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Planet fitness cycles through entire towns of customers over and over again, here’s how...
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0:00Planet Fitness to make money has to have 10,000 members. Like a brick and mortar has to have 10,000 members to make money. And they still crank. They can do that in a market that only has 50,000 people in total, which is insane to think about. But they don't have like zero churn. They have like 5% monthly churn, which is you're like, wait a second, how would you do that? They cycle through the entire town over and over and over again. And so what they figured out was rather than being like the dicks on the way out, they called it the friendly goodbye. They're like, oh, you want to cancel? No problem, Steve.
0:26No worries. Let us know when you're want to come back. Like [music] we'll we'll get you going. Like very friendly on the exit. And so then Steve, when he like gets the next gig [music] or gets the next job or feels fat again or whatever it is, he signs back up cuz it was no big deal.