| IHRSA Report | Club Advisor
Boost Nondues Revenue with Cross-Selling
By Patricia Amend
Most clubs aim to increase their nondues revenue as insurance against dips in membership sales or retention. Fortunately, many are succeeding, according to IHRSA’s 2011 Second Quarter Index, which reported the results of 15 leading U.S. club companies for April through June. The survey, which represents a total of 503 facilities, showed that nondues revenue rose 11.2%. You can do the same with effective cross-selling. Consider these tips:
Build a relationship. “For us, cross-selling is a way to generate revenue, but we try to connect members to our club first,” says Tom Fiorini, the general manager of the 110,000-square-foot Cincinnati Sports Club in Cin- cinnati. “Without that connection, we wouldn’t have a ‘club.’ We’d just be offering services that people can buy down the street. Instead, we make an effort to get to know our members, and engage them. Then, when we offer a service they may like or need, they know that we’re thinking of them. We also make good use of social media sites, such as Facebook, to engage our members so they make good use of our services. For example, they can connect with tennis partners via Facebook, or find out about our social events or when tennis pros are coming to our club.”
Spotlight services with specials. Further, Fiorini says his club constantly offers introductory programs at affordable prices, so that members realize the many options they have to choose from. “While we want people to purchase our products and services, we want to create a real member experience, so we try to expose people to as many aspects as possible. We may offer specials in our spa or our deli; demonstra- tion programs for Pilates; half-hour private personal training sessions; or group training for as little as $25. Some events are free. This way, people appreciate the club’s value and can sample to see what they like.”
Remove any barriers. “We sent out a 25-question survey to find out what members really want and need,” says Rob Shapiro, co-owner of BodyScapes, based in Brookline, Massachusetts, a club chain that emphasizes
personal training. “The high response rate—about 30%—has helped us understand how to make things easier for our members. As a result, we’ve redone our fee structure, and we are more transparent with pric- ing, giving prices over the phone when asked. We also don’t have a ‘use it or lose it’ policy. There is no time- frame for using the sessions a member has purchased. As a result, when we suggest one of our personal training options, the member is more likely to buy.”
Engage your personal trainers. “Nondues revenue is essential for us, given the fact that our price points are $140 for a single membership and $221 month for family membership, and we may sell only 40 to 50 memberships per month,” says Paula Neubert, president and general manager of the Greenwood Athletic and Tennis Club, a 101,000-square-foot club in Greenwood Village, Colorado. “Due to our cross-selling efforts, we have a 60/40 membership/nondues revenue split.” The club’s personal trainers, who are paid only when they work, are key, Neubert says. “They are constantly looking for ways to work smarter. If money becomes an issue for a private training client, they may suggest one of our eight-week programs, such as Women on Weights, or a personal training duo, trio, or quad, as each tier costs a little less. It helps the trainer hold onto clients much longer, while generating income for both the trainer and the club. Once the money issue is resolved, the trainer may suggest private training once more.” —|
– Patricia Amend,
pamend@aol.com ihrsa.org | DECEMBER 2011 | Club Business Internat ional 93
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