Does Your Gym Have a Club Concierge?
How to Maintain a Healthy Retention Rate
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Club Concierge. That's my term for a Retention Manager. Depending on the facility, this could be a shared position, or if payroll and activity will warrant it, this could be a full-time person.
Before I get into a strategy, please consider the following:
- 1. Bain and Company research shows that increasing customer retention rates by 5% increases profits anywhere from 25% to 95%.
- 2. Temkin Group research shows moderate improvements in customer experience can generate an average revenue increase of 28% each year over a three-year period.
- 3. In my experience, I have seen annual attrition as high as 75% and the normal being in the 40% - 50% range. In many cases, gyms are losing half their member base every year. This puts enormous pressure on creating new membership sales.
- 4. I recently conducted a nationwide webinar, and most on the call acknowledged not having a defined retention strategy.
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