Uncollected Revenue Recovery Services
Is your business losing revenue each month from uncollected member dues? Your fitness club isn’t alone. In today’s health club landscape, the average decline rate on a club’s initial billing is anywhere between 10% and 16%.
From a monthly revenue perspective, if a club is billing $100,000 per month you’re not going to collect on $10,000 to $16,000 or more of that total each month. Even for smaller clubs, that’s a bunch lost revenue especially for a club billing $50,000 per month. The yearly lost revenue figures would reach $60,000 to $96,000 or more per year.
What do you do?
Motionsoft offers three unique revenue recovery services:
Back Office Support Service (B.O.S.S.)
Accounts Receivables Management (ARM)
Full Service
Accounts Receivables Management Process
Instead of directing member responses back to a club, Motionsoft will answer member inbound calls and email communications in our PCI-certified call center to increase your collection rate while maintaining your brand standards. Our goal is to collect on uncollected revenue until the debt is paid while keeping the member active even after they’ve started a repayment plan.
Our Strategy: Service-oriented member engagement
Our helpful and service-oriented member engagement team is focused on win-win outcomes that keeps more memberships active while getting member accounts current. From tailored repayment plans to ongoing outreach, our team will create customized “Member-First” engagement programs that keep your members happy and active while decreasing accounts receivable collections responsibly.
Accounts Receivable Management Case Study
One frustrated club operator collected $12,015 in one-week on past due balances more than 30-days late.
Club Situation > Mounting Financial Headaches
Accounts receivable for a multi-location fitness chain were adding up quickly especially member dues that were more than 30-days late. The passionate fitness chain operator was facing a mounting financial headache as more member dues remained uncollected. The fitness firm attempted to initiate collections internally but the effort backfired.
Solution > Launched Accounts Receivable Management (ARM) Campaign
Implemented a member engagement approach using ARM to collect past due gym membership balances. ARM was selected as the engagement approach so that Motionsoft would the ability to receive all member communications. This ability to receive communications allows us to compress the amount to time it takes to have a dialog with a member. The next step was then to simply deploy our engagement strategy. Here are the core steps:
Step I: Launched a Quick Start training program with a dedicated team of professional member management staff to create a customized member-first approach.
Step II: Initiated person-to-person outreach to begin collecting past due balances.
Step III: Expanded customer touch points by introducing automated processes to expand penetration.
Step IV: Introduced tailored repayment plans to keep members from canceling gym memberships.
Step V: Follow-up outreach kept members repayment plans on track and dues collected.
Results > Over $31,000 collected in three-weeks
- $12,015 – Collected during first week and over $31K of $40K in three-weeks of member dues more than 30-days delinquent
- 76% – Collection percentage in three-weeks on this file of 30+ days past due
- 0 – Number of canceled memberships for this audience
- 5% – Flat fee paid by fitness chain operator
Ready to get started?
Fill out the form or talk to our talented team today and learn how Motionsoft accounts receivable management solution can help you rid your club of mounting AR headaches. You can call us between 9:00 am and 5:30 pm EST by dialing 800.323.1005.
