Heading into the busier season in the health club industry, it’s important to take a step back and analyze your process for optimizing membership sales. For the purposes of this article, the four major types of business models are broken out and ideas provided for maximizing sales:
Low Cost Provider
• Marketing: Stress the fact that you are the most inexpensive option. Market on TV, radio, print and via direct mailers with the message that you can get people in shape for the least amount of money. If your software provider offers Online Joining, take advantage of it as a great way to increase sales.
• Staffing: No sales team needed — cross train your staff to close with the fact that the prospect can get in shape at your facility just as easily as at the higher-cost alternatives.
• Services: If competing on price, you typically can’t offer many costly amenities or personalized services. What you can offer is a clean facility with an abundance of quality exercise equipment. Without that, other facilities will steal members who are frustrated with unclean clubs or the lack of equipment.
Mid-Range Provider
• Marketing: Define what sets you apart. In your marketing (same type as low-cost providers), mention that you have better equipment, cleaner facilities, more personalized help, more amenities, etc., without mentioning your price. If your software provider offers Online Joining, you also can take advantage of it to increase sales.
• Staffing: You need to convince people why you are different, so it makes sense to have at least one person trained in need-based selling who is dedicated to tours and/or prospect follow-up. Quality tours that involve a needs assessment and successful closing technique would benefit your center.
• Services: Offer services that lower-cost providers don’t. This can be amenities or just higher personalized service (free orientations, staffed circuit, group personal training, etc). Online Scheduling would benefit your members and offer them a convenience that lower-cost providers don’t.
High-Cost Provider
• Marketing: More targeted and of higher quality. Send direct mail to more affluent targets, focus on marketing to local companies (health fairs, etc.) and form partnerships with hospitals for doctor referrals. Carve out marketing dollars for referral marketing. Referrals are important regardless of your business model, but for high-cost providers (and personal training studios) they are vital. Your members often have friends or family that are looking for a similar experience in a fitness center – tap into that audience.
• Staffing: A sales team is probably needed. You want quality representatives that are trained in illustrating the value of the investment in your center. Managing every prospect experience is a must. Use a lead management software (some club management software includes this) to stay on top of all leads and manage the team for better results.
• Services: It has to be obvious why you are higher cost the moment a prospect walks into your center. Hotel-quality locker rooms, towel service, staffed fitness floor, immaculate facility, etc. Online services like a member portal — to allow members to change their billing, print usage reports, etc. — and online scheduling help add to your service level.
Personal Training Studio
• Marketing: Based purely on the fact that results often can only be attained with personal training. Don’t compare yourself to any of the other club types because your facility is completely different.
• Staffing: With typically minimal staffing, it is imperative that all employees are revenue generating, enthusiastic and driven to sell personal training and the client experience. Only hire staff that believes in the model.
• Services: Provide the same experience as a high-cost provider in terms of cleanliness and locker rooms. You normally won’t have the added amenities, but clients will probably be paying more at your facility and your center needs to reflect that. Online scheduling that you can access from a Smart Phone will make it easier for both your clients and yourself.
Take a look at your center and determine which model your club best describes. Put your efforts into distinguishing it from the competition — demonstrate why your facility is the best choice for your market. Marketing, staffing and services all need to reflect that strategy consistency to fulfill your sales goals.
Len Bell is a Sales Associate with Twin Oaks Software. He can be contacted at 866.278.6750, or by e-mail at lbell@tosd.com, or visit www.tosd.com.
