keeping health club members - dr. paul bedford, ihrsa 2009
TRANSCRIPT
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Part I: Retain & Gain: Keeping Your Members Engaged
Dr Paul Bedford
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Acknowledgements
• Dr Melvyn Hillsdon
• Mike Hills
• FIA
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Dr Paul Bedford20 years in the fitness industryMSc Exercise and Health behaviourMSc Social Science research
PhD Factors that effect retention in the gym environment
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Dr Paul Bedford In the last 6 yearsSpoken to nearly,13,000 members (48 Sites)
10,000 Tennis Club members (28 sites)
I have had 86 gym inductionsJoined 11 clubs
In an attempt to understand what it islike to be a member of a health club
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What do we know so far?
• Contract length • Contract type• Gender • Age • Visit frequency in 1st 4 weeks• Inductions, exercise programme, support
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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.
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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.’
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010
2030
4050
6070
8090
100
Pro
porti
on s
till m
embe
rs
0 2 4 6 8 10 12 14 16 18 20 22 24Months since joining
Retention rate for members joining from January 2006
65.8%
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01
23
45
6R
isk
of q
uitti
ng (%
)
0 2 4 6 8 10 12 14 16 18 20 22 24Months since joining
Monthly risk of quitting
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010
2030
4050
6070
8090
100
Pro
porti
on s
till m
embe
rs
0 2 4 6 8 10 12 14 16 18 20 22 24Months since joining
sex = Male sex = Female
Retention rate by gender
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010
2030
4050
6070
8090
100
Pro
porti
on s
till m
embe
rs
0 2 4 6 8 10 12 14 16 18 20 22 24Months since joining
agegroup = 16-24 agegroup = 25-34agegroup = 35-44 agegroup = 45+
Retention rate by age group
12 months income @ $35.00 = $312,676
12 months income @ $35.00 = $370,346
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Attrition rate and average length of membership Attrition rate
(per thousand/month) Median length of stay (months)
Overall
35.5
16.7
Age group 16-24 25-34 35-44 45+
49.9 48.2 35.8 24.1
13.1 13.5 17.4 >23
Gender
Male Female
33.7 35.0
18.2 17.2
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010
2030
4050
6070
8090
100
Pro
porti
on s
till m
embe
rs
0 2 4 6 8 10 12 14 16 18 20 22 24Months since joining
contract = 1 month contract = 2-11 monthscontract = 12 months
Retention rate by contract length
$242,305.00 (1,000,1 month members)
$363,548.50 (1,000, 12 month members)
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Table 2. Attrition rate and average length of membership Attrition rate
(per thousand/month) Median length of stay (months)
Monthly dues (£)*
<20 20-24.9 25-29.9 30-34.9 35-49.9
55.8 62.0 60.0 53.2 55.9
11.9 11.6 12.2 12.5 12.2
Contract length*
1 month 2-11 months 12 months
90.3 81.3 55.8
7.0 8.5 12.2
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Now they’ve joined what can you do?
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Should I have an induction programme?
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A randomised controlled trial of the effects of interactions on membership retention:
Dr Paul Bedford
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60 minute standard induction
60 minute standard induction + 60 minute
support
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Total=$352,237
Total=$245,137
Monthly income based on a starting membership of 1,000 paying $35.00 per month
£0
£5,000
£10,000
£15,000
£20,000
£25,000
£30,000
£35,000
£40,000
1 2 3 4 5 6 7 8 9 10 11 12Months
Tota
l inc
ome
No intervention Intervention
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Attrition RateIntervention group60 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
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Do visits increase retention?
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010
2030
4050
6070
8090
100
Pro
porti
on s
till m
embe
rs
0 2 4 6 8 10 12 14 16Months since joining
M3g = 0 visits M3g = 1-3 visitsM3g = 4-7 visits M3g = 8 or more visits
Retention rate by visits
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Can we manipulate a member’s visit frequency?
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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.
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Acknowledgement to Gym service ratingArea Acknowledgement Gym service rating
London 19% 4.8M25 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
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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
0.4
0.3 0.3
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
Every visit Occasionally Rarely Never
Frequency of gym staff communication
Odd
s of
bei
ng a
clu
b us
er
This means 60% less likely
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Average visit frequency pre and post interaction
more people | more active | more oftenPre interactionPost Interaction
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1 Interaction 2-3 Interactions 4+ interactions
Probability of visiting next month when compared to no interaction
20% more likely to visit
50% more likely to visit
80% more likely to visit
The probability of making a visit next month if fitness staff talk to you during a visit this month compared to if they don’t.
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Does talking to members save memberships?
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0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.90
1.00
Pro
porti
on s
till m
embe
rs
0 2 4 6 8 10 12 14 16 18Months since joining
inttot = 0 inttot = 1
Retention by any interaction or not
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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
per month
Median length of
membership
No interactions 123.5 4.9
At least 1
interaction
39.9 14.5
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Total = $438,907
Total = $227,448
Income from dues based on 1,000 members paying $35.00 per month over 17 months
£0
£5,000
£10,000
£15,000
£20,000
£25,000
£30,000
£35,000
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Months since joined
Inco
me
per p
erio
d
No interactionAt least 1 interaction
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01
23
45
Ris
k of
qui
tting
(%)
0 2 4 6 8 10 12 14 16Months since joining
inttot = 0 inttot = 1
Monthly risk of quitting by interaction
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0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.90
1.00
Pro
porti
on s
till m
embe
rs
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32Months since joining
inttot = 0 inttot = 1
Retention by any interaction or not
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010
2030
4050
6070
8090
100
Pro
porti
on s
till m
embe
rs
0 2 4 6 8 10 12 14 16Months since joining
inttot = 0 inttot = 1
Retention rate by visitsRetention rate by interaction in month 10
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Ratings of customer service (1-10*) by fitness staff communication and gym usage (%) <7
Detractors 7 Satisfied
8 Satisfied
>8 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
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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
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• 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
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Questions Comments
Observations