Gyms Are About To Lose Their Sleeping Member Cash Flow

If you've ever tried to cancel any ADOBE software and been hit with their "rest of term" charge, as well as the 6 steps it takes to actually get to that point then you'll be happy to hear this.

A few weeks ago I posted about New York's Mayor passing legislation that will require all companies to have a 1 click cancellation policy.

To stop companies (like Adobe) hitting you with bullshit charges and making it incredibly difficult to cancel.

Amazon is similar, with the inside name for their cancellation procedures called "The Illiad" more commonly known as the book of the film The Odyssey.

These tactics are designed to keep customers by attrition. It's right that they are stamped on.

And Andy Burnham who's definitely figured out that people like it when their annoyances are solved (and it doesn't cost the government money) has followed New Yorks lead.

Looks like the 1 click cancellation is coming to the UK soon.

However this does have a crossover for gyms, David Lloyd in particular subscribe to this method of cancellations. Making it harder for you to cancel and trying to charge you for 3 months notice.

But the deeper implication is with sleeping members.

Many gyms rely on sleeping members for guaranteed cash flow. They could cancel but they 'might' use the gym so it's more hassle to cancel than keep paying.

Not so once the new law passes. Because now people can just cancel and rejoin with one click.

Which means sleeping members might be a thing of the past (at least to the extent it is now)

And that's going to hit your cash flow if you're not prepared.

It's about to get harder and more expensive to get new members

It's approximately 700% more expensive to convert a new member than it is to retain an existing one.

Yet Gym Gurus are always drilling on incessantly about "new leads"

New leads are great, IF they convert into new members

But the cost of getting those leads is getting higher.

• Facebook ads are more expensive on ROAS

• There's more competition from new gyms, especially privately funded big warehouse gyms like Foundry, One Gym etc who are fast growing.

Gyms who are only focussing on getting leads, without addressing the leavers are just trying to fill a bucket with holes.

When one click cancels becomes law, and those gyms are forced to change their systems, they will quickly see a drop in cash flow.

We've had one click cancels at Ministry for a while now, mainly due to my past experiences with DL and others.

The cancellation link is on the homepage right under the join button and all it requires is a quick form with your details, a few questions about why you're leaving and it's done.

And honestly, it's not harmed our business one bit.

Mainly because we aren't focussing on making it difficult for people to cancel....

...instead we make it hard for them to walk away.

By making their experience the best it can be.

There's 3 elements to this - Tools, Accountability and Belonging.

And it's brought our cancellation rates down by 50% in the last few years.

I explain it all in this video >>>>Reduce cancellations by 50%<<<<

Hope this helps, it could save you thousands

While you're here - do this quick scan of your business, I call it the Invisible Puncture Scan and it's designed to find the holes you can't see which are costing you members.

>>>>Invisible Puncture Scan<<<<

Have a great day

Tom