How Planet Fitness Makes Billions (The Friendly Goodbye)
Summary
- A successful brick-and-mortar business needs 10,000 members to be profitable.
- Even in a small market with only 50,000 people, it is possible to maintain profitability.
- A key strategy is having a manageable churn rate of around 5% monthly.
- To achieve this, cycle through the same customers by being friendly and accommodating when they leave.
- When a customer wants to cancel, be polite and let them know they are welcome back anytime.
- This approach makes customers feel comfortable returning whenever they need the service again.
Video
How To Take Action
I would suggest implementing a few simple yet powerful strategies to grow your business or personal brand without spending a lot of money or time. First, focus on customer retention. When someone wants to leave, be super friendly and understanding. Say something like, "No problem, we’d love to have you back anytime." This way, customers feel welcome to return, and you build a positive reputation.
A good way of keeping your churn rate low is by creating a cycle of repeat customers. This means always being welcoming, even when someone leaves. If they know you'll be happy to see them again, they’re more likely to come back. It's all about building a relationship, so they feel comfortable returning whenever they need your service again.
Another high-value strategy is to keep your communication open and friendly. Regularly check in with your customers through emails or social media. Share updates, special offers, or just say hello. This keeps you in their minds without being pushy.
For personal growth, always be open to learning. Whether it’s reading books, listening to podcasts, or taking small online courses, improving yourself doesn't have to be expensive. Small, consistent efforts add up.
By focusing on these low-cost, high-impact strategies, you can build a loyal customer base and continually grow, even if you’re in a small market. The key is to be friendly, maintain good relationships, and constantly strive for personal and business improvement.
