Increase pricing flexibility to reduce member turnover
Member turnover in fitness studios is hitting record highs across the fitness industry, with one in two (50%) fitness studios experiencing membership turnover of 30% or above.
3 in 5 fitness studio owners (63%) believe that members are finding fitness memberships less affordable as living expenses increase. This is likely one of the main factors impacting membership turnover.
“People do not have as much disposable income anymore. There are many more at-home fitness options available now. It is a challenge to keep some people interested in fitness after a certain period.” - Fitness studio manager, 39, Illinois
As inflation continues to strain household budgets, consumers have less purchasing power and are shifting their spending priorities away from discretionary expenses like fitness. This directly impacts on the fitness industry which relies heavily on discretionary spending.
So how can you keep your business profitable while keeping members engaged? Let’s explore.
Pricing flexibility as a solution to economic crisis
Fitness studio owners are also seeing a demand for more pricing flexibility. Membership discounts, promotions, and flexible options are the most requested services, showing that affordability is a major priority for members.
Nearly 1 in 2 (47%) fitness studio owners report that members frequently request membership discounts and promotions, and over 2 in 5 (46%) note that members are frequently asking for more membership options, such as pay-as-you-go, easy cancellations, and freeze or pause options.
“My members have been talking to me about how difficult it can be trying to maintain a membership for exercise and fitness and keeping food on the table all at the same time. We’ve tried having sales and discounts, but the economy is definitely in a strange spot.” - Fitness studio owner, 35, California
Amidst the challenge of member turnover, fitness studios owners are also facing financial pressures. More than one in two (55%) fitness studio owners strongly or somewhat agree that maintaining facilities, equipment upkeep, and staffing has put financial strain on their business. This financial strain can make it even more challenging to retain members, when there are less funds available to invest in improvements and attract new members.
One solution is pricing flexibility.
This might look like pay-as-you-go, easy cancellations, and freeze or pause options. This may also mean more variety in membership types.
For example, dual-access memberships are becoming more popular. This allows partners or friends to share a gym membership at a reduced rate, making fitness more accessible and creating a sense of community. For example, D.R. Semmes Family YMCA has gym memberships for either one adult and a child, or two adults only.
And it makes intuitive sense, doesn’t it? Whether a couple or two friends, a dual access pass for two is likely to appeal to a broad demographic. Plus, there’s more accountability for both parties to keep hitting the gym.
Tiered memberships
Offer varying levels of access, from basic facility use to premium classes, catering to different budgets.
Credit-based memberships
Allow members to purchase credits that can be redeemed for classes or services at their convenience.
Seasonal pricing
Provide discounted rates during off-peak seasons or for members who commit to longer-term plans.
How Hapana can help your business with pricing flexibility
Pricing flexibility is a proactive response to the current economic climate. It’s a forward-thinking strategy that ensures your business stays resilient and competitive, even in unpredictable times. By giving members realistic options, you create a stronger, more loyal community.
Explore how implementing flexible pricing strategies can help reduce member turnover and future-proof your business. Schedule a demo today and see how our platform can help you create adaptable membership options that meet your members’ needs.