In today’s competitive marketplace, it’s not enough any more just to be friendly and helpful to your club members to keep them. It’s a club-eat-club world out there and club owners and managers must go further, much further to retain members.
The Fitness Industry Association (FIA) recently concluded a two-year study on member retention. In its summary report, Top Ten Strategies for Winning the Retention Battle, the FIA provides us with valuable information including a unique insight into the members’ perspective on retention.
This report reminds us that member retention is simply in the details. It’s all about knowing who your members are, what they want and delivering or serving them well.
As Nigel Wallace, Executive Director, FIA, states, “The most encouraging aspect of this research review is the simplicity of how operators can potentially improve retention rates.” He adds, “Getting the basics right really matters.” What follows is a synopsis of FIA’s research findings.
Top 10 Strategies for Winning the Retention Battle:
1. Membership Contract.
Members who sign a one-year agreement have significantly higher retention rates than those who don’t. The FIA research found that the average length of membership for those members paying monthly without a contract is 67 weeks. On the other hand, members who are committed to a 12-month contract stay a minimum of 13 weeks longer. For club operators who are concerned that such an agreement would negatively impact sales, consider offering an appropriate “get out” clause.2. Joining Fee.
Price is often a symbol of quality. Members who pay a joining fee yield 75 percent more income than members who do not. FIA suggests introducing a joining fee if you don’t already have one. And if you already have one, never discount it to zero as your retention of that member is likely to decrease by 6 months. In other words, not only are you giving away your joining fee, you are losing 6 months of membership dues!3. Marketing.
Older members, couple members and family members are more stable geographically and economically than younger, single members. According to FIA, single members who are younger than 35 years old stay an average of 24 weeks less than members 35 and older who are part of a family or corporate membership. Clubs should, therefore, focus marketing efforts on prospective members aged 35 and older. Remember to also encourage individuals to include their spouses and/or family members in their membership.4. Club Usage.
A peak leaving time for members, FIA reports, is during the first 16 weeks of membership. In order to cut this rate in half, you need to get new members in to the club at least four times during their first four weeks of joining. Doing so will yield approximately three months additional dues per member!5. Fitness Consultation.
embers surveyed told FIA that they highly valued a one-on-one fitness consultation before embarking on an exercise program. Supporting evidence concludes that if all members attended at least one such consultation within two weeks of joining, 11 percent of all cancellations would be avoided!6. Exercise Coaching.
People tend to enjoy activities at which they excel and feel confident. Give members adequate training so that they are confident about their exercise program. Make sure your members know that your staff is qualified and competent.7. Exercise Program Review.
Members who feel confident about their exercise program are more likely to continue visiting your club, states the FIA research summary. A short review of their program after a number of weeks (4-12) will reinforce the member’s confidence and exercise adherence.8. Intervene with Members at High Risk of Leaving.
Predictably, declining usage is a red flag. Identify and intervene with members who are visiting the club less than once a week or have failed to attend their initial consultation during the first four to eight weeks of membership.9. Intervene with Members at Risk of Leaving.
Members whose usage rate declines to one visit or less per week for weeks eight through sixteen are, according to FIA, also at risk of leaving and require intervention. These members should be offered a one-on-one consultation.10. Reinforcement.
FIA encourages clubs to reward members who achieve a once per week visit frequency during the first eight weeks of membership. For example, you might offer one free month’s membership at the end of the member’s first year. It will mean a lot to the member and will likely pay for itself twice over at year’s end.
In order to successfully implement these strategies, FIA urges clubs to monitor and evaluate their performance. If done, this will mean that member retention is seen, and treated, as equally important as member acquisition.
The complete report can be purchased from FIA (www.fia.org.uk) or IHRSA (www.ihrsa.org).
Richard Ekstrom is President of Retention Management. He can be contacted at 800.951.8048 ext. 2, or by email atriche@retentionmanagement.com.
