Does your Gyms Member retention Rate Make the Grade?

Gym Owners often describe  member retention strategies in terms of the services they offer and how they collect dues. Although it is important to offer services and programs that benefit members, and to collect membership dues efficiently and ensure positive cash flow, these alone do not encompass effective retention strategies.

Other clubs describe their retention strategy as using creative applications to
collect delinquent member dues.  Some of the more popular methods I hear about include:

• Constant reminders to members that it s time for renewal

• Send out invoices as early as the ninth month of membership

• Have staff contact members whose renewal dates are 30-60 days out

• Send out monthly invoices to members who are 30, 60, 90 or 120 days delinquent

• Threaten members about potentially lost opportunities if their renewals are not received (e.g., upcoming  deadline, special offers or events, higher non-member fees for participation)

Creative dues collection consumes more resources (e.g., time, money, and people) at a time when the efforts are least effective. Member retention strategies are not based on reactive activities and additional paperwork.

Use the following Member Retention Scorecard to evaluate how well you use proactive strategies to retain members.

The Member Retention Scorecard

Use the Scorecard below to rate your performance for using each retention strategy. Calculate your Overall Retention Score by adding up the values for all strategies. Write your score in the bottom row provided and compare your score to the ratings below.

Retention Performance Score
On a scale of  1 – 4, with 1 being lowest and 4 the highest, rate how well your organization uses each retention strategy.

1 = Are you kidding?
2 = It’s hit or miss
3 = Yea, for the most part
4  = Absolutely

1. Do you manage baseline info about your members(e.g., specific groups, profiles, retention rates)?
2. Do you know the expectations and interests of new members who join?
3. Do you contact and follow up with new members on a regular basis throughout their first year to ensure expectations are being met?
4. Do you contact all existing members regularly to learn how you’re meeting their expectations?
5. Do you communicate your strategic plan to members (e.g., goals, strategies and accomplishments)?
6. Do you use two-way communication venues to share information and collect member feedback?
7. Do you collect and review ‘member intelligence’ (i.e., inquiries, needs, feedback, activities)?
8. Do you help members connect with others, form alliances and participate in your ‘community?’
9. Do you reward members for their loyalty: for giving feedback, referring others and renewing?
10. Do you recognize your best members and provide special opportunities to show your appreciation?
11. Do you periodically modify your benefits to align with your members’ current and evolving needs?
12. Do you have a formal retention plan in place, with written procedures and action plans to implement?

Overall Retention Score: ______

WHAT YOUR RATING MEANS:
43 - 48 points: You’re doing great,  Keep it up.
42 – 36 points: You’re implementing some retention strategies and should use them consistently.
35 – 26 points: You’re spending more resources to recruit members than to retain them.
25 or less points: You’re losing members faster than you can recruit them. Take quick action now!

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