IHRSA EUROPE UPDATE
thoughts on low-cost gyms • melissa rodriguez • ihrsa research manager
clubs in Europe. In some of the mature markets such as the UK, Germany and the Netherlands, consumers have a variety of options to choose from: low-cost and bare-bone facilities, premium and full- service clubs, wellness centres and so on. T e low-cost gym sector in particular has shown signifi cant growth. T anks not least to the global fi nancial
A
crisis, consumers worldwide have been keeping a close eye on their static (and maybe even still shrinking) income. Discretionary spending is still limited, making low-cost gym membership a suitable option for the cash-strapped. So how does a mid- or premium-scale operator respond to this development? In order to answer this question, it helps
to more thoroughly understand why this sector has grown. According to Ray Algar’s 2011 Global Low-Cost Gym Sector Report, distinct drivers are fuelling the growth of this segment, many of which come down to the consumer: preferences for budget- friendly and no-frills options, infrequent attendance of higher-priced clubs where they were former members, and a lack of perceived value from a pricier membership.
ccording to T e 2011 IHRSA Global Report, over 44 million members use 48,000 health
Members expect a lot from a club charging €40-50 a month when they can meet all their basic needs for a complete workout for under €25 a month. Consumers have
become savvier and more discriminating regarding value. Fortunately, the industry appeals to a wide demographic, from the price- conscious to the affl uent – everyone needs the health benefi ts of regular exercise. Some prefer an independent workout; others seek an integrated experience. If you are a full-service operator, target the latter. In order to target this customer, identify
what your club does best. Do you have an expert and friendly staff available to answer members’ questions and help them with their fi tness goals? Do you off er high quality group exercise programmes powered by a knowledgeable and spirited team of instructors? Do you have a wide array of sports facilities such as racquet courts, swimming pools and more? If any of these are characteristic of your club, build on them and promote them to your current and potential member base. Know
NEWS
Fitness consumers are savvier and more discriminating over value
your target and send a clear message as to who you are, how you can help them, and why they should choose your club to help them with their fi tness goals. T e low-cost movement has paved the
way for intelligent consumers to demand that all business operators – in the health club industry and beyond – compellingly answer the question: “Why pay more?” If you off er a member experience beyond that of a self-service club, communicate this through your marketing eff orts, engaging staff and eff ective programmes. In time, your consumers will understand that they are investing in much more than simple access to machines.
ask the experts...... personal training client retention
When a PT quits or is terminated, what is the best way to inform/approach their clients so they stay at your club rather than following the trainer to a new club?
“If a trainer quits, clients will usually be more accepting of the decision. If the trainer is fi red, it becomes a very sensitive issue. Clients can take it personally – ‘How could you fi re my friend?’ “I will typically call them and let
them know that the personal trainer in question will be leaving. I try to set up a consultation with them so that I can reconnect and then place them with another trainer. Setting up an appointment with them shows that you care about their success.” Nicki Anderson, president, Reality Fitness
20 Members are the club’s clients fi rst and foremost
“T e best approach is to make it clear upfront that clients are members of the club and not owned by the trainers. Periodically have other trainers train clients, and ensure PT managers have relationships with all clients so there is a rapport built.
Read Health Club Management online at
healthclubmanagement.co.uk/digital “In the event that trainers leave, the
manager who has the client relationship should schedule the next workout, meet the client, do a reassessment, check their mindset regarding the situation, and facilitate a two-session transfer programme to another trainer or two. “Usually I fi nd it best if the client
experiences two PTs and can make the decision, so they are part of the solution. T e key is to not really ask if they want to continue; assume they are staying and just move to the next phase of their programme. T ey are the club’s client and the club will ensure their success.” Mark Miller, VP, Merritt Athletic Club
Read another answer to this question at
www.ihrsa.org/industryleader
november/december 2011 © cybertrek 2011
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