You can’t grow revenue without first retaining revenue.
If your monthly attrition is more than 1.5%, chances are you’re going to struggle with revenue growth. Even if you’re killing it on new member sales every month, you’re not solving the problem, just masking it. Those new member sales come at high cost, meaning you’re dragging down your profit margins even if you succeed in pushing revenue up slightly.
Proactive focus on revenue retention, not just member retention.
Your best revenue generating assets are your current members, and among those are a minority who are driving a large proportion of your profits. They spend more and stay longer, giving you the highest return on your member acquisition costs. In many cases, keeping one of those members just one month longer equals more net revenue than signing on two unknown new members, with much less cost and effort.
AI-driven Easalytics does a great job of predicting attrition risk. It can analyze years of member behavior and attrition patterns in your clubs and discover the unique predictors of when your members are likely to cancel.
Couple that risk score with each member’s lifetime value and predicted revenue loss, and you’ll have a precisely targeted list of members you KNOW are worth the effort to get the best ROI in terms of retaining revenue. And because AI can provide as much as 3 months advanced warning, you can be proactive in engaging with these members, rather than those less-than-successful reactive save attempts when members have already told you they want to cancel.