Important Gym Business Metrics – Part 3: Retention

This is the third article in a four-part series detailing some of the more important metrics that you should be using in your gym to determine your performance. You can view part one here, part two here, part four here.

The performance of your business is a key part of your business dashboard. It is paramount that you know how well (or poorly) your business is performing. Without this knowledge you are simply guessing your way through the complexities of running a business.

In this third part of the series, we will look at metrics related to retention and customer service.

One of the important factors in measuring performance is to not measure irrelevant areas. For that reason this article present three key metrics. In the end, it’s up to you what you measure. Just be sure those metrics actually give you the information that you need to make better business decisions.

Monthly cancellations

It’s never nice losing clients but it is part of business. Some will leave due to no fault of your own. However, a popular study showed that 68% of customers leave businesses due to perceived indifference. Therefore, you can probably do better than you are doing right now.

Measuring cancellations is important because it will ensure you are monitoring what is happening in this part of your business. If you only focus on who is coming in you can miss the work required to stem the flow of those leaving. Keeping a simple tally of those that leave each month will help you manage your client better.

Monthly suspensions

In many gyms client suspensions can get out of hand. Without keeping tracking of this metric you can lose sight of what is actually happening in terms of retention. Sometimes those on suspension have actually cancelled. It is an important area to manage.

Maintain a monthly tally of suspended accounts, and be sure to check the status of each suspension regularly to be sure that accounts are reactivated as required and terminated where necessary. Inaccurate numbers in this area can skew your projections and budgets.

Average membership length

A more positive measure of retention is the length of time that you members stay with your gym. This gives you a decent indication of how well you are retaining members over the longer term.

It can take a little time to calculate this metric if you do not have a CRM solution. To get a baseline you can specify a certain period, perhaps a year, or from the start of the business. The calculation would be the total of all membership lengths divided by the number of members. Using a spreadsheet might make this easier. Enter each member in a separate row including name and membership length and then add a formula to perform the calculation.


Peter Drucker once said, “what gets measured, gets managed” and that’s why measuring your retention is massively important.

Remember what Mark Twain said, “There are three kinds of lies: lies, damned lies and statistics.” These metrics can give you the info you need but if used out of context they can misinform you. Be certain of the context of these metrics and use them wisely.

2017-05-16T14:53:02+00:00 By |Categories: Retention|