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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

IHRSA Update: Know your customers

IHRSA’s Kristen Walsh shares highlights from The 2019 IHRSA Health Club Consumer Report into the US fitness market, as well as giving universal advice about how to stay relevant

By Kristen Walsh, IHRSA | Published in Health Club Management 2019 issue 11
As trends come and go, be alert and pivot your business creatively, says IHRSA / shutterstock
As trends come and go, be alert and pivot your business creatively, says IHRSA / shutterstock

In order to adequately recruit, serve, engage and retain health club customers and members, it’s crucial to understand everything about them – their needs, their wants and their behaviours.

IHRSA’s annual Health Club Consumer Report 2019 is based on a nationwide sample of more than 20,000 interviews and provides demographics and health, sports, and fitness participation data on US health club consumers.

Review your business model
At this moment in time, fitness facility operators, especially those in the fitness-only category, find themselves competing in an industry segment that’s dominated by discount operators (75 per cent charge less than US$25, and 32 per cent charge less than US$10 a month).

If your present business model is fitness-only (equipment, group exercise studios and locker rooms), then chances are most of your competitors will be in the low-price game, and your existing and future members will frame their buying decision around the lowest price.

Stay in the game
Consequently, if you plan to continue to operate a fitness-only model in your business, your options include:

• Lower your price and add a little extra. Rather than go head-to-head at $10, try $15 to $18, and then offer a few classes, some virtual classes, and possibly offer fee-based small group training.

• Continue to operate at your present price point, eg, $30 to $40, but differentiate your offering. Create a speciality, such as a genre of group classes, small group training or coaching, that none of your competitors is offering.

• Move up the chain. Add physical and programming amenities known to denote value and a higher price point. For example, you could add a court for POP tennis and pickleball; add a speciality studio and theme it; create more tribal programming, or partner with another small business to incorporate a custom bundle of services with higher perceived value into your offering.

Pursue ‘odd’ and ‘weird’
Dr Seuss notably quipped: “You have to be odd to be number one.” What he meant was that reaching the top and, equally importantly, remaining at the top, requires a penchant for being a little different from the rest.

“Odd” refers to your business’ value proposition and whether it offers consumers and members something unique, innovative, and relevant – rather than the same old same old.

Dr Seuss also said: “We’re all a little weird and life is a little weird, and when we find someone whose weirdness is compatible with ours, we join up with them and fall in mutual weirdness…”

What the doctor ordered speaks to building a value proposition that appeals to one or a few weird audiences. Many successful boutique studios have taken this approach to crafting their value proposition. Gym Box in the UK is a premium operator that has taken a different approach and, in so doing, carved out a distinctive position for itself in the marketplace.

Just remember, being ‘odd’ also requires innovation and – importantly –having relevance to the audience you pursue.

So, what does it take to foster a value proposition and culture takes you to number one and enables you to leverage ‘weird’?

Find your tribe
Consider selecting single or multiple niche audiences to serve, and craft your value proposition and culture to be relevant to them. Study your marketplace, talk to your existing members and, most importantly, search for un-served/under-served groups.

• Deliver your offering differently. No one says you have to operate in the same way as your competitors.

Maybe offer club access via bundled packages instead of monthly subscriptions.

How about investing more in technology and becoming the most tech-savvy fitness business in the market?

• Be a 2.5 percenter. Two-and-a-half percent refers to the percentage of businesses that are real innovators. These are businesses that pursue innovation or are willing to adopt business practices and technology early on, typically way ahead of the competition. For example, why not try a ‘freemium’ approach to your business model, similar to that used in the gaming industry, in which you offer the basics for free and then charge extra for upgrades and add-ons.

• Go back in time or shift into the future. CrossFit, possibly without even knowing it, built a business proposition around some of the clubs of the mid-1800s, in which gymnastics and calisthenics were the core of the programme. There are other models from olden times that would still work today.

Conversely, you could go the opposite route and create a high-tech virtual experience (ie virtual reality, streaming mobile content, virtual check-in, etc) supplemented by human contact.

Find out more at: www.ihrsa.org/publications

Dr Seuss Photo:shutterstock
"You have to be odd to be number one" - Dr Seuss
Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
Consider adding new amenities to your club, such as a pickleball court / shutterstock
Consider adding new amenities to your club, such as a pickleball court / shutterstock
Treadmills remain the most popular piece of equipment in the gym / shutterstock
Treadmills remain the most popular piece of equipment in the gym / shutterstock
Gym Box in the UK has carved out a distinctive position
Gym Box in the UK has carved out a distinctive position
Time shifting: CrossFit has built an enormous following by delivering traditional training methods in a new way
/ shutterstock
Time shifting: CrossFit has built an enormous following by delivering traditional training methods in a new way / shutterstock
https://www.leisureopportunities.co.uk/images/imagesX/894719_58225.jpg
1 out of 5 Americans age six and older belongs to health club. Find out more key findings from the 2019 IHRSA Health Club Consumer Report...
IHRSA, Kristen Walsh,research, consumer report,
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FREE WEBINAR
promotion
This free webinar on 26 January will see our panellists reflect on the changes to work in 2020, and their priorities for 2021.
Opinion: 2021 is the year to prioritise global culture
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Supplier Showcases
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Catalogue Gallery
Click on a catalogue to view it online
Directory
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
Red Light Therapy
 Red Light Rising: Red Light Therapy
Fitness equipment
Octane Fitness: Fitness equipment
Fitness Software
FunXtion International BV: Fitness Software
Wearable technology solutions
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Uniforms
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Whole body cryotherapy
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Property & Tenders
11 - 25 Union St, London SE1 1SD
Bankside Open Spaces Trust
Property & Tenders
Waltham Abbey, Essex
Lee Valley Regional Park Authority
Property & Tenders
Diary dates
02-04 Feb 2021
Ericsson Exhibition Hall, Ricoh Arena, Coventry, United Kingdom
Diary dates
23-26 Feb 2021
IFEMA, Madrid, Spain
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03-04 Mar 2021
NEC, Birmingham, United Kingdom
Diary dates
03-06 Jun 2021
Expo Centre & Riviera di Rimini, Italy
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16-17 Jun 2021
ExCeL London, London, United Kingdom
Diary dates
21-24 Sep 2021
Messe Stuttgart, Germany
Diary dates
01-07 Dec 2022
tbc, Dunedin, New Zealand
Diary dates

features

IHRSA Update: Know your customers

IHRSA’s Kristen Walsh shares highlights from The 2019 IHRSA Health Club Consumer Report into the US fitness market, as well as giving universal advice about how to stay relevant

By Kristen Walsh, IHRSA | Published in Health Club Management 2019 issue 11
As trends come and go, be alert and pivot your business creatively, says IHRSA / shutterstock
As trends come and go, be alert and pivot your business creatively, says IHRSA / shutterstock

In order to adequately recruit, serve, engage and retain health club customers and members, it’s crucial to understand everything about them – their needs, their wants and their behaviours.

IHRSA’s annual Health Club Consumer Report 2019 is based on a nationwide sample of more than 20,000 interviews and provides demographics and health, sports, and fitness participation data on US health club consumers.

Review your business model
At this moment in time, fitness facility operators, especially those in the fitness-only category, find themselves competing in an industry segment that’s dominated by discount operators (75 per cent charge less than US$25, and 32 per cent charge less than US$10 a month).

If your present business model is fitness-only (equipment, group exercise studios and locker rooms), then chances are most of your competitors will be in the low-price game, and your existing and future members will frame their buying decision around the lowest price.

Stay in the game
Consequently, if you plan to continue to operate a fitness-only model in your business, your options include:

• Lower your price and add a little extra. Rather than go head-to-head at $10, try $15 to $18, and then offer a few classes, some virtual classes, and possibly offer fee-based small group training.

• Continue to operate at your present price point, eg, $30 to $40, but differentiate your offering. Create a speciality, such as a genre of group classes, small group training or coaching, that none of your competitors is offering.

• Move up the chain. Add physical and programming amenities known to denote value and a higher price point. For example, you could add a court for POP tennis and pickleball; add a speciality studio and theme it; create more tribal programming, or partner with another small business to incorporate a custom bundle of services with higher perceived value into your offering.

Pursue ‘odd’ and ‘weird’
Dr Seuss notably quipped: “You have to be odd to be number one.” What he meant was that reaching the top and, equally importantly, remaining at the top, requires a penchant for being a little different from the rest.

“Odd” refers to your business’ value proposition and whether it offers consumers and members something unique, innovative, and relevant – rather than the same old same old.

Dr Seuss also said: “We’re all a little weird and life is a little weird, and when we find someone whose weirdness is compatible with ours, we join up with them and fall in mutual weirdness…”

What the doctor ordered speaks to building a value proposition that appeals to one or a few weird audiences. Many successful boutique studios have taken this approach to crafting their value proposition. Gym Box in the UK is a premium operator that has taken a different approach and, in so doing, carved out a distinctive position for itself in the marketplace.

Just remember, being ‘odd’ also requires innovation and – importantly –having relevance to the audience you pursue.

So, what does it take to foster a value proposition and culture takes you to number one and enables you to leverage ‘weird’?

Find your tribe
Consider selecting single or multiple niche audiences to serve, and craft your value proposition and culture to be relevant to them. Study your marketplace, talk to your existing members and, most importantly, search for un-served/under-served groups.

• Deliver your offering differently. No one says you have to operate in the same way as your competitors.

Maybe offer club access via bundled packages instead of monthly subscriptions.

How about investing more in technology and becoming the most tech-savvy fitness business in the market?

• Be a 2.5 percenter. Two-and-a-half percent refers to the percentage of businesses that are real innovators. These are businesses that pursue innovation or are willing to adopt business practices and technology early on, typically way ahead of the competition. For example, why not try a ‘freemium’ approach to your business model, similar to that used in the gaming industry, in which you offer the basics for free and then charge extra for upgrades and add-ons.

• Go back in time or shift into the future. CrossFit, possibly without even knowing it, built a business proposition around some of the clubs of the mid-1800s, in which gymnastics and calisthenics were the core of the programme. There are other models from olden times that would still work today.

Conversely, you could go the opposite route and create a high-tech virtual experience (ie virtual reality, streaming mobile content, virtual check-in, etc) supplemented by human contact.

Find out more at: www.ihrsa.org/publications

Dr Seuss Photo:shutterstock
"You have to be odd to be number one" - Dr Seuss
Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
Consider adding new amenities to your club, such as a pickleball court / shutterstock
Consider adding new amenities to your club, such as a pickleball court / shutterstock
Treadmills remain the most popular piece of equipment in the gym / shutterstock
Treadmills remain the most popular piece of equipment in the gym / shutterstock
Gym Box in the UK has carved out a distinctive position
Gym Box in the UK has carved out a distinctive position
Time shifting: CrossFit has built an enormous following by delivering traditional training methods in a new way
/ shutterstock
Time shifting: CrossFit has built an enormous following by delivering traditional training methods in a new way / shutterstock
https://www.leisureopportunities.co.uk/images/imagesX/894719_58225.jpg
1 out of 5 Americans age six and older belongs to health club. Find out more key findings from the 2019 IHRSA Health Club Consumer Report...
IHRSA, Kristen Walsh,research, consumer report,
Latest News
HCM editor, Liz Terry, has launched a Parliamentary Petition calling for gyms to be in ...
Latest News
The failure to tackle the UK's obesity crisis is down to successive governments being guilty ...
Latest News
Les Mills has launched a new digital content solution to support health and fitness operators ...
Latest News
Gymbox has entered the hospitality space with the signing of a deal to deliver in-room ...
Latest News
Nuffield Health has launched a series of free, online classes focused on emotional wellbeing. The ...
Latest News
Resistance training is just as beneficial for men and women over the age of 50, ...
Latest News
Fitness, sport and leisure sector professionals who have continued to deliver services to their communities ...
Latest News
A national survey has launched to chart the mental health of the fitness and physical ...
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FREE WEBINAR
promotion
This free webinar on 26 January will see our panellists reflect on the changes to work in 2020, and their priorities for 2021.
Opinion: 2021 is the year to prioritise global culture
Featured supplier news
Featured supplier: AskNicely helps empower businesses to improve customer experience and boost NPS
Maintaining a consistent member experience across a growing health and fitness brand can prove challenging.
Featured supplier news
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.
Company profiles
Company profile: Keiser UK Ltd
Keiser began its history of visionary sports science leadership over 40 years ago, rejecting the ...
Company profiles
Company profile: Hedgehog Concept Ltd
Ground breaking leisure and fitness club management software. Software that has incisive focus on the ...
Supplier Showcases
Supplier showcase - Bouncing back
Catalogue Gallery
Click on a catalogue to view it online
Directory
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
Red Light Therapy
 Red Light Rising: Red Light Therapy
Fitness equipment
Octane Fitness: Fitness equipment
Fitness Software
FunXtion International BV: Fitness Software
Wearable technology solutions
MyZone: Wearable technology solutions
Uniforms
Service Sport: Uniforms
Whole body cryotherapy
Art of Cryo: Whole body cryotherapy
Skincare
Comfort Zone - Davines S.p.A: Skincare
Hydrotherapy / spa fragrances
Kemitron GmbH: Hydrotherapy / spa fragrances
Member feedback software
AskNicely: Member feedback software
Property & Tenders
11 - 25 Union St, London SE1 1SD
Bankside Open Spaces Trust
Property & Tenders
Waltham Abbey, Essex
Lee Valley Regional Park Authority
Property & Tenders
Diary dates
02-04 Feb 2021
Ericsson Exhibition Hall, Ricoh Arena, Coventry, United Kingdom
Diary dates
23-26 Feb 2021
IFEMA, Madrid, Spain
Diary dates
03-04 Mar 2021
NEC, Birmingham, United Kingdom
Diary dates
03-06 Jun 2021
Expo Centre & Riviera di Rimini, Italy
Diary dates
16-17 Jun 2021
ExCeL London, London, United Kingdom
Diary dates
21-24 Sep 2021
Messe Stuttgart, Germany
Diary dates
01-07 Dec 2022
tbc, Dunedin, New Zealand
Diary dates
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