MEMBER PAYMENTS
At Psycle London there are no contracts or joining fees
PSYCLE P
sycle London is a no- contract, premium group cycling studio in London, UK,
where members buy credits and book classes online (see also HCM June 14, p40). When they register, customers also have the option of saving their credit card details so any in-club purchases can be charged straight to the card. Co-founder and CEO Colin
Waggett, former CEO of Fitness First, says this straightforward, no membership fee or contract approach was the obvious route:
“Having come from an environment where contracts were such a source of confusion, I was really happy to leave all that behind and just focus on selling the product. Our system is simple and refl ective of our customers, who know their own habits. They don’t want to go to the same facility three or four times a week, but they’ll use us twice a week and maybe go to Triyoga, work with a PT, or have a run in the park as well.”
The new breed of microgyms –
including specialist cycling studios such as Psycle (see briefi ng above) – have embraced this sort of fl exible model. This new style of club typically offers packages of perhaps 10 or 20 sessions, as well as a ‘pay as you go’ option where customers pay on a class-by-class basis. “The fi tness industry is already
exploring this to a degree by charging a lower monthly membership and then offering top-up services,” adds Withers. “As a software provider, we can facilitate this.
Going cashless means no need for wallets
FRESH FITNESS E
xerp supports a cashless system at the 35-strong Scandinavian budget chain
Fresh Fitness. Customers book online and, when they enter the health club, are given a Gantner wristband which they can use to access the club, buy drinks and snacks at the vending machine and enter a class. Any purchases are added to the next month’s direct debit payment, with the credit capped at £50. “When we founded the chain in
2010, we looked through all the processes including cash handling,” says CEO Rasmus Ingerslev. “We run a partially staffed model, with staff not tied to the front desk. To have cash in one location and staff in another was a bad idea. We’re also open 24 hours a day, but only staffed from 10.00am to 9.00pm. There’s often only one member of staff present and we didn’t want them to ever be in the position of being threatened for money. Finally, if we had cash in the club it would have to be counted at every shift
“By creating fl exible applications, we
enable operators to offer a range of membership packages to meet their customers’ demands. Many choose to offer a single core fi xed-benefi t membership package and the option to buy additional benefi ts – for instance, a core gym membership with add-on swim, towel hire, locker hire, PT and so on. “It’s about fi nding ways of keeping
people as customers even if they can no longer afford a full monthly membership fee. As people’s lifestyles change, the types of package on offer
72 Read Health Club Management online at
healthclubmanagement.co.uk/digital
change, which is a manual process and we’re allergic to manual processes!” Fresh Fitness believes being cashless
is also much better for the end user, as very often people go to the gym in their workout gear and don’t want to carry wallets. “We strongly believe this system matches the needs of today’s consumers, who are all about convenience,” says Ingerslev. “Offering credit and products when they want them, without having to queue, is very much in-line with what people want. The percentage we make on secondary spend is higher than I’ve seen at any other club in my career.” Ingerslev concedes there is a danger
people might run up accounts and cancel their direct debit, which is why credit is capped at £50. However, he says this has not been a major issue to date and believes the benefi ts of increased secondary spend far outweigh any disadvantages. In addition, he says the upfront investment in the technology is balanced by ongoing cost savings when it comes to staffi ng.
to them must change too or you risk losing them completely. Offering limited time packages or pick and choose memberships are ideal.” He continues: “Each year, we hold
a number of regional and national innovation summits where we talk to our customers about their changing business needs, which then supports and guides our future development programme.” Going forward it’s going to be all
about ease and effi ciency, both for consumers to spend their money, and for clubs to collect it. ●
July 2014 © Cybertrek 2014
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 |
Page 91 |
Page 92