Why Your Fitness Studio's Retention Rate Is Dropping (and how to fix it)

If you've been seeing a dip in retention lately—even with full classes and excellent feedback—you're not imagining it.

Clients are ghosting faster. Long-time members are slipping away. And it's not just about you or your studio.

There's a fundamental shift happening in consumer behavior, industry standards, and legislation that's changing the game for studio owners everywhere. Retention isn't just about offering a great workout anymore—it's about understanding the psychology of today's client and building systems that meet them where they are. What's Going On with Retention?

There are two significant forces quietly reshaping client behavior right now - and both are accelerating the drop in retention.

Consumers Don't Want to Commit Anymore

The fitness world used to thrive on long-term contracts. But today's client? They want flexibility, control, and an easy way out.

In a recent study, 59% of U.S. consumers said they're actively cutting back on monthly subscriptions across the board. Fitness is no exception.

Whether it's the economy, burnout, or simply too many auto-renews to manage, we're seeing a cultural shift toward short-term packages.

People are still spending on fitness - but only when they feel in control. That means even satisfied members might pause, downgrade, or drop off if they feel over-committed or under-engaged.

Here's the kicker: Only 33% of boutique fitness clients stick with a single studio long-term. The majority either buy multiple class packs at once or hop between studios depending on schedule, price, or vibe. 65% of boutique studio members hold memberships to two or more different studios, indicating a shift away from exclusive loyalty to a single facility.

Retention isn't just about "loving" your studio anymore - it's about being the one they keep coming back to even when they have options.

Canceling Is About to Get Way Easier

As of May 2025, the FTC is enforcing a new Click-to-Cancel rule, which requires studios (and other subscription services) to make canceling a membership as easy as signing up.

That means:

• No more "call to cancel" hoops

• No more "come into the studio" policies

• No more massive cancelation fees

Your studio is likely subject to this new rule—and it will impact your numbers. Read more about what the rule means for studio owners.

The goal is to improve transparency for consumers, but let's be real: this also removes one of the last bits of friction that helped boost retention.

If someone's even thinking about canceling, now it takes a single click.

What Can You Do About It?

The solution isn't to panic or go back to old-school contracts. The studios that thrive in this new retention era will be the ones that build trust, stickiness, and flexibility into every part of their client experience.

Here's how to start:

1. Know Your Numbers

Retention rate can feel fuzzy if you're not tracking it the right way. Your simple formula for Member Retention Rate = (# of members at end of month – new members) ÷ total members at the start of the month. (This is also in most software dashboards!)

What's a "good" rate? For Limitless Private clients, we aim for 95%+, but the stats say:

• 85–90% monthly retention = healthy

• 80–85% = needs attention

• Below 80% = fix it ASAP

If studios spent as much time thinking about retention as they do trying to post reels to find new clients, they'd be in a totally different spot. Luckily, I have tons of articles for you on that topic.

2. Build a Strong Onboarding System

Most cancellations happen in the first 60 days. That's your golden window to make clients feel valued, integrated and connected in your studio.

The job doesn't end when your new client purchases a package; it begins. Now is when you want to prove to them that they made the right choice, that your studio is their ticket to reaching their goals, and that they belong. Remember, most clients don't join a studio because it has ___insert modality or perk___. They could do that at home. They're after the results, community, and accountability. And you have 60 days to prove to them that you can deliver on all three.

Make sure your onboarding includes the following:

• A warm welcome email, text, or gift (bonus points for a video message or a waterbottle with your logo).

• Personalized class recommendations

• Check-ins continue through their first 60 days

• A "what to expect next" roadmap

• Consider pairing them with a workout buddy or accountability partner program so they have an instant connection.

Even a simple, automated welcome sequence can boost first-month retention by 15–25%.

3. Track Attendance + Trigger Intervention

No-shows = red flag. A client who skips two weeks is far more likely to cancel—even if they love your classes.

Set up alerts or filters in your CRM software to flag:

• Clients who haven't visited in 14 days

• Trial users who haven't returned after visit #1

• New members attending less than twice a week

Once flagged, it's time for what my studio members called "the text from mom":

• "Hey Jamie, we haven't seen you lately—everything okay?"

• "Missed you this week! Want help booking your next class?"

• "I noticed you haven't been in class the last three weeks. Everything okay?"

Proactive check-ins can reduce churn by up to 30%.

4. Offer Memberships That Reflect Modern Behavior

Let's be honest—today's client doesn't want a 12-month contract. Instead, they're seeking out flexibility. So we need to deliver that without hurting your revenue:

• Short-term no-commitment memberships

• Auto-renew monthly passes.

• My current favorite is a bottomless ten-pack that renews automatically.

Then, focus on converting commitment through experience, not pressure.

Here’s your script: "Our monthly plan auto-renews, but you can pause or cancel any time online. Our members stay because they love it—not because we locked them in." Look at you, taking the high road like it was your idea.

5. Reward Consistency

We tend to reward the long-time clients who've been around for years—but consistency is the real key to short-term retention.

Try low-bar rewards like:

• “Attend 8 classes this month = $10 retail credit”

• “First 4-week streak = free guest pass”

• Start your milestone program at 25 classes (when people are most likely to drop out) rather than 100.

These incentives boost frequency, which leads to stronger habits—and more long-term loyalty.

Retention is no longer something you "hope" will happen. In 2025 and beyond, it's something you have to actively engineer because we don't have commitments to fall back on.

The studios that stay profitable will be the ones with the most engaged members—the ones who feel seen, supported, and in control.

Focus on building relationships and creating flexible options that are easy to sell and meet your clients where they are. Trust builds retention. Connection keeps them coming back.

Even in a click-to-cancel world—you can keep people longer. You just have to give them a reason to stay.