Blog 166: Health Club Marketing: Churn Rate

Your “churn rate” is basically the percentage of members that fail to renew their commitment and loyalty to your health club.

Churn rate is an important input into member lifetime value modelling because it is extremely important to understand the lifetime value of the member and the amount of lost revenue due to a high churn-rate.
The phrase is based on the verb churn, meaning “to agitate or produce violent motion” and nothing agitates a club’s bottom-line more than lost revenue from unsatisfied members.

Churn rates, retention rates, turnover rates, etc., are all similar ways to gauge how well you are retaining and/or churning members. We all know, retaining members is paramount to running a successful health club but we must also realize the pain felt by our bottom-line when we churn (lose) members.

There have been numerous studies in the past that tell you how much it costs (6 times) to acquire a new member as opposed to servicing and retaining an existing member. This is why people talk about retention when it comes to the lifetime value of the member.

A lot of health club marketers and even club owners sometimes fail to realize the lifetime value of a member. Once you have acquired the new member, the last thing you want to do is lose that member to a competitor just because you have failed to service him/her properly.

Don’t ever forget, members want to feel important, they want to feel loved, they want to feel they are part of something, connection, etc. These are very important emotions you must be sure your members are experiencing when it comes to your health club. Learn how to retain more members and you will learn how to grow your health club and your health and fitness career.

For more free tips on increasing your health club membership base through health club marketing, health club promotions, professional health club membership sales and advancing your health and fitness career visit us today @ www.healthclubmarketingmmc.com or call 904-448-5727.