In this business environment, we are forced to make tough decisions. While retention has always been the name of the game, it is tough to think about acceptable losses. However, this is a business and while you want to keep everyone happy — there are times when we can’t. Or in some cases you are forced to make decisions that could alienate some of your members.
Will I lose 40 members if I drop group X — maybe, but if my average customer value is $29 a month then I just lost $1160. Nevertheless, if group X costs me $1161, then the 40 members is an acceptable loss.
Is this a tough decision to make? Yes. But if these are accurate numbers it is always a good business decision. We are in the fitness business, but sometimes the business has to outweigh the fitness.
Frank Emanuel
Health Club Marketing Contributor
