Podcast Summary
Calculating EFT growth with the pie equation: The pie equation helps determine EFT growth by calculating referrals, cold traffic, and attrition rates.
Understanding the Equation of EFT (Electronic Funds Transfer) growth, also known as the "pie equation," is crucial for breaking through EFT plateaus. The pie equation is split into two main sections: referrals (people who sign up due to friends' recommendations) and cold traffic (people who sign up through promotions). The bottom part of the equation represents the attrition percentage, which is the percentage of people who leave your EFT program each month. By calculating the number of sign-ups, referrals, and attrition, you can determine your EFT growth. For instance, if you have 100 people in your EFT program in the first month and 90 remain in the second month, your attrition rate is 10%. Keep in mind that new sign-ups do not factor into the attrition percentage calculation. To calculate the total number of sign-ups, simply add the number of referrals and cold traffic, and then subtract the attrition percentage. For example, if you have 2 referrals and 8 sign-ups from cold traffic, and an attrition rate of 10%, your total number of sign-ups would be 10 (2 referrals + 8 cold traffic - 10% attrition).
Predicting Gym Business Growth with Equation of Time: By calculating Equation of Time (EFT) and factoring in growth through programs and attrition, gym businesses can make data-driven decisions and predict growth month by month.
Understanding the Equation of Time (EFT) in a gym business can help predict and manage growth by removing emotions and making data-driven decisions. By calculating the hypothetical max EFT with no changes, and then factoring in growth through programs and attrition, you can forecast your EFT month by month. For instance, starting with a 100 EFTs, adding 30 people through a program but losing 10% of last month's EFTs, the new EFT would be 120. However, the actual growth would be 20 in the first month, 18 in the second, and 16 in the third due to attrition. This approach allows for informed decisions, predictable growth, and a clearer understanding of the business's capacity.
Growing EFTs in a gym business follows an asymptote pattern: Reducing attrition by even a few percentage points can significantly increase your gym's EFTs
Growing your EFTs (Electronic Funds Transfer at Point of Sale) in a gym business follows an asymptote pattern, meaning most growth occurs in the initial stages and then slows down significantly due to attrition. The second way to grow your EFTs is by reducing attrition, which can be achieved through regular communication with customers, handwritten cards, and attendance tracking. For instance, if you cut attrition from 10% to 5%, you could potentially double your gym's hypothetical max capacity. The impact of reducing attrition can be significant, as going from 10% to 3% could result in more than tripling your EFTs.
Calculating Attrition Rate: To grow your Everyday Fitness Training membership, focus on decreasing attrition by implementing effective communication, events, and personalized touches.
Understanding and managing attrition is crucial for growing your Everyday Fitness Training (EFT) membership. The equation for calculating attrition is simple: divide the number of members you had last month by the number of members you have this month. For instance, if you had 100 members last month and 90 this month, your attrition rate is 10%. It's essential to remember that new sign-ups do not impact your attrition rate; only the number of members you were able to bill again this month matters. To grow your EFT, you can focus on decreasing attrition by implementing systems and processes, such as regular communication, events, and personalized touches. This approach, as demonstrated by successful trainers like Joey Huber, can lead to significant growth in your EFT membership.
Reducing attrition and increasing sign-ups for gym growth: By focusing on reducing attrition rate and increasing new sign-ups, a gym can quadruple its membership base. Simple strategies like reaching out to inactive members, maintaining communication, and improving customer service can lead to significant growth, which is more cost-effective than constantly increasing marketing budgets.
By focusing on reducing attrition rate and increasing the number of new sign-ups, a gym business can significantly grow its membership base. For instance, if a gym currently has 100 EFTs (Electronic Funds Transfer) and an attrition rate of 10%, by cutting attrition in half to 5%, and increasing new sign-ups from 10 to 20 per month, the gym can quadruple its membership base to 400 EFTs. This can be achieved by implementing simple yet effective strategies such as reaching out to inactive members, maintaining regular communication, and improving customer service. Moreover, focusing on attrition reduction can be more cost-effective than constantly increasing marketing budgets to acquire new members. So, prioritizing member retention and engagement can lead to substantial growth for a gym business.
Maximizing revenue through client finance and retention: A 5% decrease in churn and increase in sign-ups can lead to substantial revenue growth for gym owners. Implementing strategies for client retention and new member acquisition can help gym owners double their revenue.
Focusing on lifetime value and client finance acquisition can significantly boost a gym's revenue. A 5% decrease in churn and increase in sign-ups can lead to a substantial increase in revenue. These math tactics are crucial for gym owners looking to grow their business and maximize their earnings. By implementing strategies to improve client retention and attract new members, gym owners can double their revenue and achieve their dream business. It's important to remember that these tactics require hard work and dedication, but the potential rewards are well worth the effort. So, if you're a gym owner looking to make a difference in your business, don't hesitate to apply these strategies and watch your gym thrive.
