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Secondary spend: Added value
Secondary spend brings welcome additional revenue for operators – so what’s the best way to approach this? Katherine Selby speaks to a selection of operators that have come up with a successful formula to monetise health-conscious members
BESPOKE NUTRITION
MD,
Best’s Bootcamp
The business model at boutique studio Best’s Bootcamp, in the Charing Cross area of London, is based around offering a highly personalised service – including in its secondary spend channels.
“A key secondary spend channel for us is the provision of fresh – and importantly bespoke – smoothies and shakes for people to enjoy after their bootcamp or cycling session,” says Lee Drabble, Best’s Bootcamp MD.
“The shakes are a huge success, generating around 80 per cent of the total secondary spend in our studio.
“It takes time to get the right mixtures and blends – since we launched the shakes six months ago, we’ve refreshed the menu three times – but we believe we now have a winning formula. Indeed, shake sales doubled during September and October – a rise in volume sales of 112 per cent compared to July and August of this year.
He continues: “We also encourage members to suggest new flavours and ingredients, and reward our Member of the Month with the chance to create their own signature shake. We then offer this as a limited edition shake on our menu for that month.
“We engage with our members with regular e-shots and discount offers, plus complimentary shakes with membership packages and at our special events. In addition, all our staff are trained in retail skills to ensure the shakes are upsold at reception when guests arrive.”
"Our ‘member of the month’ creates their own signature shake that we offer as a limited edition that month" -
Lee Drabble
PT PROFITS
Pollyanna Hale,Weight loss and Fitness coach ,
thefitmumformula.com
Gymbag gives fitness professionals their own e-commerce store stocked with supplements, fitness equipment and apparel. It soft-launched with personal trainers and is now set to supply bigger leisure operators.
Pollyanna Hale, weight loss and fitness coach at thefitmumformula.com, was one of the first personal trainers to try Gymbag. She explains: “I wanted an online store to help my clients and earn some secondary income, but the logistics were a real barrier. But Gymbag does it all for me – I simply point clients towards the product they need, the order goes through and I get paid.
“I market it via a private Facebook group, where I can give advice and clients can comment and make recommendations too.
“My clients get a discount code to use at Gymbag and I send out gift vouchers and rewards. Occasionally I’ll surprise them with little samples like protein bars or shake sachets, which makes them smile, keeps them motivated and sparks fresh orders.
“It’s a no brainer: the cost is low, the site is set up for you, the range is comprehensive, it adds value to my service and I make 20 per cent profits when I sell the products online. I’d definitely recommend Gymbag and can really see its potential for operators looking for a quick way to generate income from secondary spend.”
"It’s a no brainer: the cost is low, the site is set up for you and the range is comprehensive" - Pollyanna Hale
WEAR THE BRAND
co-founder,
1Rebel boutique fitness
1Rebel boutique fitness studios in London run 30- and 45-minute group HIIT sessions on a pay as you go basis – which, says co-founder James Balfour, already makes it more like a retailer than an operator.
“We ‘sell’ every time someone comes through the door: the experience must be good or they’re not coming back,” he adds.
But there are also strong retail lines in the studios, as Balfour explains: “Our clothing gives us brand advocacy, and loyal customers like having a ‘look’ that represents them and their connection with our brand.
“The fitness-and-fashion trend can’t be ignored – it’s an opportunity and we’re on it. ‘I’m wealthy and healthy’ is a statement people want to make, and our T-shirts, hoodies and crop top street-to-gym-wear help them to do this.
“Retailing is a skill: presenting your goods, giving customers space and time to browse and buy. We’re selling our brand, sessions and promise every day and our staff are good at it.
“1Rebel clothing is also available at selected concessions, so there are people sporting our ‘industrial luxe’ look who don’t necessarily work out at our studios. That’s fine with me: we’re rebellious and disruptive!
“All sales are good, not just for secondary spend but also to create awareness, build loyalty and drive sell-out sessions.”
"All sales are good, not just for secondary spend but also to build awareness and drive sell-out sessions" - James Balfour
RETAIL TRAINING
Director,
Laboratory Spa & Health Club
The Laboratory Spa & Health Club generates secondary spend by selling top-quality swimming lessons delivered by Swimming Nature, which offers bespoke individual and small class swimming lessons for babies, children and adults.
“We wanted to offer our members the best swimming lessons in the UK and found Swimming Nature to be an ideal partner,” says Laboratory director Vas Hava. “We informed members of the opportunity via our internal club magazine and sent reminders and invitations via our various social media channels.
“In addition, we advertised the lessons on notice boards around the club, and Swimming Nature teachers also helped by chatting to members about the new opportunity.
“We draw people in by offering a free 30-minute ‘swim check’ session. Not only does this give them an introduction to the teaching style offered by Swimming Nature, but it also shows up key areas where they could improve.
“As a club we never hard-sell, preferring to work as a team to ensure everyone is in the know about what we offer. Our in-house training manager has done some retail training with colleagues and, once they understand Swimming Nature, they naturally talk it up with members as they recognise it’s a great way to help people improve their swimming. People are happy to spend extra on something exceptional like this.”
"As a club we never hard sell, preferring to work as a team to ensure everyone knows what we offer" - Vas Hava
Staff as a sales tool
Regional Retail Manager,
Everyone Active
Everyone Active has a strong reputation for its swimming provision, so it’s no surprise that swimming kit and accessories sales drive significant secondary spend in its centres.
But the products don’t sell themselves, as Kate Little, regional retail manager, explains: “We sell a wide range of products that meet our customers’ needs – Zoggs is our key partner – and people are aware of the kit because they see it when they visit. However, we reinforce this via SMS and email comms, gym TV and on-site poster adverts, especially to promote an offer.
“Our staff are our best sales tool though, and everyone has product and retail training to ensure they give good advice and can spot opportunities to upsell. We also offer staff a generous discount if they wear the kit and goggles when teaching and on poolside, as this gives members confidence in the brand.
“One of our most successful strategies is our Goggle Doctor sessions, where people ask advice and try before they buy. As soon as people have the right size goggles on, they know it – the products sell themselves on comfort and fit.
“However, at all times we remember these products are there to enhance our customers’ experience.”
"In our Goggle Doctor sessions, people can ask for advice and try before they buy" - Kate Little
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