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... or in-house spa treatments such as massages


targets and review points to make sure the scheme is performing as it should. Operators might do well to look at how much lapsed memberships cost their gyms – could there be an argument in favour of spending to save, offsetting these costs to fund a loyalty scheme?


ENGAGING THE CUSTOMER The main benefi ts of reward schemes based on retention, according to Namooya, are that they add value to the offering and can engage the customer more deeply with the club: “If I can get my members to form a habit of attending my gym, they are less likely to leave,” he says. However, in order to work most effectively, members must be rewarded in ways that they value, and research


“WE KNOW OF AN OPERATOR WHO INTRODUCED A


LOYALTY SCHEME AND SAW A 40 PER CENT INCREASE IN


RETENTION RATES”


must be done into the membership base to understand what constitutes a genuinely motivating reward. Schemes should be trackable, keeping tabs on what members are doing to


earn the reward. This allows gyms to build up more data about the client, such as how often they come, how long they exercise and their favourite activities – excellent for target marketing and demographic profi ling. Loyalty schemes must also, of course, be


cost-effective, but as Namooya concludes: “We know of an operator who introduced a loyalty scheme to a cross-section of its estate and saw a 40 per cent increase in retention rates. Considering each 1 per cent retained was worth nearly £1m, not only was the campaign effective, but there’s clearly also signifi cant justifi cation for allocating budget to such schemes.”


healthclub@leisuremedia.com kath hudson


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