OPERATOR NAME: Westpark Fitness
SECTOR: Private Operator
MEMBERSHIP SIZE: >3500
Proof not Promises
As one of Ireland’s premier clubs for over 18 years, Westpark Fitness felt it was critical to work with a supplier of retention solutions with a proven record of success. The Retention People’s (TRP’s) ‘Proof Not Promises’ ethos underpins the company’s approach to providing operators with solutions that not only retain more members, but also allow them to refine their business practices to improve performance on an ongoing basis.
Identifying the Problem
With competition increasing from other clubs opening in the area, Westpark were keen to ensure that they addressed retention and service as effectively as possible. Kevin Doyle, Club Manager, had implemented a number of initiatives to promote interaction with members, including sending text messages and regular gym challenges. Whilst proactive, the impact of these activities on retention was not measurable and it was not clear whether resource was being targeted in the right place.
The Recommended Solution
Westpark Fitness purchased TRP Identify, TRP Interact and TRP Coach to overcome the issues described above. The software enabled the club to identify members ‘at risk of leaving’ and then deploy fitness staff to interact face-to-face with them. Recording each interaction provided management with an instant overview of the fitness team’s activity where they knew their efforts would count. Monthly reports sent out by Westpark’s TRP Coach proved the positive impact, showing clear improvements in member visit frequency following the interactions. TRP Mobile provided further assistance to the team, allowing instructors to record a greater volume of interactions on hand held devices on the gym floor.
Return on Investment
To assess the impact of the solution on retention over the first 12 months of use, TRP asked retention expert Dr Melvyn Hillsdon to analyse Westpark’s database and produce an audited retention report. Figure 1 clearly demonstrates the positive influence of timely face-to-face interactions.
Figure 1 Retention rate by interactions
The blue line shows that members who do not receive a proactive interaction throughout the course of their membership cancel rapidly; by month 5 half have already left the club and only 29% are still paying by month 12. In marked contrast, the red line shows that if members are interacted with when identified as high risk by the TRP solution, 80% are still paying at month 5 and 56% at month 12.
Figure 2 demonstrates the financial impact of this improved retention by factoring in the €44.00 per month average membership dues. Dr Hillsdon concluded that if all members joining after installation received at least 1 interaction, the estimated income over 12 months would be €313,602 higher compared to the same number of members receiving no interaction.
Figure 2 Income estimates based on retention rates for the members who joined during the study paying €44.00 per month
Customer Comments
Westpark Fitness’ board and management were clearly delighted with this level of ROI and took the easy decision to renew the TRP contract. Kevin Doyle comments “I have always been a firm believer in the theory that if you cannot measure it you cannot manage it. TRP’s clear and accurate reports coupled with the support and advice from our TRP Coach has made the TRP system a valuable tool in our fight to improve retention. We all know it costs more to find a new member than keep an existing one, this system backs this theory up and has made a substantial difference to our bottom line.”
