Case Studies: Fitness Club Chain

Fitness Club Chain

Problem
This client was the largest chain of health clubs in the United States with over 250 clubs in the network.

• Their clubs were experiencing a turnover rate of more than 40% of their members on an annual basis.
• Their seasonal acquisition efforts were very strong, but the ability to retain members was below target.



Approach
An incentive program was developed intended to up-sell new members to second year memberships. These provided the company with improved margins over Year 1.

 

• Previous research showed that the pricing of renewal programs was a major barrier to members extending their memberships.
• As a result, several pricing alternatives were tested in various markets throughout the Northeast. Direct mail programs were executed over a 12 month period utilizing the winning offers.



Results
Retention rates increased by 30% through the utilization of this program.