These KPIs can be interesting considering most studios offer multi-class or sibling discounts. This directly affects your revenue per class as each student isn’t paying the same amount.

Revenue per student is going to measure the average amount of revenue generated by each enrolled student over a period of time. 

Formula: Total revenue divided by total number of enrolled students. It’s that easy!

The target goal for this is affected by many variables, so the benchmark is simply consistent growth. The goal for RPS is just simply to see an increase. 

Customer Lifetime Value: this will help you predict the net profit attributed to the student over the course of their relationship with your studio. This will help you assess the long-term profitability of your marketing efforts. 

Formula: How much a student spends each year, multiplied by the number of years you can reasonably expect them to stay at your studio.  

This will require you to look at the average length of the time the student will stay with you. That may be something you’ve never measured, but it will provide you with important insight for predictive decision making. Thus helping you with revenue forecasting and marketing optimization! It will also help with customer retention, and identifying the most valuable customers. 

A higher CLV is an indicator of a healthy customer base, showing that your students are staying longer and contributing more revenue. 

Utilizing these two particular KPIs can really help you make decisions for long term growth. We hope you can see the benefits of tracking and monitoring these KPI’s and begin to use them. This is a great time to start analyzing, especially as the fourth quarter comes to a close and you begin looking ahead to next year!