The fitness industry — more specifically gyms, health clubs, and training studios — are suffering now more than ever with daunting national statistics of attrition. With a startling 50% of new members canceling their membership within the first six months of joining, hanging on to even a few more of those New Year’s resolutioners this Spring can have a huge impact on the overall profitability of these fundamental staples within our communities.
There are several proven ways to increase consumer loyalty and member retention, and cashback happens to be at the top of the list.
In this article of ours, you will find some strong positive correlations between the two. But don’t just take our word for it; there are countless articles and studies backing this up.
Make sure to check out this Marketing Chart’s article that provides data showing that cashback is the most effective loyalty driver of all rewards programs.
The above-quoted article also provides statistics on the connection between rewards, customer satisfaction levels, and customer retention: whether that be for credit cards, grocery stores, bakeries, gyms, or other businesses.
At its core, cashback is so successful at increasing brand loyalty and member retention because of human psychology. A Forbes article on the psychology of rewards combines more than 19,000 survey responses with data from global management consultancy McKinsey to theorize why cashback is so effective. Consumers seek positive user experiences with instant gratification. They want to feel valued just as much as they want to know they got a good deal. Cashback more than any other promotional strategy contributes to both of those consumer desires and elicits a subconscious emotional response that can be a significant driver in repeat business.
With more than 35% of gym members canceling for cost-related reasons, Loyalize‘s cash back relationships with over 6,000 US retailers could be a completely customizable solution to the attrition problem that gyms and health clubs are facing. Depending on how gyms chose to design their loyalty programs, it could take the concept of cashback a step further and assign a fixed “value” of points (stars, trophies, “dumbbells”, dollars, etc.) to each gym member’s online purchase. These points, in turn, could be used for the gym’s services, products, or even gift memberships. This is a great way for members to achieve the instant gratification the Forbes article mentions and make each member feel rewarded for being there: strengthening customer satisfaction, overall member retention, and revenue.