Six ways to reduce churn in your fitness business

Improve gym membership rates

5 min read

In the ever-competitive world of fitness, gym and fitness centre owners face a constant challenge: maintaining a strong, loyal membership base while minimising customer churn and ensuring consistent cash flow. Customer churn, the rate at which members leave your gym, can be a significant obstacle to success.

Why customer churn matters

Customer churn can have a severe impact on the long-term success of your gym. Without a consistent membership base, it becomes challenging to plan for the future and make informed decisions. High customer churn can lead to a vicious cycle, where resources are constantly poured into acquiring new members to replace those who have left. This leaves little room for improving service quality and satisfying your existing members.

So how do you measure membership churn? Choose a specific time period (e.g., monthly), then divide the number of lost members by the total members at the start of that period. Multiply the result by 100 to obtain the percentage churn rate. While there's no one-size-fits-all churn rate, aiming for a rate of 15% or less is a good goal.

Reducing churn enhances profitability and allows you to allocate resources effectively. Fortunately, there are plenty of things you can do to stem the tide and minimise the amount of cancellations you receive each month.

Six tips to reduce member churn

Enhance communication and engagement

Communication is the cornerstone of any successful relationship. Regularly engage with your customers when you see them and through modern tools like email newsletters, automated text messages, and personalised content. These methods are cost-effective and can allow you to keep members informed about special deals, upcoming events, and fitness tips. Moreover, actively listen to member feedback to identify areas for improvement and enhance their overall experience.

Create a sense of community and a welcoming environment

To foster a sense of belonging and camaraderie among your members, encourage interaction through fitness-based games, offer specialised fitness classes for beginners and experts, and promote social connections. Members who feel part of a fitness community are more likely to stay engaged and motivated on their fitness journey. Consider implementing loyalty programs, where members are rewarded for their commitment and achievements.

Leverage the power of social media

Take advantage of the prevalence of social media by actively engaging with your audience. You could use platforms like Instagram, Facebook, and Twitter and highlight what sets it apart from the competition. Share behind-the-scenes glimpses, showcase new equipment, and organise online contests with prizes. Regularly post workout routines that members can do from home and capture live events to provide a glimpse of the gym experience.

Offer rewards, giveaways, and incentives

Members love incentives and rewards. Motivate them to reach their fitness goals by offering rewards for achievements or milestones. For example, you could partner with local businesses to provide discounts on products or services. Monthly giveaways, such as gift cards or spa treatments, can add an extra layer of motivation and appreciation. Create an environment where members feel that their dedication is recognised and celebrated.

Use marketing automation for personalisation

Marketing automation tools can help you to enhance member engagement and personalisation. New members could appreciate a series of personalised welcome emails, providing essential information about the gym's facilities and encouraging them to join newsletters or follow you on social media. For existing members, there’s the opportunity to send birthday greetings, anniversary reminders, and event notifications. You could also use automation to recommend additional fitness classes or activities that align with their interests. Make sure any communication is consistent, relevant, and non-intrusive to keep members engaged and informed.

Provide exceptional customer service

Never underestimate the power of delivering an exceptional customer experience. From the moment members walk through your doors, ensure they feel welcomed and valued. Train your staff to be attentive and helpful, and encourage members to ask questions and express concerns. Actively collect feedback on staff performance, services, and equipment to demonstrate your commitment to continuous improvement.

Bonus tip: make the most of your Ezidebit payments

If you're using Ezidebit for processing membership payments, you're already on the right track. This not only ensures timely payments but also reduces administrative workload. However, explore additional uses for Ezidebit, such as allowing members to add one-off purchases like club merchandise or personal training sessions to their debits or integrating our other payment methods, like EFTPOS, PayTo and online payments into your gym management software. This seamless approach can boost revenue and convenience.

Remember, understanding and actively managing membership churn will help you keep your fitness club profitable and provide maximum value to your members. Making payments easy and flexible will help keep your members coming back for more.

Get in touch with Ezidebit today for all your payments needs.

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