Why most cardio equipment doesn’t help with retention. Why Expresso is different. What it means for your bottom line.
In the fitness industry, member retention is the the Holy Grail we all seek. Saving just a handful of members can have a massive impact on your bottom line.
The solution to member retention is engagement. Engaged members are as good as gold. It is the moment they lose interest and stop showing up, when they are at risk of canceling their membership.
Last week a customer told me “I could replace nearly any piece of equipment in my club and not one member would notice. But if I tried to remove my Expresso Bikes I would have a RIOT on my hands!” This was music to my ears. It was validation that Expresso engages your members on a level beyond other equipment. But what makes Expresso engaging?
To answer that, let’s take a look at the member engagement funnel. Most cardio equipment has a shallow funnel. It looks like this:
Possible Exercisers are your members. Casual Exercisers are your members who choose to use this piece of equipment. This is usually where the experience ends. There’s no continued engagement beyond a single workout. There’s no loyalty created.
The member engagement funnel for the Expresso Bike has a third level. It looks like this:
On the Expresso Bike, Engaged Exercisers are members who have created an account. These members compete on leaderboards, take part in challenges, track their stats, race their ghosts, and more. These members will RIOT if you remove your Expresso Bikes. These members are as good as gold.
Show me the money!
How much gold is an Engaged Exerciser worth? From our data we know the average lifespan of a Casual Exerciser vs. the lifespan of an Engaged Exerciser. The lifespan is the number of days from when a member created an account to the last time they rode. In our data, Casual Exercisers created a numeric ID on the bike. This is how we know their lifespan even though they never fully registered online.
The average lifespan of an Engaged Exerciser is 695 days. This is more than double that of a Casual Exerciser at 318 days. This has major revenue implications!
Let’s assume that your members will pay dues as long as they continue to work out on your equipment. The Retention Gap between a Casual Exerciser and an Engaged Exerciser is 377 days or 13 months! If your dues are $30/month, a single Engaged Exerciser is worth an extra $390 in revenue. The formula is simple. Take a second to plug in your own numbers:
Monthly Dues * 13 Months = Value of an Engaged Rider
Now let’s say you have 500 members and 10% ride bikes. This is 50 riders. Your total retention value is 50 * $390 or $19,500. Take another second to plug in your own numbers:
Value of Engaged Rider * Number of Bike Riders = Total Retention Value
The Next Steps
You can maximize retention with Expresso by signing up as many members as possible. Do these 3 simple things today!
- Register new members as part of on boarding.
- Post your team results from our monthly challenges.
- Contact us to set up a custom challenge.
If you don’t own Expresso Bikes yet then get a quote today!