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Health Club Management

Health Club Management

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UNITING THE WORLD OF FITNESS
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Health Club Management

Health Club Management

features

Editor’s letter: Earning loyalty in 2015

By Kate Cracknell | Published in Health Club Management 2015 issue 11
Kate Cracknell, Editor
Kate Cracknell, Editor
Your customers aren’t being disloyal if they don’t only use your gym; things have moved on from the one-stop shop

Are contracts really the key driver of member loyalty, as numerous retention reports have stated over the years? ukactive’s latest Business Performance Benchmarking report suggests not – or at least, no longer. It found that gyms with a minimum 12-month fixed-term contract saw an average membership length of 11.2 months – far shorter than the 17.2-month average enjoyed by gyms that didn’t require a 12-month commitment and that offered more flexible contract lengths.

It seems the drivers of loyalty are changing. And while those drivers will vary from one customer to the next, one increasingly recurrent theme is the desire for flexibility.

The fitness sector has begun to respond, recognising that loyalty should be an active choice rather than a forced hand. The low cost-led shift away from contracts was a positive first step, and even where contracts have stayed in place, forward-thinking operators are introducing more flexibility: DiR’s à la carte membership, where members pay only for what they use, is a good example. But more can be done.

One new trend – a short hop on from flexible pricing – is ‘sympathetic pricing’. This involves imaginative discounts and rewards that go beyond telling people you care, actually proving it by directly addressing customers’ specific pain points – and earning their loyalty as a result. For more on this, turn topage 36.

But the latest leap in consumer expectation demands even more flexibility from all operators – because the younger generations in particular no longer want to belong to just one gym. They want to mix and match, keeping enjoyment levels high by bringing variety into their routine.

As The Futures Company pointed out in the last issue of HCM: “To win with those aged under 30, gym owners must embrace – even encourage – a certain degree of promiscuity of membership.”

The boutique studios have recognised this. With flexibility at the very heart of their model, these operations are garnering huge loyalty by creating strong brands and enthusiastic communities – this in spite of a premium price tag and commitment-free ‘pay per class’ set-up. Joey Gonzalez, CEO of Barry’s Bootcamp, explains how in his interview on page 26.

The key here is to understand that your customers aren’t being disloyal to you if they don’t only use your gym; operators need to play to their strengths to ensure they stay in the exercise mix, but at the same time realise things have moved on from the one-stop shop.

So if you’re an operator, what’s the best way to go about embracing this desire for variety and flexibility? Certainly the likes of ClassPass offer a route to market that caters for the cherry-pickers – but how do you best use these tools to ensure they benefit your business rather than undermining it? On page 44, Stephen Tharrett and Mark Williamson of ClubIntel offer their advice to anyone considering working with what they call the ‘internet middlemen’.

A final thought on loyalty comes in our trendwatching feature on page 36, which points to the need for far deeper engagement with consumers. Did you know 63 per cent of people only buy products and services that appeal to their beliefs, values or ideals? German women-only club My Sportlady certainly appreciates this, offering heart-warming inspiration on page 58. It’s time to define what your brand stands for – your customers’ loyalty depends on it.

Kate Cracknell, Editor
[email protected] @HealthClubKate

Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
https://www.leisureopportunities.co.uk/images/859439_61354.jpg
Gym contracts are so last year. Now it's all about flexibility. Kate Cracknell shares her views.
Kate Cracknell, Editor, HCM,Loyalty, Kate Cracknell, flexibility, pricing, boutique, Barry’s Bootcamp, My Sportlady, ClubIntel, ClassPass
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features

Editor’s letter: Earning loyalty in 2015

By Kate Cracknell | Published in Health Club Management 2015 issue 11
Kate Cracknell, Editor
Kate Cracknell, Editor
Your customers aren’t being disloyal if they don’t only use your gym; things have moved on from the one-stop shop

Are contracts really the key driver of member loyalty, as numerous retention reports have stated over the years? ukactive’s latest Business Performance Benchmarking report suggests not – or at least, no longer. It found that gyms with a minimum 12-month fixed-term contract saw an average membership length of 11.2 months – far shorter than the 17.2-month average enjoyed by gyms that didn’t require a 12-month commitment and that offered more flexible contract lengths.

It seems the drivers of loyalty are changing. And while those drivers will vary from one customer to the next, one increasingly recurrent theme is the desire for flexibility.

The fitness sector has begun to respond, recognising that loyalty should be an active choice rather than a forced hand. The low cost-led shift away from contracts was a positive first step, and even where contracts have stayed in place, forward-thinking operators are introducing more flexibility: DiR’s à la carte membership, where members pay only for what they use, is a good example. But more can be done.

One new trend – a short hop on from flexible pricing – is ‘sympathetic pricing’. This involves imaginative discounts and rewards that go beyond telling people you care, actually proving it by directly addressing customers’ specific pain points – and earning their loyalty as a result. For more on this, turn topage 36.

But the latest leap in consumer expectation demands even more flexibility from all operators – because the younger generations in particular no longer want to belong to just one gym. They want to mix and match, keeping enjoyment levels high by bringing variety into their routine.

As The Futures Company pointed out in the last issue of HCM: “To win with those aged under 30, gym owners must embrace – even encourage – a certain degree of promiscuity of membership.”

The boutique studios have recognised this. With flexibility at the very heart of their model, these operations are garnering huge loyalty by creating strong brands and enthusiastic communities – this in spite of a premium price tag and commitment-free ‘pay per class’ set-up. Joey Gonzalez, CEO of Barry’s Bootcamp, explains how in his interview on page 26.

The key here is to understand that your customers aren’t being disloyal to you if they don’t only use your gym; operators need to play to their strengths to ensure they stay in the exercise mix, but at the same time realise things have moved on from the one-stop shop.

So if you’re an operator, what’s the best way to go about embracing this desire for variety and flexibility? Certainly the likes of ClassPass offer a route to market that caters for the cherry-pickers – but how do you best use these tools to ensure they benefit your business rather than undermining it? On page 44, Stephen Tharrett and Mark Williamson of ClubIntel offer their advice to anyone considering working with what they call the ‘internet middlemen’.

A final thought on loyalty comes in our trendwatching feature on page 36, which points to the need for far deeper engagement with consumers. Did you know 63 per cent of people only buy products and services that appeal to their beliefs, values or ideals? German women-only club My Sportlady certainly appreciates this, offering heart-warming inspiration on page 58. It’s time to define what your brand stands for – your customers’ loyalty depends on it.

Kate Cracknell, Editor
[email protected] @HealthClubKate

Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
https://www.leisureopportunities.co.uk/images/859439_61354.jpg
Gym contracts are so last year. Now it's all about flexibility. Kate Cracknell shares her views.
Kate Cracknell, Editor, HCM,Loyalty, Kate Cracknell, flexibility, pricing, boutique, Barry’s Bootcamp, My Sportlady, ClubIntel, ClassPass
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Opinion: 2021 is the year to prioritise global culture
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Featured supplier: Cryotherapy specialists, L&R Kältetechnik, launch new artofcryo.com division
L&R Kältetechnik has launched a new division, named artofcryo.com, after 30 years’ experience with -110 °C electrical solutions.
Featured supplier news
Featured supplier: Forget the ‘Netflix effect’ – it’s all about the ‘iFit effect’ to boost member retention
Addiction – a word laden with negativity. But isn’t that exactly what the fitness industry wants? For members to be addicted (in a healthy way) to exercise – not just to increase profits but, most importantly, so they can live happier, healthier and longer lives.
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Mywellness App 5.0
Technogym
Mywellness helps you assess customer needs, provide great workouts and programmes, guarantee a training spot on the gym floor, offer group training, track indoor and outdoor workouts - even with 3rd party apps. Read more
More videos:
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Company profile: Incorpore Limited
Incorpore Ltd is a leading fitness and wellness company which has been successfully delivering solutions ...
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Company profile: Legend Club Management Systems (UK) Ltd
Legend provides the leading software solution for driving improvements in leisure operations. We deliver savings ...
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Catalogue Gallery
Click on a catalogue to view it online
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Trade associations
International SPA Association - iSPA: Trade associations
Whole body cryotherapy
Zimmer MedizinSysteme GmbH / icelab: Whole body cryotherapy
Fitness Software
FunXtion International BV: Fitness Software
Fitness equipment
Octane Fitness: Fitness equipment
Lockers/interior design
Safe Space Lockers Ltd: Lockers/interior design
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Comfort Zone - Davines S.p.A: Skincare
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Pendex Fisio S.L.: Exercise equipment
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11 - 25 Union St, London SE1 1SD
Bankside Open Spaces Trust
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Waltham Abbey, Essex
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Ericsson Exhibition Hall, Ricoh Arena, Coventry, United Kingdom
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Diary dates
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Diary dates
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Diary dates
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