By: Rick Mayo
“What gets measured, gets managed”- Peter Drucker
Assume for a moment that we were on a call today to discuss your personal training department. I would begin this call by asking you a few key questions about your personal training numbers. These questions would revolve around the Key Performance Indicators (KPI’s) that we use to measure progress (or lack thereof) of your PT programs.
Let’s look at the 4 KPI’s that you should measure each month and why:
- Memberships sold- This one is easy! The PT sale begins at the moment the potential member walks through your doors inquiring about membership. We consider the new member as an opportunity to sell training. The more memberships we sell, the more opportunities we have to convert those new members into personal training clients.
- Book Rate- How many of your new members were booked for their first appointment with your Director of Training (DOT)? The DOT is the person who is responsible for selling PT. If we can’t get them to the DOT, we have no shot at convincing them that they need more than a slow walk to nowhere on the treadmill and the inner/outer thigh machine to reach their goals. How do we improve our book rate? First, we measure. We make sure that our membership sales team understands that not only are they expected to sell memberships, but they are also accountable for the book rate. Now, we have to give them the proper tools to make this happen (training centric tour, gift to the PT dept., tech solutions around the scheduling process sand etc.) and then we have to hold them accountable to our target percentage. The number is 70%. So, 70% of all new members must be booked for the first appointment with our DOT.
- Show Rate- What percentage of the booked members actually show up to the appointment with the DOT? Our goal is again 70%. This is 70% of the members that booked. Basic math tells us, based our 70/70 formula, that half of all of our new members will show up for their appointment with the DOT. How do we increase our show rate? Confirmation email, confirmation text message and a phone call from the DOT the day before the appointment. There are many tech solutions available that can automate most of this process
- Close Rate- So we’ve done our job at membership and booked a time for the first PT appointment and our tech solutions and confirmation process have delivered the new member to the DOT. Now, what solution, if any, did we sell to the member? If we run our scripted first appointment correctly, we should expect to close 35% of our first appointments into some layer of our PT programs. Again, the simple math tells us that this final percentage is around 17%. We like to be a bit more aggressive and shoot for 20%.
This means that if you run your processes correctly, 20% or 1 in 5 of all of your new members should end up in one of your PT layers. If this does not happen, measure and adjust.
Keep in mind: Don’t just measure your numbers to see where you are having problems. Also use them to pinpoint what you are doing well in the process and reward those that are responsible.