Friends Don’t Sue Friends

Do you remember how excited you were when you opened up your health club? Although you were 25% over budget and you opened four months late, you and your staff couldn’t wait to greet the hundreds of new members who would be joining your gym. You thanked each and every person for taking the time to come in and see your club. Your enthusiasm was contagious and your pride of ownership was reflected in the eyes of every one of your staff. After your prospect became a member, you or your manager personally thanked that member for their business. When the member would check in and your front desk person would scan their membership card, they would say; “Have a great workout, Jack”, or “Good to see you again, Jill”. In short, you established a great foundation of customer service and your members soon felt like this was “their” club. Life was good.

As time went on, you became busy with the day to day distractions that every club owner goes through. Your men’s room toilet is backed up, you have a leak in your ceiling, your equipment needs servicing, and your once enthusiastic staff are now a pain in your back side. You notice that your new sales are dropping off and some of your existing members have stopped coming to the gym. Your front desk staff has forgotten how to smile and now when your members check into the club, they feel like they are interrupting the person behind the desk. The membership card is scanned and not one single word is spoken. Your sales team is now under a lot of pressure to sign up every single soul that enters your club and they slowly develop sales techniques that begin to take on the feeling of being in a used car dealership. Even when you do sign someone up, your team is too busy to introduce the new member to the rest of the staff and the member soon blends into the sea of workout patrons never to be spoken to again.

As soon as your club reaches this point in the business cycle, customer service begins to deteriorate and your club is now a more susceptible to having an incident turn into a claim. Everyone knows that people will slip and fall in the shower, get thrown off the back of a treadmill, and someone will occasionally twist their ankle in a group exercise class. Over 50% of the claims we receive are caused by, what we refer to as, “member malfunction”. In other words, the member has hurt themselves through their own carelessness or lack of concentration during their workout. Often, what keeps these incidents from escalating into a phone call to their attorney is how the member is treated “before” the accident even occurs.

There is no risk management tool more powerful than creating an environment where everyone knows each other. Nothing replaces good customer service as the foundation for a claim free club. Clubs that excel in legendary customer service not only benefit from having fewer claims they also have superior member retention and increased sales as a result of word of mouth advertising in your community. Think of your favorite restaurant. Do you go there because the food is good or do you go there because of the way you are treated? My favorite restaurant, bar, bank, and dry cleaner all have one thing in common; they greet me by my first name EVERY time I visit. The thought of suing one of these establishments would never even occur to me.

So here is the risk management tip for this year. REQUIRE every front desk person to greet each member by their first name EVERY time they enter the club. Again, they have the name of the person right in front of them on the check-in monitor, so no excuses. You may even have a check-in system that will show how long it has been since their last visit. Can you imagine if your front desk girl said; “Hi Jim. Where the heck have you been? Get your butt in here and I better see you three more times this week.” Not only will it put a smile on the member’s face, but you have just increased your chances for getting that member to renew and soon he will be known by nearly every one of your employees. He now feels like he is part of your culture and a member of your club’s family. It wouldn’t be such a bad idea if you, as the club owner or manager, walked through the club and pick out a member you have never met before and go introduce yourself. Remember, friends don’t sue friends.