INDUSTRY VIEWS
RETENTION MATTERS MORE THAN EVER WHY CUTTING ATTRITION IS KEY TO DRIVING SUSTAINABLE GROWTH Is member acquisition a distraction in your gym’s quest for growth? Consistently signing up new members is important, but – for individual businesses and the industry as a whole – keeping existing members is the key to sustainable growth, increased profitability and more people being more active. It’s why we published our attrition research in September 2023, drawing on analysis of over 300,000 UK gym members who cancelled a Direct Debit membership between January 2017 and April 2023. The research highlighted many opportunities to keep more members coming back for longer, with one key opportunity being better data capture, particularly visits and activity tracking. In our research, a concerning 20 per cent of all members didn’t have any visit tracking data, without which it’s almost impossible to identify when people stop using their membership. Meanwhile, 52 per cent of cancellations were silent, with over 75 per cent of these happening after a payment failed or was cancelled through the bank. Clubs must get ahead of this curve, harnessing data to identify and address issues that might otherwise arise further down the line. Access control systems that make it easy and necessary to check in are key, providing operators with the data they need to more easily identify at-risk members; Xplor Gym can even flag them. The club can then intervene, building re-engagement strategies and approaches to get members back to activity before it’s too late – using our automated re-engagement workflows, for example, with personalised, targeted messages going out at key moments. Interestingly, our research showed an average of five months between when a member stops visiting and when they cancel their membership. That’s a decent window in which to re-engage them – although notably, Xplor Gym’s member drop-off alerts can extend that window. Unsurprisingly, our research found members are most likely to leave if they aren’t making use of their membership; helping people build and maintain a habit of regular visits is critical. This might seem obvious, yet it’s alarming how many operators still don’t prioritise ongoing member engagement. Regular, meaningful touchpoints are required throughout the member journey, not just in the first few weeks. Again, much of this can be automated using Xplor Gym, with proven email schedules and templates designed by experts to make it as easy as possible for clubs to weave into their businesses. Member apps with community-building features can also help sustain motivation and engagement. It’s important to be transparent around payments, too, making it easier for members to have tough conversations without having to worry about speaking to a gym owner/manager. This is where our experienced, professional, empathetic UK contact centre team comes in, taking the burden of these conversations away from the club and working to get members back in the club, fast. This essentially leaves our customers free to concentrate on what they do best: delivering an outstanding member experience.
Clubs must get ahead of the curve, harnessing data to identify and address issues that might otherwise arise
DAVE ALSTEAD Commercial Director, Xplor Gym
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STATE OF THE UK FITNESS INDUSTRY REPORT 2024
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