Written by Vishwa Raj Sharma and Tufool Alnuaimi, Co-founders of Chartyn
A Note From zingfit
At zingfit we know that you want to get the most out of your studio management tools. Extrapolating data from our native reports can really help savvy studio owners make informed decisions about their marketing and business tactics. But some times they need more.
It can be really helpful to not only visualize your members’ behavioral data, but also aggregate that data with other data points from your marketing tools to give you the whole picture in one place. That’s why we’ve partnered with Chartyn, an AI-driven analytics and business intelligence tool that helps studio get tangible insights out of their reporting metrics.
We’re excited to share with you this thoughtful article about getting the most out your studio’s perforance written by Vishwa Raj Sharma and Tufool Alnuaimi, the co-founders of Chartyn. And right now Chartyn is offering all zingfit customers two months of their service for FREE, so you can try it for yourself and see what a difference it will make in your studio growth. Check out that offer here: https://www.chartyn.com/zingfit
How To Boost Boutique Studio Performance: Go Lean!
Regular workouts keep our body and mind in tip-top condition. As for the establishments that help us attain and maintain our fitness goals, it is quality analytics that enables them to thrive and attain optimal performance. Luckily for us all, good fitness options and good analytics solutions have both become abundant and more accessible.
Most of us go to fitness classes to either boost or maintain our physical wellbeing. And the rise in the number and variety of boutique fitness studios in most major cities has made attaining such goals quicker, easier and more exciting.
But every coin has two sides.
While growth of the industry has made access to fitness easier for the consumer, the rise in competition has made it harder for businesses to attract and retain customers. And this inevitably hurts profitability.
So let’s talk about profitability. To build a more profitable business, you can increase revenues, reduce costs or, ideally, find a way to do both.
We’ll demonstrate how analytics can help you achieve these goals by going lean.
Reduce choices to sell more.
This sounds easy enough. But anyone who has attempted to sell more of anything probably already knows that it’s often easier said than done.
For starters, there is the dilemma surrounding how many options to offer. One expert proposes that seven is the magic number, give or take a couple. It is true that, as consumers, having some options empowers us. The existence of variations enables us to evaluate differences and draw comparisons until we discard all but the one winning option; which we purchase. Indeed, experts suggest that once a business hits the “magic number”, consumers will be incentivized to make a purchase which, in turn, will optimize sales.
All too often, however, businesses fumble and offer too many options. For instance, a gym might offer the choice of single classes, a number of multiple class deals or even bundle up different types of classes into one irresistible package. And they do so with the best of intentions: to cater for different types of clients, they feel obliged to provide a variety of products.
Although it sounds logical, offering too many options often has the exact opposite effect to the one we are after. A number of studies examining purchase behaviour conclude that offering too many choices is overwhelming, leading consumers to reject every single one and walk away. This effect is also known as “the paradox of choice”.
Historical sales data can help you identify which options to cut out and on which to focus your sales and marketing efforts. Take a look at this example. Visualising this data using the charts below can help us quickly determine that “8 Classes”, which ranks lowest across both charts, is not an attractive option for customers and can be dropped from the programme.
SALES VOLUME AND REVENUES FROM SERIES
*Defined as the percentage of customers who make a follow-on purchase after buying that pack
Go Lean and cut out underperforming classes.
Be more cost efficient.
Now this one sounds trickier, but it need not be. Simple visualizations that capture the performance of weekly schedules and rotas can help you identify classes that consistently underperform.
Performance, in this context, can be measured in a number of ways: the occupancy score of the scheduled class, how well that class retains clients, or the revenue that it generates.
Let’s take revenue, for instance, and consider the performance target to be the breakeven point of running a class. If a class costs you more to put on than it generates in income, should it really be on your schedule? Probably not.
The following chart, which comes from a weekly schedule dashboard, zeros in on the performance of boxing classes on Mondays. It shows three things:
- The green dots display average revenue that the boxing class generates. Assuming that the a gym breaks even at $100, we can see that the 5am, 9am, 6pm and 7pm classes are typically profitable.
- The purple background enables us to compare the class with other boxing classes that take place at that time but on other days of the week. Green dots that sit low against the purple background (such as the 11 am, 1pm and 2pm classes) suggest that the class performs poorly at that time relative to other boxing classes.
- The grey background allows us to compare the class against other classes (for example, a Barre class) that takes place on the same day and at the same time. It shows that boxing on Mondays at 11am, 1pm and 2pm generates profits that are less than the average profits from other classes that take place on the same day and time.
RELATIVE PERFORMANCE OF BOXING CLASSES
Try re-creating these charts with your data–will they help you go lean and thrive?
We’re happy to run this analysis–and much more–for you. Visit us at chartyn.com/zingfit or drop us a note via email (email@example.com) to help get you started.