By: Curtis Mock
Q. Should I offer some type of “Guarantee” to my prospects to get them to join?
– Submitted by Caleb Jones, Manager of American Bodyworks in Woodstock, Ga.
A. This is currently one of the most debated questions in the fitness industry. With any type of guarantee offered, there is some level of risk associated with it. We know that members who don’t use the club on a regular basis could try to abuse any type of guarantee system you put in place. Conversely, by offering a guarantee, you could sign up more new members, since guarantees work to minimize the perceived risk that comes with purchasing decisions. By offering a way out for new members if they sign up, clubs incorporate risk reversal and essentially eliminate the prospects’ fears that they will somehow be trapped in a bad contract.
In many cases, the benefits of offering a guarantee will ultimately outweigh the risk of cancellations, since far more new members will sign up because of the guarantee than the number of people who try to take advantage of it. Here are some guarantee systems that I have seen used successfully:
Conditional Guarantee
“We guarantee you are going to lose X pounds of body fat and/or inches within 30 days or we will pay you your money back.”
In this conditional scenario, to qualify for the guarantee, the members MUST work out a pre-determined number of times per month (typically eight to 12), meet with a trainer for two consultations and follow the meal plan prescribed to them as part of their program. If they still haven’t seen measurable progress (decrease in body fat or inches, increase in strength, decreased blood pressure, etc.) they can be refunded their entire investment, if they choose.
The advantage to this system is that the members have to hold up their end of the agreement. If they don’t meet the criteria to which they agreed when they signed up, you are not obligated to reimburse them. The great thing about offering this guarantee is that even if the members only lose a few pounds during their first 30 days, they will probably not want to cancel their memberships. They will be thrilled to have lost that weight and will be hungry to lose more. But be aware that fewer prospects may become members, as compared to an unconditional guarantee, since they could fear they would not be able to hold up their end of the bargain.
Unconditional Guarantee
“If for ANY reason you are unhappy with the service after 30 days, we will pay you your money back.”
In this scenario, there is no obligation from the client. More pressure is on the club to get the member involved and to follow the meal plan. On the surface, this seems an inferior option, due to the fact that you are more likely to have to reimburse someone. However, the major advantage is that you can sign up more clients at the point of sale, due to the bold nature of the guarantee.
While this might make you a little nervous, consider how many more memberships you could potentiallly sell by simply offering an unconditional guarantee at the point of sale. Also, if you were to generate additional new members by offering it, even if a few of them actually took you up on your guarantee (which, by the way, would be difficult for many people to do), chances are good that you would still wind up with several additional long-term paying members.
Regardless of which guarantee system you implement, always remember that your new members really do want to lose the weight. Most people don’t want to waste their time for 30 days, only to rip you off and make you pay them back their investment. They want results, and they came to you because you were confident enough to make such a bold offer to help them reach their goals. If you help them reach those goals, they will never dream of asking for their money back, and will continue paying you for a very long time. -CS
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 e-mail at Curtis@ClubSolutionsMagazine.com
