E-tailers: Amazon and eBay introduced us to new and easy ways of spending money online that are safe and socially acceptable
“Since we moved to online joining, our
customers tell us they prefer the feeling of convenience and control without the worry of being ‘hassled’ by salespeople,” says Neil Henshaw, owner of Helio Fitness. With clubs in Blackpool, St Anne’s and Bolton, all using a low-cost operating model, the benefi ts of friction-free joining quickly became apparent. “I simplifi ed my memberships, outsourced collections and made sure everything integrated well with my website and leisure management software,” Henshaw continues. “As well as reducing costs, it has meant my staff are now more visible and they focus exclusively on providing great service.” Ray Algar, MD of Oxygen Consulting,
adds: “The business model for the new wave of budget club operators means they were compelled to use technology rather than people wherever possible.” The process of moving routine
payments online also forced operators to reconsider existing processes; it was clear these were often simply too archaic or complex to transfer. This is where managers who view technology as
july 2011 © cybertrek 2011
“Since we moved to online joining, our customers say they prefer the feeling of convenience and control”
somehow ‘separate’ from their operations can fall down. Technology drives business change by allowing more creative ways to charge for products, services and memberships – something mobile telephone and airline operators have long since realised and perfected. Get ready for unbundling and micro payments.
payments 2.0 – small and very mobile Now that it’s so much cheaper to process money, there are many more opportunities for making small charges in a cost-effective manner, which in turn encourages ‘unbundling’. Operators are starting to look at how they can provide a varying ‘a la carte’ menu of products
and services to generate wider usage and increase spend per head, rather than the traditional ‘one fee for all’ structure. Hans Muench, IHRSA director Europe,
says: “The use of modern technology in health clubs is making it easier for members to spend money in a cashless way, particularly secondary spend. “Leading indicators at IHRSA clubs
show non-dues revenue to account for more than 30 per cent – and climbing – of total revenues. Particularly where clubs ‘unbundle’ their services, the control element becomes more important – permitting those who paid for extra services to use them while preventing others from accessing them. Technology plays a crucial part.”
Read Health Club Management online at
healthclubmanagement.co.uk/digital 61
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