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The 5 Systems Needed To Grow Your Gym To Record Revenue​

If you want to grow your gym to record numbers in 2020 you need a series of systems in place to scale.  We’ve spent years perfecting these systems into what we now offer as the “Gym Accelerator”.  In this training I’m going to breakdown the 5  systems and they key components so you can create record profits in your gym.

Even if your not ready for the accelerator, you can start implementing these systems into your business today!

Let’s get into it!

System 1 – Know Your Numbers

How do you know if your marketing is working? More importantly, how do you know if the experience in your gym is even any good? It’s CRITICAL to know the numbers in your business so you can diagnose where things are going right and wrong.

Once you are confident that your marketing and experience works you can scale with confidence.

We’ve developed a set of metrics below that our accelerator members track each week. There is a separate training dedicated to knowing your numbers where we giveaway the exact spreadsheet below so that you can start tracking for yourself.  But I’ll give you an example and quick overview here.


KPI Metrics (Yellow)

The KPI Metrics help you determine which areas in the business you need to focus your time on. The main metrics highlighted yellow relate to the following 4 systems – these are the most important numbers that give a snapshot of your business performance. The targets below are minimum standard – everyone should be able to achieve these.

CPL ($25)

This is the amount spent to acquire a lead (Name, Email, Phone) through paid advertising (Facebook Ads). Depending on how densely populated your area, under $30 CPL is still profitable if you have your other metrics in line.

Sales Conversion (30%)

This is the percentage of leads you close into your low barrier entry offer (LBE). Sales are often where people struggle the most. With proper systems many of our clients are closing at 50% and above.

Rollover Conversion (70%)

This is the percentage of people that signed up to a LBE that continued or “rolled-over” into a full paying contracted membership. This stat is a reflection on your program itself as well as your strategic follow ups.

Churn (5%)

It’s much more profitable to keep your existing clients than to pay to get new ones. Cancellations are inevitable but if you can keep your churn rate below 5% you know that your program is getting great results and you have a great community.

Confidence Metrics

The confidence metrics allow you to scale your business. Once you know that the money you spend on ads gives you a return on investment (ROI) then you can confidently scale your spend and get more members.

ROI

The first goal is to make a front end profit (or at minimum break even). This means you don’t need ongoing capital to pay for your ads – the sales do the work for you and funds your following week’s spend.

Front End Profit (After Spend)

The second goal is to get 10x ROI. This might seem large, but we haven’t factored in the hard costs of running the gym – Trainers, Rent, Equipment, Follow Ups etc.

System 2 – Get Leads

Word of mouth, referrals and organic posting are important methods to acquire leads but they aren’t going to get you a consistent flow that will grow your business. If you want to grow your business you need to be using paid advertising. The first step is having a compelling offer.

A Note On Free Trials

Free trials simply don’t work. There is no skin in the game and no commitment from the lead. You spend so much time following up with the lead only for them to not show more than half the time.  It also devalues your business when you give two weeks training away for free.

The other negative to using a free trial is it doesn’t allow you to liquidate your ad spend. You have to wait until they become a member and if they aren’t paying upfront it will take a few weeks before you’ve “earned back” your ad spend. This makes it hard to scale as you need to be constantly finding money to fund your ad budget.

Instead, use a “complimentary” session sparingly when someone genuinely wants to try a class first. But don’t make it part of your main promotional strategy.

Low Barrier Entry (LBE) Offer

This is your core offering to anyone wanting to try the gym. It can be any duration although as an intro 28 or 30 days works best. You want to package your services up to make the offer as compelling as possible.

The goal here is to provide enough value (slightly discounted) that you can sell at a price that self-liquidates (covers) the ad spend.

The Funnel

Summit Funnel

This is the most common funnel we use in the business accelerator. It attracts qualified leads that actually answer the phone when you call!

From a Facebook ad, they opt in with name, email, phone. This gives a touch point if they don’t continue in the funnel but we still try and qualify them further.

Next we get them to book a call for more info. They can choose a time that suits their schedule (against your availability). If someone picks up the phone at their scheduled time it’s a sale 80% of the time!

Not everyone will go this far in the funnel and you still need to be calling and following up consistently for at least a week. The other secret sauce to the funnel is the email and text message follow up sequence. We’ve created a sequence of drag and drop templates that re-engage leads that aren’t answering. These won’t do the selling for you, but it builds trust and authority so there is an extra level of comfort present by the time you get on the phone.

System 3 – Making Sales

This is the biggest pain point for gym owners – and it shouldn’t be! Sales is a system and if you don’t have a process for making calls and a script for guiding the consult you will always struggle.

The key mindset shift for sales is to go from closing on price/value to closing on commitment. The goal of the call should be to identify the biggest pain point of the prospect, educate them on why things haven’t worked in the past, and finally convince that your solution is the best way to get results. If you land a sale based purely on value (Free/Cheap Offer), then the prospect hasn’t made the internal commitment needed to actually show up, do the hard yards and get the results. More than likely they won’t turn up enough to get results and won’t become a member.

We make all our sales using the “Summit Script” which is based on the 6 P’s Framework.

1) Pre-Frame

Set the expectations of the call, get permission to ask questions and start to build rapport. You need to control the conversation.

2) Pain

This is the most important step and why people have such low conversion rates normally. The standard response here is “I want to lose weight”. This isn’t their pain. This is their perceived solution to the pain. Their actual pain is much deeper – “I don’t have confidence to go to the beach in my swimsuit”, “I hate giving speeches because of my appearance” etc. Whatever the pain, it’s your job to find this out.

3) Possibility

Get them to “try on” the future version of themselves. What do they need to accomplish to feel like this was a success? How would they look and feel if they got amazing results?

4) Problem

Educating them on why what they’ve tried in the past hasn’t worked and why they need a different approach.

5) Path

A short overview of your programs philosophy and how it will guarantee them results.

6) Pitch

The close – grab their payment details over the phone and secure the sale.

Extra Notes On Selling

Time of day is also really important. There is no point calling someone at 10am when they are settled in at work and probably have multiple meetings already scheduled.

Often gym owners get their trainers to make the sales call, which isn’t the best approach. Usually the best time to call is when a trainer is running a class. The quicker you can hire a dedicated sales-person the quicker your gym will scale.

System 4 – Rollover Members

There are 3 key components to rolling over LBE’s into contracted full paying members at 70%  rate or higher.

  1. An onboarding strategy that indoctrinates new members
  2. A system to track client progress over their LBE and make sure they get results
  3. Strategic follow ups to make the “rollover” a certainty

On-boarding Strategy

You need to be running some form of client induction for all new members. There are two options based on the nature of your LBE.

  1. For fixed start dates use a seminar format
    • It’s great for large groups but difficult to build rapport
  2. For rolling start dates do a twice weekly induction
    • This takes a little more effort to manage but you will see the benefits when your rollover percentage increases dramatically

System To Track Progress

We all know the first month is the most challenging when starting out at the gym.

If you can follow up and make sure someone attends 3-4x week consistently you will have a much higher rollover percentage.

We use a “Wave” format that everyone from the same start week gets assigned to (eg Wave 1). This makes it easier to track as everyone from the same week is up to the same point in their LBE.

Strategic Follow Ups

Having the conversation with someone about converting to a full membership is often awkward and uncomfortable for many trainers and managers.
The key is to to have the conversation at the right time as well as a script to guide the conversation in the direction you want to take it.
You need create as little friction as possible in terms of conversation as well as paperwork to make the full sale.

The Invisible Sale

It can be tempting to skip the rollover process and go for the “invisible sale” which automatically opts people into a full paying member unless they “opt out” prior.

This is a false economy.

The invisible sale usually would cap out at 50% rollover conversion. Let’s compare this to the 70% that is achievable with this system.

Quick Example
If the lifetime value of your member is $2,000 and you sold 100 LBE offers.
50% Rollover = 100k Gross Profit
70% Rollover = 140k Gross Profit.

That’s an extra $40k in your back pocket for only a small amount of time invested.

System 5 – Reduce Churn

The final piece of the puzzle is reducing your churn. It’s inevitable that people are going to cancel for reasons you can’t control. But you should be aiming for 5% or less of member turnover per month.

Churn is a reflection of two things:

  1. Your ability to get results
  2. Your ability to create a community.

People come for results but stay for the community.

Ability To Get Results

This comes down to your training and nutrition philosophy combined with your ability to keep people on track. We use a traffic light system style report for each member that identifies who is at risk of a cancellation.

<3 visits per week results in a cancellation in most cases.

You need a system to identify and follow up with these at risk clients before they are too far gone.

Creating Community

Encourage a no phone zone. Facilitate member interaction by finding and fusing connections among your members. The aim is to create a culture where members stay back 15 minutes after class chatting to each other! That’s when you know you have community.

Gamify results with rewards for loyalty that are aspiration for other members to achieve. EG Perks for hitting 250 visits.

Run easy to implement community events that don’t require extensive effort to run.

That All Sounds Great, But…

Where Am I Supposed To Find The Time To Implement All This?

Being a gym owner is hard…I get it. I used to run a group training business myself. You struggle to find the time to eat lunch, let alone implement everything that I’ve just detailed above.

But the reality is that you need to be doing these things in your business if you want to grow and scale.  That’s why I created the accelerator program. It includes:

  • Done for your Facebook ads for a constant flow of leads
  • All 5 systems to drag and drop into your business
  • Sales Scripts, email and text message, induction and rollover templates
  • 1 on 1 coaching through the bottlenecks in your business

It’s designed to help you save TIME & MONEY so that you can scale in record time. If you want to find out more and see if your a good fit then just use the calendar below to book a time and lets chat!

Let’s Chat! Book a time below


Know Your Numbers

The exact spreadsheet and training our paying clients use to diagnose the bottlenecks in their business