Tuesday, October 2, 2007

Retention: Its a question of focus

Retention: Are you focusing correctly?

What you do first, typically declares your priorities. Many club operators start their workday inquiring about what were yesterday’s sales; 365 days a year their focus is on what is coming in the front door and how many are walking out with a contract and a dream of the new body they plan to build.

Imagine a day without worrying about your sales and being more focused on what the retention number is or even better the growth rate of your club on a daily basis. A club with their focus here is a club with a stone foundation; a guaranteed income stream to pay the bills, the staff; and live the life the owner dreamt about when he opened the doors.

Retention is the biggest piece of the success puzzle, yet most clubs have not discovered this diamond in their success formula. What a dream it would be to have the ability to keep every member we sign from day one of the club’s opening. Whether a new club or an existing club of ten years the ability to not need to spend money on marketing and promotions to bring people in the door is awesome. What could you do with the money that you save on not prospecting new sales; build other clubs, keep your current club up to date with the latest and greatest equipment, or increase the benefits to your staff to ensure their long term commitment to your club. Dream big you will have the money to spend.

The focus change needs to start with a system. This system needs to cover the moment your new prospect walks in the door until death or moving do we part. Starting with the end in mind is a phrase that is appropriate here. The new prospect is scared; scared of failing one more time in a pursuit of their lifestyle change, scared of being promised success and there not being a life line there for them. You need to ensure that you are able to guide the new member with a systemic approach to success making sure to avoid committing information overload, and using intimidating language. Making sure to deliver a simple, direct, consistent message is the primary mission. Your choice of staff is key and hiring for personality is most important. Your personal trainers are likely the wrong people to deliver the new member introduction, as this is not the time to be selling to a new member who is uncommitted to a long journey. You need to find and hire coaches that are trained to send a message of belief and success and have the tools to deliver the journey. These trainers are very often your caring and enabling staff that will spend a good deal of time concentrating on the members needs and making them feel comfortable at your club.

The journey ahead needs to start with a simple assessment of where the new member is at and a mapping of the path to success that lies ahead. Additional meetings are needed to schedule and plan a workout program, and then check in on them to guide and nurture the trail to be traveled. Finally we need to ensure a review of the pathway and reassess the original benchmarks. It is in the discovery of success that the energy to move on with their membership will be unveiled. No one wants to spend money uselessly, and even a dollar a month is too much if the enjoyment and success feelings are not present.

Studies increasingly show the impact of raising the number of visits in the first 30 days of membership. Our club measures the first 4 weeks of membership by visit count. The number of visits needs to exceed 8 visits in the first month and compensation for our coaches are based on that number. We measure the usage in the next phase of membership from 5 to 12 weeks and watch the engagement of our members like a hawk.

While spending the money to staff this seems like a cost concern, I challenge that notion with the fact of improved Personal Training Revenue, boosted attendance at your club, and the additional revenues that are acquired in the process of your members spending more time at your club. An involved member is an active member and active members pay there dues and spend money at your club.

The challenge is to change your focus and realize the value of every member becoming a life member of your club. Imagine the day that sales are a minor concern and the number of referrals rises to a level that outside marketing is no longer needed. It can and will happen if you change the way you view your members today and the one that will join tomorrow.

Good Luck,

Tom

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