You’ve hired a great staff, purchased the newest equipment and have a diverse range of regulars who work out at your club. But how well do you really know your business? The best way to ensure your business is as successful as possible is by digging deep into your performance metrics. Your member management system (MMS) is your best friend when it comes to being able to parse through all the numbers.
Most MMS software, like ABC Financial, ASF Payment Solutions and ClubReady, provide comprehensive reports including data about attrition rates, delinquent payment and even cancellation reasons. Making use of this technology will enable you to truly understand what factors drive your club’s success.
Not sure which reports to start with? Here’s three you should consider:
Collected Vs. Uncollected Billing
Even if all your members are on monthly automatic billing, sometimes payments don’t go through. At the end of the billing month, run a report in your MMS that shows your “return rate” (how much money was uncollected or returned), then figure out which follow-up methods will work best to help recover your uncollected dues.
Along with your monthly list you can also use an accounts receivable (AR) balance report, which is a list of sales made that haven’t yet been paid for, and a return tracking report to help stay on top of accumulating member balances. This will allow you to discover dues that have been returned multiple times and decide if action needs to be taken. If you’re using ABC Financial for example, you can find everything you need in the “Monthly Billing Statement” report.
New Sales Vs. Cancellations
If the goal of your club is to drive new memberships, then staying on top of new members versus cancellations is a key to knowing how quickly your membership base is growing. Knowing why members join and leave is vital. Most MMS’s give you the option to track both the source of your new members and the reasons old members left. If your report shows that members are leaving because they felt the locker room was unsanitary or a lack of machines then you know exactly what your club needs to improve on to avoid more member attrition. On the flipside, if the report shows that new members are joining because they appreciate how personable the staff is, then you know what factors to leverage to continue driving growth.
In ASF Payment Solutions’ software, for example, their “Attrition Management” tab contains most of the necessary data. Understanding what works well for your club and what doesn’t allows you to budget more effectively and is a great way to see if your marketing investment is giving you a good return.
New Members Vs. Renewals
Knowing which members are and aren’t renewing their memberships is extremely important, as it could be an indicator of member satisfaction of your club. The monthly renewal report in your MMS shows the differences between your new prepaid memberships and existing membership renewals. This can help you identify areas of member dissatisfaction that is causing churn, while also revealing whether you should spend your energy improving member engagement or the club sales process.
This report also divides your membership renewals into long-term ones and short-term contracts, which can give you an indicator of how stable your cash-flow will be in the long-run. This kind of information is key when making decisions on club marketing or infrastructure improvement programs.
Looking for more ways to leverage technology in 2016? Join our webinar 10 Tech Trends In 2016, featuring Bryan K. O'Rourke.