Boost retention, increase referrals and make more money by focusing on the factors you can control.
Confronting and overcoming the problem of attrition can be a big revenue generator for clubs. With the average rate of member retention at about 50% and new member acquisition costs hovering around $250, it makes as much sense to put time and money towards saving members as is does to finding new ones.
There are factors that go into retention that are difficult to control: price points, demographics, single- or multi-purpose clubs and competition in the area. We are going to focus on what centers can control.
Member Usage
It’s well documented that if members use a center over 100 times per year they are much more likely to stay. Failure to get new members visiting regularly, especially during the first few months, reduces the likelihood of keeping them in the long run. Members will appreciate that you want them to use the center and meet their goals. Here’s how:
• Use your club management software to track member usage for their first 120 days, in 30-day intervals. If you see any drop, contact them by email, snail mail or with a phone call. Some centers are even sending staff to people’s homes (with door hangers if they are not home) to get them back in the center. Catch members who are slipping-help get them into a pattern of regularusage and make fitness a lifestyle and a habit.
• Track all members’ low usage, contact them to let them know you are concerned and give them a good a reason to come back (such as incentives, reaching their goals, etc.).
Recognize Results
If members see results, they are more likely to continue their membership. Check in with members and review the goals they had when they joined. Offer a free personal training consultation to do testing, and motivate/educate them to meet their goals. Here are a few areas to focus on:
• Target members who have shown interest in personal training (doing a member-interest profile upon joining can help with this) – members see better results with personal training.
• Track the member’s results to demonstrate how personal training, and membership in your club, is working for them (strength, body fat percentage, blood pressure, etc.).
Cultivate a Good Relationship with Each Member
If members feel like they are part of something, they are more likely to be loyal and come to the center. Contact your members at home or work for more than just late dues. Host events where members can meet and mingle with each other and your staff. Make members feel welcome in your club.
• Call or send a letter/card to all members on their birthday and/or club anniversaries. This is a great way to communicate with them surrounding a happy event. For added impact, give them a gift card for a free drink, personal training or tanning session to help celebrate and promote new services based on their interests.
• Host Member Appreciation Days where free beverages, massages, nutritional consultations, etc., are available, and make them social events so the members feel part of your club “family.”
• Offer a referral program to encourage members to bring guests to the club. If you are not using a “bring-a-buddy”-type program, mail the member some free passes. Sometimes all a member needs to stick around is companionship.
Create a Recognition/Reward Program
Companies in virtually every industry are now using recognition and rewards programs to retain customers. Consumers today expect these programs, and having one in your club could make the difference between members staying or going to a competitor.
You can get help from companies in the club industry that specialize in these programs, or keep it simple and create your own. Be creative, but don’t forget these rewardable actions:
• Reaching fitness goals
• High usage
• Member referrals
• Trying new classes
• Hiring a personal trainer
• Reaching different “point” targets in the reward program
Be sure the awards are desirable: credits for items in your pro-shop, discounts on personal training, drinks, free months of membership, etc.
In order to achieve a substantial change in retention and reap the benefits, time and money will need to be invested. The effect will be more members, more referrals, increased sales in other departments, increased revenue across the board and happier members leading to you being less susceptible to competitors. Good luck!
Len Bell is a Sales Associate with Twin Oaks Software. He can be contacted at 866/278-6750 or by email at lbell@tosd.com, or visit.tosd.com.
