It’s not news. Retention is a pressing issue for health clubs big and small.
DestinationCRM.com pointed out that reducing customer churn at the typical retail establishment by as little as five percent can increase profitability by as much as 125 percent. So, then, why don’t more clubs and studios address the problem?
Sure, there are some that can’t be helped, such as moving. However, there are many retention challenges that can be overcome with a little introspection, forethought, and allocation of time.
Here is a look at three common retention challenges facing club owners today and some ways to overcome them:
Challenge #1: Keeping members excited. Every new member is excited. Perhaps he is excited by new classes. Perhaps she is thrilled at the new-to-her functional training area. Maybe it’s the excitement of losing the last 10 pounds. Perhaps it’s even just the fact that he or she gets to stop at the juice bar on the way out, when the old gym didn’t offer a juice bar. But just like any relationship, what is new can quickly become old. See, what that new member didn’t know is that the same classes have been running for two years. The functional training area often has broken equipment, and the juice bar runs out of berries quite often. So, it’s off to the next shiny, new studio or health club.
Cure: Take the time to plan.
Make sure your classes are evaluated constantly.
Plan a quarterly schedule so that you are always introducing new classes into the mix so that your members stay excited.
Have a checklist so that your staff can note equipment in need of repair and have a plan of action. Sure, repairs cost you, but lost members may just carry a higher price tag.
Expand that to your retail, juice bar, and other areas.
Use your club management software to set up tasks, track inventories, and create timelines to ensure that all areas are running smoothly.
Challenge #2: Dedication to Retention. Sure, it would be nice if you had a specific person there to ensure that members are connected and vested in their club, and some larger clubs do. You know the importance of creating a habit using the club quickly or losing that person as a member. You wish you could do a two-week and one-month check-in call, but who would do that? What about that member who was consistently in the 5 am yoga class for months but has “fallen off the map?” A member unhappy about the studio being too hot? Who would have guessed he or she would quit the club at the end of his or her contract? Well, you might have had you—or someone—been paying attention.
Cure: Make customers a priority.
If your budget doesn’t allow you a member retention specialist position, make it everyone’s job.
Have it be the salesperson’s responsibility that the member is registered into an onboarding process and that there are a certain number of visits in the first 21 days before a commission is earned.
Make sure the trainer assigned to the initial assessment helps create attainable goals for the new member.
As an owner, take every complaint or suggestion seriously and ensure your front-desk staff does as well. Even if it is not possible or reasonable, understand that, to that member, it is important, so treat it that way.
Take advantage of your lead-nurturing system and create a new member workflow or emails that not only keep members coming in, but have events (triggered by members not showing up) to entice them to come back to the studio.
Challenge #3: New Competition. Every studio owner would like to have every member for life. But unfortunately, if you are in a good location, odds are, others will want to move into the neighborhood. It’s not easy to keep members away from the shiny, new health club filled with new equipment, instructors, and classes. It’s especially hard when resources are tight, but there are ways to make your gym feel new and keep your members coming back regardless of what’s going on outside your four walls.
Cure: Innovate and reinvigorate.
Keep up with repairs. Nothing makes a club feel old more than out-of-order signs.
Stay on top of trends. Better yet, stay ahead of trends. Bring in cutting-edge classes. Incorporate technology into your club, be it Wi-Fi for members or equipment that helps track progress.
Keep it clean. The shiny, new club down the street is that way because it is new and clean. Sure, you may never achieve that new-club smell, but keeping the studio clean will go a long way to keeping members happy and coming back.
Renovate. You don’t have to do a full renovation to bring your club back to life. There are little things you can do that can spruce the place up without hitting your bottom line too hard. Replace all your padding with new colors. Paint the club. Replace or add lights to brighten the club up.
You’ll never be able to keep every member. But by planning and focusing on overcoming common retention challenges, you will be able to cut your attrition rates.
What are some of the biggest retention challenges you face?