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UNITING THE WORLD OF FITNESS
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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Diary dates
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Locations worldwide,
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21-24 Sep 2021
Messe Stuttgart, Germany
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ExCeL London, London, United Kingdom
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04-07 Nov 2021
Exhibition Centre , Cologne, Germany
Diary dates
01-07 Dec 2022
tbc, Dunedin, New Zealand
Diary dates

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
Latest News
The government needs to urgently set out its plans to support physical activity and fitness ...
Latest News
Glofox will begin offering health clubs, gyms and fitness studios instant access to financing, following ...
Latest News
Hong Kong-based Bricks Group has revealed plans to launch its health club chain, U Time, ...
Latest News
A £30m luxury leisure development scheme which has been more than a decade in the ...
Latest News
Apple has previewed its much-awaited watchOS 8, the operating system for its Apple Watch. The ...
Latest News
Chinese health club chain Supermonkey has finalised a series E funding round, valuing the company ...
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Opinion
promotion
While much of the fitness industry has reopened its doors across the UK over the past weeks, many members are yet to return.
Opinion: Re-engaging your post-lockdown absent members
Featured supplier news
Featured supplier news: Active IQ launches two industry-ready health and fitness diplomas
Active IQ has launched two new qualifications – the Level 2 Diploma in Health and Fitness and Level 3 Diploma in Health and Fitness – to help engage learners in an industry-ready training experience that can be tailored to suit local employer needs.
Featured supplier news
Featured supplier news: INEOS: The future of hand-sanitising
As gyms begin to reopen, cleanliness and hygiene remain an essential part of ensuring staff and members are confident to return.
Featured operators news
Featured operator news: Everyone Active bolsters Everyone on Demand and enters second year with five new partnerships
Everyone Active has signed a number of new deals which will see the operator strengthen its digital product offering, Everyone on Demand.
Featured operators news
Featured operator news: Being active helps Parkwood Leisure customers save the NHS £16m
Parkwood Leisure, one of the UK’s leading public leisure facilities operators, helped prevent more than 7,000 cases of stroke, dementia, depression and type 2 diabetes in 2019, saving the NHS £16 million, a new social value report has shown.
Company profiles
Company profile: Quoox
With more than 200 integrated features, Quoox is confident there is a solution for every ...
Company profiles
Company profile: Premier Software Solutions Ltd
Premier Software was founded in 1994 and has proven experience developing business management solutions specifically ...
Catalogue Gallery
Click on a catalogue to view it online
Directory
Hydrotherapy / spa fragrances
Kemitron GmbH: Hydrotherapy / spa fragrances
Salt therapy products
Himalayan Source: Salt therapy products
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
Trade associations
International SPA Association - iSPA: Trade associations
Independent service & maintenance
Servicesport UK Limited: Independent service & maintenance
Lockers/interior design
Safe Space Lockers Ltd: Lockers/interior design
Skincare
Sothys: Skincare
Management software
Premier Software Solutions: Management software
Architects/designers
Zynk Design Consultants: Architects/designers
Exercise equipment
Power Plate: Exercise equipment
Property & Tenders
Pendine Sands, Carmarthenshire
Carmarthenshire County Council
Property & Tenders
Diary dates
01-04 Jul 2021
Expo Centre & Riviera di Rimini, Italy
Diary dates
18-19 Sep 2021
Locations worldwide,
Diary dates
21-24 Sep 2021
Messe Stuttgart, Germany
Diary dates
28-29 Sep 2021
ExCeL London, London, United Kingdom
Diary dates
04-07 Nov 2021
Exhibition Centre , Cologne, Germany
Diary dates
01-07 Dec 2022
tbc, Dunedin, New Zealand
Diary dates
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