1
Average visit frequency
by induction or not
2
Retention rate by 12-
week visit frequency
30
100
90
i
s
i
t
s
25
r
s 80
l
u
b v
20 b
e
f c
70
e
m
b
e
r o
15
l
l m
60
t
i
u
m
50
10 n s
o
e
a
n n
r
t
i
40
m
5
p
o
30
p
r
o
0 20
month 1 month 2 month 3 total
10
months since joining
0
no induction induction
0 1 2 3 4 5 6 7 8 9 10 11 12
months since joining
low frequency high frequency medium frequency
3
Retention rate by
induction or not
4
Retention rate
by interactions
100 100
90 90
80 80
b
e
r
s
70
b
e
r
s
e
m 70
e
m
60
t
i
l
l m 60
t
i
l
l m
n s
50 50
i
o
n s
o
r
t
40
r
t
i
40
Number of interactions Attrition rate
p
o
30
p
o
0 interactions 36.1
o
30
p
r
o
1-3 interactions 30.7
20
p
r
20
4+ interactions 22.4
10 10
0 0
0 1 2 3 4 5 6 7 8 9 10 11 12 0 1 2 3 4 5 6 7 8 9 10 11 12
months since joining months since joining
no induction induction 0 1-3 4+
5
ACCURATELY MEASURE RETENTION,
1
understand
ATTRITION & LIFETIME VALUE
the problem
IDENTIFY HIGH YIELD MEMBERS
2
sales and MARKET AND SELL TO MORE
marketing
HIGH YIELD MEMBERS
HIGH QUALITY
INDUCTION INCREASE EARLY VISITS
3
policy and
programming INTERACT WITH INCREASE VISITS
MEMBERS
INCREASED RETENTION
such as looking at whether the fi ndings reminding people to cancel their direct
vary by the age and sex of members. debit. All interventions should be
Nevertheless, this quality of evaluation evaluated before being fully adopted,
has tremendous value for club operators and I’m currently in the planning stage of
and, if implemented, would lead to a an evaluation to examine the effects of
signifi cant improvement in profi ts. messages on low frequency users.
Other interventions aimed at This advice holds even for clubs
increasing retention can be evaluated implementing the interventions
in the same way, provided appropriate described above, as it doesn’t necessarily
process and outcome measures are follow that the fi ndings we’ve described
used. For example, some software will be the same in every club. A good
companies send email or text messages retention system supplier should be
to members who haven’t made a visit to able to provide this kind of analysis and
their club for a predefi ned number of support as part of the service.
days. At present, there’s no evidence to
show the effectiveness of such a strategy melvyn hillsdon
or, indeed, if it worsens retention by healthclub@leisuremedia.com
september 2009 © cybertrek 2009
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