In operating a major fitness facility there are many things for members to potentially complain about. Even if the club is flawless, I bet the moment the sauna malfunctions, or an e-blast has a misspelling, a member will complain.
Not all complaints are malicious, and not all will end up flooding your Facebook wall or Yelp page. However, charging members after they try and escape a membership can wreak havoc on your club in a multitude of ways.
Therefore, is it actually worth the additional monthly ETF, or time, battling a member that wants out of a contract? Until recently I had never personally encountered a club that didn’t make me sign a contract that kept me locked in for at least six months to a year.
The facility didn’t negotiate the price with me, and even notified me that prices might be increasing for my package in the near future. However, they politely explained that if I want out at any time, they would simply let me go. No arguing, no submitting new driver’s licenses or faxing copies of bills to prove I moved at least 30 miles away.
I once spent six months trying to get out of a club membership after I had moved. They didn’t have a location in my new city, or I would have continued the membership. However, regardless of how many faxes I sent, there was always an issue. Either it didn’t prove enough, or they “never received a fax.” Some bills I submitted to them for proof, even though they represented a new address, still didn’t qualify.
A few years later I actually moved back to be close to one of the locations, but I won’t go back. I’m not angry — it just left a bad taste in my mouth. My current question for a club — is it worth the struggle?
Of course, retaining a member that wants to leave because they are unhappy is one thing, but someone that simply needs out because of personal reasons, isn’t worth the fight. In fact, you should be more inclined to put them on a previous member mailing list to hopefully get them back in your club once they are in a better position.
If a customer wants to leave because they are unhappy, you need to rectify the problem as opposed to arguing over whether they can get out or not. Even if they eventually leave, you will still need to fix the problem. If you spend 45 minutes solving such a problem and they still want to leave, there probably isn’t much you could ever do to make that member happy.
However, at the end of the day, the initial sell is much cleaner and relaxing when you’re not worried about being tied down. Most members aren’t going to jump in and out of payments anyhow. Just like me, they simply want that feeling that they aren’t tied down. I joined the facility because I want to get in shape, not so that I can make payments, cancel my membership and rejoin again.
Spend more time making your members happy rather than fighting over the fine print on a contract. Let your sales team sell, and get members in shape. If they are mad that your club needs something, needs to fix something or they need help, take care of that member. If the member wants to get out of their contract, simply let them out at the end of the month, no questions asked. Trust me, it will remove a lot of stress and headache on both ends, and allow you to focus on the members that want to be at your club.
Tyler Montgomery is the editor of Club Solutions Magazine. Contact him at tyler@clubsolutionsmagazine.com.
Hi Tyler,
I can appreciate, and agree with, the spirit of your article. But, in principle, I disagree with the details. A few years ago, in the midst of the recession, we felt justified in raising our dues rates (we always offered month to month contracts with no long term commitment). We decided to raise rates on our month to month membership but lowered dues on a 12 month contract. Our members have a choice. For those who want a lower price, we do absolutely hold them to their commitment and we could not be more CLEAR on their contract that they are joining for 12 months. With that said, we often run into problems with members who want to cancel–we ask for a doctor’s note or “proof of move.” You’d be surprised how many people have mysterious ailments that are made WORSE by exercising (hard to believe) but we honor that note form a physician. We also had a member recently submit military orders in order to cancel (absolutely valid). However, this paperwork was missing one vital detail–the member’s NAME! As for you experience, I can’t speak for another club but a fax? Really?