It is the new way of defining the success of all Anytime Fitness clubs moving forward. The Club Health Score is designed to measure the strength of a clubs relationships with its members whilst aligned with profitability to help your business become more future proof than ever before.
To make the shift we need to change our perception from lead volume thinking to lead experience thinking and in doing so evolve beyond just convenience to a member relationship approach.
The Club Health Score is out of 100 and calculated by a combination of 4 weighted metrics that have proven to have the strongest correlation with member relationship:
Visitation (50% weighting) - Members who visit clubs regularly are generally more engaged and stay longer.
Belong/NPS (25% weighting) - Shows the detractors/promoters within a club’s membership and reflects member sentiment.
Attrition(15% weighting) - A simple reflection of the level of turnover of members in a club.
DD/Rent(10% weighting) – A profitability ratio and anchor measure has been included to align the CHS with profit and performance.
All metrics and averages are calculated over the last 6 months rolling average to avoid significant month to month variances/seasonality.
For too long we have Championed quantity over quality which is an outdated way of viewing our top performers.
Take this scenario for example:
Club A) Has 2,000 members who are being charged $10 a week. Club A is bringing in $20,000 a week.
Club B) Has half the member base of club A with 1,000 members however they are being charged $21 a week. Club B is bringing in $21,000 week.
In addition to the quick maths above, Club A would need alot of staff to keep up with managing the member and the club cleanliness PLUS the wear and tear on the equipment would be regular. The space required for 2,000 members is large as well meaning rent is also high.
Club B would not require as many staff or cleaners, the wear and tear of the equipment would be less frequest meaning the equipment needs to be replaced less often, and the size of the gym required to service 1,000 members would be alot less than the space required for 2,000 members.
Now imagine that Club B had a member base that was such a tight community, everyone felt like they Belonged, and because everyone was so happy, they took on extra activities like PT and group training with their friends? No one is leaving and they are using the gym regularly because again they love it. Then because everyone was so happy no one cancelled and they all referred their friends so the member base grew a little and in turn we increased our rates to $25 a week.
In a perfect world right? But this is a Club worth Championing! You know if this club keeps doing what it is doing, it will be around for a long time with its same loyal extremely happy community... future proof!
This is why so much of the CHS is on the statistics that indicate how happy an average member is at your gym
The importance of Visitation starts from the beginning of their journey and its all about Turning up not just signing up.
IHRSA data reveals that the fitness industry visitation has 8.7 visits per member a month.
The Current Anytime Fitness Average visitation sits at 4.95*, with no clubs matching industry average sadly.
Round Table Time
Get your team together as ask yourselves; What can we do to influence members into showing up more regularly? Some topics to think about and help kick start your discussion
The First 90 days for every new member is critical in forming their fitness habit - What can we do here?
The Environment that surrounds your members influences how often and how long they want to be in club for. So think about you clubs look and feel
For every friendly interaction with someone, a member is 20% more likely to revisit again next week - How can you use this Data?
You BELONG Score, also known as your Net Promoter Score is a very clear indication on how your members feel about their relationship with your club. To learn more about how Medallia/Belong survey works see here >
Round Table Time
Get your team together as ask yourselves; What can we do to improve our relationship with our members? Some topics to think about and help kick start your discussion
Think Communication. How can we get in more contact with more members so that we can improve our relationship?
How can we make meaningful Connections. Adding value, celebrations and recognition
Cleanliness and Safety are easily the lowest scores, how can we improve this?
The relatively small weighting (15%) applied to Attrition should not be taken as a reflection on its importance but rather, that it is a
metric that can also be influenced by the Visitation and Belong Score Ratio portions of the CHS.
So let's start here by making sure everyone understand the difference between Attrition and Retention as it a very common thing to get mixed up as whilst they are opposite, they relate to each other in a way. A retention rate is the percentage of members your gym has retained over a specified time period. The attrition rate shows the percentage of members you lost and did not replace. So for example:
Retention: Will take into account that Sally stayed with us for 18months (length of stay).
Attrition: Will take into account that whilst Sally stayed with us for 18months, bob and harry left us within 6 months (and we were devastated).
Round Table Time
Get your team together as ask yourselves; What can we do to improve the time frame that members stay for so that we dont have to work so hard every month to replace them? Some topics to think about and help kick start your discussion
What member feedback to we keep getting when they leave? and how can we prevent this?
What do we currently do to save a member? Do we push or do we just give up when they dont want to freeze and how can we get better at this? note: a member on freeze is not a win its merely 1 step before a loss.
We need to align business goals with member goals and by ensuring each membership is ‘healthy’ and in turn your revenue growth will also
be ‘healthy’. Refer to Club A and Club B from future proofing.
There is minimal you can do here about the rent, but you can discuss and consider with your team if you think your membership and your member products are a "healthy" and sustainable price or if there is room for a better/higher yield.