Sales and marketing are essential parts of running any business—but when you started your gym, you might not have realized just how important they’d be. Knowing the right sales and marketing terms can help you:
- Attract more members
- Boost retention
- Grow your bottom line
This guide is here to help new gym owners (or those looking to sharpen their business skills) get familiar with the most important terms in the industry. Plus, since we reference these terms often in our blog posts, understanding them will help you get even more value from our advice and strategies!
So, let’s simplify the jargon so you can run your gym like a pro. 👇
Sales Terms Gym Owners Need to Know
Lead: A potential client who has expressed interest in your gym, like signing up for a free trial or filling out a contact form on your website. According to the Fitness Business Association (FBA), most training gyms should aim to generate 30-40 leads each month.
Lead Generation: The process of attracting potential clients and capturing their interest through marketing strategies like paid ads, organic content, events, or free resources, with the goal of converting them into leads.
Conversion Rate: The percentage of prospects who complete a desired action, such as signing up for a trial, filling out a contact form, or scheduling a consultation. It measures success at various stages of the sales funnel. For example, if 100 people visit your website and 60 fill out a contact form, your conversion rate is 60%.
According to the FBA, if your gym is generating 30-40 leads each month, around 20 of those should convert.
đź’ˇ Did you know Kilo Gym Websites are built to get more leads and boost conversions? Gym owners using Kilo see 18% more leads every month!
Sales Funnel: A step-by-step process your gym uses to turn prospects into paying members. It involves actions like running ads to create awareness, following up to nurture interest, and offering consultations to close the sale.
Close Rate: The percentage of leads who convert into paying members after your sales process. It focuses specifically on the final stage of the sales funnel. For instance, if 10 people attend a consultation and 6 sign up for a membership, your close rate is 60%.
💡 Based on the previous FBA example, of the 20 leads who convert from your website, 12 (60%) should become paying members. This aligns with the FBA’s recommended close rate for training gyms.
Upselling: A sales strategy that encourages existing members to upgrade their membership by adding premium services like personal training, specialty classes, or nutrition counseling.
Retention Rate: The percentage of members who stay with your gym over a specific period. High retention reflects strong member satisfaction and loyalty.
đź“– Read more: What Are the Best Ways to Boost Membership Retention?
Churn Rate: The percentage of members who cancel their memberships within a given time frame. Keeping this rate low is essential for sustained growth, as even a tiny reduction in churn can lead to a huge increase in profitability. The top 25% of gym owners maintain a churn rate of 4% or less.
Value Proposition: A clear and compelling statement that highlights what sets your gym apart and why someone should choose it over competitors. It’s one of the first things potential members should see when they visit your website.
Low Barrier Offer (LBO): A low-cost, low-commitment offer designed to reduce the risk for new members and make it easy for them to try your gym. Examples include a 2-week paid trial or a discounted first month.
Front-End Offer: A broader term for any initial offer aimed at bringing in new members. It can be low-cost like an LBO or more value-packed, such as a 30-day transformation challenge or a 6-week bootcamp.
High-Ticket Offer: A premium-priced service or membership package that delivers significant value, such as long-term personal training programs, exclusive coaching sessions, or lifetime memberships. These offers typically target members seeking a more tailored or comprehensive experience.
Pipeline: A system or tool, such as Kilo Gym Management Software, that helps you track where each lead is in your sales process. It keeps you organized and guides prospects closer to becoming members.
Average Revenue per Member (ARM): ARM measures how much a client pays you each month, including memberships and anything else they purchase.
Length of Engagement (LEG): LEG tracks how long the average client stays at your gym.
đź’ˇ LEG = 1 Ă· monthly churn
Churn = lost clients Ă· total clients at the start of the month
For example, if your gym starts with 100 clients on January 1st and ends with 95 clients on January 31st, you lost 5 clients (not counting any new sign-ups in January).
So, your churn is 5 ÷ 100 = 0.05
That means your LEG = 1 ÷ 0.05 = 20 months
Lifetime Value (LTV): LTV is how much a client pays your business over their lifetime as a member. This metric helps you understand the long-term value of each member. It’s calculated by multiplying Average Revenue per Member (ARM) and Length of Engagement (LEG).
Cost Per Acquisition (CPA): The total amount you spend on marketing and sales to acquire a single paying member.
Objection Handling: Addressing and resolving potential clients’ concerns during the sales process, such as price, time commitment, or competing priorities.
đź“– Read more: How You Can Use Objections to Close a Gym Membership Sale
Prospecting: The process of identifying and reaching out to potential members who may be interested in your gym. Effective prospecting requires understanding your target audience and using the right channels to connect with them.
Quota: A specific sales goal or target, such as signing up 10 new members in a month.
Scarcity Marketing: A tactic that creates urgency by emphasizing limited availability, like “Only 3 spots left in our beginners’ class!” This approach motivates potential clients to take action quickly by tapping into their fear of missing out (FOMO).
The goal of scarcity marketing is to drive faster decisions and boost sign-ups by making your offer feel exclusive and time-sensitive.
Silent Sales: Non-verbal factors like gym cleanliness, equipment quality, and staff professionalism that influence a prospect’s decision to join.
đź“– Read more: What Sets the Most Profitable Gyms Apart?
Marketing Terms Gym Owners Need to Know
Target Market: The specific group of people your gym aims to attract, such as busy professionals, young athletes, or adults over 55. Identifying your target market help your focus your marketing efforts on the people most likely to become members.
Client Avatar: A fictional representation of your ideal customer, based on different factors like demographics, goals, and challenges. For example, “Sarah, a 40-year-old working mom looking to lose weight with pain-free workouts.”
Brand: The unique identity of your gym that sets it apart from competitors. It encompasses your gym’s name, logo, messaging, values, and the overall experience you provide. A strong brand helps build trust, attract your ideal client, and create a lasting impression on current and potential members.
đź“– Read more: How to Make Your Gym Brand Irresistible
Content Marketing: Creating and sharing valuable, relevant content—like blogs, guides, videos, or infographics—to attract and spark interest from your target audience. The goal is to showcase your gym’s expertise, build trust, and turn curious prospects into engaged members.
SEO (Search Engine Optimization): The practice of optimizing your website and content to rank higher in search engine results, so potential members can easily find your gym online.
Local SEO: Optimizing your online presence to attract leads from your local area. This includes strategies like setting up and optimizing your Google Business Profile so nearby prospects can easily find and contact your gym.
đź“– Read more: 7 Local SEO Tips Every Gym Should Implement Immediately
Evergreen Content: Marketing materials, like blog posts or videos, that stay relevant and useful over time (e.g., “5 Best Exercises for Beginners” or “The Ultimate Guide to Meal Prep for Busy Professionals”). It helps consistently attract new leads, build authority, improve SEO, and drive long-term website traffic.
Inbound Marketing: Attracting leads by providing valuable and educational content—such as blogs, webinars, and social media posts—that solves their problems. The goal is to build awareness and engagement with your target audience. This approach is also known as “pulling” people toward your gym because it’s consumer-driven.
Outbound Marketing: Actively reaching out to prospects through methods like cold calls, direct mail, or paid ads. This approach helps you get your gym in front of potential members who may not have heard of you yet. It’s also known as “push” marketing because it’s driven by the marketer.
Seasonal Campaigns: Promotions designed around specific times of year, such as “New Year, New You” or summer fitness challenges. These campaigns help gyms capitalize on seasonal demand and attract new members when interest is at its peak.
Referral Program: A strategy that motivates current members to refer friends and family to your gym, typically by offering rewards like discounts, free services, merchandise, or exclusive perks.
Influencer Marketing: Collaborating with local influencers or fitness enthusiasts to promote your gym to their audience. This strategy leverages their credibility and reach to attract new members and increase brand visibility.
đź’ˇ Did you know Gymshark was one of the first companies to grow using influencer marketing? They built relationships with some of the biggest weightlifting personalities, offering free products in exchange for free exposure to their audiences.
Social Media Marketing: Promoting your gym and its services on social media platforms like Instagram and Facebook to connect with potential members, showcase your community, and drive engagement.
Email Marketing: Sending targeted email campaigns to nurture leads, retain members, and drive engagement. This could include newsletters, special offers, event invitations, and valuable fitness tips to keep your audience connected and informed.
Call-to-Action (CTA): A clear prompt that encourages prospects to take a specific action, such as “Sign up for your free trial today!” or “Book your consultation now.” CTAs guide leads toward the next step in becoming a member.
đź“– Read more: How to Write Killer Calls to Action That Convert for Your Gym
Engagement Rate: A metric that measures how actively your audience interacts with your content—such as likes, comments, shares, and saves on social media. A strong engagement rate indicates that your content resonates with your audience.
Testimonials and Social Proof: Positive feedback, reviews, or case studies from existing members that highlight your gym’s value and build trust with potential clients.
đź“– Read more: How To Better Your Gym Business With Member Reviews
Personalization: Customizing your marketing efforts to meet the needs of individual prospects, such as using their name in emails or recommending targeted class options.
Buyer Journey: The process potential clients go through before deciding to join your gym. It includes every step they take—from researching options to interacting with your gym and, finally, making their decision. This journey is broken down into three stages: awareness, consideration, and decision.
Dynamic Pricing: Adjusting membership prices based on factors like demand, location, or special events. For example, offering discounted rates during off-peak hours or raising prices for high-demand classes or premium time slots.
Marketing ROI: A metric that measures the return on investment from your marketing efforts to determine how effectively you’re turning your spending into revenue.
Hybrid Terms Gym Owners Need to Know
Lead Magnet: A free resource, like an eBook, workout plan, or nutrition guide, offered in exchange for contact information to generate leads.
đź“– Read more: How to Make a Winning Lead Magnet
Landing Page: A standalone web page created for a specific marketing campaign, designed to convert visitors into leads with a clear call-to-action (CTA), such as signing up for a free trial or downloading a workout guide.
Organic vs. Paid Traffic: Organic traffic refers to visitors who find your website naturally, such as through SEO or social media. Paid traffic, on the other hand, comes from visitors who arrive through paid ads on platforms like Google or Facebook.
Event Marketing: Promoting your gym by hosting events like open houses, fitness challenges, or competitions to attract prospects, build excitement, and showcase your community.
User-Generated Content (UGC): Content created by your members, like Instagram posts, reviews, or testimonials that you can share to build trust and drive engagement.
đź“– Read more: Gym Owners Guide to Getting Started with User-Generated Content
Lead Nurture: The process of building relationships with potential customers over time through relevant information, personalized follow-ups, and targeted touchpoints. It combines marketing efforts like email campaigns and valuable content with sales strategies such as consultations and direct communication to guide prospects through the sales funnel and convert them into paying members.
Remarketing/Retargeting: A digital marketing tactic that displays ads to people who have previously interacted with your website or social media. The goal is to re-engage them and encourage them to return and take action, like signing up for a trial or membership.
A/B Testing: A method of comparing two versions of a marketing element—such as an ad, email, or landing page—to determine which one performs better based on metrics like clicks, sign-ups, or conversions.
KPIs (Key Performance Indicators): Measurable metrics that track the success of your marketing and sales efforts, such as website traffic, conversion rate, and monthly recurring revenue. KPIs help you identify what’s working and where to improve to grow your gym.
đź“– Read more: Better Gym Membership Sales: How to Use Metrics and Data
Bounce Rate: The percentage of visitors who leave your website without taking any action, like filling out a form, booking a consultation, or signing up for a trial.
Cost Per Lead (CPL): The amount you spend on marketing to acquire one lead. This metric helps you understand the efficiency of your campaigns and measure the return on your marketing investment.
Reputation Management: Actively managing your gym’s online reviews, ratings, and overall public perception to build trust, strengthen your brand, and attract new members.
Gym Management Software (GMS): Software designed specifically for gyms to handle tasks like scheduling, billing, member management, and reporting—streamlining operations and enhancing the member experience.
đź“– Platforms like Kilo Gym Management Software provide all-in-one solutions to help gym owners save time, stay organized, and grow their business. In fact, 80% of our customers report that Kilo GMS is easier to use than their previous software.
Wrapping It Up
With this glossary, you have a resource to reference anytime you need clarity on industry jargon—so go ahead and bookmark it for future use! We hope it simplified the terms and gave you a better understanding of the strategies that drive gym growth.
In the meantime, book a call with a Kilo team member to discover how our software products can help you grow your gym faster and smarter.
