VFP Increases Member Spending and Retention
In 2016, VFP set out to answer the question: Do interactive visual sales presentations stimulate member spending over traditional methods of selling memberships and personal training?
Through a comprehensive double-blind research study, VFP found the answer to this question to be – yes. The study looked at the spending habits of more than 250,000 members across 100 facilities, and discovered that members who received a visual sales presentation for personal training spent an additional 230 percent when compared to members who did not receive a presentation.
Here, Mario Bravomalo, the founder of VFP, shared key insights from the study and what health club operators can take away from the research.
CS: What was the purpose of the study?
MB: The purpose was to help clubs understand member spending habits. Over the course of the past couple of years, the average cost of a membership has been continuing to drop with the low-price players coming into the marketplace. What we wanted to do was look at the techniques for increasing member spending that were working in clubs.
We had always believed that when a well-scripted highly-interactive visual presentation was performed during personal training orientation, member spending was significantly increased. We wanted to see if that was actually a fact, and so we put the research project together based off of that.
CS: Why is the study significant?
MB: It was a double-blind study. The researcher who actually pulled the data and compiled the numbers was unaware of our hypothesis or why we were doing the study — they were just asked to compile the numbers. We truly wanted an unbiased study. That form of research is rarely done in this industry, so it was an important factor for us to make sure it was unbiased.
The other thing is the magnitude of the study. It was over the course of a year, and included all dollars ever spent by the members included. We were able to obtain conclusive data of member spending. The amount of data is unbelievable — the fact it was more than 250,000 members spanning over 100 clubs — and, as far as we know, this is by far the largest study of this type that has looked at member spending. It is a significant study in helping clubs increase their revenue by looking at member spending.
CS: What else did the study find?
MB: For those members who received a visual sales presentation, their initial spending increased by 230 percent. But then, even after that first month, their spending increased by 150 percent. In addition, they stayed a member for 13 percent longer.
CS: What do you want health clubs to take away from this study?
MB: The biggest thing is if they’re looking for an easy way to increase member spending in their club and drive more revenue to their bottom line, then this is probably the low-hanging fruit for them to be able to effect that. Just by incorporating this type of visual presentation during their personal training orientation, they can see significant returns for this effort.
For more information on VFP and how it can benefit your business, visit http://vfp.us/.