Operators are moving away from inflexible contracts and working harder to retain members with a quality product
dave courteen fitness express/mosaic • managing director and founder
“M
y view is that we should definitely scrap contracts as
the only option offered. The Fitness Industry Association has worked hard to create a credible sense of what clubs can do for people’s health and wellbeing, and contracts undermine this with the negative publicity they attract. Our clubs offer contracts as just
one of the options available: if people want to make the commitment to join for a year, they can enjoy the discounts of bulk buying, either by paying upfront or monthly. However, they can also be contract-free. It’s important to give people choice. A good business shouldn’t need to lock people in: it gives
a negative view of the industry. Health clubs offer a great product, so there’s no need to force people to stay. A good retention strategy, with excellent service, is far more powerful. In terms of having contracts as a safety net for cashflow
and a basis for bank lending, it looks very negative to say our members stay for 12 months because they’re locked in. This suggests they would leave if not. If you can demonstrate good retention without contracts, that’s far more compelling as a business plan and also attractive to prospective members.
” august 2012 © cybertrek 2012
kevin yates leisure connection • head of marketing and retention
“I
don’t think it’s time to scrap contracts, but operators certainly
need to offer choice. Some people like the discipline a contract instills, both from a physical activity point of view and also financial: allowing them to plan their finances. Others prefer the flexibility of pay as you go. More people now are using a variety
of different facilities, services and ways of working out: running, cycling to work or walking the dog, with the occasional swim or gym workout. So in today’s fiercely competitive market, in which the consumer has choice, we need to react and not remain rigid. The model Leisure Connection applies does just that: users can sign up for an annual contract; a more flexible monthly contract; swimming-only contract; or no contract at all, whereby they just pay and play. We’ve seen a great deal of success with this model. Retention is higher than it ever has been and like-for-like sales are up across the board. We operate in a service-led industry: we need to monitor
trends, listen to what our members want and then adjust our service and business model accordingly. Operators that understand this will be the winners.
” Read Health Club Management online at
healthclubmanagement.co.uk/digital 31
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