We already know that members’ progress towards their goals is an important determinant of retention (see part three of this series, HCM July 14, p48). For each goal that members reported making progress on, their risk of cancelling in the next month fell by approximately 10 per cent.
We’ve also highlighted the beneficial effects of fitness staff interaction on membership retention (see HCM Sept 14, p42): even when members experience hassles in their clubs that increase the risk of them cancelling, the risk can be reduced if fitness staff regularly talk to members.
In this month’s article, we’ll look at the combination of fitness staff interaction, member progress and subsequent retention.
Data and analysis
Members were asked how much progress they had made in the last three months against a list of 10 possible goals, including losing weight, feeling fitter and making new friends.
The number of goals members said they had progressed on were summed to make a score between 0 and 10.
The scores were then classified as high or low progress, with the high category representing the top 25 per cent of members’ scores.
Members were also asked how frequently fitness staff spoke to them by ticking one box: always, frequently, occasionally, or never.
Member-staff interaction
So how often do staff speak to members, and who do they speak to most?
Figure 1 (see p56) shows that, overall, over a quarter of members say fitness staff never speak to them, and over 60 per cent say they speak to them less than frequently. Females are more likely to be spoken to than males.
The chances of being spoken to at least frequently increase with age, with two-thirds of members aged 16 to 24 saying fitness staff only speak to them occasionally or never (Figure 2).
Long-standing members experience greater fitness staff communication compared to new members, with 50 per cent more of the longest standing members reporting at least frequent communication compared to new members (Figure 3).
The Retention People (TRP) has shown many times that younger members and new members are at greater risk of cancelling their memberships compared to older, long-standing members. It’s therefore the most at-risk members – the people who would benefit most from fitness staff interactions – who are least likely to receive them.
Interaction, progress and retention
Meanwhile, Figure 4 shows there’s a very strong association between members’ recent progress towards their goals and the frequency of fitness staff interactions: fewer than one in 10memberswhoreportnofitness staff interaction say they have made a lot of progress in the last three months, compared to more than half of members who are spoken to by fitness staff each time they visit.
Interestingly, the relationship between staff interaction and member progress is strongest for social and enjoyment progress. Members who report frequent interactions with fitness staff are also much more likely to report they have made a new friend at the club and to say they have enjoyed exercising in the last three months (data not shown).
So does recent progress and fitness staff interaction also affect risk of cancelling? Yes it does: for members who report either high or low progress in recent months, the risk of cancelling each month reduces with the frequency of fitness staff communication (see Figure 5, p58). However, the impact of fitness staff communication is greatest among members who report lower levels of progress. Members who report lower progress but who are always spoken to by fitness staff are half as likely to cancel each month compared to members who report low progress and who are never spoken to by fitness staff. In fact, if all low progress members were spoken to at least frequently, 10 per cent of cancellations each month would be avoided. This is equivalent to 16 saved memberships each month for every 1,000 members you have.
The risk of cancelling and the chances of making good progress with goals are strongly related to how long people have been a member and how frequently they use the club – so it’s possible these two factors are what explain the reduced risk of cancelling, rather than fitness interactions and progress alone.
However, Figure 6 shows the absolute risk of cancelling during the seven months following the completion of the TRP 10,000 questionnaire, after taking account of how frequently members visit and their length of membership. For members who report high progress and always being spoken to, there’s approximately a one in 10 chance they will cancel, compared to a more than one in five chance of cancelling among members who report less progress and never get spoken to by staff. In other words, the negative effect of making only low progress is nearly completely cancelled out by always speaking to members when they work out.
Summary
The amount of progress members make towards their goals and the frequency with which fitness staff talk to members are both related to the likelihood of a member retaining their membership. However, these two things are interlinked and have an additive effect on the risk of cancelling.
When members receive frequent communication from fitness staff, they are more likely to make progress that in turn reduces their risk of cancelling. Members who receive more fitness staff communication enjoy the exercise more and are more likely to meet new friends at the club. Frequent communication plus high progress roughly halves the risk of cancelling compared to no communication and low progress.
Unfortunately, the members at the highest risk of cancelling are least likely to receive any communication from gym staff. Staff are most likely to talk to older, long-standing members who are making good progress. This is somewhat understandable, as these members have been around long enough for fitness staff to get to know them and are in the club more regularly than newer, younger members. Also, the older, longer- standing members are just as likely to initiate a chat as staff are with them.
But the ‘at risk’ members need targeting more to ensure they don’t miss out on essential communication with fitness staff that could help them make progress and extend the life of their membership. This needs to be systematic and not ad hoc, as a small effect on a lot of members will save the most memberships.