A 1% improvement in monthly churn = 12%+ annual improvement.
Sports and leisure are membership-driven, which means recurring revenue but also churn risk. You'll learn facility utilization (are courts/courts/machines being used?), member lifetime value (do good customers stay multiple years?), and secondary spend (how much do members spend on extras?). You'll understand that many sports facilities have churn as high as 40% annually — halving that doubles profitability with no new members.
Churn rate measures how fast you are losing customers or revenue. It is one of the most important — and most often ignored — metrics for any subscription business.
5 min read · Beginner
Part of this AskBiz Academy learning path.
AskBiz Academy
Part of this AskBiz Academy learning path.
AskBiz Academy
CLV is the total revenue you expect from a customer over their entire relationship with you. It changes everything about how you think about acquisition costs.
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Net Promoter Score (NPS) measures customer loyalty by asking one question: how likely are you to recommend us? Learn how to calculate, interpret, and act on NPS.
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Cash flow forecasting predicts when money will come in and go out of your business. It is the most important financial tool for avoiding insolvency — profitable businesses fail for lack of cash every day.
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Break-even analysis tells you exactly how many units or hours you need to sell to cover all your costs. Use it to evaluate pricing changes, new hires, and product launches.
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Follow this learning path to master sports & leisure: churn is the silent killer.
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