Membership Retention – Dos and Don’ts
A healthy membership retention rate is absolutely vital for the success of any business venture in the fitness industry. Here at KeepMe, we’re committed to helping you improve your customer retention rate. In this blog, we’re going to do a quick summary of the “Do’s” and “Don’ts” of improving your gym’s retention rates.
1. Employee behaviour
✔ Friendly, approachable staff members | ❌ Unfriendly, cold staff members |
As Sir Richard Branson said, “The way you treat your employees is the way they will treat your customers”. Take one second to reflect on this, and ask yourself – how are you treating your employees?
We know that the attitude that your employees have has a strong impact on how they interact with your customers, and this in turn, has a big role to play in sustaining healthy customer retention rates. After all, 82% of people say that they’ve stopped doing business with a company because they received poor customer service! By focusing on creating a positive work environment for your employees, you will be creating a trickle-down effect that will improve the experience for your customers as well – making them more likely to stick around for the long run.
2. Gym culture and environment
✔ Welcoming, inclusive gym environment | ❌ Impersonal, hostile, gym environment |
One of the biggest drivers of membership retention is customer engagement. Gallup Research shows that customers who are fully engaged represent a 23% premium in terms of share of wallet, profitability, revenue, and relationship growth over the average customer. One great way to keep members engaged is to create a sense of community.
Some easy steps to create a welcoming, inclusive gym environment are getting to know members by their name, and having meaningful conversations with them. Other ideas include celebrating members’ birthdays each month, running group classes, creating an online community, or even organising member-only parties like the London gym mogul, Gymbox! The possibilities, as they say, are endless.
3. Show your long-term members they’re valued
✔ Rewarding member loyalty | ❌ ‘Punishing’ member loyalty |
This may seem obvious, but how loyal your members are to your brand matters for membership retention. But if gyms want their members to remain loyal, they need to show that they value and appreciate members that do so. So, does your gym have a loyalty scheme? It should!
Loyalty programs encourage customers to remain engaged by giving them rewards for their loyal patrons – think coffee shop stamp cards. In the absence of a loyalty scheme, long-term members may feel undervalued — even punished — for being loyal, since most gyms often tout introductory or newcomer promotions.
4. Unique customers deserve unique communications
✔ Targeted communications strategy | ❌ Generic communications strategy |
Customers don’t want to feel like just another number on your profit line. As Think with Google discovered, customers are demanding a more personalised form of service, and businesses that meet that demand are being rewarded handsomely for it – 90% of organizations that invest in personalized consumer experiences say that it significantly contributes to increasing business profitability!
Therefore, one of the keys to maintaining a healthy gym membership retention rate is delivering the marketing and communications services that will best resonate with segments of your membership base. With the use of sophisticated Artificial Intelligence technology, it is now easy for businesses in the health & fitness industry to meaningfully target and engage their customer base. Has someone been skipping the gym a lot lately? Send them an encouragement email. Is someone new to the gym? Drop them a line asking if you can help them with anything. How about a loyal customer? Send them an incentive to refer their friends and family.
Although advice about member retention can sometimes feel vast and overwhelming, customer retention strategies ultimately boil down to these four categories. Isn’t that neat? Now, all you have to do is make sure you carry out all the dos and none of the don’ts!
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