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Case study · Fitness

Know who's about to leave, while you can still help

Membership businesses lose most members quietly: visits drop, then the cancellation arrives. This is how we predicted which members are at risk from attendance and billing patterns, and trigger retention actions whose effect is measured properly.

Project overview

Churn prediction with measured retention.

Industry
Fitness & membership
Client
Confidential
Solution
Churn prediction
Platform
Azure ML + CRM
Timeline
8–14 weeks
Team
3 people
Signals
Visits, billing, classes, tenure
Actions
Coach outreach, offers, reminders
Measurement
Control groups

Expected business outcomes

What the client set out to achieve

Only retention measured against a control group counts.

  • 2–6 pts Lower monthly churn in targeted groups

    At-risk members contacted early with the right action.

    Target range, measured against a control group

  • Weekly Updated risk scores

    Every member scored weekly from recent behaviour.

    Automated scoring pipeline

  • Measured Effect of each retention action

    Actions compared with a held-out group.

    Randomised control groups

Business challenges

Where the client started

Churn is noticed after it happens.

Signals

Declining visits are visible in data nobody looks at.

Retention

Offers sent to everyone or to nobody.

Clubs

Staff don't know which members need attention.

Measurement

Retention campaigns judged by feel.

Economics

Winning back a member costs far more than keeping one.

Proposed solution

What the build covers

A prediction model is only useful with actions and measurement attached.

  • Data pipeline

    Visits, bookings, billing and tenure prepared weekly.

  • Risk model

    Churn risk score per member with main reasons.

  • Club action lists

    Club staff see at-risk members with suggested actions.

  • Automated journeys

    Reminders and offers triggered for specific risk groups.

  • Control groups

    A share of at-risk members held out to measure effect.

  • Retention dashboard

    Churn, risk and action results by club.

Project requirements

What the client asked us for

The request was to predict churn. The value comes from what happens next: the right action for the right member, measured against a control group.

Reasons matter: a member who stopped visiting needs a different action from one with a failed payment.

What the project had to deliver

  • 01Weekly risk scores
  • 02Reasons behind each score
  • 03Actions for clubs and journeys
  • 04Honest measurement

Key challenges & considerations

What made it harder, and what we did

  1. Data spread across access, booking and billing systems

    What we did

    Access, booking and billing data were joined into a single member view.

  2. Seasonal patterns (January, summer)

    What we did

    Seasonal features were built into the model, so January joiners were not flagged unfairly.

  3. Clubs with different engagement

    What we did

    Models were checked club by club.

  4. Offers that simply discount loyal members

    What we did

    Offers were tested against a control group, to avoid discounting members who would have stayed.

What we watched for

  • Always keep a control group
  • Show reasons, not just scores
  • Don't discount members who'd stay anyway
  • Account for seasonality

Development process

Predict, act, measure

Each action is tested before it is scaled.

  1. Stage 1

    Data

    Visit, booking and billing data joined and cleaned.

  2. Stage 2

    Model

    Risk model trained and validated on past cancellations.

  3. Stage 3

    Actions

    Club lists and journeys designed with operations.

  4. Stage 4

    Test

    Actions tested with control groups in pilot clubs.

  5. Stage 5

    Scale

    Effective actions rolled out to all clubs.

Technology stack

Machine learning with CRM actions

Scores flow into the tools staff and marketing already use.

Machine learning

  • Python
  • scikit-learn / LightGBM
  • Azure Machine Learning

Data

  • Microsoft Fabric or Azure SQL
  • Feature pipelines

Serving

  • Batch scoring
  • REST API
  • ERP/CRM integration

Monitoring

  • Accuracy tracking
  • Drift alerts
  • Retraining schedule

Quality assurance & deployment

Measured against a test set before launch

AI quality was measured, not judged from a demo. A test set of real examples with agreed answers decided whether the system was ready, and the same set was re-run after every change.

  • A test set of real examples with agreed answers
  • Accuracy thresholds agreed with the business before launch
  • Safety checks: refusals, permissions and prompt-injection tests
  • A person reviewing low-confidence output
  • Cost and response time measured at real volumes

Deployment

  • 01TestActions tested with control groups in pilot clubs.
  • 02ScaleEffective actions rolled out to all clubs.
  • 03Pilot, then staged rolloutA small group of real users first, with results reviewed weekly before widening access.
  • 04Monitoring and warrantyAccuracy, drift, usage and cost tracked after launch, and six months of free bug fixing.

Final deliverables

Retention that's measured, not hoped

Every member has a weekly risk score with reasons, clubs know who to talk to and automated journeys handle the rest.

Control groups show which actions actually keep members.

  • Weekly churn risk
  • Club action lists
  • Targeted journeys
  • Measured retention

Handed over to the client

  • 01Production AI serviceDeployed in the client's own cloud tenant
  • 02Source code and modelsIn a repository the client can access
  • 03Test set and resultsThe evidence behind the launch decision
  • 04MonitoringAccuracy, usage and cost
  • 05Six-month warrantyFree bug fixing after delivery

Success metrics

How success is measured

MeasureOutcomeHow it is measured
Lower monthly churn in targeted groups 2–6 pts Target range, measured against a control group
Updated risk scores Weekly Automated scoring pipeline
Effect of each retention action Measured Randomised control groups

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