TALKBACK everyone’s talking about . . .
contracts F
rom time to time a hideous gym contract story hits the headlines and causes uproar – the Twitter storm over
LA Fitness not letting a pregnant lady and her recently redundant husband cancel their membership is just one recent example. Can we afford to let this keep happening? What message do these headlines send to the 88 per cent of the UK population who aren’t currently gym members? In the past – and arguably even now
in more cases than we would like to acknowledge – health clubs have been more concerned with keeping members coming in the front door
nick coutts fitness hut • owner
“C
ompanies only selling via long- term commitment contracts are
trapping consumers. They are part of an antiquated model that isn’t supported by consumer agencies or the legal system. I think such clubs are going to find it increasingly difficult to survive. Looking at gym customer feedback blogs, 85–90 per cent of comments are
directly linked to being sold a contract, then being forgotten about but not being able to leave. It’s the single biggest cause of anger and frustration among members. When setting up Fitness Hut, I was keen to avoid the
headaches of the traditional model, and headache number one was long-term contracts. We therefore offer two options: a longer-term commitment contract, at a discounted rate, and no contract. However, if those who have signed a longer-term commitment contract want to leave, we just ask them to pay back the discount they have enjoyed. No-one feels trapped. I’m not an advocate of scrapping contracts: I think there
will always be people sure of the commitment. But I think it’s important to be transparent, give choices and never trap or block people if they want to leave.
” 30
kath hudson • journalist • health club management
Vilified by the press and consumer groups, gym contracts continue to occupy media headlines. So has the full contract, full commitment gym had its day, or is there life in the old model yet?
than with preventing them from leaving out the back. The main method of stopping people leaving was simply not allowing them to do so. But how long can this method
continue to work? Certainly it’s already looking very shaky. Not only is the press always open to contract horror stories, but a growing number of operators are now shunning the old way. The budget chains are generally contract-free, but so too are a number of premium clubs such as BOOM! Cycle, which believes that retention should be driven by looking after members, not by compulsion. Other operators are also starting to offer more fl exible membership options,
while businesses such as payasUgym are helping consumers try out gyms without immediately being handcuffed to them in a long-term contract. The fi tness industry has argued that
mobile phone companies and Sky don’t let you out of a contract, but does this tired old argument stand up? Even for the most committed member, events can happen to stop them going to the gym. And can you blame people for getting disillusioned if, after a few months, they haven’t lost weight, can’t get a programme update and no-one talks to them? Ultimately, should we move away from contracts as a retention tool? We ask the experts.
IS IT TIME TO SCRAP GYM CONTRACTS? EMAIL US:
HEALTHCLUB@LEISUREMEDIA.COM
tim fearon the extraordinary coaching company • director and co-owner
“I
’ve never known a contract to motivate anyone, but that’s not
the point of contracts. They are there for the operator’s benefit, to secure a guaranteed source of revenue. To my mind they’re a tacit acknowledgment that the operator has found no better way of keeping their members engaged. Anyone closely involved in the fitness
industry will tell you that the real power to retain and motivate members lies with the staff, and particularly those on the gym floor. Time after time, research has shown that one of the key reasons for people leaving their club is lack of attention. I could make a case for a three-month contract, on the basis
that the first three months are critical in establishing the habit of using the club. I would tie new members into a structured and closely monitored programme of contact to ensure they reached their goals. We know initial enthusiasm wanes; we know regular contact in the first few months is the key to retention; and we know people who achieve things tell others and bring in new members. That’s what motivates people – not contracts. Contracts are the lazy way to secure retention. There are a lot of lazy operators about.
” Read Health Club Management online at
healthclubmanagement.co.uk/digital august 2012 © cybertrek 2012
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90