Member Engagement & Retention
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- Loraine Kelley
- 6 years ago
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1 Member Engagement & Retention
2 COMPETITION IS FIERCE
3 THE FITNESS MARKET CONTINUES TO GROW Percentage change from by market (IHRSA) Members Clubs Club Revenue North America +5% +10% +18% Europe, Middle East & Africa +24% +16% +3% Asia-Pacific +2% +45% +11% Latin America +119% +132% +141% Global +18% +40% +14% 3 Source: IHRSA 2011, 2016 Global Reports #IHRSAIns)tute
4 BUT LARGE MARKETS LIKE THE US ARE MATURING Leading to fewer members per club 2010 US members per club = US members per club = 1603 (-5%) Industry KPI Change from Amount Percentage Health club members 50.1 million 55.3 million 5.2 million 10.4% Number of health clubs 29.8 thousand 34.5 thousand 4.7 thousand 15.8% 4 Source: IHRSA 2016 Health Club Consumer Report #IHRSAIns)tute
5 Member Engagement & Retention
6 all organizations are perfectly aligned ` to get the results they are getting.
7 Member Retention Deserves 1st Place
8 It costs 9x more to acquire a new member than to retain an existing one
9 increasing member retention rates by 5%... increases profits by 25-95% Harvard Business School
10 Understand the Principle of Strategic Consumption"
11 Value of a Member Formula: Average Monthly Dues $_55_ + Average Monthly Ancillary Revenue $_15_ = Average Monthly Revenue Total $_70_ x Average Membership Length (months) _20_ = Average Membership Revenue $_1,400_ + Joining Fee $_50_ = Lifetime Membership Revenue $_1,450_ x Number of Member Referrals (people) _1.5_ = Potential Total Revenue Contribution $_3,625_
12 The More Members Spend = The Longer They Stay!
13 Arkansas Extreme Adventure Race Florida Extreme Adventure Race Have a plan AND have a map
14 Member Engagement
15 Welcome to what we hope will become your 3rd place?
16
17 Failure rate for most physical activity programs is generally about 6 months after starting.
18 ch o o se t o Choose b e a g r ea t to be a Great le ader Choose TO Help BE a members Great Leader Choose TO Choose BE Choose TO BE a GREAT LEADER Leader to be a a Great LEADER Choose a GREAT leader to be a Great leader Choose Choose to be a help It s not any 1themselves! thing TO BE Choose to GREAT leader its Everything be a great a great Leader great well its 12 things. Choose to be a leader Leader
19 New Member On-boarding
20 New Member On-boarding Lance Perkins, CEO of MobileFiT Member on-boarding is an intentional process whereby a NEW member is introduced gradually to the fitness center by meeting one-on-one with a dedicated professional/coach. Discovering the member s goals, their barriers, and self-efficacy, as well as helping them reach those goals, and getting integrated into the facility, are key components of the on-boarding process.
21 When done properly, new member on-boarding is an investment with guaranteed returns. New Member On-boarding * Without it, over half of your new members will terminate their membership within 12 months. * The three most critical metrics are: the # of tours given, % of tours converted to membership and % of new members scheduled for onboarding. Source: Dr. Paul Bedford, a industry leader in retention research.
22 New Member On-boarding How Does On-boarding Increase Retention? * * * * Only 15% of your members have the self-efficacy to succeed on their own. The vast majority, 85%, need specific support to succeed. One effective on-boarding session drives retention up 38%. Guiding members through a series of on-boarding appointments increases overall member retention by 75%. Source: Dr. Paul Bedford, a industry leader in retention research.
23 New Member On-boarding What On-boarding Is Not! * On-boarding is not an option * On-boarding is not an orientation * On-boarding is not a prescriptive workout * On-boarding does not belong to anyone, it belongs to everyone
24 Design an personalized experience SWEAT EQUITY
25 IHRSA ONE MILLION STRONG: AN IN-DEPTH STUDY OF HEALTH CLUB MEMBER RETENTION IN NORTH AMERICA Sponsored by INTERNATIONAL HEALTH, RACQUET & SPORTSCLUB ASSOCIATION
26 In the recently released One Million Strong Report the strongest predictor of canceling was payment terms. Members on a onemonth minimum term were more than 4 times as likely to cancel than members on a twelvemonth minimum term. Engaging members in the first 90 days is essential. Overall members retain their membership for 20 months. 90
27 Figure 18. Overall retention rate highlighting 12 and 24-month retention rate Overall Retention Rate Proportion still members % 44.4% MONTH MONTH Months since joining
28 Retention rate by payment type Proportion still members Months since joining Monthly-1 month Monthly-2 months Year-12 months
29 INFLUENCING MEMBER RETENTION
30 Retention & Usage day report
31 Member Retention
32 CX Pyramid Memorable Experience Evangelism Enjoyable: Exceeds Expectations Commitment Easy: Meets Expectations Essential: Basic Needs Met Satisfaction At Risk
33 Essential = Meet Basic Needs
34
35 Customer journey mapping
36 6 7 Supporting & Sustaining Prioritizing Initiatives 1 Mapping Journey WHAT GREAT CX BRANDS DO 2 Monitoring Health 3 Identifying Disruptors CX = CUSTOMER EXPERIENCE 5 4 Incubating Improvement Ideas Linking CX Data
37 IHRSA Trend Report What keeps you coming back to use the health club you currently belong to? INTERNATIONAL HEALTH, RACQUET & SPORTSCLUB ASSOCIATION
38 Question 2 What Keeps You Coming Back to the Health Club You Currently Belong To? Copyright 2013 IHRSA ihrsa.org/research
39 Overall For overall health/wellbeing 57.1% I need get in shape/stay in shape/stay healthy 56.7% It's at a convenient location to me 52.5% The variety of equipment, strength and cardiovascular equipment 46.7% To make progress with my personal goals 39.9% To get my work out in, rather than to socialize 31.5% Copyright 2013 IHRSA ihrsa.org/research
40 Overall (cont d) To have fun 29.5% Access to group exercise classes 20.4% I feel obligated to go to the health club because of the money I spend on my membership 18.7% My friends and family work out at the health club 18.2% Access to fitness professionals 16.1% The social aspects of the health club 12.1% Copyright 2013 IHRSA ihrsa.org/research
41 Members Tolerate Longer Commutes for High-end Gyms The average gym member travels 4 miles to their to their fitness facility, and traveled twice as far to pricer gyms than they did to lower-priced clubs. on average, members traveled: 6.0 miles for Barre Code 5.7 miles for Equinox 5.5 miles for SoulCycle 3.2 miles for Planet Fitness 2.8 miles for Blink Fitness
42 Connectedness
43 Connection Economy
44
45 Drip Marketing Campaigns to Drive Engagement Pin-point user groups, segmen9ng your distribu9on list to reach the right people at just the right 9me.
46 * The stats show that users actually like and expect welcome s when they sign up for a new service - with a 58.7% average open rate, contrasted with typical s at 14.6%. * Open rates jump to 88.3% when sent immediately.. * Relevant targeted s produce 18 X more revenue that globally broadcasted ones.
47 Does personal training increase member retention? Dr Melvyn Hillsdon offers his insights on this topic, based on the findings of his ongoing TRP 10,000 study. The Personal Touch
48 Despite reporting greater progress than non-pt members, members who only have an occasional session of PT actually have a lower retention rate.
49 PT & Retention Members who purchase PT regularly attend their club a little more than members who do not, and are much less likely to be non-attenders. Regular personal training is associated with higher retention and reduced risk of canceling.
50 IHRSA MEMBER RETENTION REPORT Volume 2 Issue 2 Focus on: Group Exercise Group exercise versus gym only: who does what and does it predict retention?
51 Figure 3. Retention rate by group exercise 100 Group exercise Gym workout only Proportion still members Months since completing questionnaire
52 CONCLUSION AND TAKEAWAYS The results of this study are not a test of exercise classes versus gym, as 66% of members who report group exercise as their usual reason for visiting also report working out in the gym. What the results do tell, however, is that in both sexes and all age groups, including group exercise as part of a member s exercise routine increases retention compared to the four in 10 who exclusively work out in the gym.
53 Members that participate in group exercise, as opposed to gym only users, are 84 percent more likely to recommend their facility to a friend or family member.
54
55 NPS BENCHMARKS: Average IHRSA Clubs= Average Fitness Clubs= 44% 52% Average Class Based Clubs= 77%
56 Equipment, staff, and cleanliness are the top drivers of NPS Also critical to the experience are the classes, the space, friendliness, and regular maintenance/updates.
57 Touchpoints that ma7er Members experience at the higher price point is largely driven by their satisfaction with results. Touchpoints that Drive Retention (surveyed members only All Clubs) 13% (7.2) Top Drivers 37% (NA) 7% (7.8) 7% (8.7) 8% (8.7) 8% (8.3) 10% (8.5) 9% (8.5) Weight (%); Avg Score (X.X) Fitness Results Satisfaction With Equipment Condition Satisfaction With Facility Satisfaction With Equipment Selection Frontdesk Friendliness Satisfaction With Gym/Cleanliness Satisfaction With Membership Services Other communicate the investments you make in these areas. This document is confiden/al and is intended solely for the use and informa/on of the client to whom it is addressed. 6
58 RESULTS MATTER
59 Reinforce Value With A Benefit Drip Approach
60 Promote Improvements
61 Prepare to fail!
62 04/21/2017 Greetings Mr. Darden, Again my name is Marcus Lidey and I am The Senior Director of Hotel Operations here at The Cosmopolitan of Las Vegas, thank you for taking the time to connect with me earlier today regarding your stay with us. I would like to apologize to you for the issue you experience, namely with the noise from the jet tubs. Our standards are high and the simple fact of the matter is that your negative experiences should not have happened at our hotel, I am very sorry we did not serve you. Mr. Darden, I would like an opportunity in the future to redeem ourselves so that you have a different story to take with you of The Cosmopolitan. With that said, I would like to invite you as my personal guest with One (1) night complimentary stay in a Terrace Studio. When you are ready to take us up on our offer and we sincerely hope you do, please contact Resort Services at and give them this Group Code- EGRC17. Please keep my information and reply back to this when you have secured your next reservation and I would be happy to handle your visit personally. Sincerely, Marcus Lidey ---
63 ALUMNI PROGRAM Premium Retainer Retainer Non-Resident Retainer Member Alumni Program Columbia Basin Athletic Club Access to Use CBRC 1x/month (excluding June, July, August) Invite to special club events IHRSA & FITLIFE Travel Pass 1 Fitness Assessment/Year No rejoining fee $15/month Date Name Membership Number Address City State Zip Phone Number: - - IHRSA & Fitlife Travel Passes No rejoining fee $10/month Address: Gym Concierge Get help finding a gym in your new loca]on Alumni Visitor (Visit CBRC 5x/year FREE) Current Type of Membership New Rate Effective Date Notes: Member s Signature DATE: / /
64 Treat them once in awhile - just because.
65 Member Appreciation Woodside Health & Tennis Club
66 Without action the world would still be an idea. General Georges F. Doroit
67
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