VVV Health and Leisure Find The Right Balance: Club Case Study We all know that it is cheaper to retain a member than it is to acquire a new one. Member retention is not only a cost effective and profitable strategy but in today's leisure environment it is essential.Of course it is important to win new customers but retaining them is vital to the financial success of a business. Most health clubs are reluctant to spend their marketing on retention because they are unable to measure return on retention spend. As a result, there is an imbalance of spend on acquisition and retention. VVV Health and Leisure Club, a new client of The Retention People is getting ahead of the game by realising the true value of retention. Simon Cranston MD of VVV Health and Leisure Club comments: “Retention is now a real focus for the business, so much so that part of the marketing budget was used to fund The Retention People's solution. 50% of our marketing budget spent on new member advertising with limited success has been re-directed towards retention. We want to deliver an exceptional service to ensure that our members stay with us and recommend us to their friends resulting in more sales through referrals.” After a couple of months of using the solution Simon comments: “It's the best investment I've ever made for the business. The product is shining a big light on our problems and now we are fully aware of where we need to deploy our resources to tackle the problem. Before it was like knowing you have got a leak but not knowing how bad and where it's coming from - we should have done it twelve months ago.” |