IHRSA EUROPE UPDATE
NEWS
Predicting member drop-out W
hat’s the danger in having detractors among your membership base? Plenty, as it
turns out, as this is closely linked to high member attrition – a threat to any health club’s bottom line. ‘Detractor’ is the label used by the Net
Promoter Score (NPS) system to classify those who – in response to the question ‘on a scale of one to 10, how likely are you to recommend this club to a friend, family member or colleague?’ – give a score of between nought and six. Tese are unhappy customers who can damage your brand and impede growth through negative word of mouth. They are not only unlikely to recommend their club, but may actually discourage others from joining. But the negative impact doesn’t
stop there: detractors are, perhaps unsurprisingly, also more likely to quit their membership. But how much more likely?
New report In July, in an effort to help more clubs retain more of their members, IHRSA released its latest IHRSA Member Retention Report (Volume 1, Issue 4). Conducted in partnership with Te Retention People (TRP), this edition expands on the Net Promoter Score as a member loyalty and retention tool. Also analysed are NPS findings based on a study of nearly 20,000 health club members, providing insight into how the NPS can help predict membership terminations. “As a powerful member loyalty tool,
the utility of the NPS extends beyond establishing a benchmark and identifying the characteristics of successful clubs,” says Jay Ablondi, IHRSA executive vice president of global products. “Being able to understand and identify members at risk of leaving their health club will help target and improve the retention efforts of club operators.”
Predicting loyalty The current edition of The IHRSA Member Retention Report examines whether NPS can predict membership cancellation in the 12 months after the survey is completed. Specific criteria analysed include age, gender, and duration of membership (in months).
22 New IHRSA report helps clubs predict cancellation risk. Kristen Walsh provides an overview
Promoters are likely to recommend your club to their friends and family, and are also more loyal members Further details on ‘Promoters’ (those
who say the likelihood of them recommending the club to friends, colleagues and family members is nine or 10 out of 10) and Detractors are explained alongside age, gender, and tenure. Not surprisingly, Promoters attended the
club more often than members who were Detractors. And those same Detractors are the members who are most likely to cancel their memberships within 12 months of completing the NPS survey. As the IHRSA report bears out, winning
over members as raving fans and converting fence-sitters (the so-called ‘Passives’, who give a score of seven or eight out of 10) to Promoters is critical in order to maximise membership tenure. “This latest research highlights the
importance for clubs not only of identifying Detractors, but of implementing sustainable and measurable processes to close the loop
Read Health Club Management online at
healthclubmanagement.co.uk/digital
and convert them to Promoters,” says Phil Bonomo, director of The Retention People North America. “It’s yet another piece to the customer experience puzzle, and can provide operators with a real focus for their retention efforts.”
FOR MORE INFORMATION
Te IHRSA Member Retention Report (Volume 1, Issue 4) is available as a PDF at
ihrsa.org/research. It’s free for IHRSA members and US$29.95 for non-members. IHRSA member clubs can also participate in the IHRSA-TRP member loyalty survey at no cost (a $US1,500 value). Participating clubs will receive a licensed NPS® score and access to member comments via a real-time online dashboard. Details:
www.ihrsa.org/retention
October 2013 © Cybertrek 2013
PHOTO:
WWW.SHUTTERSTOCK.COM/LUCKY BUSINESS
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