If you are looking for answers on how to increase membership sales today while minimizing membership cancellations at the same time, the answer may come from the same solution.
While member retention remains the hottest topic in the health club industry, the vast majority of club operators have yet to properly tackle it. Operators are more focused on increasing pressure to meet the immediate needs of protecting their market share and managing cash flow. In addition, reducing attrition is often wrongly perceived to offer only long-term benefits – or, benefits for which club owners can’t afford to wait.
The good news is consumers are rewarding health clubs that implement the right retention systems and programs with: higher yields through increased per-membership spending; increased secondary spending; greater referral rates, and robust brand loyalty.
Clubs that can prove up-front they understand, and clubs that have visibly addressed the needs and fears of prospects will, without question, sell more memberships.
Sales closing rates can easily jump 10 to 15% the day after a club implements the right retention strategies – thus providing instant payback for applying a long-term philosophy. A good part of those sales should come from the absolute belief the club’s salespeople have in their product. In the past, sales staff may have been unclear on what happens to a club member once they get their signature (and, no amount of smoke and mirrors can mask that). With retention products and programs in place, there is a total understanding between the prospect, membership consultant, and fitness department as to exactly how and what the new member’s journey to success will be.
Clubs that ignore the real needs of members, or offer band-aid solutions to retention, are forced to compete on price and facilities in a market already well-serviced and fighting for the same 15% of the gym-going population. In this market, the operator with the biggest wallet usually dominates, and even the biggest players can eventually run out of steam with no relationship to build loyalty, and just cheap membership deals.
The most common reasons that members quit and the reasons that motivated them to choose a health club in the first place are very closely linked. In the latest study on global retention trends, the gap of membership growth continues to widen between the clubs that understand this concept and the clubs that don’t.
Consider the following two scenarios regarding a club member’s expectations and reality:
Scenario #1: An example of reality not meeting a club member’s expectations:
1. The client wants to get results
2. The salesperson promises results
3. The fitness staff has good intentions, but never gets an opportunity to deliver or even check results
4. The disillusioned client quits membership, never knowing if their workouts ever worked
5. The client tells their peer group of the disappointment.
Scenario #2: A more positive approach and outcome for the club and the club member:
1. The client wants to get results
2. The salesperson guarantees results and books the client to start their journey
3. The fitness staff guides and coaches client
4. The client reviews results within 30 days
5. The client is delighted to see results and is encouraged to adhere to programs
6. The client becomes a raving fan as well as a loyal, motivated member
7. The client tells their peer group of this successful experience, and encourages them to join, too.
Knowing about these two scenarios can actually make the selling process considerably easier – especially if your club can prove the latter of the above two options is assured. No more promises, no more trying to paint a pretty picture, the service journey is the picture. Every club that runs the right retention system will make it clear, without a doubt, that their club delivers all the advice and support their club members need to get the results they deserve.
So, with a club full of raving fans and a sales team supported by visual tools which prove success is guaranteed and not just a cliché, club owners need not wait until members cancel to see if their retention efforts have been worthwhile. Health clubs can indeed have their cake now and eat it again later as more members join; more members spend more, and more members stay longer. That’s a triple-play of benefits every club owner should tap into today.
Paul Brown is the President and CEO of Face2Face Retention Systems. Australian born, he has traveled the world teaching and implementing his Face2Face Retention Systems. Face2Face is IHRSA’s official 120m x 2010 Retention program, and through local partners and regional agencies, the program’s availability is now expanding across the U.S. For more information and a free online demonstration, phone 1.888.323.2010 or email info@retentionf2f.com .
