I hope that the last couple of months have flown by and you’re happy with the success that the first quarter has delivered. But don’t be seduced by the increased cash-flow — March is no time to sit back on your heels.
Here is a short list of essential considerations for the second quarter.
1) “Go on a second date with your new members.”
In our industry, there is one word that you hear more often than any other — “Retention.” Are you taking practical steps on the front end of your sales process to improve your club’s performance? Recently, Emmett Williams, a multi-club owner and industry professional, made a point that spotlighted why a good retention game was so important in the second quarter. “With January members you need to switch gears from impulse to habit,” said Williams.
He went on to explain how those who join a club in the first quarter are the most at risk for attrition. “These members typically join on impulse,” said Williams. The question is then, what products, programs, or services can you implement to build a deeper, habit-forming relationship with your quarter one new members? Don’t settle for anything lame. Look for products that motivate, require participation — yet don’t require much heavy lifting. Don’t forget, quarter one’s new members represent 25 percent of the income statement for the year.
2) “Go to second base with your regular members.”
Most club operators realize that demand will typically decrease towards the middle of the second quarter. This means, unless you plan to fight that declining current, most effective strategies will be centered on better monetizing your existing member base. I know no one better at squeezing ROI out of non-dues revenue streams than Matt Rhodes, a multi-club owner in Kansas and Missouri. I e-mailed him asking for a few tips on preparing for early summer.
“Our plan is to ensure that our personal training and small group training departments are well rounded and ready to capitalize,” he said. “To do that we are meeting with our personal training manager and trainers to review all of our programming and determine which areas we can enhance. Getting everyone involved means better ideas as well as their buy-in.”
Knowing Matt, and how successful his clubs are, I was most intrigued to learn that the primary goal of his second quarter programming is not necessarily to drive revenue, but to have the most attractive menu of programs available to keep members in the club.
3) “Buy their love” through an incentivized referral program.
You may not be able to single handedly turn the tide of demand. But, don’t forget about the hundreds of cheerleaders who experience your product everyday — your current members. As we all know, each of these members have friends, family and colleagues who may be a qualified prospect. Now, if you’ve tried an incentivized referral program in the past with little success, read on for a few tips to maximize results:
(1) Communication is key: if your members don’t know, they can’t participate.
(2) Short and sweet: set a short-term deadline (30-60 days). You are trying to create a “contest” feel.
(3) Quality over quantity: This is not an “everyone wins” referral contest. Offer a few big prizes for top performers (vacations, sporting events, personalized/customized apparel, popular gadgets like iPhone, iPad, etc.).
(4) Use bragging rights: Competition is a driving factor. Create community by spotlighting the members who are generating the most referrals. Use Facebook, internal signage and any other medium that will inspire members.
(5) Be a good host: Amplify the results of the program by making it easy for your members to refer. Offer open house events, buddy passes and family programming so that members feel privileged to bring their friends. This is the only time it’s acceptable to break out the gorilla suit. On second thought, maybe that’s a little overkill.
Garrett Marshall is the business development director for Fitness On Demand. He can be contacted at 952-567-2710 or at sales@fitnessondemand247.com
