24 Business Lingos Yoga Studio Owners Should Know

Are you thinking about starting your own yoga studio or already running one? Whether you're just considering it, starting out, or have been doing it for a while, it's probably because you love yoga and want to share its benefits with others, helping them feel better and more confident.

But running a successful studio isn't just about teaching yoga. It's also about understanding how to run a business. Figuring out the business side of things can be confusing, especially when you're not sure who to talk to or what all the business terms mean.

To help you out, we've put together a list of 24 important business terms that every yoga studio should know. Understanding these terms can help your studio grow and become more successful.

1 ROI

At the top of our list is ROI, which stands for Return on Investment. It's a way to measure how much money you're making compared to how much you've invested in something.

Usually, businesses use ROI to see if their marketing campaigns are paying off. But think about this: if you spend $1,000 on a marketing campaign and end up making $2,000 in sales (not profit), you've essentially doubled your investment.

ROI can also include other things, like developing new products or improving your studio. For example, if you expand your studio and can now enroll 100 more students, that's also a type of ROI.

But remember, ROI doesn't mean profit. It's possible to have a negative ROI if you spend more money than you make. However, this isn't always bad right away. It depends on your overall strategy and how much money your customers are likely to spend over time, which I'll talk about later.

2 CRM

Customer Relation Software, often abbreviated as CRM, is pivotal. Many yoga studio owners undervalue the significance of robust CRM, either due to unfamiliarity or the misconception that it's unnecessary.

If you've recently inaugurated your studio, acquiring CRM might appear premature. Yet, as you intensify your studio's marketing to attract a broader clientele, possessing reliable CRM becomes indispensable.

Good CRM helps:

Collecting and organizing potential customers' information.
Keeping track of new leads, appointments, missed appointments, and sales.
Using automation to make it easier to communicate with potential customers.
Providing reports on how much money you're making compared to how much you're spending on promotions.

There are many different CRM platforms out there, each with its own strengths and weaknesses. For example, Monstro is a CRM that's made to help you market better, get more people to sign up, and keep your current members happy so they stick around.

If you're looking for a great CRM to help your studio grow, you can schedule a free demo with us here.

3 Retention, Churn, or Attrition

Churn, which is also called attrition, shows how quickly clients stop being part of a company within a certain time period.

This is really important for all studios because it tells you how long members stick around—the longer, the better.

Remember, churn or attrition can be measured monthly or yearly. Studios with high churn rates usually have this because their programs aren't great, clients aren't happy, or they're not getting new clients effectively.

The first two reasons are pretty obvious, but "ineffective acquisition" is about how you get new members, which can affect how many stick around. For example, if you give a lot of discounts or use Facebook ads a lot, you might end up with more people leaving.

4 LTV

LTV stands for the lifetime value of a client, which is really important for businesses that rely on memberships.

It's all about how much money a client will spend with you over the time they're with your business. For example, if your studio charges $160 a month and the average client stays for 12 months, their lifetime value is $1,920.

Understanding this is crucial for yoga studio owners because it helps determine how much you can spend to get a new student. Most owners want to see immediate returns, which makes sense, but it can hurt the long-term growth of their business.

Since yoga classes usually work on a subscription model, knowing how much a student will spend over their time with you is key. If that amount is, say, $3,000, it might be worth investing $150, $200, or even more to get a new student, even if you lose money at first. In the long run, you'll make that investment back.

5 Cost Per Acquisition

This metric shows how much you spend to get a student. For example, if you spend $100 on ads to get one student, your CPA (Cost Per Acquisition) would be $100. It's important to keep an eye on this cost for different marketing methods so you can figure out where to put your money for the best results and get students at the lowest cost without compromising on their quality.

6 Revenue (Top Line)

Top-line revenue, also called gross revenue, is the total income your yoga studio makes from its main business activities before taking out any expenses like operational costs, taxes, interest, or depreciation.

It's the first number you see on a company's income statement and shows how much money it's making from selling its products or services.

Checking your top-line revenue is important for understanding how well your studio is doing financially and how it's growing each month and year.

7 Bottom Line

The bottom line is the smallest amount of money your business needs to make before it starts losing money. For example, if you spend $5,000 every month, you have to make at least $5,000 just to cover your costs.

It's a really important number for checking how well your yoga studio is doing financially. If your bottom line is strong, it means you're making good profits that you can put back into your studio to help it grow more.

But if your bottom line is weak or negative, it might mean you're having money problems and you need to do something to fix it.

8 Overhead Cost

Overhead costs are the regular expenses your yoga studio has to pay that aren't directly related to running classes or programs. They're really important for keeping your studio up and running smoothly.

These costs include things like rent for your studio, utility bills like electricity and water, salaries for office staff and instructors, insurance payments, and money spent on maintaining equipment and facilities.

Basically, any money you spend that doesn't go directly into running classes is considered overhead. Understanding these costs is crucial for yoga studios to handle them well and make sure they're making a profit.

9 Cost Per Lead

Cost per lead (CPL) is a common term you'll hear, especially when you're running marketing campaigns like Facebook ads. It's the amount of money you spend to get one potential customer from your marketing efforts.

Tracking this metric is important, but you need to be careful not to be fooled. Why? Because many marketing agencies might brag about having a low CPL, saying, "I can get you leads for just $5 each."

That might sound great, right? Well, maybe...

But here's the thing: leads aren't the same as actual sign-ups. So, when you hear about a $5 per lead, you might think, "If I can get 100 leads for only $500 and sign up 50 of them, I'll make a profit."

But here's the reality: the cost per lead doesn't matter much if the leads you're getting aren't interested in your yoga studio. If you spend $5 per lead but only one out of 100 actually signs up, then your cost per acquisition (CPA) is a huge $500.

On the other hand, if you spend $50 per lead but manage to get one new student from just four leads, your CPA is only $200. Which situation sounds better to you?

10 Key Performance Indicator (KPI)

KPI, which stands for Key Performance Indicator, is a really important term to know. It refers to specific numbers or data that show how well a company is doing in reaching its main goals.

Basically, these are important data points that you, as the owner of a yoga studio, choose to keep an eye on to see how well your studio is doing in different areas of your business.

There are lots of common KPIs, like CPA (Cost Per Acquisition) and CPL (Cost Per Lead), which help you figure out how effective your marketing efforts are and where you can improve.

But KPIs aren't just about marketing. You can also set KPIs to track how students progress through classes and how long it takes them to move up to the next level.

Overall, KPIs are usually set to measure goals related to getting new customers, keeping them, making money, running the business smoothly, and taking care of your customers, among other things.

11 SEO (Search Engine Optimization)

SEO, short for Search Engine Optimization, is a marketing strategy aimed at boosting your yoga studio's visibility in search engine results.

Since Google is the most widely used search engine, accounting for over 90% of online searches, when people talk about SEO, they usually mean aiming for top rankings on Google.

SEO is a complex topic that requires a detailed understanding. If you're interested in mastering SEO to ensure your studio ranks high on Google, I recommend reading this article.

However, I'll quickly mention some common terms you'll come across when optimizing your Search Engine Ranking.

Backlinks: Backlinks are like internet referrals; they're links from other websites that point to your yoga studio's website and can help it show up higher in Google searches.

Domain or Page Authority: Domain or Page Authority is like a website's popularity score; it shows how trustworthy and important a website is, which can affect how high it appears in Google search results.

**Anchor Text:**Anchor text is the clickable words or phrases in a link that tell you what you'll see if you click on it; it's like a mini description of where the link will take you.

On-Page Optimization: On-page optimization is like tidying up your room before guests come over; it's the process of making sure individual pages on your website are organized and filled with helpful information so they're easy for visitors to understand and navigate.

Internal Linking: Internal linking is like making a map inside your website; it's when you connect one page to another within your website to help visitors find related information easily.

Page Load Speed: Page load speed is how fast a website's pages load when you visit them; it's like how quickly a book opens to the right page when you turn to it.

12 Local SEO

You'll often come across the term 'Local SEO', and you might wonder if it's different from regular SEO.

Well, it kind of is...

Local SEO is about making your website show up when people search for local things, like "yoga studios near me" or "yoga studios in New York". Regular SEO aims to make your website show up in all kinds of searches, not just local ones. If that's hard to picture, check out the image below:

Local results only appear on Google and sometimes Bing. But Bing doesn't show its own local results; instead, it uses sites like Yelp or Local Advisors. These "local" results show up based on where the user is, with Google showing the closest places on Google Maps.

Unlike regular SEO, which focuses on your website, for local SEO, it's your Google Business Profile, also called Google My Business, that gets ranked.

Here are the principal contributing factors for local Google rankings:

Google Business Profile optimization
Proximity
Number of Reviews
Website Optimization
Citations (links from other websites like Yellow Pages, allowing you to post your Business Name, Phone, and Address).
Content and Photos.
Backlinks

SEO and Local SEO are big topics, too big to talk about everything here. If you want to get really good at making your studio show up at the top of Google searches, I strongly suggest reading this article.

13 Facebook or Instagram Ads

Facebook and Instagram ads allow you to advertise on these platforms, which is different from traditional ads like those on radio, TV, or newspapers.

These digital platforms, such as Facebook and Instagram ads, work kind of like an auction. While we don't know all the details of how the Facebook and Instagram ads system works, it mostly depends on things like who you're trying to reach, how many others are trying to reach them, how much you're willing to pay, and how people interact with your ads.

Unlike traditional ads, Facebook doesn't only show ads to the highest bidder. It also looks at things like how relevant your ad is, how good your website is, and what people think of your ads.

14 Google Ads

Just like Facebook and Instagram ads, Google has its own advertising platform with different ways to reach your audience. Like Facebook, Google ads work on an auction system, though there are some differences in how it works.

But unlike Facebook or Instagram ads, Google also offers search-based ads. These ads show up to users based on the keywords you choose to bid on.

As a result, Google ads usually bring in higher quality leads, though they might cost more.

Types of Google Ads you can run:

Local or Service Ads: Google Local Services Ads are special ads made for businesses that offer services, like plumbers, electricians, locksmiths, and HVAC technicians. These ads show up at the very top of Google search results when people look for local services nearby. They show important info like the business name, phone number, ratings, and when they're open.

Search or PPC (Pay Per Click) Ads: This allows advertisers to bid on keywords and display their ads in Google search results. Advertisers pay for each click on their ad, and where the ad appears depends on both how much they bid and how good their ad is.

Display Ads: Google Display Ads are picture-based ads you see on different places across the internet, like websites, apps, and videos, through the Google Display Network. They show up on lots of different places, from news sites to other sites that work with Google.

YouTube Ads: YouTube ads are video ads you see before, during, or after watching YouTube videos, and sometimes they also show up when you search on YouTube or visit the YouTube homepage.

Organic social traffic is when people visit your martial arts school's website from social media platforms like Facebook or Instagram without you paying for ads.

This traffic comes from things like posting content or being active in groups on these platforms. While organic social engagement can bring in leads for your school, it requires you to be committed and consistent.

Just posting regularly isn't enough; your content needs to be interesting, helpful, inspiring, or funny. Simply sharing content on social media won't cut it; it's important to share the right kind of content. We've written a guide on how to make the most of organic social using the flywheel effect to grow your martial arts school. I highly recommend that you check it out.

16 Conversion Rate

The conversion rate shows the percentage of people who visit your website or landing page and then do something you want them to do, like signing up for a class or giving their email for updates.

It's really important to keep an eye on and try to improve your conversion rates because they tell you how well your landing pages are working, how good your marketing content is, and if your ways of getting leads are right.

You should always be checking your conversion rate and doing tests to see what works best and how you can make it better.

17 CRO

Conversion Rate Optimization (CRO) means making your website or landing pages better so they get more leads and appointments.

Since how your pages look and what they say affects how well your ads or search engine traffic work, it's worth spending time testing and improving your conversion rate.

For example, even a small change in how well a landing page works can make a big difference in how much money you make. Understanding CRO helps you get the most out of Google and referral traffic for your website.

A/B Testing, or split testing, is a big part of CRO. It means comparing different versions of a webpage, email, ad, or other marketing stuff to see which one works best for what you want, whether it's getting more clicks, more leads, or more money.

18 Funnels

A funnel shows how people go from first hearing about your studio to actually becoming a member.

Even though this journey isn't a straight line, a funnel gives a simple picture of the steps your leads go through:

Awareness: Prospective clients become cognizant of your yoga studio.

Interest: Prospective clients manifest an interest in your yoga offerings, potentially subscribing to your newsletter or engaging with your social media posts.

Consideration: Prospective clients contemplate enrolling at your studio, evaluating the value of your classes, and potentially browsing reviews or testimonials.

Conversion: Prospective clients ultimately become members of your yoga studio.

Understanding the funnel stages is pivotal as it facilitates the optimization of each stage to amplify conversions and foster customer loyalty.

19 Retargeting and Remarketing Campaigns

A retargeting or remarketing campaign is a digital advertising strategy aimed at people who have visited your website or seen your content before.

By tracking what users do and showing them specific ads based on their actions, retargeting campaigns try to bring them back to your website and get them to do more things, like signing up for a class.

Basically, we really recommend using retargeting and remarketing ads because they target people who already know about your website or content—they're like the easy targets.

And the best part is, you don't have to spend a lot of money on these ads—just a few dollars a day might be enough.

20 Call to Action (CTA)

A Call to Action (CTA) is a clear prompt that encourages visitors to do something specific, like signing up for a class, subscribing to a newsletter, or contacting your studio.

CTAs should be convincing, easy to see, and clearly tell visitors what to do to help increase sign-ups and enrollment rates.

21 Email Marketing

Email marketing is when you send specific emails to a group of subscribers or customers to build relationships, advertise services, and encourage interaction and sales.

Key Terms:

Newsletter: Regular emails sent to subscribers to update them on news, offers, and events.
Segmentation: Dividing your email list into specific groups based on criteria like interests, purchase history, or engagement level.
Open Rate: The percentage of recipients who open your email.
Click-through Rate (CTR): The percentage of recipients who click on a link within your email.

Best Practices:

Personalize emails to increase engagement.
Provide value through informative content and exclusive offers.
Optimize email design for mobile devices.

22 Upselling and Cross-Selling

Upselling involves encouraging customers to purchase a more expensive version of a product or service, while cross-selling involves offering complementary products or services.

Strategies:

Recommend premium classes or workshops to students.
Offer yoga accessories or merchandise to enhance their practice.

Benefits:

Increases average transaction value
Enhances customer experience
Boosts revenue and profitability

23 Show and No-Show Rate

Show and show rate measure how many appointments actually attend a trial class. Many owners assume that everyone who books an appointment will come, but that's not always the case.

However, a certain percentage of them should show up. The show-up rate or no-show rate can differ depending on how the appointment was made. For instance, appointments from Facebook ads typically have a 30% show-up rate, while those from Google leads have an 80% show-up rate.

Another factor is whether the appointment has already invested something. A paid trial will always have a 100% show rate.

24 Google Business Profile

The Google Business Profile, also known as Google My Business, is the profile that local businesses can establish on Google, appearing for local search queries.

You've likely come across it; it's where your Google Reviews are displayed, along with essential business details like name, phone number, address, and operating hours.

It's crucial to invest effort into optimizing your Google Business Profile, as it directly impacts your local Google ranking.