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Consider the retail industry: every square foot of floor space should create value for the customer and profit for the retailer. This can generally be construed under two separate mantras:
• Mantra 1: Pack every square foot with as much inventory as possible.
• Mantra 2: Be mindful of your space and identity.
Let’s dissect these two mantras a bit.
Mantra 1: Examples: Circuit City, Sports Authority, Radio Shack.
Companies that subscribe to this mantra spend little time understanding their customer, locations and offerings, and even less time understanding the overlap between their customer and their offerings. These companies may have great potential due to their “shiny object syndrome” utilized in outbound messaging and marketing, however they fail to adapt to fast changing environments.
Mantra 2: Examples: Walmart, Target, Amazon, Equinox, Orangetheory Fitness, Harman Fitness.
These companies invest heavily into prospect and customer research and customer profiling. They dive deeply into understanding which services or products offered are actually utilized. Then, they develop plans to target the customers to whom they want to offer services. These companies have a unique identity they continuously evaluate in the face of ever-changing consumer demand.
I think we all will find Mantra 2 the most compelling, but how do we get there?
1. Think through the experience you want your “target customer” to have and find out how many “target customers” you have in your market.
2. Digitally survey your current customers to understand why they chose you and analyze the results.
3. Digitally survey prospects (both those who converted and those who didn’t) to learn about the impression of your club and analyze the results.
4. Evaluate whether or not there is overlap between services your customers expect and services which you spend capital to offer.
5. Maximize utility on results.
Your members don’t know how many weight stacks or racks you have. However, they know how long they have to wait for a treadmill or a dumbbell. They also know if they are achieving their goals. All of this awareness rolls up to whether or not they are getting the value they want out of your business.
As for you, you will know the number of prospects, converted prospects, number of members in enhanced programs like PT and other services. These metrics establish focal points that ensure business success.
Each of these facets require ongoing attention. Knowing your prospects and understanding the value of quality equipment will help you maximize potential and turn your club into a profitable marketplace.