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:
1. 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.
2. Average Length of Engagement (LEG)
How it’s calculated: The average length of time that a member has been active in your business (as of today), with any membership plan.
What it means to your business: A LEG score lower than 18 months means you’re losing clients to poor delivery. LEG is a measure of operational excellence. The average business owner could net another $38,000 per year simply by keeping every client 3 months longer. Before you spend too much on advertising & marketing, lengthen your LEG.
Client Acquisition and Retention
1. 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.
2. 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.
3. 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.
4. 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.
1. 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.
2. 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?
3. 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?
4. 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.
1. 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.
2. 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.
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.