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Harvard Business review say it’s anywhere from five to twenty-five times cheaper to retain an existing customer than it is to acquire a new one – a significant incentive for any business to implement a solid retention strategy.
Retention and subsequently membership collection rates significantly impact the profitability of a health club, with some operators reporting rates as low as 80%. This could be down to a number of factors including the quality of service provided, the social economics of the area, or the effectiveness of the collection company.
Juvenate Edinburgh Health Club within Leonardo Royal Hotel completed a 6-week membership drive campaign managed by Creative Fitness Marketing (CFM) last year, which pulled in 200 new long-term members to their club. Six months later and the collection rate of these 200 members is at a fantastic 93%!
This high collection rate can be attributed to a number of factors including: the fantastic facilities, quality club staff and the CFM marketing and sales approach used to sign up the new members.
Speaking with CFM Business Development Manager Harry, he explains “our sales staff are experts in their field and focus on converting prospects to long-term memberships, to ensure consistent income for our clients. It’s all about building up the value of the offering, focussing on the USP’s of the club and showing how all of this will help the new member not only achieve their goals, but maintain them for the long term.”
In an industry where ‘no contract memberships’ are becoming more and more popular, it’s no longer enough to give prospects a ‘museum tour’ of the club.
Instead, spending time with them on the initial tour and asking the right questions is imperative. Helping the prospects visualise themselves achieving their goals, is all part of CFM’s process to convert members to long term memberships and maximise collection rates.
In speaking about the campaign, Juvenate’s Scott Young said “the interaction with new customers and also our existing members was great, with the team making them all feel welcome and comfortable. I would definitely recommend CFM to anyone looking to gain exposure and new members to their club or gym”.
Find out more about Creative Fitness Marketing by downloading a free info pack here https://eu1.hubs.ly/y0WSym0
