A new report commissioned by Total Fitness has blown the lid off the way the sector segments its offering, showing that consumers have their own views on value that often don’t align

In this edition of HCM, we’re honoured to have worked with Total Fitness to publish a report on a recent consumer insight study commissioned by the company’s CEO, Sophie Lawler.

The study – called The Voice of the UK Gym Customer – was created in partnership with CIL and is based on 75,000 primary data records. It ranges widely, examining issues and opportunities (page 66).

In a gracious move, Total Fitness has made this insight available as a ‘gift’, to enable other operators to benefit.

One of the most fascinating findings is that consumers struggle to ‘rank’ their health club or gym against the standard industry categorisations of low-cost, mid-market and premium. This shows how far adrift we may be in our thinking about what’s being offered, how it’s being charged and also how it’s valued by consumers.

Looking at members of low-cost clubs, only 33 per cent of the sample classified their club in the low-cost category. A further 29 per cent said they viewed their club as mid-market and a massive 38 per cent said they view their club as being in the premium category.

The fact that more than a third of low-cost members believe they’re getting a premium offering shows a lack of awareness among consumers of the scale and scope of the sector – perhaps not many are aware of the extent of the services offered in the premium sector, because these clubs tend to be clustered in cities or are inaccessible to the majority of the population.

The other interpretation is that low-cost health clubs and gyms are reaching such high standards, that consumers simply view them as ‘premium’ when compared with their experience of premium services in other sectors; such as retail, travel, health or hospitality.

In the mid-market, 54 per cent of members view their club as premium, 29 per cent ‘accurately’ say it’s mid-market and 17 per cent consider it to be a low-cost offering, indicating that the expectations of consumers need to be better understood when it comes to calibrating investment.

Perhaps this is a sign that premium operators have room to introduce a more expensive tier of membership?

In the premium sector, members seem clearer about what they’re getting, with 70 per cent saying their club is premium. Only 20 per cent view it as mid-market and 10 per cent as low-cost.

Assuming this 10 per cent are wealthy enough to view premium prices as being cheap, perhaps this is a sign that premium operators have room to introduce an additional and more expensive tier of membership.

I’d urge you to dig into this report, which has been so generously shared and we’d very much value your feedback by email for our letters page.