Our number one business problem always has been lowering the Churn Rate. Churn is about loss. Churn means loss of an existing customer. Lose enough existing customers and you lose your business. You go broke.
The Churn Rate measures failed customer retention. Our experience has shown that it’s easier to recruit customers than to retain them. The reason is the phenomena of the 10-90 Rule – over 90% won’t work out. That means two things. First, it means that over 90% will not buy a gym membership. Second, it means that over 90% will quit working out after they buy a gym membership. There is a direct relationship between the 10-90 Rule and Churn Rate. Without proactive strategies, you risk 90% Churn. You risk 90% negative retention. In other words, you risk losing 90% of your customers. The percentage of repeat customers makes you or breaks you. There’s no business that’s tougher to retain customers than the fitness business because of human nature – the resistance to working out because of the perceived pain and discomfort of working out.
Here’s anecdotal evidence from my personal experience. I’m 61 years old. I have a 49-year workout streak in progress. I have never stopped working out. Never will. No one in network – my age or even younger – works out. They quit a long time ago. A small percentage of humans will work out for life. My anecdotal research from personal experience shows that 1.4% will work out for life – 98.6% will not.
The main reason for a high Churn Rate is frustration – not knowing what to do and how to do it. Without coaching, over 90% of customers will quit. But selling fitness coaching is event tougher than selling fitness.
The good news is you can develop a system to prevent business-breaking Churn Rate. Those will be explained in future articles.
X Fitness is committed to lift in mind, body and soul. Our lifting mission includes sponsoring Blunt Talk Podcast that has reached 83 countries and over 40,000 listeners in 3 years. All Blunt Talk Podcasts are soul-lifting. All 501 episodes are free, permanently archived at: www.ginoarcaro.com
There is no business tougher than the fitness business. Never stop learning. If you would like to be a guest on Blunt Talk Podcast to promote your business, please contact me at: www.ginoarcaro.com
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