This page contains a Flash digital edition of a book.
Retention Management UK 10 09 ad.pdf 9/18/2009 8:42:34 AM Retention Management UK 10 09 ad.pdf 9/18/2009 8:42:34 AM
The Key to Retention: The Key to Retention:
Choose the Right Choose the Right
Retention Programme Retention Programme
We do for you what what e do for you W
you want to do but you want to do but
don't have the time or resources. don't have the time or resources.
There is a Difference ! There is a Difference !
The The
Other Other
Guys Guys
Hundreds of satisfied clubs and Hundreds of satisfied clubs and
millions of satisfied members millions of satisfied members
Easy to implement Easy to implement
Large up-front cost
Large up-front cost
High monthly service fee
High monthly service fee
C Significant investment in new
Significant investment in new C
No changes to operating No changes to operating
Saving money: Retention analysis can estimate the rewards of member interactionCM
procedures procedures
at least four interactions, 42.8 per cent interactions to prevent one member
Low impact on staff time Low impact on staff time
of cancellations would be avoided. from cancelling. Table 1 shows that, for
every 23 members who receive four
it’s good to talk or more interactions, one cancellation
No contract tie-ins No contract tie-ins
The figures in Table 1 are based on a is avoided. If we estimate that each
business with 22,749 members who interaction takes fi ve minutes, then the
Personalised attendance-based Personalised attendance-based
joined in 2008, 31 per cent of whom had instructor time for four interactions emails that encourage visits emails that encourage visits
received at least four interactions by the is 20 minutes. If we multiply that by 23
spring of 2009. During this period, 8,100 members, then we can estimate that
Automated new member member Automated new
of the 22,749 members cancelled. We it takes around 7.5 hours of instructor
integration programme integration programme
can estimate that, if all members received time to save one membership. At £10
at least four interactions, 3,466 members an hour in instructor salary, that’s about
No added cost to market No added cost to market
would not have cancelled (42.8 per cent £75 per member saved. As mentioned
member services member services
of 8,100) and would therefore not need above, each member who receives four
to be replaced. That would be a or more interactions yields an average of
considerable saving. Most clubs will have seven months extra of membership dues,
Drive secondary spending Drive secondary spending
a rough estimate of the cost of recruiting which at £30 a month is £210. So the net
one member. Once you multiply that by benefi t of interacting with people can be
Promote referral sales Promote referral sales
3,466, the costs are considerable. estimated at £135 per member.
We can add to that the lost income Hopefully, this article has shown that Prospect marketing functionality Prospect marketing functionality
from membership payments by estimating there are a variety of ways of estimating

the difference in average length of stay the fi nancial impact of different
High risk members automatically High risk members automatically
During October,
between members who do or don’t retention and attrition rates, and these
targeted targeted
How many members can we help you save?
receive four or more interactions. In can be used to provide a justifi cation for
we helped our
this example, it equates to seven months, investing in retention solutions. What
Contact us to f_ind out.
Support not dependent on the Support not dependent on the
meaning that a potential 3,466 members should also be clear is that all of the
would pay seven months extra each estimates described here are based on
member entering the club member entering the club
customers prevent
if they had all received at least four accurate and appropriate measures of
interactions. That is a lot of lost income retention and attrition, as described in
as a result of not talking to members. part one of this series.
Call for a Complimentary Call for a Complimentary
We can extend this analysis further
Retention Analysis Today oday T Analysis Retention
and estimate how many members melvyn hillsdon
would need to receive four or more

01527 870875 01527 870875 0845 621 2001
november/december 2009 © cybertrek 2009
Take part in our latest research - visit
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76
Produced with Yudu -