The Federal Trade Commission's (FTC) new "Click to Cancel" rule mandates a simplified cancellation process for negative option subscriptions like climbing gym memberships. While the regulation aims to protect consumers, climbing gyms can view this as more than just a compliance hurdle. It’s a chance to redefine your gym’s approach to member engagement and strengthen retention efforts. Instead of focusing solely on meeting the minimum requirements, let’s explore how gyms can leverage this rule to foster loyalty, trust, and long-term growth.
Understanding the Member Retention Opportunity
The "Click to Cancel" rule requires businesses to provide clear, accessible cancellation processes, removing barriers that might frustrate customers. While it might seem counterintuitive, making it easier for members to leave can build trust and foster goodwill. This transparency is especially crucial in the climbing industry, where community and word-of-mouth are vital in attracting and retaining members. Having a cancellation process that builds upon the existing relationship and trust between your climbing gym and your members is the way to go. I strongly recommend inserting a person into the process. Make it a conversation, this will allow you to potentially keep a member from leaving, or at the very least get some good data on why people are leaving.
Why Trust Matters:
Transparent policies reduce friction and frustration, increasing the likelihood that a member will return after resolving their challenges (e.g., financial strain or relocation).
Positive member experiences, even during cancellation, often lead to better online reviews and recommendations—valuable in an industry driven by community dynamics.
Key Takeaway: Treat cancellations not as the end of a relationship but as a potential pause. An empathetic and frictionless process can leave the door open for returning members.
Proactive Member Engagement
Retention doesn’t start at cancellation; it begins the moment a member joins. Consistent engagement throughout a member's journey builds loyalty but also significantly reduces churn, giving climbing gym owners and managers a reason to be optimistic and motivated. The research I have done with customers in the climbing gym space as well as with my clients shows very clearly that there are two reasons people come to a gym: atmosphere and convenience. And there are two reasons people stay: they want to get better and they want a social circle or sense of belonging. Work your butt off to provide these things, and your member base will grow.
Ideas for Proactive Member Engagement:
Welcome New Members Warmly: Send personalized onboarding emails with information about gym offerings, schedules, and introductory classes.
Host Exclusive Events: Organize member-only climbing challenges, themed climbing nights, or social gatherings to strengthen the sense of community.
Create a Rewards Program: Offer incentives such as free classes, merchandise, or discounts for consistent attendance, referrals, or milestone achievements.
Why It Works: Engaged members are less likely to cancel. By fostering a community atmosphere, members develop emotional ties to the gym that go beyond financial transactions.
Creative Retention Offers
Retention strategies often fail when they come across as desperate or insincere. Crafting thoughtful offers can help retain members without creating the impression of a hard sell. Leveraging people, Ai, and good marketing automations can drastically decrease your member churn.
Effective Retention Offers:
Discounted Membership Extensions or offers: Offer members attempting to cancel a reduced rate for continuing for a period, or off-menu offerings like "limited memberships" with a limit on number of check-ins at a lower price.
Step-down offers: If you can't retain someone as a member, don't lose them as a customer entirely. Get them into a punch pass or some other step-down offer from their current membership.
Pause Instead of Cancel: Give members the option to freeze their membership for a small fee (or free), allowing them to return when ready.
Value-Added Services: Provide free access to workshops, private lessons, or other premium services for a limited time.
Compliant and Ethical Offers: Ensure that retention strategies align with the "Click to Cancel" rule by making them optional and easy to decline. Members should always feel in control of their choices.
Data-Driven Insights for Climbing Gym Member Retention
Understanding why members cancel is essential to reducing churn. By collecting and analyzing data, you can identify trends and implement targeted solutions. Furthermore, understanding the warning signs is even more critical. Do you know the check-in behavior of your members? Do you know what changes in purchasing or check-in behavior is a strong signal a member is about to cancel? And perhaps most importantly, can your CRM or POS systems help you identify those things?
Data Points to Track:
Cancellation Reasons: Use a quick survey during the cancellation process to ask why members are leaving. NOTE: everyone knows to say it's because they are moving, this will be a false positive. Not everyone who says this is actually moving.
Engagement Metrics: Monitor attendance, class participation, and event sign-ups to identify disengaged members early.
Demographic Insights: Segment data by age, skill level, and membership type to tailor offerings to specific groups.
Turning Data into Action:
If many members cite pricing as an issue, consider having some churn-save offers like we listed above.
If engagement drops after the first few months, introduce mid-membership incentives, like guest passes or skill-building classes.
Tools to Use: CRMs and membership management software like Beta can help track member behavior and automate personalized communication.
Adapting Your Climbing Membership Options
The traditional climbing gym membership model may not appeal to all potential members. Offering flexible options can attract and retain a wider audience.
Membership Model Ideas:
Pay-As-You-Go: Allow members to purchase day passes or packages without committing to a recurring membership.
Family or Group Memberships: Offer discounted rates for families or groups who climb together.
Tiered Memberships: Create plans with varying levels of access, such as off-peak hours only, unlimited climbing, or premium perks like gear rentals.
Consider contractual membership options: You can avoid retention issues considerably by incentivizing people to purchase paid-in-full contracts such as 3-6-or12 month prepaid memberships.
The Long-Term Impact: A more flexible membership structure not only attracts new climbers but also reduces the likelihood of cancellations when life circumstances change.
Training Your Team for Retention Success
Your staff plays a crucial role in retention, especially when members express dissatisfaction or consider canceling. Empowering your team to handle these interactions with empathy and professionalism can make a significant difference.
Key Training Areas:
Active Listening: Train staff to ask open-ended questions and understand the root causes of a member’s concerns.
Problem Solving: Equip employees with the tools to address common complaints, such as offering alternative membership options or resolving scheduling conflicts.
Retention Offers: Teach staff how to present retention offers effectively without pressuring members.
Example Scenario: A member cites financial difficulties as the reason for cancellation. Instead of simply processing the request, a staff member could offer:
A pause on the membership for three months.
A reduced rate for a limited period.
A referral program to offset costs through bonuses or credits.
The Result: Members feel heard and valued, even if they ultimately choose to cancel.
Embracing Technology to Enhance Retention
Technology can simplify both compliance and retention efforts. By leveraging digital tools, you can create seamless member experiences and improve operational efficiency.
Digital Tools for Retention:
Mobile Apps: Offer features like class bookings, climbing route tracking, and personalized challenges to keep members engaged.
Automated Communication: Use email and SMS reminders for upcoming events, class schedules, or exclusive promotions.
Feedback Systems: Provide easy-to-use tools for members to share feedback or suggestions, helping you address concerns proactively.
Compliance Benefits: Many modern membership management systems are designed to meet "Click to Cancel" requirements, ensuring a smooth and legally compliant cancellation process.
Building a Member-First Culture to Reduce Cancellations
Ultimately, the best way to retain members is to create an environment they don’t want to leave. This goes beyond climbing walls and routes—it’s about cultivating a culture that resonates with your community.
Steps to Build a Member-First Culture:
Transparency: Clearly communicate all membership terms, policies, and changes.
Value Delivery: Make sure you know your customers and over-deliver on what value they are looking for.
Continuous Improvement: Regularly update facilities, introduce new programs, and act on member feedback to keep your offerings fresh and relevant.
The Role of Leadership: Lead by example. Show your passion for climbing and your commitment to the community by being actively involved in events, classes, or even casual climbs.
Looking Ahead: Turning Challenges into Opportunities
The "Click to Cancel" rule is a challenge for some businesses, but it also aligns with a growing consumer preference for transparency and fairness. By embracing these values, climbing gyms can set themselves apart as ethical, member-focused businesses.
What Success Looks Like:
Members who leave speak highly of your gym, encouraging others to join. (Remember, what you say to people who are leaving is ultimately what you are saying to the people who stay)
Loyal members become advocates, promoting your gym through word-of-mouth.
Your gym’s reputation for transparency and trust attracts new climbers in a competitive market.
Perhaps the most obvious example of success: your active member count grows month over month and year over year.
Thrive in the "Click to Cancel" Era
The FTC's "Click to Cancel" rule is more than a compliance checklist—it’s an opportunity to redefine how climbing gyms approach member relationships. By focusing on engagement, retention, and a member-first culture, you can build a thriving community that supports your gym’s long-term success.
As we move into this new era of consumer transparency, climbing gyms that embrace trust, innovation, and empathy will not only survive but thrive. After all, it’s not just about avoiding cancellations; it’s about creating a place where members want to stay.