Necessarily, this is a number between 0 and 1 that represents the percentage of Total Available Classes used. I then used VLOOKUP to bring my average attendance from “Attendance by Member” over to “Active Membership Master” and calculated Dedication Factor. If All-Access, this figure was 20, if 12 Pass, this figure was 12 (representing the denominator in the Dedication Factor calculation). Heading over to my main worksheet, “Active Membership Master”, I used the IF function to assign a Total Available Classes figure to each member based on their membership level. I then averaged the last three months of attendance (in this case, January, February, and March 2019) into a new column on that worksheet, using the AVERAGE function (representing the numerator in the Dedication Factor calculation). I added these figures to my spreadsheet as a separate worksheet, named “Attendance by Member”.
#Lifetime value of a crossfit member software#
Here, we take a quick break to remember and recognize the utility of our Membership Management Software deep dive (and spreadsheets in general):ĬrossFit X uses TRIIB, from which I pulled monthly attendance figures by member as a. Accordingly, I decided that Total Available Classes for an all-access member would be 20 classes per month, while the figure for 12 classes per month members would be self-evident. I then established a number to constitute 100% usage, a.k.a “Total Available Classes”, the figure that becomes the denominator in our “dedication factor” calculation.ĬrossFit X has two primary levels of membership: all-access and 12 classes per month, respectively. Very High: Attendance Greater than or Equal to 80% of Total Available Classes I (somewhat arbitrarily) set my ranges as follows:
The first step to identifying “low dedication” members is to establish ranges for every level of dedication. Attendance Per Month over the Last 3 Months / Total Available Classes)ĭedication Level = (Dedication Factor keyed to ranges, below) Calculating Dedication Levelĭedication Factor = (Avg. Now (finally), we’ve got a leading indicator, a way to see who is at risk to leave before they stop attending - a metric that relies on the attendance level of current attendees rather than the non-attendance level of former attendees. In other words, a significant stretch of non-attendance is a lagging indicator, showing that someone is already out the door (rather than the fact that they’re at risk for leaving). I’ve long likened this approach to apologizing to your significant other after your stuff has been rudely stuffed in a trash bag and thrown on the lawn - your suit might succeed, but odds are it’s too late. A Quick Criticismįor as long as I’ve been consulting with gyms, the standard “retention” move has been to reach out to non-attendees after a set amount of days or once it's clear they’ve quit. Fix this, and we keep many more of our members for much longer (and we might even garner enough revenue in the process to support one hell of a marketing budget). Out of the 305 active members of the CrossFit X, 104 of them rate as “low dedication”, meaning 34% of the gym’s clientele is at risk for:Ī shorter lifetime at the gym, representing 520 months of paid membershipĪ smaller lifetime value to the gym, representing $135,928 in lost revenue And on a humanistic basis, we’re failing to deliver fitness for the vast majority of these people - a telling gut punch to those of us who believe that the highest calling of any business is to deliver on its intrinsic promise. On a purely economic basis, every “low dedication” member at CrossFit X represents a $1300 opportunity for improvement.
These “low dedication” members have a lifetime revenue value that is a staggering 31% below that of moderate, high, and very high dedication members - $2,949 versus $4,256.Īnd “low dedication” members are remarkably more likely to self-rate as “not fit” - with 70.4% selecting this choice in our Member Survey. In our anonymous gym, those who use less than 40% of their available classes have a much shorter lifetime at the gym than those who use more (19 months versus 24 months) Now, thanks to Project X, I’ve identified an even more important set of facts: The implications on gym growth are profound - if we’re losing members immediately upon acquiring them, we’re setting up a cycle of frustration, wherein “successful” acquisition efforts are immediately dashed by poor retention efforts, and the gym fails to grow in spite of effective marketing and sales programs. Long ago (while conducting the AF Project) I found that most people who quit the gym do so during their first 6 months of membership.
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