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Home Marketing & Sales

Slippery Funnel Theory

smcdonald by smcdonald
July 1, 2009
in Marketing & Sales, News
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There are many different ways to market a product.  You can utilize traditional “paid” external marketing, internal marketing, guerrilla or grassroots style marketing, and of course Internet marketing.  But what kind of sales model do you have built that complements AND maximizes your marketing efforts?

I advocate what I call the “Slippery Funnel” model.  The theory is simple.  Whatever it takes to get someone in the door, do it.  Give complimentary memberships away everywhere.  Whatever it takes to get someone signed up, do it.  If it takes a longer trial period, the ability to pay in full at a discount, tons of incentives at the point of sale, or to allow them to have a lower monthly rate if they commit to a longer term…do it. 

Then once you get them into the “mouth of the funnel”, focus on making sure the funnel is extra slippery to get them spending more money with you. 

For example, at the point of sale, make sure you are offering complimentary personal training (I advocate three sessions) but also offer a special priced one-time-only PT package.  Once they have committed to joining, let them know that new members can take advantage of a very special offer.  In addition to their three complimentary PT sessions, they can have 6 more sessions for only $189.   (These would be 30 minute sessions)

Though the trainer will likely earn all of that revenue, it should only take that member three weeks before they’ve used up all 9 sessions.  And more importantly, that member already feels committed to their trainer and probably won’t want to start working out on their own, especially if they are already feeling better and seeing changes in their body.  It will make it much easier for the personal trainer to sign up that person as a long term client, thus earning the club more revenue in the long run.

You can also offer two weeks of complimentary boot camp programming to your members.  We all know how fun and effective boot camp training is; so make sure you allow your most skeptical members to try it.  If someone attends boot camp three times a week for two weeks, they will not want to stop.  You got them into the funnel, made it too slippery to get back out, and they ultimately spend more money with you…and they’re happy about it!

Another example would be to allow non-members to buy supplements from you at cost or utilize your tanning beds at a much lower rate than tanning salons in the area.  Allow all friends of your members to get a special “Friends and Family” discount from you instead of shopping at GNC, or tanning at the tanning salon up the street.  Though you may not be making a lot of money from these people, they are being introduced to your services and are becoming familiar with paying you.  Combine that with the fact that their friends and family are already members and you’ll find that the funnel gets slippery very quickly.

Just remember that membership dues are not as important as getting someone involved in your programming and purchasing from your various profit centers.  Most club owners constantly focus on bringing in as many members as possible.  And while I believe it is very important to always be marketing your club, it is more important to focus on getting current members spending more money and getting more involved.

Curtis Mock is an author, speaker, and consultant to health clubs worldwide, and is the Executive Director of GymSuccess.com.  Curtis welcomes all questions and comments via email at Curtis@ClubSolutionsMagazine.com

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