Everything You Need to Know About Member Retention
| November 28, 2023
Unlocking the Power of Member Retention
Member retention forms the bedrock of any thriving fitness establishment, and it holds particular significance in the dynamic fitness industry. Beyond just attracting members, the ongoing engagement and sustained activity of your clientele are the cornerstones of your studio's enduring success.
Why is it crucial? 🤔
Taking care of your clientele becomes especially critical in subscription-based industries like ours. The rationale is simple: it's far easier to enhance the average spend of an existing member than to continually attract new clients. Actively engaged members are more likely to explore new offerings and tend to spend approximately 30% more than newcomers. Moreover, according to an Invesp Consulting study, a mere 5% increase in customer retention rates can amplify profits by a staggering 25 to 95%. It's clear that prioritising member retention is a must.
It's interesting to note that a significant number of members who choose not to renew their subscriptions have been part of the studio for less than three months. Hence, it's insightful to evaluate your retention rate within this period and pivot strategies accordingly.
How do you measure customer retention? 🧮
Several indicators can assist in this evaluation, with the most common being the attrition rate. This metric measures the number of lost clients over a specified period. The calculation is straightforward: divide the number of lost clients by the total number of clients at the start of the period. Multiply the result by 100.
For instance, if your company had 1000 clients on January 1st and lost 50 during the first quarter, the attrition rate would be 5%. A lower attrition rate indicates better potential for increasing your clients' average spend and, consequently, fostering business growth.
Another crucial metric is the average length of stay for your members at the studio. Simply divide the total number of months all your members have stayed by the total number of members. However, take into consideration that calculating the median often provides a more accurate picture and prevents data distortion.
Understanding your members' habits is vital. Calculate the average number of sessions per month that your members book. By tracking its evolution over a year, you can identify members losing interest in your studio. Ensuring clients use your establishment from 1 to 3 times a week (or 4 to 12 times a month) not only contributes to customer retention but also enhances the overall experience within your business.
What areas should you focus on? 🧠
Integrate into your members' daily lives 📅
The initial step to retaining a member hinges on becoming an integral part of their life. For newcomers, it's pivotal to showcase that practising the discipline your studio offers is both enjoyable and beneficial to their physical and mental well-being. Diversifying the types of classes offered can make a significant impact. For instance, if your studio specialises in Yoga, consider offering Vinyasa, Ashtanga, or Restorative Yoga to cater to different preferences and skill levels.
Additionally, personalised support and emphasising the expertise of your instructors are crucial for retaining seasoned members. This approach reinforces your studio's integration into their daily lives and ensures consistent attendance.
Engage them in your universe 🧘
When individuals join your studio, they are not just seeking physical and mental well-being; they are also looking to immerse themselves in your studio's ethos. Your brand identity, reflected in everything from colours to your logo, encapsulates this unique universe. Maintaining this connection is vital. Utilising a management platform like bsport offers the advantage of integrating booking tools directly onto your website or having a personalised app. This seemingly minor detail plays a significant role in how your members perceive your studio.
By facilitating their ongoing immersion in your studio's universe throughout their journey, you bolster their commitment to your brand.
Foster relationships with your clientele 🗨️
After enhancing your class offerings and showcasing your expertise, focus on nurturing lasting relationships with your members. Two key aspects play a role here.
Firstly, take the time to truly know each of your members. Whether it's you or your instructors, making an effort to learn their names and interests helps create a climate of trust. While this might be challenging depending on the size of your studio, there are tools available to simplify this, such as Tag Management.
This tool enables you to categorise members based on their level, interests, or joining date. Instructors can quickly glance at the list before each session to know who will be attending. Additionally, stay connected with members even after they've left the studio by sending personalised communications. With automatic mailing tools, maintaining relationships with members becomes effortless. Using templates and a few clicks, you can send tailored communications based on their behaviour.
In summary, member retention stands as a linchpin for your fitness studio's prosperity. By delving into metrics like attrition rates and average length of stay, you can gauge and enhance customer loyalty. Diversify your class offerings to cater to varied profiles and use tools like bsport to integrate members into your studio's universe, cementing your studio's identity.
Building strong relationships by using management tools and personalised communications is crucial. Invest in these aspects to cultivate a loyal community, driving your studio toward sustainable success. Explore these strategies to optimise the overall experience within your business.