Dr Melvyn Hillsdon - Author of FIA's Winning The Retention Battle series of reports. Melvyn is at the forefront of research in this field, he is a highly respected academic and sought after advisor in public health.
Q1. Will discounting my joining fee mean members are less committed?
Any reduction in the financial value of a membership seems to increase the probability of quitting. However, the effect of the joining fee on retention is relatively small compared to a contract for example. If the two are linked and a discount is being offered to encourage the sale of a minimum term membership, then the contract will add more life to the membership compared to what might be lost from a lower joining fee.
Q2. In January and February club usage is high and new members may receive less service than usual. What effect might this have on retention?
Interaction with fitness staff is related to gym attendance which then predicts retention. New members who receive a consultation, a personal programme and a follow up appointment, in the first 12 weeks of membership, stay significantly longer than new members who don't receive this minimum level of service. It may be worth hiring extra casual staff during such busy periods. The costs will easily be offset by the added months of membership.
Q3. Does the amount paid per month for membership influence retention?
Monthly dues probably reflect what the market will tolerate. If sales are good then it must be true that the dues are affordable for that population. The amount paid is normally accompanied by other factors that effect retention making it difficult to tease out the independent effect of dues. For example clubs with higher monthly fees are likely to have joining fees and 12 moth contracts, both of which increase retention.
Click the box on the left to put your retention questions to Dr Melvyn Hillsdon. The most popular questions will be answered next month.
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