For more than 30 years, IHRSA has conducted a comprehensive Industry Data Survey (IDS), a study that tracks key club performance indicators. Metrics related to revenue, membership traffic, and payroll as well as income statement data are compiled, analyzed, and reported in IHRSA’s Profiles of Success.
Thanks to the participation of 186 IHRSA clubs, representing more than 6,800 facilities, this year’s Profiles of Success sheds light on key statistics club operators track. Here is the first of three:
Key Stat #1: Leading club operators generate a median of $793.40 in annual revenue per member.
What is the lifetime value of a member? Tracking revenue generated per member can help determine lifetime value.
In the IHRSA Member Retention Report (Volume 2, Issue 2), lifetime value is defined as the average length of time a member stays and therefore how much they pay in membership fees. Any recurring non-dues fees can also be considered when calculating the lifetime value of a member, which is included in the median annual revenue per member reported by leading club companies in Profiles of Success.
Based on clubs who participated in the IDS, the median annual revenue generated per member was $793.40 in 2013.
So, for example, if we take the median annual revenue generated per member from Profiles and say the typical length of time a member says is two years, then the lifetime value of the member would be 2 x $793.40 or $1,586.80.
Keep in mind the lifetime value of a member will vary depending on the club type and model, membership pricing, non-dues fees, and membership tenure. The key takeaway is the importance of tracking the lifetime value of a member at your club on an ongoing basis in order to observe and address any changes.