“Should I focus more on profit or on my purpose?” Chances are, it’s a question you’ve asked yourself frequently. After all, as a school owner, you feel a deep sense of purpose to your students and your community. And your students and your community rely on you. So should you prioritize that over profit? The answer is yes. Sort of.
After all, fulfilling your purpose requires profit. Without it, how would you afford the equipment you need? How would you market your school in a way that reaches as many people as possible, allowing you to have a broader positive impact? And let’s not forget that you are a professional, providing an indispensable service to your clientele – without profit, how would you pay yourself a fitting salary that allows you to continue your mission? Maintaining a healthy profit is a must in order to make the most difference in your community.
This means that to maximize your purpose, the key is maximizing your profit. How can you ensure you are doing just that? We recently shared 6 Key Performance Indicators for Martial Arts Schools. While we believe you should have no more than 5-6 KPIs that you track regularly, when you are trying to maximize profit, you should occasionally look at secondary KPIs. Here are 4 secondary KPIs that will likely reveal ways you can maximize your profit.
- Cost Per Lead (CPL)
You spend a lot of money marketing your school every year. How do you know if you’re spending your marketing budget effectively? By knowing your cost per lead for each effort. This is a very straightforward calculation:
Let’s say you spend $100 on a Facebook ad and it generates 6 leads. Your CPL would be $100 divided by 6 = $16.66. And perhaps you spend $200 to create and print flyers you distributed. And, that effort brought you 20 new leads, for a CPL of $10 ($200 spent divided by 20 leads). Clearly the flyer was the more effective means of generating leads.
We recommend you experiment with different means of lead generation over time to make sure your marketing mix stays up-to-date with changing customer trends. Here’s a free resource you may find helpful as you navigate the maze of opportunities: https://theonlineadvertisingguide.com/