The key to health clubs reducing attrition rates is to make a connection with the members, so there is a reason to stay when their initial-term contract is done, even if the initial term is a month.
According to digitalsocialretail.com, loyalty programs have been shown to establish a base customer retention rate of around 92 percent. Even with the success of loyalty programs, many health clubs haven’t established one for a variety of reasons, and it can be hurting the gym’s retention rates.
Sure, a loyalty program does take a bit of planning, time, and resources, but members who are loyal to your health club not only will stay longer but will be more likely to become advocates, helping promote your business to others.
Here are a few tips on incorporating and running a loyalty program that can help boost retention numbers at your health club:
1. Keep it simple for you and your members to join the program. Have an online sign-up. Make sure there is a chance to join the program during the sign-up and onboarding process for new members. Don’t forget to give loyalty points for things such as attending the initial assessment with a trainer, coming to the club eight times in the first month, and other steps that help build a connection with the club. This will help boost retention by encouraging success behaviors with the loyalty points as a short-term driver.
2. You don’t need to go it alone. There are rewards companies that allow online joining of the program, tracking of rewards points, opportunities to earn points in ways beyond just attending a class, and more. Explore them to help make the program a success while minimizing the time and energy needed to run it.
3. Have rewards that meet your members’ interests. Think bigger than a water bottle or T-shirts (although, these are great starter prizes). Offer discounts on personal training, small group training classes, and boot camps, or additional memberships for family and friends. These will encourage spending and help keep members successful and coming back.
4. Offer a premium level. This could be a tier for your higher-spending members who purchase personal training, swim lessons, massages, and other ancillary products regularly. Take your incentives a bit further and partner with local companies to offer premium prizes that build excitement. It could be a healthy meal cooked by the chef of a local restaurant. Maybe it’s a mountain bike from a local bike shop. Perhaps it’s an adventure vacation through a travel agency. This will not only help create a buzz about the program, but can be a great way for these businesses to reach your business, allowing you to offer great prizes at little to no cost.
5. Communication with members helps build loyalty and advocacy. Research from Experian Marketing Services shows that emails targeted to loyalty program members have 40 percent higher open rates and 22 percent higher click rates than bulk emails. This is a great way to make use of your gym management and CRM software by adding retention workflows and member retention emails to your club’s strategy. Send those in the program messages specific to the program, referral opportunities, and more.
Building a loyal following among your members can do wonders to boosting your retention rates. In addition to providing an excellent customer experience, clean facility, and your and your staff’s expertise, a loyalty program can help build less easily broken bonds.
What are you doing to build member loyalty?