Processes to put in place now to stop losing revenue each month
If your club is losing valuable revenue each month, you are not alone. In today’s health club landscape, the average decline rate on a gym’s initial billing is anywhere between 10% and 16%.
From a monthly revenue perspective, if a club is billing $100,000 per month, you’re not going to collect on $10,000 to $16,000 or more of that total each month. Even for smaller clubs, that’s a bunch of lost revenue (especially for a club billing $50,000 per month). The lost revenue figures on an annual basis would reach $60,000 to $96,000 or more.
One very savvy, large multi-club fitness organization turned to Motionsoft and increased their initial billing collection rate by over 2.00% and their 90-day collection rate to over 98.00% resulting in more than $1,000,000 in previously outstanding member dues revenue per month.
This organization realized one important fact: as a health club owner, collecting every penny owed is a necessity not a luxury.
Recovering Member Dues
- Our dedicated financial services team uses a specific series of notification methods including text, emails and phone calls to inform members that their payment method was declined. Our goal isn’t just to collect on outstanding revenue until the debt is paid; Motionsoft’s goal is to keep the member actively using your facility, even after they’ve started a repayment plan. Retaining the member and collecting the balance owed is a win-win for the member and, your gym.
- Motionsoft operates a PCI-certified call center to answer the phone calls. These notification methods generate, and our team provides person-to-person outbound calls to increase collection rates.
- Many customers turn to Motionsoft to provide back-office operations. Our team can help to save you time and money by managing the member engagement functions including: cancels, suspensions, account updates, member account inquiries and collection of outstanding balances.
If your club isn’t realizing a 98% or higher collection rate on monthly membership dues, request a sales demo to learn more about our special offer to help your club recover outstanding revenue. Motionsoft offers a number of revenue recovery and payment processing options for operators.