There is a reason that I shop at certain retail sites, such as Lowe's, Zappos.com and Amazon.com. Even though I might find an item a little bit cheaper at another store, I know that if I have a problem with what I purchased at these places, the return process will be painless and the customer service will be exceptional.
Sometimes as a fitness consultant, I just want to bang my head against the wall. Why do so many clubs make it so difficult to purchase a membership or cancel a membership? Fitness centers promise: "Sign up today for just $1 down." What too many salespeople don't tell prospects is that they require two forms of identification, three credit cards on file, four phone numbers, the email addresses of their entire family, and their mother-in-law's social security number. Of course, I exaggerate, but you get the picture.
What the sales associate often does not reveal is how difficult it will be to cancel the membership or that the 12-month agreement will automatically renew unless cancelled. I am disturbed by some of the things I see and hear about what some less-than-reputable fitness centers are doing. Some of it is downright illegal. It's no wonder the fitness industry is ranked right up there with used car salesmen when it comes to sales techniques. The health and fitness industry is supposed to help people change their lives. We are not supposed to cause trouble in their lives by sending them to debt collectors because they cannot pay their gym membership dues.
If owners and managers changed the way they looked at memberships and made it easier to join and even easier to cancel, they would actually sign up more members. I have used this theory for the past eight years at Fusion Fitness Center. My reputation is worth more than a $39 membership. Think about the last time you had a great experience. How many people did you tell? Maybe one or two. Think about the last time you had a bad experience. How many people did you tell? You called your mom, sister, childhood friend, wrote a Yelp review, sent an email to the company, posted on Facebook, and tweeted about it. Because you were unhappy, you told as many people as you could.
My philosophy when it comes to building sales is:
1. Keep it simple. Most clubs sell too many types of memberships. Potential members usually are intimidated to begin with. Why would you make them choose between a three-, six-, nine-, 12-, 18-, 24- or 36-month option? By making the decision process easy, you are more likely to achieve a sale. You should offer three types of memberships: general fitness, group or team training, and personal training. They should either be sold as a month-to-month or 12-month agreement. Why sell people what they do not need? Sell them what they need, and keep it simple. Your sales team will love you, and so will the potential member.
2. Be honest. If your memberships automatically renew, then tell members when they join. If their credit card declines and they get charged a fee, tell them. If you require a notarized letter to cancel your membership with a cancellation justification, tell them. Nobody wants to feel like they have been misled. Using confusing language in your contract will hurt you in the long run.
3. No hassle. When members want to cancel their memberships, let them. So they still have eight months of payments left. Who cares? Ask them why they are cancelling so you can try to fix the problem or learn how to make your club better. When people no longer want to be members of my club anymore, I really do not want them there. They could potentially hurt my business more if they stay because they will tell everyone how unhappy they are. If they instead leave on good terms, they can actually build your business. Unhappy customers who want to cancel their memberships might actually refer a client to you in the future because of the kindness you showed them at cancellation.
Not everyone is going to have the same philosophies when it comes to contract ethics. I set out on a mission many years ago to change lives. I do not believe that being sneaky or difficult gets me to my goal any faster. I hope that as an owner or a manager you will think about your current practices when it comes to cancellations and ask yourself whether you need to make changes.
BIO
Nic DeCaire is the owner and founder of Fusion Fitness Center in Newark, DE. He is a graduate of Wilmington University. DeCaire has 14 years of experience in the industry. He started working the front counter at a local fitness center at age 14, and his success and passion for fitness have grown since then. A former competitive bodybuilder and powerlifter, DeCaire has won many awards in the sport. He is the chairman of the Main Street Mile, which benefits the Newark K-9 Fund, and serves on the board of Kids with Confidence. DeCaire can be contacted at 302-738-4580 or [email protected].