Successful parkour gym operators (and successful business owners in general) know that running your gym is far more than just teaching vaults, balance, and acrobatics. Business owners must understand and optimize the business metrics that drive long-term growth and member satisfaction.
Two critical metrics often discussed in membership-based businesses are the Length of Engagement (LEG) and churn rate. While these concepts may seem similar, they provide different insights into your gym's performance and require different strategies for improvement.
What is the Length of Engagement (LEG)?
Length of Engagement (LEG) refers to the average duration a member stays with your gym. It’s a clear indicator of how well your gym retains its members over time. A longer LEG signifies that members are finding value in your services and are engaged in the community you’ve built.
Why is LEG Useful?
Increased Lifetime Revenue: The longer members stay, the more revenue they generate over their lifetime. This steady income stream enhances your gym’s financial stability, allowing for reinvestment in facilities, programs, and community initiatives.
Enhanced Retention: High LEG typically correlates with lower churn. Retaining existing members is generally more cost-effective than acquiring new ones. Thus, focusing on increasing LEG can reduce the constant need for new member acquisition.
Deeper Member Impact: Extended engagement means more opportunities to deliver value and foster transformative experiences. Members are more likely to refer friends and family if they have had a meaningful, long-term relationship with your gym.
Benchmarking LEG in Parkour Gyms
Typical fitness gyms: 3-4 months (awful)
Martial arts and gymnastics industry average: 4-6 months (Still pretty bad)
The minimum target for parkour gyms: 12 months (Decent)
A number to be proud of for parkour gyms: 18 months or more
Rockstar gyms: 24 months or more
Achieving a LEG beyond 12 months indicates a thriving gym environment where members are deeply engaged and loyal.
Calculating Length of Engagement (LEG)
Method 1: Comprehensive Calculation
Review each member's engagement period and compute the average to calculate LEG comprehensively. This method is precise but time-consuming, especially for gyms with a large membership base.
Method 2: Quick Calculation Using Churn
For a faster, “good enough” estimation, use the formula:
Example:
At the start of March, your gym has 125 members. By the end of March, 5 members have canceled their memberships. Ignoring new enrollments, divide the total members by the number of cancellations:
Important Notes:
Use average cancellations over several months to avoid skewed results from atypical months.
If using weekly cancellations, your LEG will be in weeks. Convert to months or years for consistency.
Understanding Churn Rate
Churn Rate measures the percentage of members who cancel their membership within a specific period, usually a month. It's a snapshot of your gym's retention performance but doesn’t provide insight into how long members stay on average or where they are in their membership journey when they leave.
How to Calculate Churn Rate
To calculate monthly churn, use the formula:
Example:
Starting with 125 members and 5 cancellations by the end of the month:
Churn Rate Benchmarks for group-class focused parkour gyms:
WOW! Are you sure youre reporting it correctly?: Below 2.9%
Great: 3%-4%
Good: 5%-7%
Needs Improvement: 8%-9% or higher
Urgent need of repair: 10% or higher
Why LEG and Churn Rate Are Different but Complementary
While churn rate provides a quick view of retention issues, LEG offers a deeper understanding of member engagement and satisfaction. A low churn rate indicates that fewer members are leaving each month, but without a long LEG, it may suggest that the members who do leave, leave early. Conversely, a long LEG with a moderate churn rate could indicate that while some members leave, those who stay, stay long enough to drive significant value.
LEG might point out weak segments of your client journey. For example, your LEG might help you discover that an unusually high number of members cancel at the 6-month mark, causing you to investigate why.
Strategies to Increase LEG in Your Parkour Gym
To extend your members' LEG and enhance retention, consider implementing the following strategies:
Constructive Feedback and Recognition: Celebrate members' milestones and achievements, fostering a sense of belonging and motivation to continue their parkour journey.
Proactive Communication: Regular check-ins and follow-ups with members who miss classes can help address issues early, showing members they are valued.
Community Building Activities: Host regular events and gatherings to build a strong community spirit, making your gym a hub for social interaction and engagement.
Flexible Membership Options: Offer membership pauses or adjustments for personal reasons, accommodating members' life changes without forcing them to cancel.
Exceptional Coaching and Class Experience: Ensure every class is a memorable and valuable experience. Quality coaching and genuine interest in each member's progress are key.
Personalized Member Engagement: Assign a Client Success Manager to regularly check in with members, addressing their concerns and celebrating their successes.
Speedy and Graceful Conflict Resolution: Handle any member concerns quickly and gracefully to maintain satisfaction and prevent churn.
Conclusion
Understanding and optimizing both LEG and churn rate are crucial for the long-term success of your parkour gym. By focusing on extending the length of engagement and reducing churn, you can create a thriving community of dedicated members who find value and enjoyment in your services.
For more insights and strategies on growing your parkour gym, visit MotionMentors.org.
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