When a member wants to cancel his or her membership due to financial hardship, does your club make it easy, or hard?
It seems like common sense: If a client is having trouble paying, give them a break and they’ll be more likely to return as customers when the going is good again.
So why are huge chains like LA Fitness and 24 Hour Fitness making it so tough for members to quit?
It’s easy to chalk it up to the impersonal “service” members get at big box clubs vs. the personal touch they get at small independent facilities — each client means more to them, so they work harder to keep not only their business, but their favor.
But is it really so black and white? I hate to think so.
6 comments:
I don't think it's simple at all. The big question is, "How do we know when to make an exception?"
Our club has a simple cancelation policy--it must be in writing and it must arrive 2 weeks before the next billing date.
Now I should say, it SEEMS simple. But we are asked nearly every month if we can make an exception.
Do I make an exception for a long time member? Who qualifies for this "long time member" label? Do I make an exception for someone who lost their job (sorry to say, but we have learned over the years that some members have been less than honest with us--shocking, I know). Do I make an exception for someone who gives us 13 days notice instead of the required 14 days--they were close? Do I make an exception for some one who emailed their request (acceptable as written notice) but emailed it to the wrong address (no, not kidding).
I tend to sleep a lot better at night if I make no exceptions rather than trying to figure out who give special treatment to and who to deny.
Rob Bishop
Elevations Health Club
Hey, Rob —
I'm a firm believer in holding firm to the rules. I am, in fact, a rule-lover. I am PASSIONATE about rules. Just ask my four-year-old.
Exceptions are tricky. Make enough exceptions and they become the rule.
The article I linked to says some clubs are using passive aggressive tactics to avoid contact with members who want to cancel — like failing to answer or return phone calls or emails.
That's what I mean when I say clubs should "make it easy" for members to quit, especially during hard times. If they abide by the contract they signed, then at the appropriate, legal time they ought to be allowed to quit.
I could have been clearer in my original post. Blame it on spring fever!
If we do not cancel their membership, they close their bank account, or cancel their credit card, complain to the District Attorney, BBB, yell at you when they see you at the grocery store or other places. Members gossip all around the town to prevent others to join. I think membership contract causes the most stressful problems to the health club owners.
Rob you make a good point.
Hi Heather,
There can be only one logical reason why the big box clubs make it so difficult for members to quit… it is more profitable for them to do so.
I think it is reasonable to say that these clubs are sales/acquisition focused (despite what their press releases, mission, vision and values statements might say). Their business model allows for customer ‘churn and burn’ because their marketing machine provides for these members to be relatively easily replaced.
In which case it is more profitable simply to make it as difficult as possible for members to leave and to extract as many payments as possible from them on the way out since preserving a relationship with them is a low priority.
It is too systemic to be a customer service issue.
Independents don’t have the same luxury because they do not have the same marketing reach. Retention has to be a consideration.
Rob in his usual pragmatic way has provided a sensible framework to handle these situations i.e. create a reasonable, transparent, policy and implement it without fear or favour.
However, I do believe that members should be treated with just as much consideration, dignity and respect on the way out as they were treated with on the way in (that’s not saying much in many cases).
Exceptions can position the business favourably when the ex-member contemplates joining again in the future. An ex-member is twice as likely to re-join as a prospective member who has not dealt with your business before so keeping the door open makes good business sense.
Excellent points. I agree, there is a difference between a member who wants to cancel and is having trouble sending an email by the appropriate cut-off date and a club that intentionally makes it hard for members to cancel. If a member wants to cancel, why make it harder and leave them with a bad taste in their mouth?
Our industry already suffers from some perception issues when it comes to the general public. This type of poor business practice reflects badly on all of us.
Rob Bishop
Elevations Health Club
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