Podcast Episode

455: Gym Churn Rate Under 4%: The Systems Behind a CrossFit Gym That Runs Itself

Who’s talking

2 speakers
Mike Arce19 min · 56%
Trevor Baxter15 min · 44%

Transcript

75 turns · 35 min
MA
Mike Arce0:00

so this right here is trevor and we're here in omaha and trevor does a great job at crossfit elkhorn with retaining members at a very very high rate also we're going to dive into why it's so good and how he does things so well he's incredible at tracking and the way that you get your members results by focusing on the things that really any fitness studio and gym should is we're going to dive into as well so let's get a quick tour sound good yep all right trevor let's do it

TB
Trevor Baxter0:32

But we liked this setup because as a coach, we can see pretty much everything in the space.

MA
Mike Arce0:44

Everyone's got their own circle. It makes it easy

TB
Trevor Baxter0:47

for people to know where to go.

MA
Mike Arce0:52

You have a churn of, how low is your churn right now? We're just under 4%, so 3.85 for the year. 3.85. I love how he knows his numbers, by the way. 3.85 is a guy that knows his numbers, and that's great because we're going to be talking a lot about that today. So at that rate, you're basically retaining members for about 28, 29 months, roughly, on average, which is great. And for CrossFit specifically, because a lot of CrossFits have a hard time retaining members at that rate. Not because CrossFit's good or bad, but it just seems like there's a lot of less sophisticated business owners in CrossFit just because it can be very affordable to get into a CrossFit.

TB
Trevor Baxter1:32

Yeah, the purchase of entry or getting into it, the barrier of entry is not as challenging.

MA
Mike Arce1:39

Yeah, so there's a lot of people that start up with very low costs, and they just don't really have a big background and don't take interest in that part. They just want to lift. They just want to have fun. Yeah. And so so I love to hear those numbers. So one of the things that we talked about on the phone and why I wanted to dive into this with you, you guys get really, really focused in on the little details when you're training somebody. I love you to talk a little bit about that.

TB
Trevor Baxter2:00

Yeah. And when it comes to like our core values, we have supportive, purposeful and balance and purposeful being like purpose over ego. So we want to make sure that our members understand what we're doing and why we're doing it. That way there's purpose to everything that we're doing, right? There's anybody can run through a class or any coach can run members through a class and just give them a beat down, but not necessarily understand, like, did we get the goal for today? Like, what was the goal for our strength? What was the goal for the conditioning? Did we achieve this many reps? Did we achieve this many round? Did we meet the range of motion standard? Like, do we actually use the muscles that we're planning to use in the workout? And that's what I think not a lot of coaches end up talking about. It's more about just running through a workout, talking here back and forth versus actually the coaching piece of it. Yeah. How many members do

MA
Mike Arce2:50

you guys have right now? 233. 233. And then your average member, what do they pay here? I know we're in Omaha by the way.

TB
Trevor Baxter2:58

Yeah. $210 is our average company value. It's a pretty good

MA
Mike Arce3:00

value. Okay. So good value meaning like good revenue per member. I like that number. Okay. And then is that including or excluding ancillary sales, like supplements,

Episode notes

CrossFit Elkhorn keeps gym churn under 4% with 233 members. Here's the weekly scorecard, class standard, and coach scoring system behind it.

The average CrossFit gym churns members far faster than that. Trevor Baxter has run CrossFit Elkhorn in Omaha, Nebraska for 12 years, and his gym churn rate sits at 3.85% for the year, which means his average member stays close to 29 months.

Mike visited the gym in person and walked through every system behind that number. Trevor's weekly scorecard takes 10 minutes to run and tracks revenue, member count, paid versus pending accounts, holds, cancels, and attendance. His coaches are scored on retention, referrals, and upgrades instead of opinion, so underperformance is a number, not a feeling.

They also cover the minute-by-minute class standard Trevor built with his head coach, and the AI guardrails running his ad campaigns, where spend only increases 15 to 20% at a time and shuts off automatically when cost per lead crosses a set threshold.

If your gym churn rate has been stuck for a while, this is what a CrossFit gym member retention system actually looks like in practice.

In this episode you'll learn:
— The weekly scorecard Trevor runs in 10 minutes that tracks the health of his business
— The exact numbers on that scorecard: revenue, members, paid percentage, holds, cancels, and attendance
— Why anything below 60% weekly

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