The Membership Retention and Analysis tool provides a measure of how well you are retaining your members. Specifically, it looks at all your memberships and graphs how many have been a member for at least one month, 3 months, 12 months, etc. The flatter the graph, the better.
While many gyms measure retention via attrition numbers, that can be an incomplete measure of retention because it doesn’t allow you to properly value what a member was worth. For example, a member quitting after one month should be considered worth much less than a member quitting after 12 months.
When first installed, the Membership Retention and Analysis tool will only capture current memberships. But moving forward from the date the Membership Retention and Analysis tool was first installed it will allow you to compare retention year over year, letting you see if you are improving your retention.
The Membership Retention and Analysis tool also displays your average revenue for your members by graph-line. Note that this revenue is computed as products purchased between the start-and-end date of the membership. For example, if you have customers purchase memberships but do not configure them as a member for three days, that purchase would be excluded.
Using the graph and the average revenue figures, you can calculate your lifetime value of a member, with the lifetime value calculated as the 50% value multiplied by the average revenue.