Customer Retention Analysis - An Example of a Fitness Center

Abstract

In present research we attempted to find out what influences fitness centre users' decisions to prolong fitness membership. We called users whose tickets had expired (n=57). We were interested in what factors influence a user to purchase a membership again and whether we could influence this decision with a phone call. Using logistic regression, we found that user age and experience with the receptor did not influence the decision to retain and repurchase. We found that we can influence a user's intention to repurchase if we call them less than 30 days after the membership expires. After 30 days, there is a good chance that the user has already purchased a ticket at another sports centre and will not return it. Users who were called and confirmed over the phone that they would come back and purchase the ticket again did so. We recommend that sports centre managers create a customer loyalty program and call them when the membership expires.