With the Business Health Insights dashboard, you are able to view key membership, recruitment, and revenue metrics for your business.
You can access the Business Health dashboard from Wodify Admin under the menu Insights > Business Health.
This article contains the following sections:
Average Revenue per Member (ARM)
- How it’s calculated: Total revenue divided by the average active client count in the selected time period.
- What it means to your business: You should be able to cover costs, pay a coach or two, and take home a decent income with 150 members. If you have 150 members and you’re not making any money, your ARM is too low. ARM is a measure of your value: are people paying what you’re worth?
Net Revenue per Active Client and Average Active Clients Over Time
- How it’s calculated: Total revenue generated each month divided by the average number of active clients for that month.
- What it means to your business: This represents the monthly value of each additional client active during that month. To increase your monthly income, you either need to increase your revenue per active client or you need to increase your number of clients.
Length of Engagement (LEG)
- How it’s calculated: Two-Brain defines LEG as a rolling 6-month average of the inverse of churn, where churn is lost clients in a given month divided by the number of active clients at the beginning of the given month.
- What it means to your business: LEG is a measure of how long your clients stay with your business. Therefore, it is an important metric for improving the lifetime value of your clients.
Length of Engagement (LEG) Over Time
- How it's calculated: The LEG in each month represents a rolling average of the inverse of churn from the six months prior.
- What it means to your business: Increasing LEG over time by decreasing churn from month to month is a sign that retention strategies at your business are effective in engaging long term clients.
Paying Clients: New vs Lost
- How it's calculated:
- New: Clients that paid for their first membership greater than $0. New Paying Clients are new in the month of their first invoice.
- Lost: Inactive client that has paid for a membership greater than $0. Lost Paying Clients are lost in the month following their most recent paid invoice.
- What it means to your business: This is a graphical representation of the how many paying clients were gained and lost in a given month.
Total Active Clients: Paying vs Non-Paying
- How it's calculated: Active clients at the end of each given month.
- Paying: Clients that paid an invoice for a membership greater than $0 in each given month
- Non-Paying: Clients that did not pay any membership invoices greater than $0 in each given month
- What it means to your business: It is important to have an accurate count of active clients who are paying for their membership and active clients who are not paying for their membership.
Net Revenue By Revenue Category
- How it’s calculated: Total revenue generated during the set time period broken out by revenue category. Includes all memberships, retail, and other services; excludes taxes and discounts. Includes invoices with the statuses of Paid, Partially Refunded, and Refunded. Excludes Unpaid or Voided invoices.
- What it means to your business: See which revenue categories are your top performers, and learn where you can improve.
Net Revenue Over Time
- How it’s calculated: Total revenue generated during the set time period broken out by location and month. Includes invoices with the statuses of Paid, Partially Refunded, and Refunded. Excludes Unpaid or Voided invoices.
- What it means to your business: Before you can spend it, you have to earn it. Knowing your net revenue answers the most basic question: is there enough money coming in?
Business Health Metrics
90 Day Retention Rate (All-Time)
- How it’s calculated: First, we take all clients who have attended their first class prior to 100 days ago. Then we look at what percentage of them have attended a class at least 90 days after their initial class. This percentage is the retention rate. The 55% is an industry-wide average for this metric
- What it means to your business: We’ve found that if a client continues to attend classes past the 90-day mark, they are more likely to remain a client for a full year and beyond. Therefore tracking the percentage of your members who reached that mark historically is the first step to predicting long-term retention rates.
90 Day Retention Rate by Client Acquisition Quarter (All-Time)
- How it’s calculated: Similarly to the gauge chart above, this chart tracks 90-day retention rates for your existing clients but broken out by when you acquired them.
- What it means to your business: Knowing if you are improving or not in terms of client retention is more important than the overall number. This allows you to reflect on good and bad quarters and continue using good ideas and stop using bad ones.
Average Active Clients
- How it’s calculated: Simple measure of the average active clients in your Wodify account, across all locations, in the selected time period
- What it means to your business: Knowing your total client count will keep the other math in perspective. While headcount tends to be the red herring metric (it matters less than you think!) having an accurate client list means you can calculate the metrics that really matter, above.
- Best Practice: Have a client that is no longer a member of your business? Be sure to deactivate their client profile to keep your numbers accurate.
Active Clients with Memberships vs Total Active Clients
- How it’s calculated: Total clients with a membership plan compared to total active clients (as of today)
- What it means to your business: How many freebies are you giving away? Can you get that number lower? You are not maximizing your income if you have a lot of active clients without memberships.
- Best Practice: Ideally, all active clients in your Wodify account should have a membership on their profile. This helps keep your reporting as accurate as possible. If you have active clients in your account that are not charged for their memberships, you may want to consider adding a $0 membership to their profile.
Active Clients Over Time
- How it’s calculated: Number of clients with 'active' status on that day during the set time period over time.
- What it means to your business: This allows you to track your total active clients over time. See your growth and be aware of any dips in client count.
Total New Clients
- How it’s calculated: Total number of new active clients generated during the set time period.
- What it means to your business: Curious how many new clients joined your business in the past month? Two months? Year? Keep track of how many new clients you gained during any time frame with this snapshot view.
New Clients Over Time
- How it’s calculated: Total number of new clients (both active and inactive) generated during the set time period broken out by month and location.
- What it means to your business: Keep track of the number of new clients joining each of your business locations from month to month.
This data table shows additional information about new clients created during the set time period.
To export the data table:
- Scroll to the Data Table section at the bottom of the page
- Hover over the right-hand corner of the data table
- Click the Download button to export the data as a spreadsheet
If you have any further questions about Insights-Business Health, reach out to our team at email@example.com or via Priority Live Chat in your admin account (Promote only).