Beta Club Increases Retention to 81% for 2003

CHARLOTTE, N.C., February 10 -- Retention Management announced today that its “Beta” Club has raised its annual retention rate to 81% - a 6% increase over 2002 (the industry average showed a 0.1% improvement, IHRSA's Profiles of Success, 2003).

Further, the Beta Club experienced a net member growth of 12% (industry average was 3.2%), dues revenue improved 9% despite falling short of projected sales by 20%, and the average life of a member increased by 6 months.

“We are extremely pleased with the results,” according to Richard Ekstrom , President of Retention Management. “It is exciting to be able to make a significant impact on retention. However, what is equally as important is to be able to show the impact that retention has on revenue production. Our service generated a Return On Investment (ROI) of 778% for the club.”

In January 2003, the Beta club started using Retention Management's patent pending service and results are based on the club having 50% of its members email addresses.

Data Analysis of Beta Club (12 months of service):

• 12 month retention improvement of 6% (Note: 50% member email penetration )

• 2002 Retention 75% *

• 2003 Retention 81% * (IHRSA Profiles of Success 2003 Average is 66.5%)

• Additional dues revenue directly attributable to lower attrition - $74,752

• Return On Investment (ROI) - 7.78:1 (For every dollar invested - received $7.78)

• Realized Net member growth - 12% (IHRSA Profiles of Success 2003 Average is 3.2%)

• Total Dues revenue increased by 9% despite falling short of their projected sales by 20%

• Total cancellations beat projected cancellations by 31%

• Average Life of a Membership increased by 6 months

In accordance with IHRSA standards, attrition rates were calculated as follows:

• Total the memberships at the beginning of the month for each month of the year

• Divide the total by 12 to derive the ‘12-Month Average Beginning Membership'

• Total the cancelled or inactive memberships for the 12-month period to derive ‘Aggregate Dropped Annual Memberships'

Membership Attrition % = (Aggregate Dropped Annual Memberships / 12-Month Average Beginning Memberships) X 100


Chris W

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