How a 1% Difference In Client Retention Can Bring In An Extra $1500 During a Client's Lifetime at Your Gym

Today we're talking Customer Attrition, and how it affects your fitness business revenue.

Customer Attrition is the loss of customers, and the fitness industry average rate of attrition is 1.75%. 

Small differences in your attrition rate make a huge difference in Customer Lifetime Value, or the total amount of money a customer is expected to spend with your business during the lifetime of an average business relationship. 

That's why we want to really focus in on keeping our clients happy and our attrition rates low. It has a huge impact on your revenue. Let's look at the math:

• If your attrition rate is 2.5%, your clients are paying for memberships for about 40 months. That makes your Customer Lifetime Value about $2,240.
• If your attrition rate is 1.5%, your clients are paying for memberships for about 67 months. That makes your Customer Lifetime Value about $3,733.

That's a 67% increase in revenue all because of a tiny, little 1% difference in your rate of Customer Attrition.

Nobody can argue that those numbers are compelling.

Bottom Line: stop spending time and money looking for more customers if you're not doing everything you can to retain your current customers. Keeping your clients happy really pays.