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the club? There probably aren’t too many peo-


Are giving out deals worth it to Are Giving Out Deals Worth It to the Club?


ple who don’t get at least one deal a day in their inbox. Groupon, LivingSocial and lo- cal companies are often offering a variety of services or products. The idea is not new, nor is it a bad one.


The host (Groupon, LivingSocial, etc.) charge a fee, the company offering the deal get work-of-mouth and customers, and the person buying the deal are getting, well, a deal. But does this work for the fitness indus-


try? Industry leaders actually have varying views on the subject.


Q: Have you used group buying pro-


grams (such as Groupon or LivingSocial) to sell club memberships or programs? If not, why not? If so, with what results and would you do it again?


A: Our facility can be difficult to locate, so we have a very specific digital mar- keting strategy and social buying groups (Groupon, LivingSocial, Troop Swap, etc.) are very effective. Massage promotions have produced the best results. We offer a 50% discount, but we limit the quantity, limit it to new customers, extend expira- tions, and limit the number we service per day. This allows potential new clients to find us, and, once they do, we look to con- vert them to members or repeat clients. When they come for the first visit, we offer a second deeply discounted service upon check-out. For example, a regular 50-min- ute Swedish massage costs $90. Groupon offers it for $45. When the client comes for that massage, we offer three additional massages for $180 ($60 each). It’s still a fan- tastic deal for the client, and we increase our margin. The last promotion sold 240+ and we converted 18% to regular clients.


Q A


door, into your club.


Aaron Volbrecht General Manager Mount Vernon Athletic Club Alexandria, Va.


Paula Comfort Owner 360impact Group Toronto


A: We haven’t tried them. I don’t want to A Add the IHRSA logo and ‘ask


“Have you used group buying programs (such as Groupon or LivingSocial) to sell club memberships or programs?”


If a high-end club has a parking lot that is full, you will only upset exist- ing members by discounti g the value of members


ips. But if your club has


an unlimited capacity or high turn- over, group buying programs can bring


lots of potential membe s, who might discount my business’s services for the fi- still a fantastic deal for the client, and


not have otherwise walked through thenancial benefit of another company. Also, we increase our margin. The last pro-


tomized to your target audience. For example, Living Social tends to attract higher-end Globe and Mail readers. Whether group buying is a success-


Many of the daily deals can be cus- ers are potential club members. Many 18% to regular clients.


ful club marketing strategy will depend on your brand standards and your over- all branding goals.


Aaron Volbrecht General Manager Mount Vernon Athletic Club Alexandria, Va.


Troop Swap, etc.) are very effective. Massage promotions have produced the best results. We offer a 50% dis- count, but we limit the quantity, limit it to new customers, extend expira- tions, and limit the number we service per day. This allows potential new cli- ents to fi nd us, and, once they do, we look to convert them to members or repeat clients. When they come for the fi rst visit, we offer a second deeply dis- counted service upon check-out. For example, a regular 50-minute Swedish massage costs $90. Groupon offers it for $45. When the client comes for that massage, we offer three addition- al massages for $180 ($60 each). It’s


an industry leader’ text as we have done in the past - need photo concept for the daily deals services ie Groupon - this text may change we are looking for a canadian response,


not just get money out of them. Our best potential customers aren’t de- ciding solely based on price – they’re looking for value and real help reach- ing their wellness goals.


Ann Morrow CEO Ellipse Fitness St. Louis, Mo.


A


I’m not su e that the majority of their buy- motion sold 240+ and we converted


are bargain hunters, who will buy a deal based on price alone, and then move onto the next deal. At our club, we’re looking to help people, not just get money out of them. Our best potential customers aren’t deciding solely based on price – they’re looking for value and real help reaching their wellness goals.


A


Our facility can be diffi cult to locate, so we have a very specifi c digital market- ing strategy. We have found that social buying groups (Groupon, LivingSocial,


12 Fitness Business Canada November/December 2013 12 Fitness Business Canada November/December 2013


Ann Morrow CEO Ellipse Fitness St. Louis, Mo.


We haven’t tried them. I don’t want to discount my business’s services for the fi nancial benefi t of another company. Also, I’m not sure that the majority of their buyers are potential club mem- bers. Many are bargain hunters who will buy a deal based on price alone and then move on to the next deal. At our club, we’re looking to help people,


I have taken a wait-and-see approach on group buying. My feelings are that you get a large number of discount shoppers who are just hunting for the best 10-workout pass. It does give you some extra revenue, but you are giving 40-50 percent of it to the coupon com- pany. There is also the negative impact that your paying customers experience when they can’t get into their regu- lar classes because of the people who bought a 10-workout pass for $25.


Mark Stupp President Womens Fitness Clubs of Canada


A: We haven’t done this yet. We have looked into partnering with Groupon, but in t e end, we deter- mined that we’re not w lling to offer as high of a discount on our mem- berships and services as Gro pon re- quires. I do receive the daily Groupon e-mail offers each morning, and through those, I often learn about lo- cal businesses of which I was not aware. So it’s definitely effective for getting the word out, and for getting a company’s name out there to new pro- spective customers.


Select responses reprinted with permission from IHRSA. For more information visit: www.ihrsa.org/industryleader


Michael Wallen Partner Elite Fitness Lexington, Kent.


®


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