Considering an investment in fitness technology? This time of year is ideal, because the bustle of January may be cooling down, giving you the time to prepare for the spring and summer months, and find the right tools to remain relevant. With the tradeshow season just around the corner, use this simple checklist to ensure you are making the best possible investment.
Objective 1: Cost-Benefit Analysis
Clarify Problem/Opportunity
The first step towards a successful evaluation is understanding the core problem or opportunity you want to address. Which solutions directly address your fundamental problem or opportunity? Be careful not to gravitate towards solutions with “cool” features, unless those features have a direct impact on your problem or opportunity.The best way to remain unattached towards “nice-to-have” features is to analyze them independently.
Assess ROI
If this solution is a retention-focused initiative or cost-cutting strategy, you can get started gathering information quickly, using your captive audience — the members, staff or vendors this solution affects. Gather information objectively, by translating anecdotal feedback into objective data. We’ve all experienced the disappointment of quickly implementing something that was highly desired, only to find that it was underused and therefore returned little value to the bottom line.
When your solution is revenue generating, you should determine two things. The first, is how much total impact can this solution have? “Total Impact” will be defined by the specific solution you are evaluating. For example, let’s pretend that the core opportunity you want to seize is to increase personal training sales amongst new members. You are evaluating biometric software because you believe that members will be more motivated to hire an expert when they have an accurate gauge of their starting point. In this scenario, “Total Impact” would be the amount of new members on a monthly basis.
The percentage that your solution will penetrate is the second aspect to determine of the “Total Impact.” Using the scenario above, how many of the monthly new members will be able to afford a biometric screening?
Solutions
Check out buying guides that compile all the relevant information that you will need to make a decision. Look at trade publications and do research online. Visit tradeshows to test out the products and take a closer look.
Questions to ask when evaluating solutions:
a) Does the required infrastructure match your existing environment?
b) Is the initial price feasible?
c) Can I leverage my existing vendors for economies of scale, a quicker launch, or integration between existing products?
Objective 2: Evaluate Specific Products or Services
Once you have clarified your core problem or opportunity and have determined that it’s worth addressing, you should then evaluate the specific products or services that offer that solution.
Support
Discuss your outlets for support with vendors. Is this product or service member facing? If so, live support may be crucial to avoid “down-time.” What will it cost to maintain this product over its lifespan? Do you need to make other adjustments to prepare for implementation? It goes without saying, speak to several references who currently use this product or service.
Purchase Options
Consider the following questions to ensure that you are getting the most “bang” for your buck:
- Are leasing/financing options available?
- Is purchasing outright the only option? Is there a software as a service (SAAS) model available?
- Do opportunities for promotional pricing exist (tradeshow incentives, association-based incentives, bundle options)?
Roll-out Resources
Defining a reasonable rollout plan can be one of the most overlooked — and costly — stages of the purchasing process. Putting in place a practical rollout plan can be as easy as asking your vendor. Depending on the type of product or service, make sure to acquire a simple marketing strategy and/or on-boarding plan. Most vendors offer ready-made marketing materials when the product or service is member facing. These tools will be the first stepping stones on the path to a successful purchase.
Garrett Marshall is the Business Development Director for Fitness On Demand. For more information, visit www.fitnessondemand247.com, call 952-567-2710 or e-mail sales@fitnessondemand247.com.
