, average number of customers per session, average revenue per new customer, average customer lifetime value, average customer retention rate, no-show rate training session and net average net profit margin, PTs can assess and improve the quality and efficiency of their services.
- Home
- Average cost per session
- Average number of customers per session
- Average revenue per new customer
- Average Customer Lifetime Value
- Average customer retention rate
- Training session No-show rate
- Average net profit margin