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How Equipment Saturation Reporting Can Prevent Member Cancellations

Posted by Dave Johnson on Jul 19, 2017 1:10:00 PM

As experts in the fitness industry, we are constantly asked by health club owners, “how can I grow my business faster?”

Although there are a variety of factors that enable a gym or health club owner to grow, there is perhaps nothing as important as member retention. Preventing member cancellations is without a doubt the most effective way to grow a thriving gym.

And it all has to do with cost.

A recent study found that loyal members are worth almost 10 times as much as their first purchase. What’s more, retaining current members is 6 to 7 times less costly than acquiring new ones. So essentially, if you’re not retaining members, you’re likely working harder and spending more money to acquire new members that are actually worth less.

Armed with this information, it’s obvious to conclude that gym owners need to spend less time on acquiring new members and more time on retaining the members they’ve already got.

But how?

You already know the standard methods for retaining members. Things like, “improve customer service”, “connect with your members”, “improve cleanliness”. But none of these things will give you data-backed answers. That’s where equipment saturation reporting comes in. Here’s how to use data from equipment saturation reporting to prevent member cancellations and boost retention rates.

What is saturation reporting and how does it work?

Saturation reports analyze equipment usage and depict specific “saturation events”. A saturation event can mean low usage or high usage. Both of which are considered bad for you business.

With a high saturation report, it’s likely your customers are walking away dissatisfied because there aren’t enough machines. High saturation reports generally occur during peak machine usage times at your gym or health club. For most gyms, this would be before work (6:00AM - 8:00AM) and after work (5:00PM-7:00PM).

With a low saturation event, you are quite literally losing money. Too many low saturation events mean you either don’t have enough members during peak usage times or the members prefer other machines within your facility. Either way, you’re losing money by letting those machines collect dust.

How do I use saturation reports to gather insights?

Using saturation reports to gather information about your club is without a doubt the most compelling data there is your members and their behaviors. A lot of low saturation events could mean that your equipment is out of date and that members have moved to the newer models. While a lot of high saturation events could mean you don’t have enough equipment on the floor and you need to reevaluate your equipment floor plan so you can maximize the profit of your floor space.

For more tips on saturation reporting, rotation planning and other ways to decrease member cancellations, speak to an ECOFIT professional for a free evaluation of your floor space.


Topics: Owning a Gym

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