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

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The document summarizes research on member retention in health clubs. It finds that retention rates are higher for members who receive a longer induction program including support sessions, are spoken to by staff during visits, and visit the club more frequently in the first months of membership. Providing personalized attention to members through interactions can significantly reduce attrition rates and increase the likelihood they will continue visiting the club.

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Part I: Retain & Gain: Keeping Your Members Engaged Dr Paul Bedford
Acknowledgements Dr Melvyn Hillsdon Mike Hills FIA
Dr Paul Bedford 20 years in the fitness industry MSc Exercise and Health behaviour MSc Social Science research PhD Factors that effect retention in the gym environment
Dr Paul Bedford In the last 6 years Spoken to nearly, 13,000 members (48 Sites) 10,000 Tennis Club members (28 sites) I have had 86 gym inductions Joined 11 clubs In an attempt to understand what it is like 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 report 01/01/2006 to 11/01/2007 293,527 member records 507 Clubs 259 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 2006 10 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 5 Risk 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 gender 0 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 group 0 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 16.7 Age group 16-24 49.9 13.1 25-34 48.2 13.5 35-44 35.8 17.4 45+ 24.1 >23 Gender Male 33.7 18.2 Female 35.0 17.2
Retention rate by contract length 0 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 (贈)* <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 12.2 Contract length* 1 month 90.3 7.0 2-11 months 81.3 8.5 12 months 55.8 12.2
Now theyve 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 support 60 minute standard induction
Monthly income based on a starting membership of 1,000 paying $35.00 per month No intervention 贈40,000 Intervention 贈35,000 贈30,000 Total=$352,237 Total income 贈25,000 贈20,000 贈15,000 贈10,000 Total=$245,137 贈5,000 贈0 1 2 3 4 5 6 7 8 9 10 11 12 Months
Attrition Rate Intervention group 60 minutes + 60 minutes support 24.3 per 1000 per month Control group 60 minute standard induction 77.6 per 1000 per month Difference of 53 per 1000 per month
Do visits increase retention?
Retention rate by visits 0 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 a members visit frequency?
Club X Nearly two thirds of members (64%) report either never or only rarely being spoken to while working out. The proportion is higher in older members, regular users and perhaps 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 0.8 Odds 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 interaction Pre interaction people | more more a ctive | more often Post Interaction
The probability of making a visit next month if fitness staff talk to you during a visit this month compared to if they dont. 1 Interaction 2-3 Interactions 4+ interactions Probability of visiting next 20% more 50% more 80% more month when likely to likely to likely to compared to no interaction 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 1.00 Proportion 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 least one visit during the length of their membership Cancellations per thousand Median length of per month membership No interactions 123.5 4.9 At least 1 39.9 14.5 interaction
Income from dues based on 1,000 members paying $35.00 per month over 17 months 贈35,000 No interaction 贈30,000 At least 1 interaction Income per period 贈25,000 贈20,000 贈15,000 Total = $438,907 贈10,000 贈5,000 Total = $227,448 贈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 1.00 Proportion 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 visits 0 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 and gym usage (%) <7 7 8 >8 Detractors Satisfied Satisfied Promoter Fitness communication Never 21.56 23.75 48.75 5.94 Rarely 12.01 32.47 49.35 6.17 Occasionally 10.27 37.50 47.77 4.46 Every visit 11.54 12.31 50.77 25.38 Gym usage 1/week 19.05 36.19 37.14 7.62 2/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 staff communication and gym usage <7 7 8 9 10 Frequency of gym staff communication (%) Every visit 5.43 12.40 31.78 10.85 39.53 Occasionally 12.05 13.39 44.20 13.84 16.52 Rarely 4.87 10.06 43.83 22.08 19.16 Never 13.04 18.63 26.40 13.98 27.95 Gym usage 1/week 8.57 28.57 36.19 5.71 20.95 2/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 Comments Observations
paul@theleisuredatabase.com

More Related Content

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

  • 1. Part I: Retain & Gain: Keeping Your Members Engaged Dr Paul Bedford
  • 2. Acknowledgements Dr Melvyn Hillsdon Mike Hills FIA
  • 3. Dr Paul Bedford 20 years in the fitness industry MSc Exercise and Health behaviour MSc Social Science research PhD Factors that effect retention in the gym environment
  • 4. Dr Paul Bedford In the last 6 years Spoken to nearly, 13,000 members (48 Sites) 10,000 Tennis Club members (28 sites) I have had 86 gym inductions Joined 11 clubs In an attempt to understand what it is like to be a member of a health club
  • 5. What do we know so far? Contract length Contract type Gender Age Visit frequency in 1st 4 weeks Inductions, exercise programme, support
  • 6. 2008 Retention report 01/01/2006 to 11/01/2007 293,527 member records 507 Clubs 259 Multi-site (11 operators) 248 Single-site operators.
  • 7. 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.
  • 8. Retention rate for members joining from January 2006 10 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
  • 9. Monthly risk of quitting 6 5 Risk of quitting (%) 2 3 1 0 4 0 2 4 6 8 10 12 14 16 18 20 22 24 Months since joining
  • 10. Retention rate by gender 0 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
  • 11. Retention rate by age group 0 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+
  • 12. Attrition rate and average length of membership Attrition rate Median length (per thousand/month) of stay (months) Overall 35.5 16.7 Age group 16-24 49.9 13.1 25-34 48.2 13.5 35-44 35.8 17.4 45+ 24.1 >23 Gender Male 33.7 18.2 Female 35.0 17.2
  • 13. Retention rate by contract length 0 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
  • 14. Table 2. Attrition rate and average length of membership Attrition rate Median length (per thousand/month) of stay (months) Monthly dues (贈)* <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 12.2 Contract length* 1 month 90.3 7.0 2-11 months 81.3 8.5 12 months 55.8 12.2
  • 15. Now theyve joined what can you do?
  • 16. Should I have an induction programme?
  • 17. A randomised controlled trial of the effects of interactions on membership retention: Dr Paul Bedford
  • 18. 60 minute standard induction + 60 minute support 60 minute standard induction
  • 19. Monthly income based on a starting membership of 1,000 paying $35.00 per month No intervention 贈40,000 Intervention 贈35,000 贈30,000 Total=$352,237 Total income 贈25,000 贈20,000 贈15,000 贈10,000 Total=$245,137 贈5,000 贈0 1 2 3 4 5 6 7 8 9 10 11 12 Months
  • 20. Attrition Rate Intervention group 60 minutes + 60 minutes support 24.3 per 1000 per month Control group 60 minute standard induction 77.6 per 1000 per month Difference of 53 per 1000 per month
  • 21. Do visits increase retention?
  • 22. Retention rate by visits 0 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
  • 23. Can we manipulate a members visit frequency?
  • 24. Club X Nearly two thirds of members (64%) report either never or only rarely being spoken to while working out. The proportion is higher in older members, regular users and perhaps more worryingly, new members.
  • 25. 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
  • 26. 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 0.8 Odds 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
  • 27. Average visit frequency pre and post interaction Pre interaction people | more more a ctive | more often Post Interaction
  • 28. The probability of making a visit next month if fitness staff talk to you during a visit this month compared to if they dont. 1 Interaction 2-3 Interactions 4+ interactions Probability of visiting next 20% more 50% more 80% more month when likely to likely to likely to compared to no interaction visit visit visit
  • 29. Does talking to members save memberships?
  • 30. 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 Proportion 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
  • 31. Cancellation rate and median length of stay by interaction for members who made at least one visit during the length of their membership Cancellations per thousand Median length of per month membership No interactions 123.5 4.9 At least 1 39.9 14.5 interaction
  • 32. Income from dues based on 1,000 members paying $35.00 per month over 17 months 贈35,000 No interaction 贈30,000 At least 1 interaction Income per period 贈25,000 贈20,000 贈15,000 Total = $438,907 贈10,000 贈5,000 Total = $227,448 贈0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Months since joined
  • 33. 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
  • 34. 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 Proportion 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
  • 35. Retention rate by interaction by month 10 Retention rate in visits 0 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
  • 36. Ratings of customer service (1-10*) by fitness staff communication and gym usage (%) <7 7 8 >8 Detractors Satisfied Satisfied Promoter Fitness communication Never 21.56 23.75 48.75 5.94 Rarely 12.01 32.47 49.35 6.17 Occasionally 10.27 37.50 47.77 4.46 Every visit 11.54 12.31 50.77 25.38 Gym usage 1/week 19.05 36.19 37.14 7.62 2/week 11.89 21.62 56.76 9.73 3/week 14.37 28.87 48.59 8.17
  • 37. Likelihood of recommending a friend (0-10) by fitness staff communication and gym usage <7 7 8 9 10 Frequency of gym staff communication (%) Every visit 5.43 12.40 31.78 10.85 39.53 Occasionally 12.05 13.39 44.20 13.84 16.52 Rarely 4.87 10.06 43.83 22.08 19.16 Never 13.04 18.63 26.40 13.98 27.95 Gym usage 1/week 8.57 28.57 36.19 5.71 20.95 2/week 14.05 8.65 39.46 16.22 21.62 3/week 7.88 12.94 36.29 17.72 25.18
  • 38. 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