How Gyms Can Prevent ‘Silent Cancellations,’ According to Xplor

Michelle Furniss of Xplor Technologies explains why silent cancellations occur and shares best practices to prevent their occurrence

Silent cancellations are when gym-goers cancel their membership without explaining why, either indirectly or directly, essentially the gym and health club equivalent of “quiet quitting.”

According to data from Xplor Technologies, many silent cancellations are caused by failed payments. But there are several other reasons a member could get rid of their membership without providing an explanation.

Athletech News spoke with Michelle Furniss, the general manager of Xplor Gym, who has worked at the company in various commercial and management roles for the past 10 years. Furniss explained why silent cancellations occur and shared how operators can reduce their prevalence. 

Athletech News: What causes silent cancellations? 

Michelle Furniss: Forty percent of former members have had a membership canceled because of a payment failure – where they either canceled their bank transfer with their bank without telling the club, or there were insufficient funds in the bank account, or the bank account was closed. Another 12 percent of members canceled directly with their club but failed to tell them why they were leaving. And just like “ghosting” in the dating world, members slowly stop attending the gym, until they finally end up either cancelling or canceled, disappearing without a word. 

ATN: What are the business impacts of silent cancellations? 

MF: The impact of silent cancellations is huge – it can mean the difference between having a successful, profitable business or not. And the worst thing about silent cancellations is the fact that many gyms and health clubs do not know why a member has left. Every gym and health club owner invests significant time and money in attracting new members. So, getting an accurate reason for leaving from former members is essential for reducing a club’s overall attrition rates and protecting recurring revenue. With insights into the common reasons for leaving, owners can address these so that fewer members leave for the same reason in the future. 

ATN: What are the common reasons U.S. gym-goers cancel their membership?  

MF: The reality is that half of members will leave without ever telling their club why. Fifty-two percent of cancellations happen silently – with members not providing a reason or canceling indirectly. Other anecdotal reasons for cancellations include no longer being able to afford the cost, a change in circumstances like changing jobs or moving house, and/or dissatisfaction with the club itself (either with the facilities, instructors or equipment, or lack of availability of classes). But while silent cancellations make up half of all cancellations, there is still an opportunity for clubs to protect themselves from these – either by finding out what the issue was and resolving it or by doing more to save these members before they cancel.  

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ATN: When do gym-goers typically cancel?  

MF: More than half of all cancellations tend to occur in the second half of the year. Our data shows that 58.6 percent of cancellations happen between July and December, and the peak month for cancellations is September, with just over 10 percent of cancellations that month alone. Given that many people sign up for membership at the start of the year, unsurprisingly the fewest cancellations happen in February (5.9 percent), followed by January (6.3 percent). On average, members cancel their membership around 26 months after joining, and those who cancel tend to have stopped visiting their gym or health clubs around five months before this. What does this mean for gyms and club owners? Review your membership data, especially length of membership and how regularly they are visiting and find out which members are at risk of leaving. You may be able to encourage those members at risk back into the gym before they cancel.  

ATN: What are your top tips to reduce silent cancellations?  

MF: There are many ways gyms and health clubs can protect themselves from silent cancellations. Here are the top five:  

1. Create a feedback-focused culture – The more focus you give to creating a consistently positive member experience, the more energy your team will put into it. Everyone should be regularly seeking verbal member feedback. Simple questions like, “Are you enjoying your visit today?” or “When will we see you again?” can encourage open conversation. Building the habit of feedback will help your business succeed, and help your members stay active. 
2. Use technology to automate feedback – use your gym management software to automate the feedback-gathering process where you can. Create triggers at key points in a member’s journey and then use marketing automation/CRM tools to regularly send an email or SMS message asking for feedback. For example, you can ask for feedback after a member has had their induction/welcome session and then again after their first 10 visits. 
3. Seek feedback via your website or regular surveys – A clearly signposted way to feedback via your website, or by sending out regular surveys to measure satisfaction and loyalty, will encourage members to come directly to you with any frustrations or concerns – and give you a great insight into overall member satisfaction. This will help to avoid negative feedback on social media and other public forums and reassure your members that they are important to your business. 
4. Nail your follow-up process – Have empathy. But act. And show that action to your members. “You said, we listened” updates are incredibly powerful, because they show your community that their experience matters. Even if you cannot make a request happen, by making sure you reach out and acknowledge that you have heard the request, members will be more likely to give feedback again. 
5. Celebrate success – Feedback is more than just complaints, so the more you create a culture that welcomes feedback, the more actionable feedback you will get. Publicly sharing feedback – positive and negative – and the action you have taken as a result, will show your members that their fitness experience is important to you, and motivate your team to do more.