Len Fridman, CEO and co-founder of Wellnessliving, shares the importance of building an agile business equipped with everything you need.
COVID-19 has turned the fitness industry on its head. Despite being one of the fastest-growing industries in the last decade, the pandemic is expected to lead to an industry decline of 13.20%. The decline is partly attributed to the large number of big-box gyms closing multiple locations or filing for bankruptcy, leaving millions of members looking for a new place to exercise.
Fitness studios equipped to adapt to change have set themselves up for long-term success as consumer habits and expectations change. Building an agile business is key to your future success. Here’s how to get started.
The seamless integration of technology in every aspect of your business is essential. It saves you time and opens new revenue streams for your business. Fitness studios that offered digital services were able to keep their loyal clients engaged and attract new ones when they had to close their doors.
According to a Wakefield Research study, 87% of adults say they will continue to work out at home, even after fitness studios and gyms reopen. Millennials and Generation Z are the key drivers of on-demand services and customized fitness experiences. They prefer these services because they better fit their schedules and routines.
Build a Performance-Oriented Business
While we don’t know what the future holds, we do have access to data that should be your guiding star. Stats show that businesses that leverage their client behavior data outperform others in sales by 85% and more than 25% in gross margin.
To get started, outline your business goals that are specific, measurable, attainable, and relevant; identify your key performance indicators, and then track your progress. The better you understand your business performance metrics and client behaviour, the easier it will be to build a marketing plan that taps into the buying habits of your target market and sets you up to achieve your goals.
Know Your Tribe
With pandemic lockdowns and restrictions, everyone had to adjust and get creative about how they think about fitness. Many also discovered a new meaning of community with the rise of virtual services. More and more people are looking to build connections with like-minded people. To create a truly authentic community, you need to define your niche and build a brand that resonates with your target audience.
As your community grows, identify your tribe – clients that are true fans. Encourage them to promote your brand, refer new clients, and engage with the community. A study published in the Journal of Marketing found that the lifetime value of a new referral client is 16% higher than one who wasn’t referred.
The pandemic quickly changed the way we do business. Making necessary changes and adopting an agile mindset will help future-proof your digital fitness business and ensure you’re set you up for long-term success.