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Bradley Fitness has faced some major problems in the recent days. One of the biggest problems which it has faced in its recent operational activities is cancellation of membership. It has been noted that the company has lost many of its members due to cancellation process. This has affected the overall efficiency of the company. It has been seen in the recent days that the cancellation percentage has grown which is a major problem for the company. This can even lead to a further shutdown of the company. There are various reasons for which members are cancelling their membership with the gym. This has caused sudden drop down in the overall membership within the firm and has also decreased the membership revenue of the company. The purpose of the current assessment report is to determine the causes and the issues which the members have faced leading to their cancellation of membership. For this purpose the assessment will analyze survey result generated through the survey conducted by the company in which respondents where its member on the reasons why the membership has been cancelled. After the generation of the results from the survey the possible solutions to the current problem will be addressed. This will help in better identification of problems and their respective solutions which will benefit the firm in mitigating issues which are there in the operational activities of the firm for the cancellation of membership from the prominent members of the gym. The purpose of this assessment is also to recommend some consumer retention strategies which the gym can use to retain their members in an efficient manner.
As the problem indicated is a major threat to the company’s ongoing operation it is important that a survey is conducted which will give a clear idea on what the major problems are faced by the members leading up to the cancellation of membership. Survey conducted was divided on the basis cost, classes and communication (Scholes, 2015). The data collected from survey was quantitative in nature which was then calculated in percentage to find the majority of the response given out by the respondents. It is to be noted that the respondents within the survey where member leaving and cancelling the membership with the gym (Peng, 2017). Hence the survey is purely focused on the reasons why memberships are being cancelled and what are the major issues residing within the operations of the firm leading to such cancellation.
From the data collected questions related to cost of gym most of the members were seen to have a general membership Where as the members having Elite membership where on the lower side. This shows that major people cancelling the membership paper of general membership and when not Elite members of the club (Leonidou, Fotiadis, Christodoulides, Spyropoulou & Katsikeas, 2015). Majority of the members turn down the reason of cost being a major element for cancellation of membership. This shows that cause was not major elements which lead to cancellation of membership for the existing members. Majority of the respondents were satisfied with the perks which were provided to them on their respective membership levels. Overall it can be said that cause was not a major driver for membership cancellation (Klettner, Clarke & Boersma, 2014).
Majority of the members where is seen to be b he never participating within the classes scheduled of the gym where as major population of respondent went to gym 1 to 2 time to the gym. This or that at major population of of members cancelling the membership where is regular in attending there gym. Majority of the population in the program responded that they were no aware of the program happening in the firm (Galbraith, 2014). It has been noted that majority of the members cancelling their membership do not know about programs which were there in the gym which an e driver for membership cancellation. As he major people cancelling their membership have been irregular to the gym it can be said they did not had any intention to properly conduct fitness session as well as they did not consider further programs in the film This lead to demotivation of the merger resulting cancellation of membership. The firm failed to properly involve their members in the programs of the club (Hubbard, Rice & Galvin, 2014).
Through survey conducted over communication and marketing it has been seen that most of the members which have cancelled the membership were subscribed to the email communication system of the company. This means most of the population was informed through Email communication system. Most of the times it is seen that the respondents felt negative about the communication system used by the company as a major population of the respondent said that the communication was not helpful and that they were not interested in communicating with the Fitness Club Email communication (Martinez-Simarro, Devece & Llopis-Albert, 2015). It can be said that majority of the respondent also feel that the communication system lacked and there was no proper communication system which helped proper communication between the members and the club. it is also seen that the respondent majorly follow the company through Facebook .The respondent also feel that there are development needed in overall communication system of the company. Majority of the respondent feel that the use of social media platform should be done more efficiently and the content should be more informative (Amran, Ooi, Wong & Hashim, 2016).
Concluding on the above discussion it can be said that the major problems which has been faced by the company and due to which members have cancelled their membership plan from the company are communication and marketing as well as classes and programs. It can be said that major problems which can be seen in the overall cancellation process within the gym as a result of poor communication system which led to demotivation and discontinuation of membership within the organization. It is clear that cost is a minor element which would have affected the overall calculation process whereas communication and marketing as well as classes and programs were the major contributors which led to members cancelling the membership with the firm.
Customer retention is very important for any gym and fitness centers. According to some research and survey, it has been seen that 30-50 per cent customer didn't rejoin the gym or fitness centre next year. And it can be concluded that over a course period of 365 days a fitness centre losses almost half of their members. There are many reasons that some gym-goers vanish and never return to the gym again. So by implementing some of the strong customer retention strategies, a gym owner can decrease the number of people who discontinued coming to a gym or fitness centre over a period of time (Apenko, 2017). As the company has been facing a problem in consumer or membership retention it is important that the company follows the following consumer retention strategies:
Getting the new or more members is not a difficult part but keeping or retaining the existing members a centre have is more difficult. In the recent survey, it has been seen that there is a lot of cancellation in the existing membership. The reason behind those cancellations is high cost, lack of communication or marketing and proper classes. There are some recommendations to retain the existing customers that Bradley Fitness centre can follow are as follows:
Amran, A., Ooi, S. K., Wong, C. Y., & Hashim, F. (2016). Business strategy for climate change: An ASEAN perspective. Corporate Social Responsibility and Environmental Management, 23(4), 213-227.
Apenko, S. (2017). Human resource management of innovative projects in the context of business strategy. Strategic Management, 22(1), 3-6.
Buckley, P. J., Burton, F., & Mirza, H. (Eds.). (2016). The strategy and organization of international business. Springer.
Castellani, D., Narula, R., Nguyen, Q. T., Surdu, I., & Walker, J. T. (Eds.). (2018). Contemporary Issues in International Business: Institutions, Strategy and Performance. Springer.
Galbraith, J. R. (2014). Designing organizations. Jossey-Bass & Pfeiffer Imprints, Wiley,.
Hubbard, G., Rice, J., & Galvin, P. (2014). Strategic managment: Thinking, analysis, action. Pearson.
Klettner, A., Clarke, T., & Boersma, M. (2014). The governance of corporate sustainability: Empirical insights into the development, leadership and implementation of responsible business strategy. Journal of Business Ethics, 122(1), 145-165.
Leonidou, L. C., Fotiadis, T. A., Christodoulides, P., Spyropoulou, S., & Katsikeas, C. S. (2015). Environmentally friendly export business strategy: Its determinants and effects on competitive advantage and performance. International Business Review, 24(5), 798-811.
Martinez-Simarro, D., Devece, C., & Llopis-Albert, C. (2015). How information systems strategy moderates the relationship between business strategy and performance. Journal of Business Research, 68(7), 1592-1594.
Peng, M. W. (2017). Cultures, institutions, and strategic choices: Toward an institutional perspective on business strategy. The Blackwell handbook of cross?cultural management, 52-66.
Pisano, G. P. (2015). You need an innovation strategy. Harvard Business Review, 93(6), 44-54.
Scholes, M. S. (2015). Taxes and business strategy. Prentice Hall.
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