Keeping Health Club Members - Dr. Paul Bedford, IHRSA 2009
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Keeping Health Club Members - Dr. Paul Bedford, IHRSA 2009

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Keeping Health Club Members - Dr. Paul Bedford, IHRSA 2009 Keeping Health Club Members - Dr. Paul Bedford, IHRSA 2009 Presentation Transcript

  • Part I: Retain & Gain: Keeping Your Members Engaged Dr Paul Bedford
  • Acknowledgements• Dr Melvyn Hillsdon• Mike Hills• FIA
  • Dr Paul Bedford20 years in the fitness industryMSc Exercise and Health behaviourMSc Social Science researchPhD Factors that effect retention in thegym environment
  • Dr Paul BedfordIn the last 6 yearsSpoken to nearly,13,000 members (48 Sites)10,000 Tennis Club members (28 sites)I have had 86 gym inductionsJoined 11 clubsIn an attempt to understand what it islike to be a member of a health club
  • What do we know so far?• Contract length• Contract type• Gender• Age• Visit frequency in 1st 4 weeks• Inductions, exercise programme, support
  • 2008 Retention report01/01/2006 to 11/01/2007293,527 member records507 Clubs259 Multi-site (11 operators)248 Single-site operators.
  • 1. Retention rate ‘The proportion of members who remain a member for any predetermined time period e.g., 3 months, 6 months, 12 months etc.’2. Attrition rate ‘The number of members, per thousand, that cancel per month’3. Lifetime value ‘The average (median) length of membership or the lifespan of a membership.’
  • Retention rate for members joining from January 200610 20 30 40 50 60 70 80 90 100 Proportion still members 65.8% 0 0 2 4 6 8 10 12 14 16 18 20 22 24 Months since joining
  • Monthly risk of quitting 6 5Risk of quitting (%) 2 3 1 0 4 0 2 4 6 8 10 12 14 16 18 20 22 24 Months since joining
  • Retention rate by gender0 10 20 30 40 50 60 70 80 90 100 Proportion still members 0 2 4 6 8 10 12 14 16 18 20 22 24 Months since joining sex = Male sex = Female
  • Retention rate by age group0 10 20 30 40 50 60 70 80 90 100 12 months income @ $35.00 = $370,346 Proportion still members 12 months income @ $35.00 = $312,676 0 2 4 6 8 10 12 14 16 18 20 22 24 Months since joining agegroup = 16-24 agegroup = 25-34 agegroup = 35-44 agegroup = 45+
  • Attrition rate and average length of membership Attrition rate Median length (per thousand/month) of stay (months)Overall 35.5 16.7Age group 16-24 49.9 13.1 25-34 48.2 13.5 35-44 35.8 17.4 45+ 24.1 >23Gender Male 33.7 18.2 Female 35.0 17.2
  • Retention rate by contract length0 10 20 30 40 50 60 70 80 90 100 Proportion still members $363,548.50 (1,000, 12 month members) $242,305.00 (1,000,1 month members) 0 2 4 6 8 10 12 14 16 18 20 22 24 Months since joining contract = 1 month contract = 2-11 months contract = 12 months
  • Table 2. Attrition rate and average length of membership Attrition rate Median length (per thousand/month) of stay (months)Monthly dues (£)* <20 55.8 11.9 20-24.9 62.0 11.6 25-29.9 60.0 12.2 30-34.9 53.2 12.5 35-49.9 55.9 12.2Contract length* 1 month 90.3 7.0 2-11 months 81.3 8.5 12 months 55.8 12.2
  • Now they’ve joined what can you do?
  • Should I have an induction programme?
  • A randomised controlled trial of the effects of interactions on membership retention: Dr Paul Bedford
  • 60 minute standard induction + 60 minute support60 minutestandardinduction
  • Monthly income based on a starting membership of 1,000 paying $35.00 per month No intervention £40,000 Intervention £35,000 £30,000 Total=$352,237Total income £25,000 £20,000 £15,000 £10,000 Total=$245,137 £5,000 £0 1 2 3 4 5 6 7 8 9 10 11 12 Months
  • Attrition RateIntervention group60 minutes + 60 minutes support 24.3 per 1000 per monthControl group60 minute standard induction 77.6 per 1000 per month Difference of 53 per 1000 per month
  • Do visits increase retention?
  • Retention rate by visits0 10 20 30 40 50 60 70 80 90 100 Proportion still members 0 2 4 6 8 10 12 14 16 Months since joining M3g = 0 visits M3g = 1-3 visits M3g = 4-7 visits M3g = 8 or more visits
  • Can we manipulate amember’s visit frequency?
  • Club XNearly two thirds of members (64%) reporteither never or only rarely being spoken towhile working out. The proportion is higherin older members, regular users andperhaps more worryingly, new members.
  • Acknowledgement to Gym service rating Area Acknowledgement Gym service rating London 19% 4.8 M25 Ring 22% 5.2 West Midlands 38% 5.7 Yorkshire 20% 4.9 Greater Manchester 55% 6.1 Liverpool 9% 3.8 South Wales 22% 4.7 South East 28% 4.8
  • Spoken to per visit Probability of a member reporting it likely they will still be using the club in 6 months by frequency of gym staff communication 1 1 This means 60% less likely 0.9 0.8Odds of being a club user 0.7 0.6 0.5 0.4 0.4 0.3 0.3 0.3 0.2 0.1 0 Every visit Occasionally Rarely Never Frequency of gym staff communication
  • Average visit frequency pre and post interactionPre interaction people | more more a ctive | more oftenPost Interaction
  • The probability of making a visit next month if fitness staff talk to you during a visit this month compared to if they don’t. 1 Interaction 2-3 Interactions 4+ interactionsProbability ofvisiting next 20% more 50% more 80% moremonth when likely to likely to likely tocompared to nointeraction visit visit visit
  • Does talking to members save memberships?
  • 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00Proportion still members Retention by any interaction or not 0 2 4 6 8 10 12 14 16 18 Months since joining inttot = 0 inttot = 1
  • Cancellation rate and median length of stay by interaction for members who made at leastone visit during the length of their membership Cancellations per thousand Median length of per month membershipNo interactions 123.5 4.9At least 1 39.9 14.5interaction
  • Income from dues based on 1,000 members paying $35.00 per month over 17 months £35,000 No interaction £30,000 At least 1 interactionIncome per period £25,000 £20,000 £15,000 Total = $438,907 £10,000 £5,000 Total = $227,448 £0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Months since joined
  • Monthly risk of quitting by interaction 5 Risk of quitting (%)1 2 0 3 4 0 2 4 6 8 10 12 14 16 Months since joining inttot = 0 inttot = 1
  • 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00Proportion still members Retention by any interaction or not 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 Months since joining inttot = 0 inttot = 1
  • Retention rate by interaction by month 10 Retention rate in visits0 10 20 30 40 50 60 70 80 90 100 Proportion still members 0 2 4 6 8 10 12 14 16 Months since joining inttot = 0 inttot = 1
  • Ratings of customer service (1-10*) by fitness staff communication andgym usage (%) <7 7 8 >8 Detractors Satisfied Satisfied PromoterFitnesscommunicationNever 21.56 23.75 48.75 5.94Rarely 12.01 32.47 49.35 6.17Occasionally 10.27 37.50 47.77 4.46Every visit 11.54 12.31 50.77 25.38Gym usage 1/week 19.05 36.19 37.14 7.622/week 11.89 21.62 56.76 9.73 3/week 14.37 28.87 48.59 8.17
  • Likelihood of recommending a friend (0-10) by fitness staffcommunication and gym usage <7 7 8 9 10Frequency ofgym staffcommunication(%)Every visit 5.43 12.40 31.78 10.85 39.53Occasionally 12.05 13.39 44.20 13.84 16.52Rarely 4.87 10.06 43.83 22.08 19.16Never 13.04 18.63 26.40 13.98 27.95Gym usage 1/week 8.57 28.57 36.19 5.71 20.952/week 14.05 8.65 39.46 16.22 21.62 3/week 7.88 12.94 36.29 17.72 25.18
  • • If you speak to members: – They turn up more often – They pay for longer – They rate your customer service higher – They are more likely to refer a friend
  • Questions CommentsObservations
  • paul@theleisuredatabase.com