Paul Bedford, Ph.D., research director at Retention Guru, contributed to this article.
High member and customer retention is a critical element of any successful fitness business. Retaining an existing member demands far less investment than recruiting new ones. IHRSA research shows that a member that leaves can cost as much as $674 in annual revenue per dropped account.
According to a survey by Invesp Consulting, increasing customer retention rates by 5% increases profits by 25-95%. The success rate of selling to a customer you already have is 60-70%, while the success rate of selling to a new customer is only 5-20%.
If you are looking for ideas on how to improve member retention, follow the best practices below and then check out the additional resources at the end of the article to learn more.
This article is one in a series of 28 Best Practice Guidelines for Operating a Fitness Facility.
Building a Strong Customer Retention Strategy
For your business to be successful, you need to focus on the ones that make it succeed—your customers. Follow these guidelines and increase your member retention strategy.
- Ensure Your Members Are Using the Gym
- Engage Your Customers
- Build Relationships
- Help Your Customers Succeed
Ultimately, making sure your members are happy will in turn create loyal customers that will keep coming back.