WHY IS ATTRITION RISING?

The fitness industry needs a retention reality check now more than ever. For each club or chain that claims sales are up, and recovery strong, there are several more who are very aware that their membership attrition is rising.
This seems to be more prominent in the public sector, but private, independent, and budget gyms are all feeling the effect, where they are measuring it. Whether from analysis or conversations, clubs that know their numbers recognise the issue.

A big part of the problem is the industry’s blind optimism and eternal focus on sales and new members, rather than engagement, length of stay and customer value.

Optimism is good, and the fact that many members have returned to your club after the enforced closure is great news (although these are not new member sales). Genuine new members are signing up, but you must take a close look at how these new and returning members are getting on before you start signing up more. The more you fill a leaky bucket, the more it leaks!

There are countless explanations as to why more members are leaving at the moment, and it will vary from club to club. But here are the top three reasons we’re seeing from member and client experience and feedback.

There is new member drop-out (as always), but it’s more pronounced than before. Part of this is due to the three-month itch, especially linked to joining offers. Another connected factor is a lack of onboarding care and attention. Finally, some existing members who had a membership freeze are not returning, so are now turning into cancellations. 

The Three-Month Itch

Everyone knows that there tends to be a natural drop out around three months after joining a gym. It’s usually quoted as “join in January, cancel by April”. But in the UK in 2021, the influx of members happened in April and May, as clubs reopened, and consumer confidence returned. So, the natural drop-out is happening in July and August, exacerbated by the summer months, when a lot of members usually stop visiting.

This will also be compounded by some of the offers that clubs used to entice members back. Members who join on a special discounted offer cancel quicker as a rule, because they value the membership less. Those former members who returned to the club because of a special offer know that they can cancel and return again when they’re ready, perhaps on an even better deal. 

It takes guts and a lot of belief in your product to withdraw joining offers completely, especially when your competition is shouting about their incredible deals. But you’re joining a race to the bottom. Build confidence in your staff and members by talking about all the value that your members get. Your ‘offer’ should be about their results, not a price. 

A big part of the solution is to take extra care of members (both new and returning) in their first few weeks and months. Monitor their visit/engagement habits, and don’t rely solely on digital engagement. It works for some, but not most. This leads us onto the next point.

Onboarding Gaps

There’s no doubt that it’s been a tough return to operations, with some staff still furloughed and processes changing from week to week. However, member onboarding has suffered a lot. This is the biggest factor for most clubs’ rising attrition rates. 

It seems like a luxury for some clubs, only reserved for new, premium members, but everyone should get some type of welcome session and communications. From one-to-one appointments to group sessions, whether face-to-face or remote, it’s critical that as many members as possible are onboarded somehow. Build in a health or fitness measurement that will be repeated throughout their membership to help goal setting and motivation. Sell your member journey, both the physical and digital, so that members know what to expect, and you’ll have to deliver it.

Make sure that returning members get the same or even more attention and value. They have left once already, so don’t let them drop out again. So many clubs bypass the onboarding process simply when a member says, “I’ve been a member before”. When? Last month, or five years ago? This is your opportunity as well as theirs to make a difference and get them to stick around longer this time. Set them on the right pathway with a good welcome appointment.

Digital onboarding can help with low- or no-staff clubs. It’s a harder process, but with the right journey, message flows and triggers, it’s possible to recognise members who are at risk, and send appropriate interventions, or ultimately to step-in with a human interaction to improve retention.

Frozen Members Cancelling

The third major factor for the current attrition increases is that some of the members who froze their membership during lockdown are not returning. Depending on how your systems work or how you measure your numbers, this increases drop-out. 

Some members extended their freeze for a few months after re-opening, but as clubs ask them to re-commit, a few members are unwilling or unable to return. There are financial pressures of course, which are hard to argue against. However, if members understand your offering and value their health and fitness, price should not be a factor. 

Communication is key here. If you didn’t communicate much with frozen members during lockdown, you can’t turn the clock back. But you can start the communication now and save a few members, or possibly recover some more. Digital offerings or new business models can help to retain members on some form of subscription, protecting revenue and maintaining a link on which to rebuild the relationship.

The Constant Attrition Battle 

Nearly every club is different, and there are plenty of more reasons why attrition is on the rise across the fitness industry. These are the big three as we see them, along with some ideas to help you to turn the tide at your club.