Member retention is arguably the most important metric in running a successful health club.
Below are a number of eye-opening statistics about member retention and the drivers of good retention performance.
- On average overall 6 out of 10 members will still be a member at the same health club 12 months after they join.
- Annual membership retention rates vary from as low as 39% to as high as 90%.
- A quarter of clubs have annual retention rates lower than 51% and a quarter have rated higher than 69%.
- Overall the median number of visits in the first calendar month after joining is 6.
- There is almost a dose-response relationship between the frequency of visits in month 1 and the annual retention rate. In other words, the more frequently people visit the higher their retention.
- The annual retention rate for those visiting their clubs less than 4 times in the first calendar month after joining is 59.1%
- 67.3 for at least one visit per week.
- 72.2% for at least 2 visits per week (8 visits in first calendar month)
- 78.2% for at least 3 times per week (12 visits in first calendar month)
- The effect of visit frequency on retention starts as early as the 12th week. Even at this early stage of membership, 9% of members who visit less than 4 times have terminated their membership compared to an average of only 3% terminating for members with visit frequencies of at least once per week.
- The difference between the frequency of visits in month 3 and month 6 is minimal suggesting that the visit frequency has been established by month 3.
- Only 6% of low-frequency users in month 1 manage to increase their visit frequency to at least once per week in month 3. This emphasizes the importance of picking up low-frequency users early in their membership.
- Low-frequency users who increase their usage between months 1 and 3 also increase their annual retention rate.
- Members who visit at least once a week in their first month stay an average of 13 weeks longer than members who fail to visit this frequently.
These findings support our philosophy around the importance of strong onboarding of new members to maximise their early visitation (first 30 days in particular) – This involves giving them a clear plan and roadmap, and plenty of support in the first 1-3 weeks.
Our FitDesk software is a comprehensive platform for managing an effective onboarding process including managing online gym appointments, fitness consultations, developing a weekly plan and workout program, and tracking new member engagement.
To learn more about FtiDesk go to – www.greenedesk.com.au/fitdesksoftware/