The Gym Group launches price-based retention model
Retention Guru, Dr. Paul Bedford and Rob Gregory, former global director of member experience at Fitness First, have created a statistical model for The Gym Group to understand the impact of price changes on behaviour and to predict future outcomes for the business.
The data model, which included analysis of more than 800,000 member records from 50 of the brand’s gyms across the UK, will enable the company to make strategic decisions about pricing and promotions that will have a direct link to products and services for both new and existing members.
“We have been working with The Gym Group for the last six months to develop a data model that allows the company to identify the effect of price changes on member acquisition and retention at each of its health clubs,”said Dr. Bedford, who is seen as one of the fitness industry’s leading authorities on retention, attrition and member experience management.
“The Gym Group’s extensive use of technology means they have collected vast amounts of data about members and their behaviours, which meant we were able to analyse a variety of behavioural attributes, some of which have not be analysed before. The model enables future scenarios to be tested based on changes in the dataset.”
“The low cost/budget market is becoming increasingly competitive and improvement at the margin is the key to success,”explained Gregory.“So it was important for The Gym Group to develop a retention strategy that focuses on the areas that have the greatest impact on profit. The Gym Group continue to be a technology leader in this sector and intend to build on this work to distance the brand from its rivals.”
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