6 Reasons People Cancel Their Memberships (And How to Prevent It)

6 Reasons People Cancel Their Memberships (And How to Prevent It)
Stop losing the members you worked so hard to get.

If you're the owner or manager of a membership-based spa, med spa, fitness studio, or wellness center, you know how hard you work to bring in new members. Membership cancellations often feel like they come out of nowhere—but in most cases, the signs were there all along.

Let’s walk through the six biggest (and most preventable) reasons people terminate their memberships—and what you can do to build long-term loyalty instead of seeing members walk out the door.

1. Lack of Proactive, Caring Customer Service

This is the most common reason for cancellations—and also the easiest one to fix. When customers don’t feel acknowledged, cared about, or like their concerns matter, they begin to emotionally disengage from your business. And disengaged customers don’t stick around.

Here’s the truth: Automated systems are helpful and necessary in today’s busy world - especially if you cannot afford to have enough staff working your front desk.  But nothing replaces the human touch when a customer is frustrated, confused, or has questions that aren’t able to be answered through a machine. Members want to feel heard. They want someone who listens and understands, especially when things go wrong.

Whether it’s a front desk team member, manager, or owner—if a real person takes the time to listen, empathize, and make it right, many of these cancellations can be prevented. Don’t wait until they cancel—get proactive about showing you care.

Remember that automation can handle mundane tasks — but only people can build trust. Technology is great for scheduling appointments and sharing basic info, but when it comes to making customers feel truly seen, heard, and valued—nothing replaces human connection. It’s the warmth of a real conversation, the empathy in a voice, and the care behind the interaction that keeps members loyal and makes them feel like more than just a number. People don't stay because it's convenient—they stay because they feel cared for.

As an example, after I left the spa I managed and went to work at a different one, I learned the owner had outsourced all incoming calls to an agency outside the U.S. It was a cost-cutting decision—by using the overseas agency to handle calls, he only needed one front desk associate at each spa location instead of two, which saved him money on staffing.  Unfortunately, once personal customer service was removed and callers could no longer speak directly with the staff who worked at the spa, membership cancellations began to outpace new sales dramatically. Members no longer felt cared for by the very people and the business who had sold them their memberships. On top of that, it became much harder to close new membership sales too, because Spa Associates couldn’t build a personal connection with potential new customers who were calling to ask about services or book appointments. So make it your team’s goal to personally reach out to talk with members and potential new customers whenever possible. It might not always be possible, but the goal should be front and center!

2. Too Many Canceled Appointments (By Your Business)

One of the fastest ways to lose trust? Canceling on your members. If a customer is constantly rescheduled due to staff call-outs, double bookings, or low availability, they begin to question the value of their membership—and your reliability as a business.

Solution:  Take your time when hiring your service providers to make sure they will show up to work - on time and ready to give their best - consistently.  Have expectations clearly spelled out so that they know when a call-out will indeed be their last! Your business is way too important to put up with a service provider who you’re always apprehensive about whether or not they will make it in for their shift. 

Build in systems for consistency. Have backup plans in place. Cross-train where you can. Respecting your members’ time is one of the most powerful ways to earn their loyalty. 

3. Lack of Clarity

Confusion kills conversions—and it also kills retention. If your members don’t fully understand what’s included, how to book, what’s free and what’s extra, or what your policies are, they’ll eventually feel like the membership “isn’t worth it.” 

Solution: Over-communicate in the clearest, simplest way possible the terms of the contract and anything they definitely will need to know about that might cost them money ie. last minute cancellation or no call/no show fees so that when it happens, they may be frustrated, but they don’t cancel their membership out of spite. Train your team to explain it consistently and answer questions confidently.

4. Unmet Expectations   

Sometimes it’s not about what you promised—it’s what the customer expected. When a member thinks they’re going to get a premium experience, but it feels rushed, low-value, or inconsistent, disappointment sets in fast. Or maybe their usual provider called out sick, and you reassigned them to someone else without checking in first. Even if the new provider is just as skilled, failing to communicate the change can lead to disappointment and frustration. In your mind, you were taking care of the member, but in their mind, they feel like their feelings didn’t matter.

Solution:  Never assume anything.  Always make every effort to communicate any and all changes that might affect your member.  If “they’re easy” and have expressed that, put it in their profile notes to avoid unnecessarily bothering them, but for the most part, most members want the opportunity to control the destiny of their appointments.

Be honest in your marketing. Then train your staff to over-deliver at every touchpoint. Surprise and delight go a long way. Make every experience feel elevated—especially for members.

5. Can’t Use the Membership Due to Lack of Availability or Options

This one stings because it's often out of your control. Maybe you don’t have enough service providers or not enough variety in available services. If members can’t get in or don’t feel like they have flexible, appealing choices, they’ll stop seeing the point of staying.

Solution: If staffing is limited, get creative. This is where you want to hire those that will perform any task they’re qualified to do and/or you hire those that can do several different services.  In the state of Arizona where I live, they had a special incentive for getting licensed as an Esthetician if you were also working to become or were a licensed Massage Therapist (LMT), so many of the LMTs I hired were also Estheticians (LEs) and vice versa.  I made sure they all got trained in all of our protocols and products for each job title so they could fill in as an LE or an LMT when it was necessary! And I utilized this asset many times!

Offer member-exclusive perks, booking windows, or a waitlist with incentives. Use clear communication to manage expectations and give members options, even if they’re limited. Have a list of members who have no problem with getting notified about last-minute appointments and use text, phone calls, and social media to let them know of last-minute openings.

6. Finances (But It's Usually Not the Real Reason)

Yes, we’re feeling the pinch of these strange economic times, so there will be those that decide that self-care is a luxury as far as your services go, but unfortunately when some members cite “budget” or “cutting expenses” as their reason for canceling — many times it’s actually one of the five issues above that led to the decision. When a customer feels valued, cared for, and consistently receives great service, they’ll often find the money to keep their membership—even during tough times.

Solution: Don’t take “finances” at face value. When a member says they’re thinking of canceling, ask:  “If there’s something we could improve or address, would you consider staying?”  OR  “We truly value you as a member, and I completely understand finances can be a concern. But just in case there’s anything else that’s affecting your experience, I’d love to know — what can we do to make things better for you?"

That one question could spark a conversation that saves the membership—and give you valuable insight into what needs to change.

Final Thought: People Don’t Want Perfect—They Want to Be Heard

Automated systems can help streamline your business, but they’ll never replace the power of a real person who listens, cares, and validates a member’s concerns. When a member feels seen and appreciated—especially during moments of frustration—they're  more likely to stick around.                                                         

If your business is losing members and you're not sure why, it may not be your pricing or your services. It might just be the experience you’re creating—or failing to create.  

FOLLOW ME ON INSTAGRAM:  LAURIE FRIES - SPA MEMBERSHIP GROWTH COACH          

Want help fixing this?   You don’t have to figure it out alone. I've got lot of resources here for that:

Ready to Get More Bookings & Membership Sales OR want a front desk that knows how to set themselves up for success when booking appointments and sells memberships with ease, my sales coaching program is designed for you.

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https://tr.ee/MSM_FREE_START_HERE:  This is the first 5 things I taught all of my new employees to make us leaders in our franchise for membership sales for the Spas I managed.

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