AUGUST 2019
How to Maximise your Member Retention
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August 2019
Intro - Why are gyms not working for everybody?
Your Club Member Retention in Just 6 Steps (Part 2)
The Customer Multiplier System for Fitness Club Success (Part 1)
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This is Exciting! It’s been a whole year since we launched Fitness Club Gold, bringing you the very best tips and advice on making your fitness club as successful as it can be… So… On vacation this year I was persuaded to take part in a late-night bar music quiz in the hotel I was holidaying in. I normally avoid these types of events like the plague. About 30 minutes in, I realised I should have stuck to my usual view of such things. I was hopeless. Worse than that I was “Publicly” hopeless. In my group of people (10 on my table) it was perfectly evident who knew the answers to all the questions, was valuable to the team and in my case, who was the self-appointed water boy. The drinks monitor for the night. Our captain and most of our team are quiz veterans, regular participants back at home. Naturally because they appear to know 80% of the answers, its they who dominate proceedings and pretty quickly any thoughts of inviting a guess from me on the few areas they don’t know, has been replaced by a tightening of tonight’s social circle and I feel a subliminal unspoken “no point in asking him” permeate the group. I’ll get the drinks then. I’m on holiday, relaxed, happy, a bit drunk and I’m surrounded by some nice people, but my ignorance of 80s pop classics has become a tad embarrassing. I remember making a mental note to avoid this in week 2. Feelings of being slightly out of their depth?
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Of being part of a club to which although they have been warmly welcomed, they soon get confirmation that they’re missing the essential ingredients to really feel a part of the gang. Not only that, but each session, they’re forced to look at living examples all around them of human products of disciplined well-ordered lives and body shapes maintained by unerring self-control. It’s difficult not to see modern gyms becoming a catwalk for the fit. If you don’t match their DNA, sharing the exercise space is like participating in a live subliminal fat shaming session. Look at us, look at you. What the devil have you been up to? Where did it all go so wrong? These thoughts were triggered again yesterday when I read that on the horizon is a podcast by Escape Fitness Top man Matt Janacek interviewing Dave Minton of the Leisure Database, one of the UKs most eminent researchers. The preview suggests that the reason the fitness industry was not really delivering for a much higher proportion of society was because it had little relevance for most except for the exercising elite. The 15% or so of the population who love exercise, have generally always kept fit and find it an easy thing to do on a regular basis. It’s a fascinating subject to consider and I’ll be writing some of my more stringent views on it over the weeks to come. I’m going to call it the “The Unsolved Crimes of the Gym Operator”. Watch out for it and join in the debate. Enjoy the content this month of our special anniversary edition.
Duncan Green
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In last month’s chapter we covered the first 3 levels of our Customer service pyramid. Level 6: The Hygiene factors – Handling the base level requirements cleanliness, efficiency, on time. Level 5: “Cognizance” – The “I’m here. Recognise me” of member service.
We now come to the 4th level when things start to get a bit more complex in terms of process in the customer service model but equally as important
MEMORABLE EXPERIENCE
ENJOYABLE EXCEEDS EXPECTATIONS
EASY MEETS EXPECTATIONS
ESSENTIAL BASIC NEEDS MET
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Level 4: Tracking & Customer Relationship Management Once a member is successfully integrated in to the club, their exercise programme set and established, the one thing that you can bank on is that at some point in the future, the established pattern of usage will change and the chances are that the member will then terminate.
How aware are you that it has happened as soon as it does, and can you rescue the situation by adopting immediately some sort of reactivation strategy? Before we get into the remedies let’s look at the possible causes of this change of state.
There are 3 possible reasons:
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Something accidental got in the way and interrupted the established pattern of usage. Usual suspects are sickness, injury, enforced absence such as holidays, festive period or work-related obstacles.
The member simply outgrew the service in its current form and couldn’t see any reason to continue. Sometimes there’s nothing that can be done and actually the member is still positive about the club and can still be persuaded to give up a good testimonial if asked.
There was a serious breakdown of service which has led to a divorce with the member. The most serious breakdown of the 3 and the case that needs to be recognised easily and dealt with promptly and efficiently by your most skilled staff.
So, what options can clubs call on to overcome these issues when they arrive.
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The Pre- Emptive Strike We all spend money every year on insurances against the unexpected. Cars, Houses, Holidays, Travel, Personal Liability, you name it we cover ourselves against an eventuality with an insurance premium. Why doesn’t your club offer the same service that in the event you don’t visit for an agreed period (let’s say 21 days) that a set re-activation programme is kicked in , pre-paid by the insurance that they paid on their membership at the start of the year.
This can fund the costs of whatever intervention service that you will need to run to get the customer reactivated and back stable.
Is that an income stream that you’re currently leveraging?
The Tracking System The foundation stone of effective reactivation is clearly a good tracking system and there are some inevitable costs to resourcing that. However, it’s possible to offer a less intense management and technological tracking system which may not work 100% of the time but may well still increase your chances of reactivating inactive members better than you do currently.
Things don’t have to work perfectly nor 100% of the time. They just have to perform better than they do at the moment and to commit your club to a programme of continual improvement in these areas. Schedule events like “programme reviews” every 4- 6 weeks using email and text. If members don’t respond within 2 series (12 weeks) give them a call. It’s about manning this effectively and being mindful of the cost/benefit equation.
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Progressive Programming and Tracking The other way to track is to use a Programme Card System (online or offline) to manage member usage.
Devise your card layouts to show 14 session columns. Members complete each card ideally over 4 – 6 weeks (attendance of 2- 3 times per week which presumably you would be happy with) and then they can request an update session. Your membership benefit promise is now that every member can request a complimentary re-programme session every 14 sessions.
That’s a powerful member benefit that makes you stand out in a crowded market! Members alert the club when they have reached each 14-session milestone and the responsibility for the tracking has therefore moved from the club to the member making it a very low-cost customer interface.
Whatever options you use, the secret is to manage the effectiveness and whether it makes the club better.
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Building Service Indicators The industry has a love in at the moment with NPS surveys. Their role is to identify how your members feel about you.
There are other low cost and low-tech ways that you can keep an eye on service issues before they become dramas. We have mentioned the benefits of a programme card system that members complete when they work out each session.
Make one of the areas on the card (digital google sheet or offline card) an enjoyment factor value out of 10 for how the member feels the session has gone. What we know now is the number itself is NOT relevant. What is relevant is a CHANGE in trend of that number.
For example, if each workout I normally grade as a 9/10 and then I mark a 7, then that is a warning flag.
By the same token a member who as standard is a 7/10 who then marks 6/10 may well be equally miffed.
The club role is then to monitor any changes and to act accordingly, usually firing off an enquiring email or text with the invitation to contact to discuss what went wrong.
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Period-ised Mentoring Services Many of us members would really benefit from a mentor who, like your form teacher at school was tasked with keeping an eye on your progress and offering advice support and motivation both online and offline when you need it most. Like your form teacher at school this role doesn’t actually directly teach you. It’s pastoral care rather than direct teaching.
Have you thought of offering this service in your club as a unique feature of a premium membership or as an upgrade during membership?
Level 3: Building Rituals Establishing “rituals” is at the heart of habit forming and fundamental to exercise adherence. A “ritual” is a repetitive experience, normally time banded or linked to a particular event or situation. Behind the neuro psychology of habit forming is the brains overriding quest to work less hard. It continually looks for patterns of behaviour which are repetitive (called “Chunking”) and associates them with a particular cue at the front end of the routine and a reward (either emotional, or physical) at the back end. When the Basal Ganglia area of the brain spots the cue, brain activity immediately slows down (you feel it as a chilled-out sensation, you stop thinking about it, and your routine becomes automatic.) Providing the routine is performed as expected and the reward is derived as predicted, so the habit is recognised with a reduced level of brain activity.
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Group Exercise Programmes It’s why exercise classes are so popular with many members.
Same time, same people, same instructors and it can go even deeper to include consistency about where you stand in the class, the predictability of the routine, the music and change of any description can be counter intuitive to member enjoyment. The unexpected causes the “Habit” loop to be broken. (Operators will be aware of this from of feedback when class teachers change or formats change.)
The same principles need to be applied to your gym users if you want to get similar levels of retention as we witness in the group exercise studio. Into your Gym based timetable you can add the following concepts:
Learn To Sessions. Weekly clinics designed to teach members new equipment or training types Small Group Training Class times. Groups of 4-8 members training with a trainer Pre & Post Natal Consultation times for mums and expectant mums Group New Member Induction timetables Fitness Assessment sessions
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Your exercise programme protocols need to be thought through so that a balance is struck between providing a level of personalisation, variety, and the need to build this “chunking” behaviour routine when working out. The most effective way to do this is to create simple to follow “Principles of programming” that members can follow, such as heart rate intensity and in the resistance area, training to momentary fatigue within guidelines on rep range, sets, speed of rep and exercise selection.
When these principles are applied successfully, members often report an invigorating feeling of self-control over the workouts. They can physically feel, and quantify objectively (through record keeping) improvements, and therefore get the backend reward that drives the habit forming. The front-end cue is the front door of the gym. The exercise session following a pre-determined sequential regime is the “routine” and the emotional benefit at the back which is synonymous with successfully completing the workout session serves to reinforce the “habit loop”.
Abs on the Hour The biggest challenge for operators is to get inexperienced members to exercise abdominals in the gym. It normally involves the new customer having to lie in a prone position in an area of the club that is highly visible to other users. These users feel this intimidatory pressure of being watched as well as judged for their physical appearance and consequently many shy away and feel frustrated that they haven’t done what they set out to do. Overcoming this is vital, to encourage integration and the solution is simple and has been known to the aerobics world for over 40 years.
The answer is everybody does it together led by a teacher who motivates and coaches.
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In the gym this is achieved by timetabling a 10-minute 100 repetition abdominal workout at the same time each hour of the day or within certain programmed time zones. The cue at the front end of the routine, is an anthem played over the PA system and personal invitation by staff walking round the club talking to exercisers. Members soon learn how to incorporate this 10-minute ritual within their workout session timetabling the ab sequence either at the front end of their session, the middle or the backend finale. The vital factor is that it is the same time of the hour every time.
Try this and be wowed with the impact that such a simple idea will have on the numbers taking part but also the atmosphere, and the level of interaction between members and staff that results. (I have been an advocate of this for over 30 years and it’s my “go to” retention strategy above all else.)
Shots on The Hour If you take the concept of time banded rituals and think about how else it can be applied to further the commercial activity of your clubs you will indeed recognise its potency. Here’s another working example I like to use:
On the hour shot sessions On every O clock hour of the 1st week of the month between 6pm Monday and Thursday take out a tray of shot glasses containing protein drink (available to purchase from the club.) Approach all members in the weight area and offer them a drink and a printed note with a link to a landing page which contains the compelling case for supplementation and an aggressive conversion offer to buy this month.
The success of this scheme lies in playing the numbers and the ritualistic nature of it works for both staff in dispensing the shots and the members in the frequency they are asked to buy.
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Level 2: Creating Experiences The definition of experiences is a pretty broad term. The easiest way to view them is as events which are regular (albeit weekly, monthly, quarterly or annually) but not to be confused with the day to day processes or the systems employed to act on all members. Experiences have a defined audience which is significant in numbers but not universal.
One of the hardest battles that operators face is in communication
The process of keeping members aware of what’s happening in the club. What’s open to them within their membership and new initiatives and events.
The process of effective communication is 3-fold. Attract:
Get their attention. Make them aware of what you have to communicate
Engagement:
Give members compelling reasons to be interested in your news
Conversion:
Getting them to react as you want and immediately
Again, repetition is at the heart of customer awareness and we suggest that operators use a quarterly timetable when scheduling their experience diary and repeat throughout the year. Consider using a mixed set of communication tools as people learn in different ways and prefer particular mediums above others because of their age.
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Here are the types of experiences we know to work well. Themed programmes according to the demographics of the target audience.
Appoint times in your club timetable to promote (not exclusively) Ladies Mornings, Silver Fitness afternoons, Lunchtime specials, Teen sessions in the afternoon, Weekend Warrior sessions, Weekend Family Exercise sessions, Early Riser Sessions.
“Learn to” Clinics – One off mini inductions where members can learn about specific ranges of equipment. Free weights, TRX, Advanced weight training, Advanced CV training, Vibration, Spinning, Abdominals, Stretching, HiiT.
External Challenges. Join our “Train for the Berkshire ½ Marathon Group”, the London to Brighton bike ride. Walks fun runs and swims.
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Pump Jump and Funk Charity Spinathon Events
Internal Challenges: Wear the Shirt. Train 14 times in 42 days and win a Unique Club T-shirt.
London to Paris Adventure using gym-based equipment to travel clocking mileage across the channel to Paris in a promotion.
Group holidays organised by the Club. Skiing in winter, Cycling, Watersports, Yoga Retreats,
Quarterly Programme launches (Gym programme, Group Exercise timetable, New products, programmes.)
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Level 1: “Top of Mind” Touches At the apex of the CX pyramid are the “top of mind” touches.
The interactions between individual members and the club that make the member go wow! The experiences that make the club remarkable and where the story spreads. These things work best when the pyramid has been soundly built from the bottom up with strong process and consistent and predictable interactions that match the contractual obligations, provide predictable points of differentiation and have built considerable trust widespread within the member base. These touches are individual, selective, and designed to surprise the member emotionally.
Here is a selection of some of the “top of mind touches” that we have seen having an impact in fitness clubs.
Recognition Schemes based on usage rewards. Members receive special T shirts for 14 workouts, 50 and 100 workouts. They are promoted on a Hall of Fame board and when they are graduates of the 100 Club they are invited to join the Club VIP Diamond Members clubs
Map of the World Wall charts with photos of members in Club shirts taken on holiday
Welcome boards in Club reception greeting visitors, praising members who are due in or simply recognising special events like birthdays VIP Diamond Member events for selected Members based on spending levels, length of tenure, or Referral success. Product previews, quarterly lunch club, special discount offers
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Happy Birthday Cards and Gifts
Quarterly Member Benefit Vouchers sent to the customer for referring or renewing or spending more than most members in a period Gold Membership Cards for selected members based on a criterion Special Programmes exclusively for certain types of members. Invitation only events and programmes Certificates awarded to members who complete a particular equipment familiarity course
Club Plaques awarded for differing lengths of tenure as a member. (For example: 2 year, 5 year, 10 year) Club University Awards for members who complete the syllabus of Learn to Clinics
YOUR CLUB
Handwritten thank you cards sent by the manager to thank members for certain behaviours Club Dollars Loyalty Schemes. Members earn club currency for using the club a certain number of times and these dollar bills can be used to offset cost for club fitness services and food & beverage benefits
So that’s the CX Service Pyramid. Hopefully we have given you a new source of interesting concepts for you to deploy. At the end of the day the mission is to deliver the main things on time and consistently well first and foremost. These touches are individual, selective, and designed to surprise the member emotionally. Once that has been mastered, the next levels of initiatives will make your club “remarkable and stand out allowing you to dominate your local sector.
In the next edition of Fitness Club Gold, we will be going through the final 3 stages of your club member retention pyramid...
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This report contains 20 Referral Strategies all Fitness Clubs should be using to drive sales using their current member database. It’s well known that one of the simplest and most powerful ways to get new members is through referral. However, you have to tick some boxes on service and reliability before you find members feeling confident to bring their network to you.
These ideas work best when you have covered off the vital areas of customer service and when you have achieved that, there is no good reason why members wouldn’t refer you. It’s vital that you have a properly engineered “on boarding programme” for new members and a varied “experience” programme for longer serving customers. If you get those things ticked, then referrals will become one of your most valuable sources of new customer acquisition.
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In part 1 of this special report, I’m going to give you the first 10 of 20 proven strategies to maximising the potential of your customer base to illicit referrals. We have tried and tested them in the field and they are so simple that many you will be able to action and have working for you by the end of the day!
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Ask The easiest and quickest way to get a member to refer someone to you is simply… to ask. Contrary to popular belief people are only too happy to refer their friends and family to you, assuming that you’ve done a good job for them. Why? First, it’s human nature to be helpful. That’s why saying “no” can be very hard. Secondly, there’s an element of reciprocity in here. Yes you’ve been paid for the service but there’s still a feeling that in the back of your mind that the member owes you something more than just money, especially if you’ve done a great job for them or gone above and beyond the call of duty.
The words you use are important too. Rather than ask CLOSED questions like “Do you know anyone?”. Ask instead, “Whom do you know who would benefit from a pass?”. The first can be glibly answered No I don’t but the second requires more thought and the answer I partly assumed in the question. It’s not asking so much if there’s anyone you know as it is saying you know someone... now tell me who it is.
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Expect This is similar to the first strategy except for the fact that you are going to not only ASK BUT ALSO EXPECT A REFERRAL, almost as a condition of doing business with them but you are also going to set the scene for them even before they have joined you as a paying customer. It can feel uncomfortable at first, but it works incredibly well, and if you stick to a form of words like the one below, it feels unthreatening to both of you.
At some point in your sales presentation you will say: We grow our club through personal recommendation from happy members who can’t wait to tell their friends and family what a good job I’ve done for them and how much they are enjoying the club. So, if I do a good job, keep all my promises and exceed your expectations, I hope and expect you’ll help me in return by telling your friends and family about me so they can enjoy the same kind of experience. That’s fair isn’t it?
The last four words are important here. “That’s fair isn’t it?”. They form what’s sometimes called a tag question and its one that's very hard for them to say “no” to. Once you’ve finished the job and they’re happy you can revisit this promise by giving them some referral cards or certificates with links to a digital landing page that they can give to their friends. You will notice that we are suggesting the call to action is a very personal one and this is very important in delivering the results. The Club delivers nothing itself. It’s the relationship between the Club staff member and the new customer which is the key dynamic. It’s quite likely therefore that in a team of people you will have superstars, great at both establishing rapport and delivering the requisite service to illicit referrals and people less effective with this technique.
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Reward Another way to stimulate referrals is to reward members who send you new customers. Any form of monetary reward will do from straight cash to free membership periods or Club currency or fitness services such as PT Vouchers. In fact, sometimes it works even better if you break away from the fitness environment and give the referee a small themed gift or something universally welcomed such as a bottle of wine for men and flowers for the ladies.
Whatever you decide to do the critical touch is to follow up a successful referral with a handwritten note of thanks and a call. These initiatives establish the importance of referrals to the Club and encourage your members to refer even more.
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Recognition Another kind of reward is Recognition.
Money surprisingly is less of a motivator than you may think and it’s the emotional buzz of being recognised that is the engine room of many successful referral programmes.
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That’s why sometimes just a simple thank you is so powerful and effective.
Now you can make this even more powerful by publicly recognising people - say by a referral board in the club.
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Our favourite is to create a unique V.I.P Executive Club within your member ranks. If you are a current member of the club and you are selected to join this elite gang of people you will receive special services and invitations to events held in the club. Every month there are special discounted offers to Executive Club Members and these re advertised to everybody. They are invited to attend Product launch nights and enjoy a special online newsletter just for them.
They carry a special Gold membership card which sets them apart every time they swipe in. It’s all about making people feel special for delivering the results that you want! They have a special quarterly supper night with Club management and are invited to the Clubs Quarterly Coming Soon Preview evening.
Membership of this elite set of members is open to all members PROVIDING they meet certain criterion. One of them is that you must have referred a certain volume of people for example in a 12-month period.
Let’s look at the numbers so you can see where we are coming from and why we love this concept so much. If a new customer is worth £300 in fees over their lifetime and the current customer has brought in 5 new ones in the year, they have generated £1500 for you. If you were to budget say £50 per new head to the running of this VIP Executive Members club and it works as well as we are suggesting, why wouldn’t you do it? Not all your members are the same when it comes to referring. You will have maybe 20% of your total membership who take part and so you can see that they are very valuable customers.
This membership diamond club idea has a positive impact on retention rates at the club as well as generating new members so you can see why you may want to commit some budget to looking after these 200 people with a bit more care.
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New Member Nomination Referral Although this is a referral in the nature of how it is done, it is actually a nomination scheme because the new customer is getting a Free Guest Access Pass from the new member rather than joining up.
This makes it unlike many of the other options as the close to sale is at the backend of this process.
For many people, joining a fitness club is a significant psychological ordeal so the chance to be able to bring a number of friends to the club on extended guest waivers in the first 6 weeks of their membership doesn’t just power up the “word of mouth” noise but also holes to get the new member comfortable in the club surroundings.
The vital keys to the promotion are:
Limited to a fixed number of nominations (our choice is 5)
A long enough duration of pass to get nominations used to the club (we suggest 14 days as the most profitable term) A cap of 42 days after joining as the end date for the promotion to create urgency Establish a value (5 x 14 days passes) which you can quote to justify value in the Joining fee
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Quarterly Fitness Crusades Four times a year run a fortnightly or monthly promotion when Members can take advantage to purchase special trial membership option pass or a bundled Guest Pass promotion to give to their friends.
The concept works best when it is a unique deal only available for a limited time and exclusively to members of the Club.
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Monthly Guest Day Obviously, it is impossible to accurately forecast when members will meet family, friends or work colleagues who perhaps express an interest in their Club. By offering the chance to use the club as a guest on a regular and predictable manner increases the chances of members taking a positive action to introduce their contacts. It should be held on the same repeating day each month (3rd Thursday, 2nd Wednesday etc.). Repetition increases the likelihood of members remembering when the Open Day is on each month and therefore the chance of taking advantage of the event.
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Don’t over complicate the agenda for the day. Get them in and sign them up with a special offer of the day. Avoid the busiest day of the week (Monday) to minimise disruption to regular users. Avoid days that are too quiet as members who don’t normally train that day are unlikely to bring a guest or train themselves on an off day.
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Annual Renewal Passes Renewal conversion effectiveness should hit between 50 – 60% success rate. If it doesn’t you may need to incentivise members to renew with a range of compelling offers. Guest pass offers are always well received and can be delivered in a range of formats. Offer renewing members a Monthly free visit for friends’, family and colleagues, the value of which could well exceed £100 as a renewal benefit. The easiest way to facilitate the offer is to design a card with the 12 months of the year printed on and space alongside so that Clubs can initial when the Guest pass for that month has been used.
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New Resident 3rd Party Referrals Fitness club operators would do well to buy leads or exchange value with estate agents and other services who are aware of new people moving into your catchment. If you’ve moved any distance you will know how difficult it is to make a decision on the best fitness clubs to join.
That’s why it makes perfect sense to reach out to these new movers with a strong message offering help phrased like this:
I understand from Stricklands Estate Agents that you’ve just moved into the area. I know how hard it can be to find a good fitness club and meet new people so that’s why I said I’d call you and take care of this for you. Because you were referred to me by Cheryl at Strickland Estate Agents and we have a good relationship with them you qualify for a special 30-day trial membership offer at a saving of 50% off the normal rate if you contact us within a month of this initial email. To take advantage of this unique offer to Strickland Clients CLICK HERE. (New mover inputs personal data and opts in to the club prospect list)
With the current GDPR legislation, the way to get this across to the member is to embed these words in a landing page with a data capture system (that opts the new resident in if they are interested in the offer) and get the Estate agent to send an email to the new mover introducing THEIR relationship with you and the reason its valuable.
It’s a good idea to author the email for the Estate Agent to take all hassle away from them, the potential upside from recruiting these people as members is too great to fall down because the Agent can’t think of what to write.
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Endorsed Referral Promotions Building further on the last strategy we get to something called the ENDORSED MAILING. It’s best explained by way of an example say with a beauty salon or dentist and you the fitness club. It works like this:
You put together an email and landing page piece along good direct response lines making a specific offer with perhaps something special added because the Beauty Salon is so good.
Dear Fred, This is Debbie from The Stafford Nail Salon. You’re probably wondering why your nail technician is writing to you about a fitness club. Well as you can imagine while we work on your skin and nails the fitness club helps to keep you healthy and disease free inside. We want to recommend Gym and Tonic Stafford because we know what a great service they run.
And then it goes on to tell a (true) story about how Gym and Tonic fitness club has transformed staff from the Nail Salon and makes a time banded compelling offer to act quickly. The beauty salon then sends out this letter via email along with a link to a landing page where interested parties can register for the offer and opt in for direct communication with the fitness club.
In September’s edition of Fitness Club Gold, we’ll be going into the next 10 points of proven strategies to maximising the potential of your customer base to illicit referrals. You won’t want to miss it!
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