Part of the GGFaqs series: We’ve had a few questions asking if a club’s member attrition (rate of dropout) is good, and this is always an interesting topic for discussion. What most operators want to know is whether they are better than average…
Attrition rate is defined as:
The average number of members per thousand who cancel every month.
Firstly, there’s always some debate as to whether attrition is relevant. Attrition is a good measure because you can look at it regularly (say monthly) and get a gauge on performance. However, it can also be affected or skewed by a good sales month, as this increases the total members used to calculate the attrition percentage. One of the reasons why attrition is popular is that you can compare the performance of multiple clubs of different sizes, month by month
The ukactive benchmarking project is great for clubs that want a comparison. In our experience, clubs with attrition around 4% are about average. However that said, we are engaging with clubs with attrition below 3%, who recognise that there’s always room for improvement.
Ultimately, net member movement is becoming a more crucial metric. Members in vs Members out. You could have low attrition, but if you are regularly losing more members than you are signing up, then you’re in trouble. Whereas attrition will always be a positive number that you’re trying to drive down to zero, net member movement could be negative for a bad month, but you are aiming for it to be constantly positive.
Please add your comments on good or bad attrition below, or submit your own GGFaq here or by email to GGFaqs@ggfit.com
To read more from the GGFaqs series, please click here
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