Why discounts won't fix your gym's churn
John-Paul Rahme, Co-Founder of XODA · 3 min read
Every gym owner feels the pull to throw a discount at a member who's about to leave — a free two weeks, a voucher, a pause instead of a cancel. It rarely works, because it treats a symptom, not the cause. Here's how XODA co-founder John-Paul Rahme thinks about a retention budget after years running fitness businesses.
Reframe what a “retention budget” is for. It isn't a pot of money for discounts and giveaways — it's what you invest back into the experience members are paying for.
“We talk about a retention budget. For me, that's not just providing a two-weeks-free or a dinner voucher to a client. The retention budget is going into updating the facility — so when members come in, they can see that you're taking care of and giving love to the place they come and call home. Not seeing an out-of-order sign on a treadmill for two or three weeks.”
The point: members don't stay because you bribed them once. They stay because the place feels cared for, week after week — clean, working equipment, small visible improvements, a space that respects their time and money. A broken treadmill with a hand-written “out of order” sign for three weeks tells every member exactly how much you're investing in them.
Make it practical
- Track the signals before someone cancels — falling visit frequency, missed payments, dropped bookings — so you can act while it still matters.
- Spend your retention budget on the visible experience: maintenance, cleanliness, equipment, the app they use every day.
- Automate the early re-engagement so at-risk members get a nudge without you remembering to send it.
How XODA helps
Spot at-risk members early with reporting, and automate re-engagement.
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