Growing your club’s bottom line is a balancing act. You have to know when to invest money to bring in new clients and when to invest in keeping current members happy with the amenities and services your business provides. Understanding the relationship between sales and marketing and getting more members is relatively simple. It can be much more difficult, however, to understand how spending money to keep current members happy can increase your club’s profits through retention and referrals.
In tough economic times, health clubs cannot rely on clients hanging onto memberships they do not use often enough or are not netting sufficient results from, says Richard Ekstrom, president of Retention Management, which offers clubs a service that delivers individualized e-mail communications directly to members. “With consumers now being forced to analyze their spending habits, many simply cannot justify hanging onto a membership that’s not being utilized. They see it as a poor return on their investment,” he adds.
Clubs must provide members with an overall experience that is worth their financial commitment. Members who interact regularly with their club and see consistent results are more likely to stay and refer friends to your business. To keep retention and referral rates high, you’ll want to think about the customer service and amenities you offer members every time they walk into your club. Making sure clients stay regularly engaged, through external communications and by creating a fun, fitness-oriented community inside and outside the club, is another way to help them achieve their goals and grow your business, in any economy.
Service With a Smile
Combating attrition is a daily battle that begins with providing good customer-service, says Tracy Matthews, director of member experience for Ontario-based GoodLife Fitness Clubs. She suggests employees give members three points of contact on each and every visit-from a warm welcome and good bye, to asking when they plan to come back again. They can also incorporate what she calls “The 15/5 Rule” by smiling and nodding when a member is within a 15-foot radius and giving a personal greeting to everyone who comes within five feet of them. Offering solid service builds relationships, which nets higher levels of customer loyalty, suggests Debra Lee, director of marketing for Florida-based Gainesville Health & Fitness Centers.
“Members develop stronger relationships with customer friendly businesses that solve problems fairly and in timely fashion, make recommendations for best results, do what they say they are going to do and know customers’ names,” Lee says. GHFC uses an extensive hiring practice to ensure staff is keyed into providing high levels of customer service, adds director of operations Shawn Stewart. This lets the club build and foster a culture centered on retention.
Offering the Best
Perhaps the clearest way to make your business indispensable to members is meeting their expectations with the equipment, classes and training you provide. This means staying on top of the latest trends so you can meet the rapidly changing expectations of your clientele. Offering a wide range of group exercise classes, for example, is a good way to reach members who might not otherwise sign up for a gym membership. It can also increase the “fun factor” at your club, while bringing members to the facility more frequently, says Phillip Mills, co-founder of Les Mills International, distributor of trademarked exercise programs for clubs around the world.
“Group classes…for members are low cost compared to personal training and, for club managers, are easy to implement, low-risk and have a huge return on investment.” A study the company conducted jointly with IHRSA revealed Les Mills class participants attended clubs twice as often as other members. About three-quarters of class members surveyed said they intended to renew their health club memberships and were “very likely” or “extremely likely” to recommend a friend join their club.
For most health clubs, personal training sessions are where customer service meets fitness results. Many new members seek this service as a formal orientation to exercising, so it’s important owners and trainers put care and thought into their training programs, writes Greg Justice, owner of Kansas City’s AYC Health & Fitness, in an article on training. “Client retention equals cash flow,” he adds. “Remember what’s important to your clients. They want to like you, so know that your focus is on them and personalize each session just for them.
Interacting with Members
One of the most common reasons members leave a health club is that they simply stop going frequently enough to justify the expense. Having a way to stay in contact with members outside the walls of your club will help them stay engaged and visiting regularly. “You have to focus on helping them develop a solid habit in the first 30 to 60 days of their membership,” Lee says. This means communicating with new members as well as reaching out to members who have terminated but are still living in the area.
Today, club management and enrollment software can help track information on the frequency of visits and individual interaction with different parts of the club. Monitoring members’ usage helps owners identify those people who may need regular outreach, so fewer clients fall through the cracks.
Another way to keep members coming back to the club is to engage them through special programs and events designed specifically for them, advises David Stempler, general manager of World Gym in Wantagh, NY. “If I can find a way to entice a member to try something new every now and then, I have taken a big step to retention,” he says.
Stempler’s gym hosts fitness demonstrations, club parties and racquetball games against other clubs to make customers feel they are a part of a community centered on fun and fitness.
Annual campaigns and ongoing events for members are another way to guarantee and increase retention through results and interaction. For example, two years ago the Lindenhurst Health & Fitness Center in the Chicago area created a weight loss campaign inspired by the popular TV show “Biggest Loser,” according to Executive Director Eric Nelson. This year, nine teams lost a record 888 pounds in an eight-week period. Internal programs for members can motivate participants to meet their fitness goals and help them see their membership is worth the investment. “Meeting member needs like this is a huge retention factor,” Nelson adds.
Whether you’re using programs and community outreach, communication or quality customer service to increase regular interaction, retention and referral rates, it is crucial that you respond to what your customers need-attention and concern for their needs and goals. In uncertain economic times, every customer and every dollar counts. -CS
INDUSTRY RESOURCES:
Aqua Massage
aquamassage.com
Baltic Leisure
balticleisure.com
HydroMassage
hydromassage.com
Les Mills International
lesmills.com
MyBodySite.com
mybodysite.com
Retention Management
retentionmanagement.com
Trainer Force
trainerforce.com
Vitabot
vitabot.com
