The average customer acquisition cost (CAC) for gyms varies widely from gym to gym, leaving many gym owners unsure of what they should be spending to acquire a customer. We have grouped gyms into five categories to provide accurate and precise CAC benchmarks. The categories are:
When running paid and organic advertising for gyms, the most important metric to pay attention to is the CAC measured against the lifetime value of a customer (LTV) to determine the profitability of the advertising campaign. At a minimum, we recommend maintaining an LTV:CAC ratio of 3:1, meaning for every $1 spent to acquire a new customer, $3 in revenue is made.
How to Calculate Your CAC
To measure your results against our benchmarks, it is important to ensure you are correctly calculating your CAC. The following formula is used.
CAC = Total Spend on Sales/Marketing ÷ Customers Acquired
Each breakdown is split into organic and paid channels. Organic channels include email marketing, SEO, and organic social media, while paid channels include Meta Ads, Google Ads, and radio ads. Organic channels will yield a lower CAC, but they generally take longer to implement than paid channels, which offer quicker results at a higher CAC.
Average CAC by Type
The following table breaks out the average CAC by gym type, from small boutique gyms to large mega-gym chains.
| Gym Type | Explanation | Example | Organic CAC | Paid CAC |
|---|---|---|---|---|
| Traditional | Broad range of standard exercise equipment | 24 Hour Fitness | $158 | $277 |
| Boutique Fitness Studios | Specialize in specific types of workouts or fitness classes | Orangetheory | $364 | $638 |
| Personal Training Studios | Focuses on one-on-one or small group personal training | Fitness Together | $475 | $832 |
| CrossFit Gyms | Emphasis on functional fitness with a mix of weightlifting, cardio, and bodyweight exercises | CrossFit | $475 | $832 |
| Wellness Centers | Offer a holistic approach to health and fitness | YMCA | $301 | $527 |
| Sports-Specific | Cater to athletes focusing on a specific sport | NC Baseball Academy | $554 | $970 |
| Women-Only | Exclusive to female clients | Curves | $127 | $222 |
| Budget | Focus on providing essential gym services at lower costs | Planet Fitness | $63 | $111 |
| Luxury | High end facilities and extensive amentities | Equinox | $713 | $1,247 |
Average CAC by Facility Offerings
Generally, the more niche the facility offerings are, the more expensive the membership will be. This leads to higher CAC in most circumstances, except in markets where the demand for a specific type of gym has outpaced the supply substantially.
| Facility Offerings | Explanation | Organic CAC | Paid CAC |
|---|---|---|---|
| Basic | Standard gym equipment, no or limited group classes | $95 | $166 |
| Full-Service | Extensive gym equipment with a variety of group classes | $206 | $360 |
| Fitness Studios | Specialized equipment (Pilates reformers, boxing rings, etc.) | $364 | $638 |
| Wellness Centers | Comprehensive fitness equipment and classes with additional services (massage, sauna, nutrition counseling) | $301 | $527 |
| Sports Complexes | Fitness equipment, group classes, and sports facilities (basketball courts, swimming pools, tennis courts) | $253 | $444 |
| Personal Training Studios | Focus on one-on-one or small group personal training | $475 | $832 |
Average CAC by Price Point
We observe that as the average monthly cost of a gym increases, the CAC will also increase. We generally recommend the marketing spend to be liquidated (revenue = CAC) in the first 3-6 months.
| Price Point | Explanation | Organic CAC | Paid CAC |
|---|---|---|---|
| Budget | < $30/month | $63 | $111 |
| Mid-Range | $30/month - $60/month | $143 | $249 |
| Premium | $60/month - $100/month | $253 | $444 |
| Luxury | $100/month - $200/month | $475 | $832 |
| Exclusive | > $200/month | $713 | $1,247 |
Average CAC by Marketing Channel
Below are the most common gym marketing channels where results are measurable and data is available.
| Channel | CAC |
|---|---|
| Social Media | $398 |
| SEO | $318 |
| $239 | |
| Influencer Partnerships | $477 |
| Online Paid Ads | $557 |
| Direct Mail | $636 |
Average CAC by Location
Below, see the data for average CAC by gym location.
| Gym Location | Organic CAC | Paid CAC |
|---|---|---|
| Urban | $348 | $610 |
| Suburban | $238 | $416 |
| Rural | $158 | $277 |
Next Steps: Lowering Your CAC
The best way to lower your CAC is through organic lead generation channels. While these channels take longer to build, they offer consistent leads generated at a low cost for years to come. We specialize in helping businesses do this by implementing a thought leadership SEO strategy. If you want to learn more, message us on our contact page here.