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Reopening & Rebuilding Strategies - Part Two

It feels like you are starting all over again with your business. Maybe you’ve recently gotten the green light to re-open, or you’ve been open for a while but are now seeing some increase in attendance.

Whether you are reopening or already opening, we are all rebuilding. And it’s a whole new ballgame. Lots of changes and some new challenges:

✔ Creating class schedules

✔ Hiring new staff

✔ Developing win-back campaigns for old clients

✔ Creating sales and marketing campaigns to attract new clients

And all with:

🚫 Reduced capacity

💰 Limited cash reserves

🤼 Limited staff

In Part Two of this article, we’ll look at some simple KPIs (Key Performance Indicators) to evaluate your current situation, and to help plan for the future.

There are 3 workbooks in this KPI spreadsheet, and here are some tips for each one:

No Visit After First Visit

Many increases in attendance with businesses I work with have recently been due to new clients coming to the business, not old members/clients coming back. New clients are more important than ever, and so how you treat new clients and how you implement your sales process is more important than ever as well.

This KPI measures how many clients came for their first visit and never returned again. If your percentage is high, there is a problem. It could be in their experience - examine that. Do you have a good intro offer? Is it attractive enough? Is it priced correctly? Clients that purchase an intro offer are much more likely to return. Do you have a sales process? It's more important than ever to have a solid sales process in place.

Look at these percentages for the past, and then track them monthly moving forward. You want the percentage to trend downward over time.

Payroll as a Percentage of Earned Revenue

This KPI will help you make staffing and scheduling decisions. Payroll should be 30-50% for class based businesses, and 50-60% for appointment based businesses. But I always shoot for the stars - so below 30% for class based businesses and below 50% for appointment based businesses.

If the percentage is high, you need to increase revenue or decrease payroll. Track this KPI monthly and you want the percentage to stay unchanged (if it's at an acceptable level) or trend downward.

Membership Income vs. Expenses

If you have a solid sales process, your memberships will make up a good percentage of your total income. Then the goal is get your membership income to cover a large percentage of your expenses. If you can get your membership income to cover at least 100% of your expenses, then everything else is gravy/profit.

If this percentage is low - what can you do to increase it? Reduce expenses? Beef up your sales process?

Now you can even determine the number of memberships do you need to cover your expenses? How many members do you have now? Track this KPI monthly, and look for the percentage of membership to income to trend upward.

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