What if Every Client Spent $12,000 at Your Gym?
Run a Profitable Gym
English - May 10, 2021 04:00 - 27 minutes - 19.2 MB - ★★★★★ - 61 ratingsEntrepreneurship Business Health & Fitness fitness coaching crossfit business gym marketing ceo Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
Do you track your gym's average lifetime value (LTV)? LTV is how much a client pays you over the entire course of your business relationship.
It's a marriage of two other important metrics—average revenue per member (ARM) and length of engagement (LEG)—and it's a great way to get some perspective on the health of your business.
Jonathan Beckner owns Move Functional Fitness in Decatur, Georgia, and in March 2021, his gym's average LTV was just shy of $12,000. Yes, that's the correct number of zeroes.
Here's a look at how he hit that number and why you should be tracking LTV.
Links:
Move Functional Fitness
"How to Make $100,000 Per Year With 150 Clients"
Level Method
Gym Lead Machine
Gym Owners United
Timeline:
1:45 – Looking at length of engagement.
6:07 – How to get clients to stick around.
8:16 – Keeping clients during COVID.
13:45 – Lifetime value: a reflection of the value of your services.
15:34 – Increasing average revenue per member.
18:23 – LTV: Providing perspective on ad spend and lead costs.
22:14 – To increase LTV, focus on value first.