When setting business goals, many of us are guilty of accepting good solutions instead of finding what really works best. Fitness center owners are faced with the difficult challenge of offering a unique and positive experience for members while increasing profitability. A recent International Health, Racquet and Sportsclub Association (IHRSA) survey determined that the top two programming and profit centers for fitness facilities are: personal training (50.5 %) and massage therapy (28.2 %). While the potential for massage therapy to create more value for fitness centers is good, it certainly has room to be even better.
A new, massage technology called, dry hydrotherapy, is quickly gaining the attention of fitness center owners as a means to increase profitability, membership experience, recruitment efforts, and membership renewals. (First, let me explain what dry hydrotherapy does. Then, I’ll tell you why it’s good for profitability.)
The unique, dry hydrotherapy systems feature a traveling water jet that delivers powerful, soothing streams of water across the body for a relaxing, energy-restoring massage. The natural approach of dry hydroptherapy delivers a combination of heat therapy (customizable from 80-105 degrees), and a deep tissue massage to help relieve pain and muscle soreness.
Although this therapy is water-based, the user remains dry – separated from the water by a thin, flexible barrier creating a sanitary “touchless” massage experience. This design is beneficial for many reasons, including maintaining sanitary conditions for each user. With a quick wipe-down, using a sanitizing solution, the unit is ready for the next user. There is no need for the user to undress, making the experience completely customizable for each individual person.
Additionally, dry hydrotherapy units don’t require club personnel to attend to them, and they can be operated and programmed by each club member during every use.
The “hidden treasure” of dry hydrotherapy is that it is flexible. It can be used to promote circulation after a workout, but it can also be used prior to exercise for 10 minutes as a way to warm-up while visualizing the workout at-hand, or just to relax. By making it more convenient for members to participate in the club’s amenities, the value of each amenity is increased.
Now, let’s move on to the profitability issue. We know that traditional massage therapy is a terrific wellness component that is desired for its physical and emotional benefits. For this reason, consumers receive 230 million massages annually and the massage therapy industry rakes in $11-14 million per year, according to the Associated Bodywork and Massage Professionals (ABMP). The 2005 ABMP member survey reported the median price for massage at $60 for a one-hour session. That cost makes it difficult, if not impossible, for most people to get frequent massages.
Dry hydroptherapy provides a better, more cost-effective massage option for fitness center customers. By taking advantage of leasing options, your fitness center can offer dry hydrotherapy for less than $325 per month, per unit. So, if you have a club with 2,000 members and each person pays $55 per month (the average, according to IHRSA). After three years, the cost-per-person of offering dry hydrotherapy is less than 17 cents.
As a fitness club owner, you have two options for this type of therapy: charge for the service on a per-use basis, or offer the massage as an extra “perk” for members and provide the service free-of-charge. The ABMP says that 85% of consumers have an overwhelmingly positive response to massage – meaning the offer of an inexpensive or free massage is sure to impress a good chunk of your club’s members. The more you impress your members, the less chance you have of losing them to another club.
As an industry average, the attrition rate is between 37% and 44%. Retention of current members is key. If only 15% of your current members (based on a 2,000-member club) are so impressed with value of the massage therapy offered that they decide to renew their memberships, you have retained $16,500 in monthly electronic funds transfers for memberships. Even at 5%, you’d be retaining $5,500 per month. By taking a bite out of attrition percentages, the higher costs of recruiting brand new members can be lessened.
I have found that many fitness centers have an outstanding track record of providing: new services; the latest technology in fitness; creative club themes, and other incentives for customers to remain members and even join. So, if clubs are providing the latest and greatest, why do we still have attrition issues?
The answer, in my opinion, is not what clubs offer to members, but rather how those offers are received by customers. How do clubs serve the offering to members? Is the offering truly unique? Do the clubs add products and services, and charge per-use? Or, do clubs seek a value-add solution and present, or package, membership services in a manner that helps members see all of the value offered in the club?
The perception of value by the customer (especially in a serviceoriented business) is the key to maintaining high retention and customer referral levels. The best way to create that perception is to give your customers a unique, out-of-the-ordinary fitness experience they can’t get anywhere else. Do that, and people will notice that your club is a cut above the rest! Take the good solutions and use them as a springboard to the best!
Mike Roglen is the Director of Sales for SolaJet’s parent company, Vescent. He can be contacted at 1.877.DRY.WAVE, or by email at mroglen@vescent.com, or visit www.vescent.com.
