If you’re like most health clubs, you have a recurring billing process set up to automatically charge a bank account or credit card on a regular basis. This has been an industry standard for decades. The IHRSA Health Club Business Handbook says that up to 90% of health clubs use this business model.
While health clubs have been processing automatic recurring payments for years, many industries in the internet era have only recently adopted a similar model in the form of subscription services. A survey
by McKinsey & Company found that 46% of American consumers are signed up for at least one streaming service and that 15% of online shoppers have signed up for one or more subscriptions to receive products on a recurring basis, frequently through monthly boxes. Traditional retail behemoths like Walmart and P&G offer subscription boxes and more are following suit every day.