July 10, 2015
Reactivation is a system or program designed to encourage members that have expired memberships (or memberships that have been frozen) to reactivate (renew) his/her health club membership and start spending again within the health club. Some health clubs are starting to go to a system where they allow their members to freeze or put their memberships on hold. This can be good and bad, as they say “a double edge sword”.
You can apply a reactivation fee on the member’s membership to reactivate the membership after it has been put on hold or expired. This fee can bring in extra revenue for the health club but it can also take away revenue from the health club as well. Think of it this way, if members are allowed to freeze their health club memberships, it allows them to avoid re-joining the health club at a specific time. In essence, it puts all of the control in the member’s hands.
When you run a health club, it is absolutely necessary your core members understand the workings of the health club membership. They must understand that each year, the health club is going to incur new expenses and the only reason a health club membership is being offered, is to win the member’s loyalty which will help maintain the health club.
With the member committing and pledging their loyalty to the health club, it allows or affords the health club owner to budget for future expenses like new equipment for the health club.
Reactivation of a previous health club membership is sometimes unavoidable and can be positive if it is an expired health club membership because you are much better off reactivating a member’s previous membership than losing that member entirely. But as someone who studies the buying patterns and habits of members, I strongly suggest you look for alternative ways of handling these scenarios.
It’s very crucial that you are able to raise revenue at certain times of the year and are able to rely on that revenue. So, if at all possible, try to avoid reactivating old health club memberships, making them continuous so when they expire, the member needs to renew or re-join the health club.
When you learn how to incorporate a successful reactivation program in your health club properly, you will grow your health club and your health and fitness career.
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