141Entrevistado #5: Norman Pérez (43 años)

Within the FIA’s “Winning the retention battle” study (2002), the first study was quantitative and focused on retention rates, comparing rates based on demographic variables, contract type, club type and usage level. This study was based on data collected from over sixty-four clubs (across sixteen club operators) relating to members who joined in the year 2000 (N= 72,354). The second study was qualitative, consisting of focus groups with current members (from five different clubs) and ex-members (from two different clubs) exploring what is important to them regarding fitness club membership. The third study was a quantitative study, based on structured telephone interviews, which explored retrospectively why ex-members cancelled their membership within the last three months and was conducted with members from three private chains (eighty seven per cent) and one public chain (thirteen per cent).

Age and contract type were found to affect the length of a member’s retention rate.

Age

According to the FIA’s first study, there was a positive relationship between age and annual retention rate. For instance, members aged thirty-five or over yielded retention of at least twenty weeks longer (one and half times longer) than those under thirty five. Those members aged forty-five or over yielded an average retention of twenty three per cent longer than those aged between sixteen and twenty four.

Contract type

The FIA study also suggested that those members who joined on an annual contract yielded higher retention than those members who joined on a monthly contract; a sixteen per cent longer retention rate, even when the joining fee was controlled for. Those members who joined on a monthly contract were more likely to cancel after sixty-eight weeks than those members who joined on an annual contract.

Personal changes

Whilst age and contract type were found to affect retention rates, personal changes were listed as being a reason for cancelling membership. Twenty-eight per cent of ex- members listed personal or work changes as a reason for cancelling, and fifteen per cent listed injury or illness as a reason for leaving.

However, whilst knowledge about how age and contract type might influence retention rates could be used to develop targeted retention strategies, there is perhaps still much unexplained variance within different ages and contract types that influences retention rates. Thus, whilst the FIA study highlighted the roles of age and contract type, the aim of this thesis was to focus on a range of psychological variables, as it was considered that they would account for a higher amount of variance in retention rates than simply age and contract type.

‘Psychology’, as defined by the British Psychological Society (2011), is “the science of mind and behaviour”, and as such includes any exploration of concepts such as perception, cognition, emotion, and behaviour. Psychological variables are more susceptible to change and so can perhaps be more easily influenced than demographic variables, perhaps making psychological variables more controllable using an appropriate retention strategy aimed at trying to change such variables. As such, it is a psychological approach which is taken throughout this thesis. Personal changes can be considered as non-controllable; there is little that a fitness club manager can do to retain a member who is relocating or has become injured/ill. In any industry, there is always an unavoidable amount of attrition. However, it is the ‘avoidable attrition’ which is the focus of this thesis.

The FIA study did also highlight the role of psychological factors, such as perceptions of the gym environment and staff, perceptions of cost and value for money, perceptions of brand image, and perceptions of usage.

Gym environment and staff

It was found that thirteen per cent of members who had switched to a different fitness club gave equipment and facilities as the main reason for switching clubs. Similarly, changes in the gym environment, deterioration of equipment and poor maintenance were suggested as being reasons for cancelling. Also, it was found that thirty-five per cent of members gave overcrowding in the gym environment as the main reason for cancelling their membership. Further, it was reported that increased advertising in a bid to attract new members was seen negatively by current members who considered the gym environment to be overcrowded as it is. Whilst overcrowding may be alleviated by booking in advance or queuing, having to book or queue was also suggested as causing a desire to leave. In relation to staff, whilst only four per cent of ex-members felt that their staff rating was linked to their non-renewal, it was suggested that members do consider that staff should provide service and to make contact with members, but that this expectation of staff was not always met. Also, the amount of respect that a member has for the level of staff training, qualifications and experience was important in their rating of the fitness club.

Further, the way the staff ‘come across’ was found to be important, determining the atmosphere of the club and subsequently affecting a member’s likelihood of renewal; according to twenty-two per cent of ex-members, a bad atmosphere was listed as a reason for non-renewal. Also, it was found that the way in which the joining contract was presented by staff to the member was considered as important.

Cost and value for money

In addition to the suggested importance of gym environment and staff, the FIA study also reported that forty-five per cent of ex-members members suggested that fees were the main reason for leaving. Thirty-eight per cent of ex-members gave poor value for money as a reason for leaving. Also, thirty per cent of ex-members who had switched to another club gave ‘cost’ as being the reason for joining a different club, with the costs and benefits being weighed up by members in terms of time (opportunity to use the club) as well as the perceived expense.

Brand

The FIA study also reported that the overall brand of the fitness club was considered to be important to members’ renewal decisions. More specifically, it was considered to be a ‘tipping point’ for attracting new members to join; whilst it might not be the main

reason to join, given a comparison with another club it might be the deciding variable in choosing between them.

Usage

It was suggested that there is a positive relationship between fitness club usage and membership retention. There was a positive relationship between visit frequency in the first three months and annual retention rate; the lower the frequency the higher the chance of cancellation in the first sixty-eight weeks. Also, those who visit once a week regularly retain their membership thirteen weeks longer. Thirty-eight per cent of ex- members gave a ‘loss of motivation to use’ as being the main reason for cancelling membership.

However, whilst the FIA’s (2002) research report was based on large-scale research, consisting of three studies which provided some key findings, this report does not appear to have been peer-reviewed, reducing the extent to which the credibility of the research and the associated findings could be assumed and generalised. As such, a review of the academic literature was conducted in order to ascertain current knowledge regarding the psychological factors influencing fitness club membership retention.