Measuring the Cost of Acquisition

Once you have run your form of lead generation (advertisement, lead box or Flyer) and you have created your business templates (New Client Sheet, Leads & Prospects Sheet) you can set about calculating the cost of acquisition.  That is, the cost to acquire a new client.

First, you will need to calculate the average dollars spend from your clients, and this can be done as follows. We have provided some figures for illustration purposes.

Therefore we calculated that you would receive approximatley $45 for each client that you train, after you have deducted GST, Taxation and any business operating expenses (gym fees, admin, superannuation etc)

The next step is to calculate the average number of sessions each client does with you per week.  This can be achieved by calculating:

Total number of sessions performed [divided by] Total number of clients

Therefore:     35 sessions / 16 clients

Equals:                        2.1875

Therefore, the average client trains with you twice each week.

The next step is the average client life (how long a client stay’s with you)

To calculate this, you will simply divide the number of clients, by the total number of combined months or years, they have stayed with you:

Total months (all clients combined) [divided by] Total number of clients

Therefore:     315 months / 16 clients

Equals:                        19.68 months

Therefore the average client stays with you for nearly 20 month’s (almost 2 years!)