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member
retention
2
retention rates
overall retention rate retention rate by gender
1
0
0
1
0
0
9
0
9
0
8
0
8
0
– Males
– Females
7
0
7
0
6
0
6
0
5
0
5
0
4
0
4
0
3
0
3
0
2
0
2
0
0 0
0 4 8 12 16 20 24 28 32 36 40 44 0 4 8 12 16 20 24 28 32 36 40 44
months since joining months since joining
retention rate by age group retention rate by year
1
0
0
1
0
0
9
0
9
0
8
0
8
0
OCK.COM
7
0
7
0
.IST
6
0
6
0

WWW
5
0
5
0
4
0
4
0
PICTURE:
3
0
3
0
2
0
2
0
olds leave compared to those aged 45+.
0 0 Compared to 2006, in 2008 the club lost
0 4 8 12 16 20 24 28 32 36 40 44 0 4 8 12 16 20 24 28 32 36 40 44
45 per cent more members each month.
months since joining months since joining
It’s clear from the table that not all
– 18–24 – 25–34
– 2006 – 2007 – 2008
members are of equal value. Older
– 35–44 – 45+
members yield twice the number of
payments compared to the youngest age
group, so have twice the value. Males
that males have a higher retention rate (lifetime value) – see table below. This and members aged 35+ are higher yield
than females, and members aged 35 means that, to maintain the current members compared to females and
years and older have higher retention membership level, on average the club younger members. Should we consider
rates than 16- to 24-year-olds. The last needs to sell 54 new memberships per paying sales staff more commission for
graph indicates that the recent trend has thousand each month. As we’ve already selling high yield memberships?
been a year-on-year decline in retention. seen, there are marked differences Figure 2, and the table of attrition
Overall, the club loses members at a between males and females, as well as rates and lifetime values, reveal
rate of 54 per thousand members each age groups. Each month 17.5 per cent that changing the gender and age
month (attrition rate) and on average more females than males leave, and nearly distribution of the membership at
each member yields 12 monthly payments double the number of 16- to 24-year- the club – increasing males and older
members – would automatically lead to
attrition rates and lifetime values an improvement in retention, a drop
in attrition (less demand on sales) and
attrition rate lifetime value (months)
a
n
c
e
l
extra membership yield per member.
o c
(cancellations per
But in fact, between 2006 and 2007,
e t
thousand per month)
the proportion of younger members
i
m
GENDER increased, as did the proportion of
i
t
e
d t
male 51 13.0 female members. Little change has
i
m
female 60 10.8 occurred since then. This leads us
r
e l
AGE GROUP
to consider whether one possible
r
e
f
o
16–24 80 8.0
explanation for the downward trend in
h
e
25–34 54 12.0
retention is the change in the age and
n
d t
35–44 45 14.7
gender distribution of members.
p a
45+ 42 16.1
Figure 3 (see p39) repeats Figure 2
but controls for differences in age and
l
l
o
w u
YEAR OF JOINING
o
gender between years; this assumes
2006 47 14.1
that there is no effect of age and
2007 57 12.2
h
o
r
t f
gender on retention. We can see that
2008 68 9.5
the difference between 2006 and 2007
n
l
y a s
2009 40
>
3.0*
shown in Figure 2 goes away (the lines
* O
OVERALL 54 12.0
for 2006 and 2007 are on top of each
38 Read Health Club Management online july 2009 © cybertrek 2009
healthclubmanagement.co.uk/digital
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