Behind the Numbers: 90 Day Client Retention
Wodify is a leading all-in-one fitness management software, trusted by 5,000 of the world’s top businesses. With one of the largest & most accurate datasets in the industry, we decided to create this blog series in order to share specific metrics that are proven to drive results, insights from the most successful gyms, and how Wodify customers can track their progress.
If you talk to any gym owner about the key metrics in their business, retention is sure to come up. To illustrate the impact of retention, consider this scenario presented by Chris Cooper at Two Brain Business - “If you’ve got 150 clients… Paying you 150 bucks a month, and you can improve their retention by three months, your net owner benefit goes up by $40,000 a year”
But what should you actually be measuring when it comes to retention and where should you focus your efforts in order to improve your retention rate?
We dug into the numbers and found one area in particular that significantly impacts the retention rates across all gyms. That is, clients making it to the 90 day mark after joining. We found that:
45% of new clients will cancel within their first 90 days
Of the clients that make it past 90 days, 53% will remain for a year or more
To summarize, if you can create a client experience that keeps them engaged and coming back during their first 90 days, they will be more likely to remain a client and positively impact your retention.
Measuring 90 Day Client Retention in Wodify
In order to track this, we built an Insights dashboard to show you at-a-glance how your business is performing. With Wodify Insights, you can compare your 90 day client retention to the industry standard and see how that rate has changed over time - giving you visibility into what’s working for your business and what’s not.
Moving the Numbers - Pro Tips
We asked some of the industry leaders and gyms around the world with the highest 90 day retention rate for tips that you can apply to your business.
- Start with the right clients
Erik Evans, owner of Top Gun Fitness, has an 89% 90 day client retention rate. His advice to other gym owners is about finding the right clients for your business.
“Avoid ‘Grouponers’ - marketing “hacks” to get more leads as quickly as possible isn’t going to help your long-term retention. You need to start with the right clients who are genuinely interested in your services, with achievable goals”
- Provide a Consistent, Top Tier Experience
Jason Khalipa, the Founder of NCFIT and The NCFIT Collective, shared this advice for gym owners looking to improve retention:
“In the ten plus years it’s taken us to build up our NCFIT brick and mortar locations into what they are today, there is one mindset shift that I’ve found to be particularly powerful.
Your athletes—no matter how long they’ve been at your gym—are always just one bad experience away from cancelling. You have to constantly remind yourself and your team of that. Whether someone is coming in for his first class or it's an athlete that has been at your gym for years, they don’t owe you anything. It is up to you and your business to provide a consistent, quality experience that renews their membership with every single interaction.
This is why documented systems and procedures are so important. Do your coaches have guidelines and systems in place to deliver a quality experience on a consistent basis? Or does the quality of your classes fluctuate significantly based on who is coaching?
At NCFIT, all of our coaches run their class based on the same sheet of music. We write out detailed session plans that outline stimulus, warm-ups, teaching focus, and a minute by minute timeline so that our classes are always top notch.
That is how we know we are renewing our athletes’ membership every single time they walk into class.”
Download The NCFIT 10 now and start providing a consistent, top tier experience for your clients.
- Create a Client Journey
Chris Cooper, Founder of Two Brain Business, the world’s largest gym mentorship practice suggests mapping out your client journey as a key to retention.
“The key to boosting retention is to make a plan for each client in advance.”
Here is a free DIY guide to creating a client journey.
- Provide a personal touch to every new client
A common theme across all of the gym owners and leaders we spoke with was this -- every single client should feel a personal connection to your gym and your staff. If you aren’t calling, texting, greeting in person, and finding other ways to make new clients feel special & welcome at your gym then you are missing an opportunity to keep them coming back.
Start by implementing one new personal touch point in your new client journey - for example giving every new client a call after their 3rd class and asking them how everything is going. As simple as it sounds, that conversation could be the difference between a client deciding to leave or stay.
We hope you found these insights & advice useful for your business! Keep an eye out for more posts in this series as we continue to explore the data in Wodify.
If you are a Wodify customer, you can learn more about all of our Business Health Insights.
If you aren’t using Wodify yet, you can book a free consultation here.