A Fresh Take on Studio KPIs—the Best Numbers to Watch in 2024 and Beyond

0:02 all right we are live hello everyone and Welcome to our Walla webinar series thank you for all of you who are on time even some of you were way early in here today so we appreciate you being here we have a really exciting event today and I'm I'm really anxious to dive into the content but I want to go through a couple of quick housekeeping things before we get started for those you who are new to our platform on our website watching webinars don't worry if you happen to need to leave for something at the studio or something happens this will be sent to you as a recording afterwards and you will have a unique link for you so it'll actually show you where you were when you left but hopefully you guys can be here live for the whole time because this really will be an engaging conversation and on that note our webinar series is designed to give you something that you can do today to take action in your business that can make a difference in your business so talk to us like ask questions we have a little Q&A box on the far right of your screen so once you pop questions in there I will be monitoring that while Lauren is chatting through some of her content and guidance today we'll do our best to answer everything live on the call but if there is anything that either we need follow up on or we just don't have time to get to we'll certainly make sure you have an answer by the end of the

1:30 day today but these events work the best when there is engagement on both sides so please don't be shy there are no stupid questions I mean especially when it comes to data in studios and kpis I think a lot of us have gotten guidance from different sources and been told different things are important those answers aren't wrong this is just one lens to look through that we see as important right now so please don't be shy ask away I think lastly I yeah really that's that's it from a high level perspective if you wouldn't mind please pop into the chat right now and introduce yourselves just say you know your name of your studio and where you're coming from if you don't mind and that way you guys hopefully you're starting to see some of the same people from time to time whether it's in these webinars our product webinars or in the Facebook group but I love helping you guys all connect to each other so let's just introduce ourselves in there and we'll get going okay awesome hey guys hi Debbie I Shelia okay so today is all about kpis for those of you that had never heard that term before a kpi is a key performance indicator and it's something we look to in Boutique Fitness and Studio management to help make decisions in our business which is why I brought on Lauren today Lauren is one of the founders and principles at active core Consulting and we wanted to really take

3:12 a step back and look at you know traditionally all of the kpi Studios have been monitoring and if there is a fresh take we need in today's Boutique Fitness landscape and she has a tremendous amount of experience working with individual Studios large franchise brands big some of the biggest brands in the F Boutique Fitness space and so and with a finance background I thought it would be helpful to bring her on so without further Ado Lauren I'd love to turn it over to you and let you introduce yourself and tell us more about why you're here yeah absolutely I'm gonna attempt to share first to make sure we get that out of the way okay awesome I always tell people that come on to present on these webinars since SQL our platform is different than Zoom it's always a little bit of a tech risk at first but I think you na it we can see okay beautiful okay so we're talking today of fresh Take On Studio kpi the best numbers to keep your eyes on I'm Lauren shonfeld the founder of active core Consulting and I'm so happy to be here before I started this business four years ago I spent a decade plus leading the finance and growth strategies at Equinox we work and PWC and then the co happened and I got bored in my apartment in New York city so I decided to be part of the problem to or sorry part of the solution to help the Fitness industry and so I took all the learnings that I had from

4:49 my corporate background when I was at equinox I grew the business from 85 to 105 locations I was part of the team that expanded International markets grew nine new business ventures most notably The Equinox Hotel project by Equinox a Precision run treadmill Studio The Equinox plots digital platform with the soul cycle bike and the Equinox Explorer luxury Retreats I kind of took a step back and asked myself like what do I have what do all these growth strategies have in common and I realized most small business owners might not know or understand some of these and so I really wanted to kind of do my own thing and give back to the community that has given me so much I was born B I feel like I was born an athlete and like been in the fitness space all along so being able to combine my finance background with my passion for Fitness is really where I founded this company and have like grown to love helping the boutique Fitness industry four years later we've impacted over 30 clients with our one-on-one fractional CFO sales and operational coaching and in the past year alone three of our c clients open new Studios with single month profitability in month two which is insanely awesome that's so cool so if anybody on this call is thinking about expanding locations or is maybe opening a new studio they know what they're doing yeah yes and my favorite time is to work with the studio owner

6:20 before they make that decision to open up their location so I can help them through the SBA loan process getting the lease release reviewed and getting your financial projections in line making sure we're making good decisions to set your business up for Success so at active core Consulting we believe that the core of your business is your financial health so just like your body's core is more than just a six-pack abs it's your body's Powerhouse the foundation for all of your Movement we believe your business's finances is your Powerhouse to profitability so it's the foundation to sustain your mission and vision all right into the nitty-gritty of what we're here to talk about today in the chat or me raise a hand if we can all see each other how many of you have a weekly kpi tracking process in place and for those of you who don't no shame I totally get it I hear from a lot of owners that it feels like a task that we just check off the box or it ends up being just a ton of numbers on a spreadsheet and we're not exactly sure what to do with the information does that sound familiar yeah I agree so the kpi tracker will just be a bunch of numbers that are overwhelming and meaningless unless you know these two things what kpi goals do I need to implement to move us in the direction of growth and profitability if we're just putting numbers on a spreadsheet without a goal it does just become kind of

7:52 meaningless and the second portion which I think is the most important how can I make changes in my business based on these data and Trends to implement to make sure I'm hitting the goals and we'll go over that second portion at the end of our presentation today so I think and we believe that there are three main buckets of kpi goals that we want to focus on and they really follow your customer journey and your marketing funnel through the top of the funnel through your sales and through class performance which is a good indicator of retention and so I'm going to review the kpis under each bucket and then Laura is going to show us how to run each of these kpis in Wallas so you know how to run them and then at the end we'll go through a couple examples and take you through how to analyze these Trends so we'll have a weekly Tab and a monthly tab in the tracker and then as a bonus at the end I'm going to send you all the kpi tracker that we're going to review so you can start implementing this on Monday in your business so weekly metrics set the tone for what needs to be focused on for the week this should be completed by your studio manager who was held responsible for these kpis through their quarterly bonus structure We compare the weekly kpis to what our goal is for the month and that goal is tied to your financial projections to keep your business on track we have coined this process metric

9:25 Monday because it's a great thing to do first thing Monday morning and set yourself up set yourself up for the week know how the week prior did where you're tracking against your goals so where your focus is for the next week monthly metrics are analyzed on the first of each month for the month prior so we can understand where in the sales process needs more support we can analyze where is the gap is it in your lead to firsttime or conversion is it in your intro offer conversion or your conversion from intro to membership sold and then one caveat for this presentation just so we're all speaking the same terms while all of our paying customers are super important when we are talking about members today we're talking about the reoccurring membership model so we'll talk about reoccurring memberships which is reoccurring money you're going to get every single month and then we'll talk about class packs which are your traditional five you know 20 packs we believe that recurring memberships are the money maker and gold stand standard to help you create Financial Freedom and what do all of our successful clients have in common the reinc Herring membership model supports all of the cash flow needs for the studio and all the other sales in insay revenue streams are just bonus money I.E profit that's a really great way to frame it I think when you talk about setting goals right like all

10:53 of these metrics are really meaningless unless you're working towards a goal right or understanding how to how to grade them towards your goal that goal specifically is huge letting your reoccurring Revenue cover your studio expenses so everything else is profit so if that's where you start that's where you start I love it yeah and that's and when we build models for clients that's what we're leaning towards okay so the first bucket is our sales funnel so top of funnel we want to know how many leads are coming into your business and because you guys use Walla you are so incredibly lucky because it's super seamlessly in the system and you don't have to go hunting and all these other places to find it so this is like one of my favorite things that Walla has that other don't do as well so how many potential customers are showing interest in your studio this is important to know where your leads are coming from to further Target marketing efforts well you'll get the best Roi the next two in this bucket are your first timers and intro offers we're going to look at this on a weekly and a monthly basis these are number of customers who have taken their first class experience and the number of customers who were on intro offers so it's important to know what offer or plan these customers have used to come in for their firsttime experience so you know what kind of communication is next

12:22 in an ideal world they're on a first time with that intro offer plan but sometimes I just doesn't happen because you might have guest passes they might accidentally have boughten a drop in you might have an event in the studio and that's how you are bringing new leads in or there could be something else so we need to look at both of these separately so we can understand what first timers have come in that are not on intro offers and what's the best communication for them to have to get them on an intro offer so that concludes the first segment of these so I'm going to try and stop sharing so Laura can dive in okay I think I did it awesome yeah you did perfect okay so this is for those of you that come to our webinar series every month this is a little bit different because it's going to be more interactive with how to use wallala and I will take over from here and start sharing my screen so we can look at the actual dashboard okay I believe everybody can see my screen now yes okay awesome so first things first when you're doing this on a weekly basis some of these are super easy because we actually show you right at the bottom in your performance like if you make Monday your metrics Monday I want to you know look back at my previous seven days and see how many new clients I have that's right here you don't have to run any reports we've just got it right here and same

13:48 thing if they're if you're looking at members today on a monthly basis you don't have to go anywhere you can just see that right here so versus 30 days ago you can see what your number is so don't forget about this little performance tab at the bottom of your dashboard because this is especially if you make this a habit and you have a metric Monday or financial Fridays or whatever you decide it is you can then you know just pop in and consistently see that data and whether it's growing or shrinking but first things first with new clients so we do have a first purchase report so this is going to show you everybody like if I want to look over the last month I can see everybody with the first purchase and I can see also here which I think is really helpful to see what that first purchase was so you can see like she said if it was a drop in if it was a the month unlimited if it was something else if they were a guest but you can also see on here the people who haven't come in right so if you have people who kind of ghosted you right like they purchased your first visit they're or I'm sorry they purchased your intro offer but never came in you can just check that box and you'll see those folks now the timing is really impeccable for this webinar because we did just release our new sales tracker within the marketing suite yesterday so now you will also have a really thorough

15:15 lead Source report where you can see how many leads have come in and what percentage of them have converted so we can talk about that a little bit the conversions a little bit later but this will be people who you know came into your system whether it was through a lead form through Google through meta through manual ways like being added or they created a profile and you'll be able to see what percentage of them have converted and where they came in from so you can see all of that data here so this is going to start becoming very robust as you guys ad leads and kind of have more coming in from your advertising or your lead forms on your website but just for those of you who do have the marketing Suite this is live as of yesterday for those of you who are interested in having lead tracking in a clean way you'll be able to do this through the marketing Suite so feel free to reach out to us if you're interested okay so let's see did I cover the did you want to see intro offers here too or are we waiting on that one oh yeah you can do intra offers now that would be that would be okay cool so in our report Center one thing I just want to make sure everybody knows because there are a lot of reports you can favorite reports and then they'll always show up right here in your top leftand Corner Tab and they'll also be here under favorites so I definitely have made my intro offer

16:50 report one of my favorit favorites because this is one I use all the time you'll choose your plan if you have multiple intro offers you can have multiple chos in here but I'm just going to select one for now and you choose your time frame just for me because I have enough data I need more data I can show the last three months but you can say the last week the last month the last quarter the last year and right at the top here you'll see how many intro offers you sold during that period how many are still active so they're not going to show up in your conversions graph right but they're still actively on your intro offer haven't expired yet or completed and then at the bottom you're going to be able to see your conversion rate so this is I'm Lauren's going to talk about this is a really important metric for you because having an the whole point of having an intro offer is kind of easing people into letting them give your product your services a try and easing them into a membership otherwise it's just giving away cheap Services which is not what we want to do so this convergent rate is really important here okay I will stop sharing now and let you take back over actually let me just quickly check anybody have questions on those reports or anything that you want me to double down on how does the data get into the lead sources okay great question so the lead Source

18:19 report is going to get data in a few different ways one it will automatically populate from any lead forms that you have Walla lead forms on your website on landing pages so those will automatically populate in anything coming directly from Google Lead forms meta ads lead forms will directly populate in you don't have to do anything this webinar is not to train you guys on how to use the lead Source report but you do need to build a journey that has conditions that send people into your lead Source report so essentially I'll I'll share a video with everybody on here that shows how to add people into your new lead stage it's really just creating an audience and that audience are people who had a record created who haven't made a purchase yet and haven't booked a class so it's really very simple you do it one time and then they'll all funnel in automatically and you can manually add them of course too but that's hopefully this won't take much manual work okay awesome back to you yeah did we do it did it work yep you got it okay cool okay the next bucket is going to be our sales bucket so our first one is our new reoccurring membership sold in my opinion this is one of the most important metrics in your studio everyone in the studio and the business should know this your manager your front desk your group fitness instructor should always be up to date on what is a the new membership

19:59 goal this month and how are we doing on like hitting that goal it's a true team effort and I get a lot of questions like how do we Empower and keep the team excited about goals month over month it's definitely the culture of the studio the tone at the top set by you as the business owner and executable processes and systems that are easy to rinse and repeat and most importantly we have to make it fun another tip I like to talk about when it ter in terms of setting membership goals in each month is we have to be mindful of the Peaks and valleys not only with the seasonality of our studio but what our team can handle so we don't want to Overkill our team each month with crazy goals keep them realistic but a slight stretch for motivation if you have a big push month where you have a high number High membership goal number maybe the next month ease off and soften the goal a bit to ensure sustainability we don't want to burn out our team and there's a way that we typically strategically do this it's a little bit out of the scope of this webinar but if that's something we want to talk about later on if we have time I can go into that a bit more yeah seasonality is really important I see you know oftentimes businesses just have you know here are the goals and it's the same every month and we just happen to be in an industry where that is not real right like if you have the same

21:30 membership goals all summer long that you have in January February your team's going to feel like they're failing so just keep in mind and then also you have to keep in mind like what is your local market so surprisingly I have some studios where in the summer they do almost better than they do in the beginning of the year so we also have to look at seasonality trends for the industry but then also what is our local market doing and what is our studio doing which is why these weekly monthly kpi trackers are so important because after we get a Year's worth of data we can go back and look at prior years to see when is it slower when is it busier to make different decisions in our business okay I'm getting ahead of myself I got excited the next one is number of membership adjustments number of cancellations and number of phrases so these are essentially movements within the membership right so we want to look at the Trends to understand what months are more active if we had a lot of upgrades for example that could mean that we have a challenge and people are upgrading to get a higher tier of membership for the challenge but then we need to ask oursel are they downgrading after the challenge and how could we help keep them on that higher tier so we can increase our membership Revenue maybe local competition open down the street so we saw a lot of cancellations and freezes

23:01 or downgrades on our Revenue tiers and I see this so often and I hear Studio owners like oh a new studio opened down the street and we lost a bunch of members our Market is just too saturated it the Market's cannibalizing itself and while that's true to a certain extent I like to think of it as it's an opportunity to look at our retention processes in our client experience and really get curious why are our cents leaving us because if we're providing that Community if we're providing an experience through our group fitness classes that keeps them coming back it doesn't matter what's going on in the local market because they love you so much they would never dare to leave another oh sorry do you want to say something that's a great way to look at it I mean when people are happy and they're getting what they were looking for they don't care about somebody's cheap deal down the street yeah I also think people inherently like don't love a lot of change and so if you're getting your community in a routine with your studio and you're getting them on a schedule I think and people think they like change but sticking to a schedule and being consistent is what's most impactful another tip on the cancellation side if we look at our year-over-year Trends and we can see where cancellations are high on or adjustments are high freezes are high it's an opportunity for us to look at special programming maybe we can enter a

24:32 challenge what are some gaps in the studio and so if our cancellations are going up it means our attrition is going up so it's time to look internally at our retention strategies how is that Hospitality experience how is the class experience how is the instructor client connection are team members staying motivated with exciting and fresh programming so all just some questions to keep asking ourselves when we're seeing a lot of shifts in our membership numbers all right the next one is forecasted reoccurring membership Revenue it's a long one and our ending member account so hitting reoccuring revenue is a Lifeline to your business like we talked about before it supports your business's cash flow needs and we I always like to remind owners that the business's cash flow needs includes your owner pay so the business needs to be set up in order to be able to pay you the owner to make sure you can live your life and support your family and support your dreams I feel like a lot of times business owners think of themselves last in terms of getting paid and while I can completely understand the siment we also have to make sure the business is paying you so you don't get drained and burnt out it's I feel like very important for me and the role that I play to make sure we're setting up your business in that way which is a great reason to have somebody outside of your business having

26:07 eyes on the business with you because they will remind you of that and hold you accountable to it yes it's like my favorite Milestone when I work with clients is either getting them start to getting paid or be able to increase their pay to the owner pay that they actually need and one exercise we take owners through is I created what's called an owner pay road map and it breaks out how much money you need in your life to support your goals and then we map out how the business is going to help you achieve that okay got a little sidetracked again the forecasted Revenue number we'll look at 30 days ahead to see how much reoccurring Revenue you are expected to bring in and this is just a good barometer so you can keep your eye on with cash flow forecasting how much cash is coming in the next 30 days how does that compare with my cash burn rate your cash burn rate just means how much cash do we need to support the business to pay for all the expenses and all the Investments and I like to look at the forecasted Revenue number with member count because there could be variations with membership pricing so we want to look at both right so if we are meeting Our member count number but we're not meeting our forecasted reoccurring membership goal number some things that could be occurring is a the business is still ramping up we haven't fully flushed out to get to our ending

27:40 member count number so we can have a forcasted revenue number that supports all of our cash and that's okay if that's where you're at but as long as we're on the path to get there and we're hitting those goals we also want to look at the distribution of membership so a lot of clients that I work with will'll put them on a three about three different membership tiers so we can do like a four times an eight times a 12 times or maybe a 4 eight all access sidebar if you have a low utilization studio so if you're a pilates studio with like 10 12 14 reformers I don't like to give away an all access because you have limited quantity so in that case we'll do something like a 4 8 12 maybe even a 16 depending on your format and how much is the ideal time for your customer to come in so if we're looking at these distribution of memberships and we're hitting Our member count goal but we're not hitting our reoccurring Revenue I would look at this are we selling a lot of four and eight time a month memberships and not selling a lot of 12 and 16 and to me that tells me that there's something there's a gap in the sales process because we're probably selling based on price rather than value because it's easier to sell a lower priced membership but we really have to dig in and be able to communicate the value of our membership and communicate why it's important to come in three or four times a week

29:13 pairing that with our customers goals to make sure we're matching them with the correct membership and if that correct membership is a four or an eight time a month membership amazing but this is just a flag to me that we might need some more training on how to sell the value rather than just price selling the lowest tier okay the next one is long-term value this is a monthly metric that we review also something that I'm so excited that Walla has so easily the report that Laura built just makes it so easy to understand this number as a finance nerd like this is one of my favorite numbers to look at especially when I have Studio owners that want to open additional locations because it really helps us with projection planning when we need to go get a loan this is a metric that we can broadcast and help us get a loan if you're somebody that wants investors at some point in your business Journey investors love this metric so what is LTV it helps a company identify how much Reven Vue they can expect to earn from a customer over the life of their relationship with the company and so the bigger this number it means the more money we're expected to bring in and it's also a marker of retention so just for a super simple example if you have a membership that is a $100 a month and on average your member stays for 36 months your lifetime value of that member is 3,600 all right the next the last one for

31:01 our sales we spent a lot of time talking about memberships and now we're going to flip the script to talk about drop-ins and class packs so I love a member dropin price so if you have a 48 12 16 type of membership offering and you have somebody on a four or an eight and maybe they have extra time in the month and they want to come in for more classes I want to give them a discounted drop in price for that class to encourage them to come in more and the way that I generally think of this member Drop in price it's about 25 to 30% lower than your actual drop in price that you have listed for non-members and why I like to keep track of this is I want to know who keeps purchasing these drop-ins and is that an opportunity to upgrade them and then class pack I like to have two tier so we love a 10 and a 20 pack when it comes to I see some studios who will do super packs like a 40 or a 50 I like to save those for by anual sales which we do on whatever your anniversary is and your Black Friday sale it really helps bring in an influx of cash and it keeps it special so when you only drop it two times a year in your sales people are excited about it because it's new and they know they're not going to see it all the time so they really want to buy while it's hot I get a lot of questions about five packs I personally don't love a five pack because I like to set my clients up with membership tiers that

32:39 usually start at a four time a month membership so if a client went is buying a five pack or wants to buy a five pack I would either you push them into a four time a month membership or have them buy a 10 pack what we've seen with five packs is it deters people from pushing into the membership model because they just keep buying five packs but it's actually cheaper for them to go into the four time a month membership and it gives you reoccurring Revenue which you know is my favorite so that concludes the sales kpis so I'm going to stop sharing so Laura can take you through how to see those in Walla all right awesome okay so first off we are going to be looking at the recurring Revenue side of things so you know we have two different reports really in Walla for this the one I prefer and the one that I really lean on for a lot of the data that she's talking about is under plans and it's called the plan gain loss report the reason I like this is it's not just showing you the totals or the additions it's also showing you what you've lost right so if I want to look at this maybe over the last six months this is going to give you a nice visual of you know returning versus new versus canceled and you can here select by plan if you're a multilocation business you can always choose your locations but you can if all of your plans that are Auto renewing are your only ones with member status you can say

34:14 only plans with member status and that will Auto Select just the plans that are recurring revenue for you again in Walla whatever you've decided has member status will show up here like for example I have my 10 class and 10 rolling on there I'm just going to take those off but if I do otherwise I have 29 plans in my demo site yikes hopefully you don't have that many please don't no but I know I know when you migrate over sometimes you have to include all of those migration plans that you create but just so you know you will be able to see inactive plans in here as well okay so right away you're going to get a lot of the answers to these questions right so if I look at June here I was down just slightly so I can see that I started the month with 198 members essentially I lost seven and I added four so I actually had a net loss of three plans last month versus you know January where I had a net gain of six plans so I think oftentimes as she was mentioning setting goals for the team it may be like what is more helpful for the business is setting the net gain goal rather than just hey I want to sell 20 memberships because your team can play an active role in helping you not lose people who are considering cancelling right I actually I belong to a pilat studio here in town and I was going to cancel my membership because I hurt my back and I knew I wasn't going to be going for a couple

35:50 months and they actually I mean it was it's so funny because I do this for a living but they literally talked me into like oh you bought the found ERS rate if you cancel now you'll never get that again you're going to be paying $60 more a month for your membership and you do have like an injury freeze available for you for up to two months so I instead froze my membership I just restarted yesterday and I was like oh that's nice I'm not paying $60 more where I would have so it was a staff member who actively walked me through that where otherwise I would have you know they could have just said okay here you go canceled so anyway I think it's it's helpful have that net gain goal so this is where you can see your cancellations your new so those metrics she talking about how many new how many cancelled but you can also see when you click into detail here your upgrades and your downgrades so if you look through all of these this is something you do the upgrades and downgrades you do have to count manually but you will be able to see those so anybody you've upgraded into a new plan great it'll show it under their returning anybody you've downgraded will show as well so you can downgrades are orange upgrades are light blue okay let's now look at the recurring Revenue side of things so if I go to my financials and looking at my recurring plan payments report this is going to

37:14 show me for whatever date range I'd like so I could say next month for example or the next 30 days I can do custom dates all location single location this is going to show me the total expected some of payments that I have upcoming during that time if you do end up doing something like this month it'll show existing like what's paid what's failed and also what's upcoming so July I can see right here I have 83 that have paid so far 23,000 still upcoming so like she mentioned from a cash flow perspective this is really helpful to know certain weeks certain dates if you have big checks that you have to write this is going to be great for helping plan that information okay and then we'll Bop into plans and this is where you're going to find the LTV data that she was showing you and what I will make sure I highlight here is that the lifetime value is by plan so we are looking at not just we're not looking at retail spend or you know drop-ins outside of that we are looking at how much money you can expect from someone on a certain membership so if I select my monthly unlimited which is the one I have the most people on in the site and you can select multiple so you can have aggregate data for you know if you wanted to put all of your membership plans in here you could but the plan retention report is going to show me my lifetime value for these individuals this is extremely high

38:48 because I had a membership in here that cost $1,000 for a little while but you can see a your turn rate on those people how what percentage of your clients you can expect to leave every year and then how much you can expect to make in the lifetime of somebody on this membership and this waterfall graph really shows you a if there's a significant like a month where you lose a lot of people is it month three month four if you have a six-month minimum commitment do you lose a ton of people at month six but that can also inform your sales process right you can do a lot of work on nurturing Community driving the month or two for that so this report not only gives you the lifetime value but it also gives you a really nice visual of when you're losing people on that plan okay did I cover everything oh sales class pack sales oh thank you sorry class pack sales okay so same thing in the plan gain loss report so I'll go back into that one you can do this for packages so you can just select whatever your packages are like if I have a 10 pack or I think that's all I have in here or 10 private sessions rolling 10 class card I can do that and it'll show me same thing over six months how many new I sold how many completed or expired but then the returning ones are really just people you still have with an active package so that's kind of the difference between the

40:25 I guess the onetime purchases versus the recurring is it just hasn't expired yet so this is going to be most helpful with the new and the expired number and then the members that purchase drop-ins so guys this is something that I use audiences for there's not a simple way unless you were going into your sales report and just looking at drop-ins on here so if I only wanted to see drop-ins and then I'd have to basically export it and look at this by member like sort it or filter it by the people who are members who also purchase to drop in it's a little bit too much work so I'd rather have this run automatically for me all the time and that you can do with audiences and you can even put it on your dashboard so I'll show you here I actually have an audience built already for this so find all members who used up a package and took a dropin class in the last 30 days you could do it in the last week if this is a weekly metric for you but we'll do that by creating an audience here 30 I can't remember what I called this one actually oh member Drop in 30 days okay so here's how I did this I said okay great has member status yes that means they're active they're not paused has checked into more than or equal to one class Within in the last 30 days yes great and then right here at the bottom the payment method is really important I have the payment method as drop in so

42:09 when you're creating this condition and you go to that class check-in activity you're going to say more than or equal to one visit and scroll all the way down to the bottom and say specific payment method other method drop in so that's saying somebody who is a member has active member status also purchased a drop in for more than one visit or one or more visits in the last 30 days so this is somebody who ran out of classes purchase drop in all right does that make sense to everybody and just to call out even if you don't have the marketing Suite you still get three audiences for free so included in your Walla core Suite you can create and delete and create and delete and use audiences however you'd like whenever you'd like you're just limited to three of them and you can save those on your dashboard if you know you have the same three that you want to use all the time but it's a really nice tool to be able to segment and kind of Whittle your population down to those little cohorts all right I am going to quickly pause and look at the chat oh okay you were in the chat cool yeah I got you okay chrisy she'll Lauren will take care of you all right I think I covered all the reports now okay beautiful and I know we're just up on that 45 minutes and so we probably have another 15 minutes or so to get through everything so if you can stay on Amazing if not Laura I believe you said the link will be sent

43:43 to everybody so they can hop in yep yeah you'll automatically get the recording and it should show you where you finished up too so you'll be able to just jump back in all righty okay just confirming you can all see the screen again yep okay fantastic Revenue per class this is another Walla favorite metric of mine I just like nerd out on this because it's so easy to see all these metrics in Walla which is so fun Revenue per class this is going to tell you what classes are making you money versus draining your cash flow and I love this statement numbers don't lie because sometimes as business owners especially in the fitness industry there's so much emotion behind our classes and our instructors and they put so much time and effort and energy into a class and so sometimes giving constructive feedback on their classes can be challenging but if we can give feedback driven by numbers don't lie they just are what they are so it gives a more black and white point of the review which sometimes I find to be helpful and owners have used that to help coach their people in Walla you can slice this data by The Format by the instructor so I like to look at Revenue per class in total and then probably about like once a month or once a quarter depending on how diligent you want to be I would like for you to slice the data between format especially instructor so we can keep

45:26 track with what instructors are ensuring profitable classes and what instructors are maybe need a little bit more support in terms of instructor training whether that's queuing musicology connection with the team or with the community and then in Walla they do this really amazing thing where it'll be a green if it's profitable or it's a read if it's not profitable based on the instructor pay for that class so one thing that I want to remind you when you're looking at this if it's break even or green obviously that's a great start but it has to be green enough if you will to make sure that the class is also covering the other costs to run the business so you have payroll like your front desk manager the owner salary which I think might be the most important one don't want you to forget that and your studio operations and so knowing what that number is will also be important so when you're looking at this metric you maybe a class makes you $200 and you're like oh great it made me $200 but does that $200 cover the cost of all of your other Opex and that's something our team can help you help you figure out so we need to know how much operating expenses per class that are needed to cover and like I said before this is a data driven metric to Aid in instructor performance reviews and development conversations the last metric that we're going to go over is class

47:06 utilization so weekly I like to do this weekly and monthly and it helps determine if dropping or adding a class to this schedule is needed for example summer break or winter break to give the team arrest I also have clients who will look at the friends in their utilization weeks year-over-year and when there happens to be like a low weekend of U of like low utilization they're just going to shut the studio down for maybe a day or two to give the team a break and to give the team rest I'm a huge believer in balancing work and rest and I've seen firsthand and my clients who do this that the teams are more motivated and able to continue deliver on this High hospitality exper experience when we give them little periods of break throughout the year I have a client and we're prepping for an entire week off in August so her and the team can have a break there's a lot of planning that goes into that in terms of what do we do with people's memberships do we let them freeze so what she's doing is she is letting them freeze but we're doing a two- week utilization challenge so the hope is we're going to allow our members the opportunity with this ch all to take a bunch of classes in two weeks and then they'll also get a break with the break of the business the studio also has an on-demand platform so we're giving everybody in the business a free week of the on demand platform so they can

48:41 still practice with the studio just from at home or on vacation so when you're seeing low utilization Trends some questions to ask yourself is it instructor performance do they need more support in queuing music programming their energy the connection is it a format Choice especially if you have a multiple format Studio a lot of our clients do a combination of cycle yoga strength so maybe it's a format Choice maybe it's time of the day or day of the week with that time so different things that you can look at to determine what change is needed to help Spike up the utilization in a particular class okay I'm GNA give this back to you Laura cool let me go back to Walla and dive in so Becca yeah asked in the chat about class pass and I'll call that out right away unfortunately because we get zero data from class pass we they are counted as zero dollars so this if you are a heavy class pass Studio what I'm going to be talking about right now in this class analysis report is not going to be the most helpful Source because that the class pass data there's zero dollars and Wallace so they will skew the revenue per visit and the revenue per class data along with the Profit numbers you are probably going to be better in that case looking more at utilization as the key metric which I'll show you shortly but I'd actually be interested in knowing and maybe you can answer me in the in the chat does class pass

50:19 give you anything like this the revenue like on average overtime Revenue per class or Revenue per visit I haven't seen recent class pass reports or data so it would be really nice to know what they do give you so perhaps we could come up with some sort of a formula or a walkthr on how to handle that I'm wondering if there's an option where if the studio knows oh I get about 8 per person per class can they just enter that in somewhere there's nowhere you can enter that into Walla but we could we could potentially discuss you know how we could give you a place to do that we would have to build it to be quite honest so but for those of you who I know we have more and more Studios that do not use class pass at all so I am going to go like actually it's a significant number of Studios now that are not class pass Studios so I will go through this the class analysis report is going to give you that Revenue per visit Revenue per class and for those of you that have unlimited monthly memberships don't worry we account for that in your the number here so if I go in for example to my hit party class with Britney yesterday this is going to go into the detailed analysis so you guys can see how we get the numbers we get but I can see here that my inperson attendance here this is a monthly un unlimited person she had $37 in attributed Revenue everybody asked the question okay how do you get $37 do

51:51 we is that Haley specifically no it's not Haley specifically you can see it's Haley Janet Val and Sally all have that $37 for monthly unlimited membership here's how we get to that number so if you have an unlimited plan that you've had for more than 60 days in the business so really that's our indicator we have enough data to look at something in aggregate so let's say you've had your monthly unlimited plan for years fantastic we are going to look at every person on that plan and average the number of visits over the last 30 days if you have a plan that's brand new or you don't have enough people you know somebody bought it for the first time we are going to set the average number of visits to five that's what we've seen across all of our clients it was about 4.9 visits per month as an average for monthly unlimited I know that seems low that might sound crazy to you but if you really look at the data across large numbers that is almost always the case because there are people that come zero times there are also people that come 20 times but there are often more people that come not at all then a lot but we are looking at an average across all people on that specific plan so if you've never done this before you guys it really is interesting to look at this class analysis the detail for each class because you can pop in and see what everybody is worth that sounds

53:16 harsh to say out loud but you can see the attributed Revenue numbers only yes exactly okay so that is the class analysis and yeah and as she was speaking I realized I didn't show you this Lauren but one quick thing that might be helpful in your report Center also is your teacher ranking report you can also see just generally speaking if I wanted to look at a specific month if I want to look at last month or this month so far I can also see it's on a teacher by teer basis so I can see which teachers are profitable and which aren't and the revenue per class on average for the teacher so you can again for those teacher reviews this is going to be a really helpful tool okay let's go into utilization so our class attendance report is going to be the best source for this and something people often miss is when you're looking at a small set of data it's going to group it by days but if we're looking at this over let's say the last three months it's going to group it by month so you can do it by week you can do it by day you can do it by month depending on the swath of data you're looking at like if I look at last month it's got the option to look at it by weeks or by days but if I look at larger data sets it'll be by month so you can see here if you hover over it you can see what your utilization rate was which was 5.93 in this point like so it's the parentheses next to checked in

54:49 it's looking at the capacity in the studio versus how many people were checked in and then if you want to include Nosh shows in that you will have to do manual math to like add the one to the eight and you're dividing by the capacity but you can do that manually if you want to but yeah if I wanted to look at you know the last six months I can see if there's a big difference this is again a demo site so yours probably looks quite a bit different than mine does but 4.31 in January 4.21 in February down to 2.4 in March and 3.06 in April so you can see that pretty clearly but obviously what we're looking for just in a visual sense is this bar to be very blue that's the goal the more gray it is there the more work there is to do okay and like you were saying you have some businesses that have different modalities in their business right like they might have cycling or yin yoga or you know re former classes versus Matt classes you can also see popular by typee of class as well so if I wanted to you know look at a custom date range or a specific month let's say I go to January it'll show me all of the different types of classes I have and F right for that type of class so we're we're really trying to look at this in a little bit more granular detail in this graph the other one is just broad across all of your class types okay I think that covered it groovy all right but if anybody post this class

56:31 wants to send me like a screenshot of the reports that you get from class pass like the data that you get in there a we can look at how we can potentially build that into Walla thanks Becca but B we might be able to give you like a shortterm you know here's how you can run the data and wallet and add that together just in a spreadsheet okay awesome so we just talked a lot about kpis and the biggest thing that I want to remind us that is if we don't have goals for these kpis it's going to be really hard to analyze how the business is doing and to know what to do with this data so while having the kpi tracker is going to be a huge step in the right direction The Next Step from that is creating actionable goals that make sense for your business and lead you down the path of profitability so we've created our own core methodology that helps business owners do this so we like to say we redefine how you approach your business so you can focus your time on growing your community rather than the day-to-day operations and the four phases in our core methodology are Clarity organize rework and empower so for clarity we help the business owner get clear on what is the business what is the vision for your business and your life as a fractional CFO I help you creatively look for Value ads in strategies for financial organization and growth it's a mix of locating blind spots while creatively Forward Thinking to maximize

58:17 your profitability and cash flow so we organize our systems to ensure smooth operations I'll do a financial Deep dive with you to get really clear on what are your expenses what is your cash and what is the ROI on your expenses generally when I do this with Studio owners I find them between five and $20,000 of annual savings which is huge we calculate your owner pay needs from the business so we can map out how the business is going to pay you and the deliverable that we provide is your profit plan so a 36-month projection with specific goals that we're going to use in the kpi tracker to keep you on track for your three-year Vision the next phase is we rework your current processes to drive Revenue so we're going to rework your offers your pricing what kpis we need to have in place in order to hit your goals we're going to identify processes that need additional support maybe we need some help on messaging clearly to speak to your ideal customer on the lead generation side maybe we need help on converting to membership so creating or enhancing your sales process and Communications and maybe we need help in the class experience or the retention so we provide support in all of these areas and just quickly on those like when you're looking at all of those different things take a peek back at our webinar video library because the action for a lot of these data points we have

59:51 unbelievably great resources experts industry leaders talking about the steps like the literally what you can do today to impact those numbers so I think it's really a good call out that you know and then this these are kind of big picture but we've got so many resources for you to look at the very granular steps yeah good call out call out and last but not least we're going to empower you for a successful educa execution so monthly we review pnls with our clients where we analyze them to help them understand what happened the month versus their plan with actionable tips for operational changes to make sure that they stay on their plan and a quote that we got from one of our Founders if you don't follow Ashley she has probably one of the best marketing social media strategies of any of the clients that I work with so to get fun tips and tricks follow her and her studio and a feedback that we got from her recently is one of the most empowering things I've done on this journey as a small business owner is to learn to actually love looking at understanding and being control of my business as Finance and she has us to thank for that so before we go into the actual data is going to share two ways that we work with clients and then we'll get back into the template so our signature program is finance and flow this is for the studio owner who knows it's time to master

1:01:26 their Financial Health think beyond the standard offerings uncover the possibility of unta revenue streams and diversify offerings we give you a step-by-step process to create your business's profit plan with your kpi goals we help you determine your short and long-term personal lifestyle goals and how the business will help you achieve them help you uncover unforeseen Financial gaps and how to overcome them reboot your financial mindset and your limiting beliefs to achieve your full potential and learn how to invest your profit into long-term Investments to make your money work for you so our next round we're planning on doing in September so in the follow-up email I'll drop a link into the wait list if you want to get on that so you can get on the next round and we'll help you do all of the things that we're talking about in this webinar the other way is our one-on-one offering if you're the studio owner that's ready to expand their portfolio and open new locations the one-on-one offering is ready for you we help you create the business plan for profitability we dive into all aspects of your business to ensure your financial and operational processes and systems are in a rinse and repeat State before opening an additional Studio okay I feel like this next part is oops I think I stopped sharing sorry let me that again I meant to open the here we are fabulous Okay so for sake of time Laura

1:02:58 how much time do you think we have left to go over I mean we can stay on I have to be done in 15 minutes so we can stay on to go through this just relatively quickly so people know how to enter data in it and again guys this will be recorded so you can watch whenever you're able to but yep and then I'll send a follow-up email with this template and ways to get a hold of me if you want to book a call to continue know the conversation so there's a weekly Tab and a monthly tab like we said I break the kpis up into who is responsible for the kpi so in an ideal Studio situation we have somebody that's in charge of our marketing our social media our email blasts and they're going to be in charge of your top of funnel into intro offers so leads first timers and intro offers then we have your Studio manager who's in charge of the sales and retention process so that gives you all of your reoccurring members all of your membership adjustments your sales on your member Drop in rates your class pack options and then your class metrics to help you with retention Revenue per class utilization and average attendance if you're someone that does a lot of private sessions we're going to include private session kpis as well so you can track number of private sessions that have been booked this next column here is your goal so each month you'll update this

1:04:38 from the goals that you have in your profit plan to make sure that your studio manager and your marketing coordinator is on track with these and then every week we go in and we look at the week prior run the reports that Laura walked you through to enter all of this information and for example in this particular month the goal was 30 reoccurring members so pretend like we're in April in the first month for sorry first week of the month we had six people then we had 10 PE or four people three and two so as you're going you can keep track so after the first two weeks this client only had 10 memberships to her goal of 30 so it helps us keep on track we can keep the team updated and really dive into the intro offer process who is a hot lead meaning who is coming off the intra offer and ready to convert what are those conversations like and so for this example if their goal was 30 for April they fell a little bit short that number is oh 15 right so B if this was the example they fell a bit short so then we would go into the monthly metrics to see where in the sales process was a little bit light and so what the monthly metrics show us are monthly numbers of similar leads top starting at your top of funnel with your leads to your first timers intro offers and memberships so if we're just highlighting April let me go here we have goal conversion percentages that we give for each month

1:06:22 in the beginning I generally do a blanket like 75% intro offer conversion from that first timer because you're going to have a lot of people who just dive directly into that intro offer this number should be fairly High the next is your first timer to intro offer conversion I'm sorry this is lead to first timer and then first timer to intro offer and then intro offer to membership conversion and this helps you figure out where in the process you might have a gap or where your team is doing well so if these are our goals for April looking at what happened in the month so this business had 150 leads come in and their goal or they actually converted 96 of those leads to first timers so that's a 64% conversion which is a little bit light from our 75% goal so I would go back into looking at where are the leads coming from where are they converting most so if you have you know Google and you have Facebook and maybe you have you know Instagram either ads or just conversion from there see where you're getting the most conversions from and maybe the next month you can spend more targeted efforts on that platform because we know that platform is converting the best yeah and the Le the new lead Source report will have all of that spelled out very clearly oh fantastic and the next one is our first timer count so like we said this business had 96 first timers from

1:08:06 there they sold 25 intro offers so here is a huge gap and what happened here in for this client is we noticed that a ton of first timers were coming in off guest passes but the guest passes were not converting so we really had to go back into our messaging to see what is the message that our first timers are getting and why aren't they converting and what we saw this client is not in wallala just as a caveat that the marketing for those guest passes it wasn't getting to them so they weren't getting any communication so that's why they weren't converting and then we set up a whole new process where we're sending them a an email if they convert to the intro offer while they're still in studio for their first time class we're giving them a little discount on that intro offer just as an incentive to get them in the door because we know based on the data that we have a really high and strong membership conversion so we just need people to get on the intro offer because this client's Hospitality class experience is phenomenal so the big hurdle here is just getting people into the intro offer because we know the conversion is high so this client has two intro offers so we want to look at the distribution between them she does a 3 for 45 and a twoe unlimited for 49 so I always think it's interesting to see the Trends on who is buying what and is there a seasonality

1:09:39 component to this so what we saw in the summertime people aren't really doing the two- week unlimited because they're out of town a lot so psychologically they're not thinking they're going to get the value of that two weeks because they're gone a lot but they think they're going to get the value on the 3445 because they think they're only going to come three times it's so interesting because the price points are literally the same but the pricing psychology of consumers I think is probably one of the most fascinating things yeah and then here they sold 15 memberships so if we look at their goals she had a 60% conversion on membership which beat the goal which is fantastic so whatever they're doing in the studio is working right because our membership conversion is higher than our goal but what's not working is the intro offer to firsttime conversion so that's where we really spent a lot of time in May dialing up that guest pass process and then figuring out what other sources are people using to take their first class experience and they're not converting to intro offers so we did a huge Deep dive there and just to kind of show you how we back into some of these goals we start with our membership count so in this month we wanted to have 25 new members based on these goals it calculates for us how many intro offers how many first timers and how many leads do we need to have in order to hit this

1:11:15 goal depending on our goals our conversion goals here again in the beginning we kind of just have to use industry standards until we have enough data to get really clear on like what your studio is doing and then we can start creating conversion goals for your studio and then start work your way up to higher conversions so these are all formula driven anything in blue font when you get this do not touch it's a formula but anything in Black you can change the inputs nice okay I know we're just at the end of time so I think we have to cut it here but these analyzing these conversions and these metrics in my opinion are the best way to figure out where your business is doing well and where your business needs a bit more support these conversion rates are going to give you so much information and so much data and then it you know you can go back into the Walla Library it sounds like there's a ton of information on retention and Lead strategies so I would say that would be a good place to start if you want to take action now to help your business amazing well thank you are such a wealth of information on this and I know you know looking at spreadsheets is not everybody's favorite thing to do so yeah it's it's nice to have some context around it and also feel like we you know we know where to go to get the number because that can be the most overwhelming thing so guys please

1:12:51 please let us know if you have questions pop into the Facebook group if you want and just maybe share if you found any reports that have been really helpful for you in going through this process but don't forget to use the favorites in the report Center because that will help you don't have to then go search all the time you can just pop into your favorites Tab and jump right to the reports that you need okay well thank you Lauren guys next month we have we're actually the reschedule of our I forget if it was May or April speaking to HR staff retention really diving into how we can be leaders and mentors which I think a lot of us often are too distracted to think about or have too much on our plates to think about and how that can really assist in our staff retention at the studios so dese is going to be coming to speak with us and we will have information out about that shortly but thank you all have a great rest of your day and thank you so much it was nice chatting with you all yeah thank for having the day I mean all of that data for us that was so of course I like nerd out it's so much fun for me I know good all right talk soon thanks everyone bye