» Marketing


Revive Referrals by Being


Remarkable


Referrals can be the single most important source of new prospects and members


BY CASEY CONRAD


kindly give you the names and phone numbers of numerous friends—all for a free T-shirt? Or, you would run a guest pass promotion for existing members and dozens of new members would flood through your doors? Those were good days, but they are long gone. Today, we need to find new and cre- ative ways to generate referrals. Whether you believe it or not, it re-


R


ally is natural to refer. We all like to tell others about our experiences—good and bad. Let me be more specific—we like to tell others about really good and really bad experiences. We rarely pass on referrals about average, everyday experiences.


“Remember Curves? In its early days, fitness people laughed at the concept. But when the company hit 2,000 locations with little marketing, Gary Haven was laughing all the way to the buy out!”


34 Fitness Business Canada May/June 2017


emember the days when you would hand new members a re- ferral form at the time of their enrollment and they would


Seth Godin, the famous marketing


author, tells people to ask themselves, “Am I remarkable?” If the answer is “no,” you are in big trouble in today’s hyper-competitive marketplace. Being remarkable is key to generat-


ing referrals. Think about it. We live in a fast paced world where news lasts for about 10 seconds, and it is a challenge to keep up with social media feeds. This means that businesses have to be so outstanding and so impressive that people are compelled to tell others. While entire books have been writ- ten on this topic, let me share three ideas to help members see your club as remarkable:


1. Create powerful relationships Remember Curves? In its early


days, fitness people laughed at the concept. But when the company hit 2,000 locations with little marketing, Gary Haven was laughing all the way to the buy out! Curves almost exclu- sively used referrals in its early days. CrossFit is today’s Curves, and it is also poo-pooed by some industry experts as unsafe. I’m not here to debate this but to tell you that CrossFit doesn’t have a big marketing budget, and they get people to pay $140 per month to be punished! Its workouts (and results) are so remarkable that friends simply bring friends. Do you have any type of dynamic group program that gener- ates a similar outcome?


2. Think targeted, think niche The 80/20 rule applies to many as-


pects of life, including fitness club re- ferrals. About 80 percent of referrals come from 20 percent of your mem- bers—think of them as brand ambas- sadors. So, instead of constantly run- ning referral programs that engage all members, why not work with the small number who actually want to refer? It’s actually quite simple. Run a campaign telling your members you are looking for brand ambassadors. These people can be used in ads, featured inside the club and engaged in brainstorming and planning. Of course, they receive perks (which they love and want), but part of their role is generating referrals using custom guest passes that are dy- namic and fun.


3. Offer real incentives When I ask club operators what


their average customer acquisition cost is, their responses range from $80 to sometimes as high as $200. When I ask them about the cost of their refer- ral promotions they usually say a $50 gift card to the club, which is about a $25 cost in most cases. There’s a dis- connect here! If you want quality re- ferrals, you need to seriously evaluate what you are offering as incentives. Don’t be cheap! Spend time finding out what members actually want and need, and begin testing to find out what works. FBC


Casey Conrad has been an international speak- er and consultant in the fitness industry for almost 30 years. She is the author of numer- ous industry sales and marketing books and is a frequent favourite at canfitpro. Contact her at CaseysHealthClubTraining@yahoo.com or www. HealthClubSalesTraining.com.


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