Have you ever run a promotion offering a cheaper membership fee for new customers? Of course you have. Have you ever stopped to consider the impact of such a promotion? Maybe… You probably think it’s a great way to attract new business, but also consider the collateral damage done in the process.
Promotions that offer better pricing for new members alienate your most valuable asset…your current members! You remember them, don’t you? They’re the ones paying your bills and growing your bank account, and many of them have been doing so for a long time. Sadly, it’s all too common to see businesses focus on getting new customers, instead of trying to keep current ones.
If you’ve ever called your mobile phone carrier after seeing a terrific promotion they were offering, only to learn that the it was for new customers only, think about how that made you feel. Did you feel appreciated? Probably not. A better way to get new members is to tap into current members. Referral and loyalty programs that offer rewards to current members for bringing in new ones can be very effective. Ask your members if they can arrange a lunch meeting at work so you can talk about the benefits of exercise and healthy living. Get creative and come up with incentives to entice members to do this, like free tanning, a complimentary workout with a personal trainer, or a month’s free membership.
The most important thing you can do is connect with members on a regular basis. This means more than just smiling when you say hello and goodbye. Engage them in conversations, get out on the floor and chat with them (many people would love to have someone to chat with to help dull the boredom of a cardio workout), run contests, throw parties, etc…The more interaction you have, the more they will feel like they are a part of something. When people feel connected to something positive, it’s in their nature to want to share it with others. This can be your greatest tool in growing your membership.
Finally, always consider the psychological impact of offering a lower price for membership. If you lower prices, your product and service is devalued in the eyes of the consumer. New members will have that price established as the value of your offering, and when it comes time to renew at the “regular” price you’ll have to convince them of your value too. As for current members, they’ll just feel like they’re getting the raw end of the deal.
Yosi Knecht is the Canadian Territory Manager for Atlantis Strength Equipment. He can be contacted at 877.454.2285 extension 248 or by email at yknecht@atlantis-fit.com.
