INDUSTRY INSIGHTS THE CONSUMER IS KING T
he internet has already put the power in the hands of the customer, with
buying decisions now based on vastly increased choice, endless options for price comparison, opinions shared via online reviews… This is delivering an increasingly savvy consumer who’s willing to shop around, seek out the best deals, challenge the status quo – ultimately, customers who see themselves in the driving seat, with companies expected to deliver
against their growing list of requirements if they are to get their business. And the health and fitness industry isn’t
immune to this. Gym operators will need to become more flexible in the delivery of their offerings to both engage and retain members. A growing number of websites are springing up that allow the public to find and book group exercise classes, for example, or even buy day passes to gyms. With choice-rich consumers now
expecting to be able to ‘try before they buy’, more clubs might want to consider embracing the pay-as-you-go market. Flexible pricing can also help boost loyalty
by ensuring the customer feels in control of what they spend. And here Trainmore in the Netherlands is leading the way. At its clubs, membership fees are calculated based on attendance levels in the previous quarter: if people have attended three times a week or more, they get the next quarter for free. Gyms will also need to get better at
tapping into the online buying process, paying much more attention to customer reviews. In recent research,
payasUgym.com – which allows people to book passes to participating gyms on a pay-as-you-go basis and then review their visit online – found that gyms scoring an average customer rating of three out of five or more saw an uplift in sales of 25 per cent compared to gyms scoring less than three. But number of ratings was also important. Gyms with fewer than four reviews saw no real variance in sales performance, but just four or five reviews immediately led to a sales uplift of 60 per cent in volume terms. More than five reviews meant another 150 per cent uplift.
“FLEXIBLE PRICING CAN HELP BOOST
LOYALTY BY PUTTING THE CUSTOMER IN
Online customer reviews are key, leading to a measurable uplift in sales
54 Health Club Handbook 2013
CONTROL OF WHAT THEY SPEND”
www.healthclubhandbook.com
© VGSTUDIO/
SHUTTERSTOCK.COM
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