Customer retention plan for a fitness center

Abstract

This thesis outlined a customer retention development plan, which aimed at identifying targets for improvement in the services of a fitness center. The development plan was drafted based on a thorough analysis of the current status of the case company, using the metrics of a business intelligence system, customer satisfaction surveys, and interviews conducted to gain a deeper insight into the specific needs of the customers. This data was analyzed using industry insight and the theoretical background of the existing literature on the formation of customer relationships. Customer acquisition requires more resources than customer retention, and in preparation for customer acquisition inevitably slowing down, a retention plan is needed. Based on a literature review, it became apparent that building good rapport between the fitness center’s staff and its customers is an important element for achieving loyal, long-term customer relationships. Previous customer satisfaction surveys and the results of an interview conducted for this thesis show that customer service and the staff at the case company are highly valued, but regardless of this, the customer retention rate is showing a declining trend. The data was used to identify and define some specific areas which needed development and based on them, the case company received recommendations for future actions that have potential to help improve customer retention.