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The Key to Retention:
A closer look at fi gures
Choose the Right
reveals that, on average,
17.5 per cent more Retention Programme
females than males
left each month
We do for you what you
want to do but don't
have the time or resources.
3
retention rates by year
adjusted for age/gender
9
0
8
0
7
0
6
0
There is a Difference !
5
0
4
0
The
3
0
Us Other
Guys
2
0
1
0
Hundreds of satisfied clubs and
0
millions of satisfied members
0 1 2 3 4 5 6 7 8 9 10 11 12 13
months since joining
Easy to implement
– 2006 – 2007 – 2008
Large up-front cost
X
High monthly service fee
X
Significant investment in new
other in Figure 3), but 2008 still has a Finally, we want to establish where
C
hardware
X
lower retention rate. This means that in the membership the greatest risk of
M
the observed difference in retention quitting is, so we can target interventions No changes to operating
between 2006 and 2007 is indeed due at the right time. Figure 4 (below) shows
Y
procedures
to the differences in age and gender. In the month-by-month risk of a member
CM
other words, the increase in females cancelling (the risk rate). If a member
Low impact on staff time
MY
and younger member between 2006 survives the fi rst month, what is the risk
No contract tie-ins
and 2007 led to the drop in retention. they will cancel in the second? In the
CY
However, this does not explain the fi rst month the risk of quitting is just CMY Automated new member
reduced retention rate in 2008 – it’s over 2 per cent, or 2-in-a-hundred, and integration programme
K
possible that the lower retention rate peaks at month 6–7 at 6.5 per cent, after
for members who joined in 2008 is a which it declines again. This means that
No added cost to market
refl ection of the downturn in economics any retention intervention needs to be
member services
at the end of last year, or a change in a delivered earlier in the membership.
Drive secondary spending
policy or procedure in the club. In part two of this series, we will
consider what interventions could Promote referral sales
towards a solution be delivered and how to monitor the
So far, we’ve learned what proportion of effectiveness of these initiatives.
Prospect marketing functionality
members survive each period after
New for 2009!
joining, what the average rate of
High risk members
membership cancellation is, and how
automatically targeted
long each member stays. We’ve also 4
month by month
risk of quitting
found out that retention is higher in
Support not dependent on the
males than females and in older rather 8
.
0
member entering the club
than younger members. Recent trends
7
.
0
in membership are partly explained by
0
6
.
changes in the age and gender
Our patent pending communication
0
distribution of members.
5
.
programme automatically supports each
Based on this, we can set a marketing 4
.
0
member based on their individual
and sales target. The minimum number
usage patterns.
3
.
0
of sales per month to maintain the status
And much, much more!
is 54 for every thousand members. As
2
.
0
we started with 2,873 live members at
1
.
0
Call for a Complimentary
0
the start of 2009, that’s an estimated
Retention Analysis Today
155 new members required per
0 2 4 6 8 10 12 14 16
months since joining
month. Further, we want to provide
01527 870875
incentives to the sales team to sell more
UKSales@RetentionManagement.com
memberships to males and members melvyn hillsdon
aged at least 35 years. healthclub@leisuremedia.com
july 2009 © cybertrek 2009
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