How Gyms Can Use NPS to Increase Member Retention
What is NPS?
NPS, or Net Promoter Score, is a loyalty metric that measures overall customer satisfaction. Businesses measure NPS by asking their customers how likely they are to recommend their company to a friend on a scale from 1-10. Based on the results of that question, customers are divided into three categories: promoters, passives, and detractors.
Promoters are generally happy customers who responded to your survey with a 9 or 10. Promoters are the group that is likely to recommend your business to friends and family. Passives are happy customers who responded with a 7 or 8. Passives are satisfied with your business but are not loyal and can be easily convinced to try or buy from the competition. Finally, detractors are the unhappy customer who responded with any number from 0-6. Detractors have a bad taste in their mouths about your company and are likely to speak poorly about your business. Detractors are a problem area for a business but also present an excellent opportunity for improvement.
How to Calculate NPS?
Calculating your businesses’ NPS is pretty simple. First, you take the total number of people who fell into the category of promoters and then subtract the number of detractors. That’s it! You have your NPS.
Retention: Why Gyms Need to track NPS
All gyms struggle with retention, even the most successful. Retention is difficult in gyms for a couple of reasons; there’s a lot of competition, people naturally lose motivation, and at-risk customers are challenging to identify. First, the gym market is very saturated, so customers have many options, making it easy to bounce around uncommitted. Second is an inevitable issue; people naturally lose motivation to stick with their workout routine. Lastly, it’s challenging to identify unhappy customers; this is where the NPS will come in handy.
Benefits of using an NPS at a gym:
As mentioned before, one of the most significant issues that gyms face is retention. But have no fear, you can use NPS to help us improve retention. When your business successfully measures NPS, they will be able to identify issues through their detractors. Detractors are your problem area because they are the ones that are likely to go around speaking poorly of your gym. Therefore, detractors are turning away potential customers you could have otherwise attracted. But you don’t have to let that happen; you can take the data you gather on the detractors and leverage it to your advantage. Identify problem areas and make a plan to fix them. Study the data and look for patterns. What similarities do you see amongst your detractors? Do they all fall into one group of people? Do they visit the gym at the same time of day, or do they attend the same classes? Even take it a step further and talk to them. Don’t be afraid to ask for more details on the problem areas directly from your customers. With a deeper understanding of why the detractors rated your gym so low, you will be able to improve on those issues and hopefully improve overall retention at your gym.
NPS is a reliable tool that can help your gym improve member retention. Not only will you improve your retention, but by improving on the issues identified by your detractors, you will remain competitive in a very saturated and competitive market landscape. If you’re interested in learning more about some great NPS tools that you can implement today, click here.