Member Retention in The Fitness Industry: Thesis Ii Presentation By: Alec Debenedictis

MEMBER RETENTION IN
THE FITNESS INDUSTRY
T H E S I S I I P R E S E N TAT I O N
BY : ALEC DEBENEDICTIS
INTRODUCTION
• Global Growth Rate per Year: 8.7%
• 1 in 5 Americans belong to a
U.S. health club or studio
(IHRSA 2019)
• The average age of gym

members in U.S. is
40 years old
• Millennials spend close to

$112,000 on fitness purchases
over their entire lifetime which
equates to monthly costs of $56
on health supplements, $35 on
clothing, $33 on gym
memberships, $17 on meal
plans, and $14 on trainers
THESIS PROBLEM
In an age of rising health consciousness and excessive information at our disposal, more and more people
are looking for alternate yet simplified ways to become healthier, one way or another.
However as trendy as gyms and fitness classes have become, it can be overwhelming for new clients to
break through that initial barrier, leading to higher turnover rates and even mistrust in the fitness industry
itself.
Opportunity: Understanding how people adapt to a new environment is one thing, but presenting clients
more engaging and accountability-driven options right off the bat will introduce familiarity, thus
increasing retention rates and revenue
LITERATURE REVIEW 1
• We know that it costs 9x as much to acquire a new member as it does
to retain one
• - Spending $ on advertisements to attract clients

• - Simply not attaining anyone while still paying rent/equipment costs
• Increasing retention rates by just 5% increased profits by between

25% - 95% (Frederick Reichheld)
• The risk of cancellation is 56% higher among members who just use
gym equipment vs those who exercise in groups
EVERY DAY
SCENARIO
1. Client pays fees/membership

to join
2. Little to no direction
3. First few weeks involve getting
acclimated with equipment
4. Still no accountability factor
from gym
5. Comfort levels rise but it’s
becoming too repetitive
6. Client stops coming every now
and then
7. Client quits within 6 - 12
months
LITERATURE REVIEW 2
Price is Irrelevant When It Comes To My Health
25
• Problems/Issues That Arise 20
15
• Where they live? 10
• Where they work? 5
0
• Is the price worth it? 0 2 4 6 8 10 12
• Will it be beneficial?
My Work Schedule Conflicts With My
Fitness Goals
Yes
9% No
Unsure
33%
58%
HYPOTHESES
1. As health consciousness rises to unprecedented heights, the fitness industry is

misguiding its clientele leading to further disinterest in an already complicated
industry
2. Client retention has to do more with the social experience than the actual exercise
3. The quicker the client is engaged within a group setting, the better chance of
retention
4. Social media’s influence on individual’s and their fitness goals leads to unrealistic
goals in the short term
Quantitative Research
Survey
• 15 questions
• 100 responses
Respondent’s Locations
Respondent's Locations Female: 52%
Oth
er
Eur
ope
Male: 48%
24 23
% %
Aus
trali
a
7% Uni
Indi
a ted
16 Stat
% es
30
Age of Respondents % Career of Respondents
39%
35%
23%
26%
20% 14%
11%
7% 6%
10%
6%
3%
1 4- 17 18- 24 2 5- 34 3 5- 44 45 - 5 4 > 54
Q2.
Qualitative Research
Open-Ended Discussion with 100 participants

Would you prefer a group setting for Should gyms/fitness centers be more
your first visit to a gym/fitness center? group oriented or individualized?
Unsure
No Yes
Yes No Unsure Group Oriented Individualized It All Depends
• First visit: 58% To 27%
Would You Attend a Workout

Session If Accompanied By A
Personal Friend Even If You Weren't
Interested
69% : Yes
22% : No
10% Unsure
Yes No Unsure
Does Social Media Influence One's Decision to Become Involved In a Fitness
Program?
80%
70%
60%
50%
40%
30%
20%
10%
0%
Yes No Unsure
References
Andreasson, J., & Johansson, T. (2014). The Fitness Revolution. Historical Transformations in the
Global Gym and Fitness Culture. Sport Science Review, 23(3-4). doi: 10.2478/ssr-2014-0006
Curley, E. (2019, January 24). Gym Membership Retention Statistics 2019. Retrieved from
https://www.glofox.com/blog/the-gym-membership-retention-statistics-worth-retaining-in-2019/.
Shephard, R. J. (1996). Worksite Fitness and Exercise Programs: A Review of Methodology and
Health Impact. American Journal of Health Promotion, 10(6), 436–452. doi: 10.4278/0890-1171-
10.6.436
Williams, G. (2016, December 30). The Hidden Cost of Gym Memberships. Retrieved from
https://money.usnews.com/money/personal-finance/family-finance/articles/2016-12-30/the-hidden-c
ost-of-gym-memberships
.

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MEMBER RETENTION IN

THE FITNESS INDUSTRY

• The average age of gym

• Millennials spend close to

• - Spending $ on advertisements to attract clients

• Increasing retention rates by just 5% increased profits by between

1. Client pays fees/membership

• Problems/Issues That Arise 20

• Where they live? 10

• Where they work? 5

1. As health consciousness rises to unprecedented heights, the fitness industry is

Open-Ended Discussion with 100 participants

Yes No Unsure Group Oriented Individualized It All Depends

• First visit: 58% To 27%

Would You Attend a Workout

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