I have been getting a lot of questions lately on it…
Specifically, what is it, how do I calculate it, and what is considered a good rate?
So let's do a deep dive right into it!
Your attrition is the measure of the loss of members over a given period of time.
And it's important to know because it will tell you if members are happy or not with your gym.
Here's the formula we use to calculate it:
Attrition Rate = (Number of Members Lost ÷ Average Number of Members) x 100
You can find The Average Number of Members by adding up the number of members at the start and end of the time period and then dividing by 2.
For example, if you started with 100 members and ended with 90 members in a given year, your Attrition Rate would be.
Attrition Rate = (100 - 90) ÷ 95 x 100 = 10 ÷ 95 x 100 = 10.53%
This means that 10.53% of your gym's members left or stopped being members during the year.
Because our gyms are in all different locations, we found that the gym and its competition had a direct impact on its attrition.
This is why we check it often to ensure our gyms are healthy.
For our gyms, we know if can keep it below 40% on the year, then our margins remain solid.
Knowing this number has been HUGE for the success of our gyms!
And keep in mind, the lower the number the happier you should be!
And if you want access to more training like this.
You can do one of two things.
1) Join our exclusive Facebook group of gym owners & myself sharing what is working in 2023 by clicking here.
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Hope this helps move your gym in the right direction!