Latest Retention Report can help predict who will cancel membership
Tue, July 30, 2013 at 14:50
IHRSA in IHRSA Member Retention Report, Research, Retention, the retention people

There as been lots of talk of the Net Promoter Score within the first three IHRSA Member Retention Reports. Now, IHRSA and The Retention People look into how owners can use the scores to possibly predict when a member may end their membership.

IHRSA Member Retention Report Volume 1, Issue 4, was released this week. Conducted in partnership with The Retention People, it looks at a different aspect of retention each quarter.

The Net Provider Score is developed after survey-takers rank questions on a 0 to 10 score on how likely they would recommend a company to a friend or colleague. Three groups are formed from the responses - Promoters (9-10), Passives (7-8) and Detractors (0-6). The percentage of Detractors is subtracted from the percentage of Promoters to get the Net Promoter Score.

For example, the North American health club industry has an NPS of 43 - meaning, out of every 100 members of clubs  there are 43 more Promoters than Detractors. In a UK survey, the industry there finished with a 21.

The latest installment of the IHRSA Member Retention Report examines whether, based on NPS, an owner can decipher whether a member will cancel a membership in the year after the survey. Criteria, including age, gender, and duration of membership is used. Further details on promoters and detractors are explained alongside age, gender, and tenure. 

What was found is Promoters went to the club more often than Detractors, and Detractors are the ones most likely to cancel their memberships within 12 months. As the report bears out, winning over members as raving fans and converting passive "fence-sitters" to promoters is critical in order to maximize membership tenure.

"As a powerful member loyalty tool, the utility of the NPS® extends beyond establishing a benchmark and identifying the characteristics of successful clubs," said Jay Ablondi, IHRSA executive vice president of Global Products. "Being able to understand and identify members at risk of leaving their health club will help target and improve the retention efforts of club operators."

Read the full Report to see how you can reduce cancellation rates at your facility.The IHRSA Member Retention Report is available free to IHRSA members at ihrsa.org/research and for $29.95 for non-members at ihrsa.org/store. The IHRSA Member Retention Report expands on insight provided in the IHRSA Guide to Member Retention, also available at ihrsa.org/store.

IHRSA member clubs can participate in the IHRSA-TRP member loyalty survey at no cost (a $1,500 value). Participating member clubs will receive a licensed NPS® score and access to member comments via a real-time online dashboard. Members can visit ihrsa.org/retention for details.

For more on The Retention People, vitis its website at www.theretentionpeople.com.

Article originally appeared on IHRSA (http://www.ihrsa.org/).
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