MobileFit Technology and Retention

MobileFit Using Technology to Improve Member Retention. Table of Contents 1. ............................................................................MobileFit Intelligent Fitness Systems 2. ...................................................................................The Retention Issue 3. ...................................................................................Increasing Competition 4. ...................................................................................The Financial Impact of Poor Retention 5. ....................................................................................Unhealthy Australians 6. ....................................................................................Calculating Retention 7. ....................................................................................Tracking Membership Length 8. ....................................................................................What Should Our Retention Rate Be? 9. ....................................................................................Why Members Leave 10. ....................................................................................The 10 Key Retention Principals 11. ....................................................................................Focus 12. ....................................................................................Improving Member And Trainer Relationships 13. ....................................................................................Member Intergration 14. ....................................................................................Identifying Drop Out Risk Members 15. ....................................................................................Facility Utilisation 16. ....................................................................................Improving Member To Member Relationships 17. ....................................................................................Exercise Tracking 18. ....................................................................................Keeping Workouts Shorter 19. ....................................................................................Setting Goals 20. ....................................................................................Incentive Programs 21. ....................................................................................Using Technology To Improve Member Retention 22. ....................................................................................Measuring Facility Utilisation 23. ....................................................................................Communication 24. ....................................................................................Identifying Critical Members 25. ....................................................................................Incentive Systems 26. ....................................................................................Staff Accountablilty 27. ....................................................................................Storing Member Talking Points 28. ....................................................................................Assessment Reminders 29. ....................................................................................Personal Training 30. ....................................................................................Summary

MobileFit Using Technology to Improve Member Retention. MobileFit Intelligent Fitness Systems MobileFit Intelligent Fitness Systems is a product of over MobileFit has been a great well researched tool for us 8 years of research and ongoing development. We have to offer to our YMCA members. I have found this to be a worked closely with health clubs and industry experts to wonderful “perk” when we show off our fitness centre to develop a system for health clubs to improve their overall any new members. Our members are amazed of the abil- performance and retention. ity that MobileFit gives them to track their workouts and to see the positive results of their hard work. It is our opinion that member retention is the single most important factor for operating a successful health club. When I see members using the MobileFit Kiosk, I know Clubs with high retention rates enjoy greater profitability, they are getting a great workout that has their goals in word of mouth referrals and higher, additional non-mem- mind. bership revenues. I have also had great response from the MobileFit team. Many clubs do maintain memberships at a steady level; Each time I have a question, I know I am only a phone call however, they fail to realize that for every member they or e-mail away from help! attract to the facility, another is lost out the back door. Thanks MobileFit for being a part of the Kearney Family We developed this document to educate Australian YMCA!” health clubs about why retention is such an important consideration, and to provide practical strategies to Jacqueline Burns, Health & Wellness Program Manager improve this vitally important area using modern technol- Kearney Family YMCA, Kearney, NE ogy. Technology can be a powerful tool in the battle of health club attrition. Technology allows us to measure, monitor and support people more effectively. “MobileFit has offered us a tool to track retention and flag at-risk members by identifying those who This document will focus initially on factors that contrib- have stopped visiting our facility. This has completely ute to retention, before further investigating practical changed the way we approach retention. Instead of be- strategies available, to slash member attrition. We hope ing reactionary, we are now proactive. It is an invaluable it becomes a useful resource for your club as you strive to tool for any YMCA to identify at-risk members.” improve the performance of your organization. Michael Bodenhausen, CEO YMCA “of Idaho Falls We wish you the best of luck!

MobileFit Using Technology to Improve Member Retention. The Retention Issue 24 hour fitness centres have experianced There is no doubt whatsoever that retention is a huge rapid growth in Australia with several clubs concern within the fitness industry. Out of dozens of opening over 50 sites within a two year industry surveys performed each year, retention is com- period. monly found to be amongst the greatest concerns facing health club owners and managers. Retention is an area that has often been overlooked in the This growth means that competition in the industry is past; however, clubs are now starting to understand the getting stronger and stronger. The negative side effect true importance of retention to their performance. is that it’s harder for clubs to attract new members. The public now have so many options when it comes to get- Despite that the issue of retention is very much on the ting fit. industry radar; the factors contributing to retention are still not widely understood. Clubs now spend significantly more marketing dollars to attract the same number of members as they did five What we do know is it costs approximately six times more years ago. to attract a new member than it does to keep an existing one. This highlights the urgency for clubs to shift their Many clubs are experiencing what could be described as focus to a retention based strategy. the ‘leaking bucket syndrome’ - for every member they add to the club, another cancels their membership. This Clubs that take immediate action effectively boost their creates an equilibrium where they club’s membership retention and are likely to thrive as they move into the numbers tend to stay much the same. future. Research suggests that most clubs lose up to one hun- Those who continue to overlook this important area will dred and fifty members per year that are preventable. If face the challenge of dwindling membership numbers clubs are going to improve profitability and survive long- soon enough. term, they must plug this leaking bucket. Despite this fact, many clubs continue to invest signifi- Increasing Competition cantly more into member acquisition than member retention. In fact, many continue to completely ignore the high There was a time when competition within the fitness churn rate and simply try to out-run it, by selling more industry was limited. Health clubs enjoyed what seemed memberships. The problem they face is caused by more like an endless flow of new members. The focus for many and more clubs saturating the market. clubs was sales, sales… and more sales. During this time, however, there was little focus on the large percentage of Clubs with high attrition rates will be unable to utilize the members who were leaving the club. band-aid solution of increasing new member acquisition. By no means should clubs remove total focus from sales The health club industry has changed considerably over and marketing; but the need for more attention on mem- the last ten years; competition increases every year with ber retention is very clear. more and more clubs opening their doors. Nowadays, the public has a growing range of options for health and wellbeing. We have seen the emergence of hundreds of personal training studios, specialized boxing studios, express clubs for women and now the evolving appeal of the boutique, twenty-four hour clubs.

MobileFit Using Technology to Improve Member Retention. The Financial Impact of Poor Retention “Over a 5 year period a 5% improvement in retention could be worth 1 Much research has been collected regarding the finan- million dollars in additional revenue” cial impact of retention. The IHRSA Guide to Retention suggests that clubs should ‘think small’ when it comes to retention, as small improvements can have powerful impacts on a club’s financial performance. Unhealthy Australians One particular study demonstrated that a 2% increase in Bad retention means that a large percentage of mem- retention to an average sized club could be worth up to bers who join a club, are neither reaching their goals, nor an additional $32,000 in annual revenue. improving their health and wellness. A further study demonstrated the importance of extend- In Australia, we continue to see a rise of health related ing the membership life of every new member. For a club issues such as Heart Disease and Diabetes. Diabetes with 2,000 memberships and an average revenue per- poses a grave concern as its statistics continue to rapidly member, per-month of $70; plus an annual attrition rate increase. It is estimated that 1.23 million Australians will of 40% (800 members) - extending the life of the average have Diabetes in 2010. The estimated number of Austra- terminating member by only one month, would increase lians with diabetes in 2000 was only 940,000. revenue at that club by $56,000. A vast proportion of this stems from the inactivity of our Even more surprising was the findings surrounding the population. The 2003 Australian Burden of Disease Study long-term or compounding effect of retention: A study indicates that physical inactivity was the fourth leading from the IRSHA Guide to Retention suggests that over a cause of burden of disease in Australia. 5 year period, a 5% increase in retention could be worth $1M in additional revenue. People who join a gym take a giant step towards improving their health and wellness. Nevertheless, the poor Example retention rates seen across the industry suggest that very few of the members who join health clubs, actually sig- Compare two clubs, with the same number of member- nificantly improve their health and wellness for the long- ships (3,000), the same pricing structure ($800 per year, term. It is possible a large amount of this is due to human per member) and same number of new membership nature; however, clubs with higher retention rates are acquisitions (1,000 new memberships per year) : likely to be more effectively supporting their members. If Club A has a retention rate of 65%, while the reten- The fitness industry has an obligation to provide as much tion rate at Club B is 70%; at the end of the first year, the support and guidance to ensure that as many mem- difference between the two clubs would be more than bers as possible, achieve their health and fitness goals. $100,000! Clubs with poor retention rates not only lose significant amounts of revenue, they also have little impact on Over a 5 year period, just a 5% increase in retention could improving the health and wellness of their members, of be worth $1M in additional revenue to you! These figures which is an equally important consideration. certainly highlight the importance of retention for health clubs.

MobileFit Using Technology to Improve Member Retention. Calculating Retention Example - Membership Attrition Rate Improving retention is the fastest way to enhance the Month Members Cancellations operations of any health club. Most clubs experience a JANUARY 2555 50 retention rate of somewhere between 50% and 60%. This means for every 100 members to join, approximately 60 FEBURARY 2565 55 are still members at the end of that 12 month period. This MARCH 2570 60 is an alarming statistic! APRIL 2570 65 Multi-service clubs such as leisure centers with pools and MAY 2581 70 sporting stadiums tend towards slightly better retention JUNE 2593 65 rates than pure health clubs. Additional factors such as JULY 2613 55 this should be considered when evaluating a clubs reten- AUGUST 2612 59 tion performance. STEPTEMBER 2612 54 Results of research suggest there is a significant gap OCTOBER 2633 50 between high and low retention clubs. Some clubs enjoy NOVEMBER 2632 62 retention rates as high as 90%, whereas others have recorded retention rates as low as 30%. DECEMBER 2638 63 TOTAL 2598 708 This variability suggests that effective processes and strategies can have significant impacts when improving Please note: These figures are hypothetical and not intended to reflect those of a real club. retention. Membership attrition is generally measured on an an- Member Attrition=Annual Cancellation (708) / Average nual basis. The attrition formula is best calculated using Monthly Membership (2598) x 100 the average opening monthly membership for a rolling twelve-month period. MEMBERSHIP ATTRITION= 27.25% To calculate member retention we need to find the mem- MEMBER RETENTION=72.75% bership attrition rate. Follow these steps: 1. Calculate the membership cancellations for each month then add these to calculate the total annual cancellations. 2. Take the starting membership level for each month of the year then calculate the average annual membership level by adding these and dividing them by the 12 months. 3. Divide the total number of membership cancellations by the average membership level then multiply by 100 to calculate the attrition rate. 4. The retention rate is simply 100 minus the attrition rate.

MobileFit Using Technology to Improve Member Retention. Tracking Membership Length “Industry research has found that the high- Possibly a more important measurement of health club est recorded retention rates for clubs are performance is the average membership length. The over 90%. At the opposite end of the scale, longer a member is part of a fitness club, the greater the some clubs have recorded annual retention likelihood they will be retained. rates as low as 30%”. How do we measure membership length? 1. Total the number of cancelled members for the month. What should our retention level be? 2. Calculate the membership length of each member by As previously discussed, most health clubs have retention comparing start date and cancellation date. rates of around 50-60%. This suggests that there is significant room for improvement. 3. Add all membership lengths for all cancelled members then divide by the total number of cancelled members. U.K. fitness industry research has found that the highest recorded retention rates for clubs are over 90%. At the opposite end of the scale, some clubs have recorded annual retention rates as low as 30%. EXAMPLE Every club will experience some attrition due to factors Cancelled Member- Member- Member- outside their control such as members relocating etc. It Members ship Start ship End ship Length is estimated that these factors account for around 20% (months) of the total attrition rate. Therefore, clubs performing at James 12/12/2008 30/06/2010 18 levels of around 75-85% retention are likely to be performing at close to peak performance and should focus John 21/08/2009 30/06/2010 10 on maintaining these levels. Eamon 3/03/2009 3/06/2010 15 Ruben 5/06/2008 28/06/2010 24 The best starting point for clubs is to establish their cur- Lucy 14/06/2009 7/06/2010 12 rent retention rate. A 75% to 80% retention rate should be seen as a long-term goal with focus on a short term increases of 1-2%. Once these short term goals are set it is time to consider the appropriate strategies for improving Average Membership Length = 15.8 Months retention. Please note: The data used in the example is NOT indica- tive of a typical health club. As a club works to improve their retention, average membership length should begin to slowly increase. We recommend that these two metrics become a constant focus for any health club.

MobileFit Using Technology to Improve Member Retention. Why Members Leave The key for clubs is to activate new members and get them on the right track. Clear processes and support Retention is a complex issue that involves many factors. systems must be in place for trainers to guide members Several in-depth studies have been done into the attri- through the early months of their membership. In fact butes of high retention clubs. research into the correlation between facility usage and retention demonstrates how vital these early stages are Research indicates that people who join fitness centers for member retention. have various levels of motivation to exercise. Only about 30% can be considered highly motivated; in other words, Findings from a U.K. fitness industry report, suggests an left to their own devices, these individuals will tend to almost direct correlation between the frequency of visits stick with exercise. The percentage of members with in the first month of membership and the annual reten- lower levels of motivation will often quit if they do not tion rate. These findings clearly demonstrate that many receive additional guidance and support. new members lack the support they need to implement the habit of regular exercise into their lifestyle. Joining a health club is a significant learning process for many new members. A large percentage of new members In other words, the more frequently people visit in their will have minimal experience within a health club. They first month, the more likely they will be retained long- must learn to use the equipment, manage their time and term. remain focused on their goals. Essentially, new members are often learning a completely new skill set. The annual retention rate for those utilizing their club less than four times in the first calendar month after joining, Recall the first time you drove a car: You were uncertain, was 59.1%.This compares to member retention rates of uncomfortable and uncoordinated. After additional sup- 67.3%, 72.2% and 78.2% for once weekly, twice weekly port and guidance from your parents and driving instruc- and at least three times weekly, respectively. tor; combined with ongoing practice and persistence, operating a car became an unconscious habit. An IHRSA study into retention exposed the major personal reasons for leaving a club. The top reason at 43% A new member’s journey must be viewed in a similar was, ‘member did not make enough use of their member- manner. Those who lack experience must receive ongo- ship’. This further confirms link between facility usage and ing support and guidance through the very early stages, retention. whilst they learn to feel comfortable with exercise. Another interesting statistic noted that only 6% of low A recent study, “Why people Quit”, looked into members’ frequency users in the first month, managed to increase first impressions of their club. Of those interviewed, only their frequency to at least once per week, by month three! 37% indicated they had received sufficient orientation; This emphasizes the importance of acknowledging low 24% of members said they were not impressed by the frequency users early in their membership. professionalism of the staff and only 21% felt that the staff took a personal interest in them. It also highlights the importance of being proactive rather than reactive. Relying on the reactive approach to reten- These findings clearly demonstrate that many new mem- tion; where the club’s attempt to re-activate people after bers lack the support they need to implement the habit several weeks or months of non-attendance, seems like a of regular exercise into their lifestyle. significant waste of time and energy. From this research, we have concluded that the introduc- tion and integration of new members to the club envi- ronment, is the most vital aspect in retention. Members who lack support, often feel overwhelmed, confused and frustrated; then to their own detriment, simply end up quitting.

MobileFit Using Technology to Improve Member Retention. 10 keys retention principals “Members who have a strong rapport with From our research and the considerable time we have their trainer feel a greater sense of comfort spent with clubs the following strategies have been prov- within the club and are more likely to ask for en to have a significant effect on improving retention. any additional assistance if required. “ 1. Focus The obvious first step to improving retention is to com- mence a strong focus in this area. This starts by determin- 2. Increasing Member and Trainer Rapport ing the facility’s current retention rates. Extensive research has shown that clubs that have a Meeting with health club owners and managers has strong member-to-trainer connection, maintain signifi- opened our eyes to the sheer number of operators who cantly higher retention rates than clubs that do not. Mem- simply have no concept of their current retention rate. bers who have a strong rapport with their trainer feel a greater sense of comfort within the club and are more Clubs that measure their retention rates have the oppor- likely to ask for any additional assistance if required. tunity to measure the impact of any strategies implemented. Managers should educate their training staff Ensuring staff engage with members on the gym floor is about the importance of retention, as well as develop a great place to start. Personalized communication is very a number of processes and expectations for staff to much the KEY and should take place early and often. achieve. Instruct trainers to record rapport building information Retention should be one of the main points of agenda for about the member such as their interests and hobbies. every management meeting. An ideal, long-term reten- Take the time to email or personally contact a member tion rate should be determined in addition to some short- within the first week of their program commencement, to term retention milestones. For example: If the current ensure they feel comfortable in the club. retention rate of a club is 52%, the manager may first set the goal to increase this rate to over 55%. Clubs need to develop a structured and efficient follow- up process to guarantee all members receive adequate It is by consistently measuring the retention rate that support. we identify the impact of any retention strategies being implemented.

MobileFit Using Technology to Improve Member Retention. 3. Member Integration 4. Identifying drop out risk members Clubs should have a clear process in place to introduce new members. 40% of these members have little or no As mentioned previously, when a club grows, their experience in a health club. They are often overwhelmed resources are stretched. With only 5 – 15% of members and don’t know where to start. receiving adequate support, this leaves the vast majority of members receiving limited time, on a daily basis. By having clearly defined member integration protocols, clubs can encourage consistent performance as well as In any club there will be a varying range of experience provide all new members with the support they require. levels within the membership base. Some members will Make sure that all new members undergo a health be veterans who have a long history of exercise, whilst evaluation and receive a structured exercise program others will be complete beginners. The chances of these to provide them with a basic understanding of exercise veteran members leaving a club are significantly lower technique and how to effectively operate machines. than a member who is new to exercise. A clubs retention process should be tied into the member As health clubs have limited resources and time to spend integration process. All new members should be con- with their membership base, it makes sense to spend tacted by their trainer one week after their orientation more time supporting and educating members with to ascertain that they feel comfortable with their new minimal experience, through new member orientation program. processes. A key area where clubs often fall short is after a member But how do clubs identify members who need more sup- has completed their initial orientation. Often members port after the member has been introduced to the club? lack support after this period and can lose their way, slipping out the door unnoticed. Offering regular re- In addition to ‘risk rating’ members at the start of their assessments and program updates are vital as they serve journey, we encourage clubs to be proactive in iden- as a consistent reminder to the member about achieving tifying critical members over the first three months of their fitness goals. membership. This can be done by gauging exercise consistency and facility utilization, which we will discuss It is an unrealistic expectation for trainers to be in contact in further depth shortly. with new members all the time during this period. In fact research has shown that staff can only support around Clubs need to carefully monitor individual member exer- 5-15% of members during any given week. This is where cise patterns. This allows them to be proactive and iden- having a retention system that identifies drop-out risk tify members who are on the decline and pose a retention members can be very handy. By identifying the mem- risk. Is your club tracking member utilization? bers who pose a drop-out risk, the training staff can then focus on directing their limited resources towards these members. We will now explore this concept in greater depth.

MobileFit Using Technology to Improve Member Retention. 5. Facility Utilisation 6. Member to Member Relationships Research from several sources demonstrates the link be- Our research has shown that members who exercise with tween facility utilization and retention. A decline in usage friends and family have a higher retention rate than those is a sign that a member’s perception of the value of their who exercise alone. membership is moving in a negative direction. Multi-service clubs that offer multiple services such as Often clubs wait until a member has not entered the club swimming, aerobics and tennis also tend to have signifi- for up to a month before they make contact with them via cantly higher retention rates than straight forward health letter or phone call. Often this time period is too long and clubs. too late. Being able to identify members who are likely to drop out by analyzing their exercise patterns enables Clubs should encourage members to participate in the training staff to devote more effort supporting these variety of options on offer. We advise clubs to run social members. events where members can interact and get to know other members. Facility usage in the first month seems to be the most important consideration in retention. Members who Additional activities that promote the member-to-mem- exercise less than four times in the first month of their ber interaction within a facility should be another vital membership have an average retention rate of around ingredient in your retention process. Activities such as cir- 59%. This can be compared to 73% for those who exercise cuit classes, boxing and other group fitness classes are a at least twice per week. great way to improve the relationships within the facility. The goal for clubs is to ensure new members are exercis- A final consideration for increasing member-to-member ing twice per week on average. connections is to offer promotions and discounts for those who refer a friend, or join as a couple or family. A further study showed that all members sampled were using the facility less than twice per week when they left. 7. Tracking member exercise perfor- This highlights the importance of computerized tracking systems that allow clubs to see the exercise patterns of mance new members. By identifying a decrease in utilization, they can effectively support these members to keep them Tracking member exercise has two important benefits: on track, before it’s too late. The first we have discussed in great depth, which is the ability to analyses workout patterns and facility utilization. The more a member uses a facility, the more likely they will be retained. The second major benefit of exercise tracking is the mo- tivational effect on new members. It has been found that “Facility usage in the members who track their progress feel a sense of achieve- first month seems to ment every time they complete a training session. This feeling becomes more and more powerful as they gain be the most important momentum in their exercise and results start to show! consideration in retention” Clubs should encourage all new members to record their exercise including resistance, cardio and group fitness. This can be done on a standard card system or on elec- tronic systems through touch screen kiosk technology.

MobileFit Using Technology to Improve Member Retention. 8. Keep workouts shorter A great strategy is to set some goals that the member will achieve very quickly. This can include consistency goals One of the key reasons why people leave a health club is eg: complete minimum two workouts per week for twelve because they cannot fit exercise into their lifestyle. People weeks or physical goals such as, decrease waist circumfer- have become busier juggling work, family, friends, fitness, ence. and finances. The list goes on. This is why tracking progress can be such an effective When developing an exercise program and schedule, strategy for improving retention. When a member can customize it for the member to realistically implement see progress in the early stages of their program, they will into their lifestyle. Take into consideration the individual’s sense achievement, which will fuel continued application time constraints and other lifestyle commitments. Provide members with a plan for achieving their goals and a Finally, find a way to celebrate the achievement of each schedule that fits around their day to day activity. of their goals and recognize the levels they’ve attained. Members gain a great sense of significance when they are It’s no coincidence that express workout options have praised for their efforts. become such a popular option for busy people. Half-hour workout programs allow busy people to retain consistency whilst maintaining their other commitments. 10. Incentive programs Avoid prescribing long and comprehensive, two hour Research has shown that if a new member can exercise exercise programs. Consistency should always be seen as consistently for three months, a positive lifestyle habit a priority for any club. As members link their usage with will begin to form and their chances of drop-out decrease value, the more you can encourage regular and consis- dramatically. Well designed incentive programs can be tent visits and the less likely it will be that members quit. a great way to motivate new members during the early stages of their membership. Develop reward points for members who use the club. This should include a clear pathway for members to prog- 9. Set Goals ress towards their goals. Set a number of goal levels and link rewards to these milestones. Rewards can include Measuring members’ progress is a further key to reten- free personal training, membership discounts and mas- tion. Most members join a health club with a genuine sage. desire to improve their health and wellbeing. A member’s goals are a vital leverage point that should be used every In the past, clubs have struggled to implement such time they enter the gym to get them focused and in tune reward systems as monitoring member points has proved with the reasons they started their journey. A long-term quite difficult. This is where technology can be used to goal should be broken down into smaller short-term implement such systems. goals that the member can successfully achieve. Now we have a deeper understanding of some of the Often the achievement of a long-term goal such as losing key principles surrounding retention, we will explore the 15 kg can seem overwhelming and may pose a road block power of technology and how this can be used to auto- to gaining momentum. mate and maximize retention processes.

MobileFit Using Technology to Improve Member Retention. Using technology to improve health club retention “Technology such as email and SMS allows One major obstacle health clubs face is the complexity us to more quickly and of implementing the necessary processes and policies to improve retention. easily engage with members” Technology now provides clubs with the greater leverage to reach and support more members. We have explored some of the key factors of improving health club retention such as increasing member-to-train- The second key utilization metric to track and categorize, er rapport, improving member-to-member interaction is the percentage of members who complete less than 4, and monitoring member facility utilization. We will now 4 – 7, and 8+ facility visits in their first month. Our aim is explore how technology can be used to effectively imple- to get a higher percentage of members into the 8+ visits ment systems and strategies to apply these principles. category as they will typically have the highest retention rate. 1. Measuring Facility Utilization A member management or exercise tracking system should provide you with these key reports. If your provider does not provide these reports, discuss your Technology allows us to carefully monitor the facility requirements with them. They may be able to provide you utilization of members. As discussed earlier we have seen with custom reports for these metrics. that those who use their club less than four times within the first month have a retention rate of around 59%. Conversely, those who use their club more than twice per week in the first month of their membership, have a 2. Communication retention rate of around 73%. As we discussed earlier, member-to-trainer connection is Tracking the facility utilization is a powerful resource as it one of the most important factors in the retention puzzle. provides a key measure of the effectiveness of our reten- Most clubs face the problem of limited staff. tion strategies. This can be viewed in two ways: Technology such as email and SMS allows us to more The first is to look at the average facility utilization. If a quickly and easily engage with members. This can be a club has an average facility utilization of 0.9 visits per powerful tool when linked with a member’s ‘risk rating’. By member, per week, it is highly likely that this club has an using these technologies to engage and support ‘reten- average to poor retention rate. If a club has an average, fa- tion risk’ members, we can limit the number of people cility utilization per member, per week of 1.5 visits, we can who slip through the cracks. assume that this club is more likely to have a significantly better retention than the previous one. Providing members with email support from their trainer allows any questions they might have after their initial Clubs are well advised to measure this metric and aim to program start, to be addressed. This constant connection slowly improve and increase it overtime. between trainer and member increases the opportunity to offer personal training and assures them that they are supported. Another ‘must’ for health clubs is to mail-out a monthly e-newsletter to their client database. This can be used to inform members of new and updated services available, as well as creating top-of-mind awareness.

MobileFit Using Technology to Improve Member Retention. 3. Identifying Critical Members Clubs are best advised to reward members early as this How do we identify members who are losing motivation provides them with a sense of achievement and excite- and on the verge of leaving a club? ment which can provide a platform to launch from. Be sure to offer long-term rewards that a member will value. Computerized member feedback systems can provide For example, some clubs have provided free massages, health clubs with an array of useful information. The prob- iPods and even accommodation for members who dem- lem many clubs face is that tracking member progression onstrate outstanding, long-term facility usage. and goal achievement with the conventional workout card system is time consuming and provides little feedback on members. 5. Staff Accountability By tracking member exercise patterns we can monitor Quality staff members are one of the most important the ‘retention temperature’ of each member. If a member aspects of retention as they are responsible for the direct completes less than four workouts in the first month of interaction and support of members. New technology is their membership, this particular member has a higher allowing clubs to monitor staff performance and follow possibility of quitting than a member that has completed up with members. ten workouts in their first month. Imagine being able to see if your trainers have actually Tracking the workout patterns of members through followed up with retention risk members. feedback systems allows clubs to be proactive in their approach to retention. The member with less than four This reporting is often called a staff engagement report. It workouts can be engaged and offered additional support is designed to measure the number of required, follow-up such as personal training, to ensure they feel comfortable actions that a trainer is expected to take. A follow-up ac- and remain on track to reach their goals. tion may be an email message to a ‘retention risk’ member or a phone call to book an appointment. These systems are most effective when the system auto- matically detects and compiles a list of critical members The engagement report can provide key data on staff perfor staff to follow up and engage with. formance including the average time staff are taking to complete required follow-up tasks. 4. Incentive Systems This form of report can be integrated with staff performance incentives to reward staff for high performance. Staff that fail to support members effectively can be iden- Activating members during the first three months is vital. tified and provided with additional training or replaced Using incentives and linking these to rewards are a great with more compliant staff members. way to engage members in the goal setting process. In the past, monitoring and implementing such incentive programs have been difficult and time consuming. Tech- “The process of friendly nology now allows clubs to track and implement these reminders for members programs with greater ease. due for re-assessment For example, the MobileFit Wellness Points System is an can significantly in- incentive scheme that monitors a member’s progress and rewards them points for completing regular physical ac- crease the uptake of tivity. When a member reports feedback using MobileFit, re-assessments. “ they will receive points for whatever exercise they have completed.

MobileFit Using Technology to Improve Member Retention. 8. Store Member Talking Points This strategy is difficult using the traditional approach to storing assessment data on a card, as staff must sort Technology can be used to keep notes about a mem- through this information to determine who is due for re- ber’s interests, hobbies and fitness goals. By storing this assessment. This is often why clubs leave the responsibil- information trainers can review it before re-assessment to ity to the member themselves. broaden the conversation and interest in that member. Fitness assessment software is the best way to monitor This strategy is most effective when all trainers and even members who are due for re-assessment. This can be front-of-house staff have access to this information. linked to email or SMS technology using reminders for members who are due and would benefit from re-assess- One problem health clubs face is that when staff mem- ment. Reports can be generated for members who have bers move on, a large amount of important information not been assessed for a specified time period ie: six weeks about member’s interests and history can be lost as it is held in the memory of the staff. This simple strategy can help ensure members continue on the path to their health and wellness goals. Information should be gathered on a member’s goals, hobbies and passions and available to other staff members for rapport building purposes. 10. Personal Training Example: Create a personal training funnel! Member James’ goal is to improve his cardiovascular fit- Personal training is a great retention tool. Members who ness and leg muscle strength for a marathon in June. take up personal training receive more support and guidance. This can be a great way to activate new members The benefit of technology in this instance is that clubs can whilst the habit of regular exercise forms. quickly access and review this information with the click of a mouse; rather than sorting through a filing cabinet to Clubs are well advised to convert as many new members access this powerful rapport building material. to personal training as possible. The best way to achieve this is to focus on new members and identify members Linking a member’s information profile with photos can who have dropped out in the past. multiply the effectiveness of this strategy. Technology that gauges a new member’s experience and motivation levels are great as the can provide clubs with a 9. Assessment Reminders report on the members who fall into these categories. Despite the fact that most clubs offer free re-assessments Create a monthly newsletter that promotes the benefits and program updates to members, we have found that of personal training and target this at your inexperienced only a very small percentage of members book a re-as- list. sessment. This means that a large percentage continue to use a program that is out-dated and no longer suited to Personal training should be presented as an option for achieving their fitness goals. new members that are struggling within the first month. This is where predictive retention ‘drop-out’ reporting can We have found that the process of friendly reminders for be powerful. Discounted, promotional personal training members due for re-assessment can significantly increase packages should be offered to these critical members as a the uptake of re-assessments. way to keep them on track.

MobileFit Using Technology to Improve Member Retention. We have covered a considerable amount of information regarding health club performance and retention in this document. We encourage clubs to consider some of the suggested strategies in this book and develop their own unique retention strategy. Clubs must find what works for them. Let’s summarize the key points of discussion: • Most health clubs in Australia are losing significantly more members than they should! • Small improvements to retention can have incredible impacts on health club profitability • A large percentage of members will likely drop out of a health club within twelve months if they lack support and guidance • Health club utilization is closely linked to retention • Clubs should consider having strong and clearly defined member integration process to assure new members receive adequate support and follow up. • Clubs should develop a system to identify ‘drop-out risk members’ to minimize attrition. • Increasing member-to-trainer connection and identify retention risk members are two key principals of retention • Gym floor staff should be responsible for engaging and supporting ‘retention risk members’ and should be rewarded for high performance • Clubs should encourage participation in group activities such as group fitness classes and circuits or exercising with friends. • Technology provides clubs with greater leverage to monitor connect with and support members. We hope this document has provided some great new ideas and inspiration to improve retention in your club.

MobileFit Technology and Retention

by Ruben Arunasalam

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MobileFit Technology and Retention Document Transcript

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