The No.1 Mission for all fitness clubs must be to “maximise customer value”.
The logics simple.
Once the original membership sale is achieved then all further revenue is achieved with virtually nil cost of sale.
In the future, we can expect that the likely cost of acquiring customers will increase as the market becomes invaded by increased marketing noise from all sides both online and offline.
You are going to have to commit more money than ever before to get the same results in a crowded market and if you want to dominate then you will need to be spending significantly more than your competition.
These costs fall into 2 categories.
Lead generation. The activity to get prospective customers to reveal themselves.
Conversion. The process and resources needed to turn that non-payer into a subscribing member. The costs may be in staff time or in advertising promotions.
Measurement is king! We can’t stress this point enough. Really understand your numbers if you want to succeed.
6 Ways To Maximise Your Members Value:
- Increase Transaction size–Initial or Repeat
- Increase Transaction Frequency
- Increase term of retention and lifetime value
- Increase PROFITS of business conducted with each member
- Recover lost customers
- Clone or multiply customers by referral
Maximise the benefits of each of the 6 and you will become the beast of your jungle.
Here’s a bit more detail and some ideas on how to achieve it.
Increase Transaction Size:
Offer at the point of joining a Triple price sandwich of new member programmes ranging in quality of support and tuition and reflecting 3 price levels.
Offer options with added value for longer term commitment. One year in full, 2 years in full, 3 years paid over 12 months in instalments.
Use the concept of transferable memberships and money back guarantees to reduce the barriers to entry.
Look at ways you can add value to existing membership options with inclusive coaching, supplements, and other benefits.
Think about bundling of Sessions particularly Group exercise where customers are very happy to buy bulk for discounted rates.
Increase Transaction Frequency:
Build a schedule of things that you can sell to your customers and most importantly work out ways that you can contrive a situation in order that you can simplify selling it directly either online or offline.
Here’s a starter list of some of the things you could sell or add into added value memberships:
VIP 6 week & 12-week starter programmes
Personal Progress Measurement Packs
4 & 6 Week Specialist Programmes
Dietary Analysis Sessions
Individual Group Gym Clinics
At Home Exercise Education
Here are some Sales Vehicles that you can use to maximise the opportunity of the product development above:
Online New Member Emails
Initial First Visit to the gym
Monthly Member and Guest days
Quarterly Member Newsletter
Monthly Meet the Manager Nights
Good luck trying these ideas out.