Tag: Business Strategies

Have you ever heard of Endowed Progress Effect?

It’s the idea that when we feel we have made progress towards a specific goal, we are more committed to reaching that goal. If we do not recognize any progress we are making towards a goal, the more likely we will abandon all efforts to reach it. So, the key to this phenomenon is perception.

So where is this going?

Loyalty Programs. Yes, it turns out that this psychological concept has resulted in the ever-increasing popularity of loyalty programs across all types of businesses. Coffee shops, large-restaurants chains, merchandise stores, and spas have all adopted this trend, and more recently, so too has the health and fitness industry.

So what loyalty and retention strategies can you use to accomplish this?

There is a myriad of strategies to choose from. Awarding clients “free” points up front is a great tactic. Punch cards have proven to be extremely successful across all businesses. The idea is that once a person has had all the slots on their card punched, they will be rewarded. For example, you can give members a “punch” every time a member comes in per week or uses a certain machine. A great tactic that coincides with this is to start them off with three or so punches (for signing up, being a new member, etc.) so that they feel they are that much closer to their reward. This plays right into the Endowed Progress Effect because we know that people work harder to achieve a goal when they feel like they are close to reaching it. Rewards for full punch cards can range from a discount, free item, or a free class or program.

The best part is, you are rewarding members for actions they are most likely already doing including attending classes and referring friends and family, but you have just added a huge incentive to increase this behavior. That client may not be more inclined to refer more friends, purchase more classes and buy more merchandise just to reach that full punch card reward. The revenue and recognition possibilities from these programs are endless! Excited yet? Well, before you begin your new endeavor into loyalty programs at your facility, here are a few things to keep in mind:

1. Ability to Document Progress:

We mentioned before the Endowed Progress effect is based on perception. This means that clients need to see physical proof that they are making progress for these programs to be effective. Make sure you are able to document when clients reach each milestone.

2. Instant gratification:

First, clearly define each milestone of your motivational program and then ensure that clients who meet them are rewarded immediately. If clients have to wait forever to receive their prize, they will lose steam in their efforts to reach the next milestone or their ultimate goal.

3. Achievable goals!

It is physically impossible to lose 30 pounds (at a healthy pace) in a week! Therefore, make sure to speak with clients about their goals and manage expectations. Remember the flip side of the Endowed Progress Effect: When there is no perceived progress, this results in demotivation.

4. Invest in management software that tracks client progress:

If your programs rely on client information that you cannot integrate with your current software solution, this is counterproductive. If your software solution cannot provide accurate results, clients will become frustrated and less motivated to keep working towards their goals.

5. Valuable and Relevant Rewards:

If you are a fitness facility, rewarding members with ice cream coupons would not be beneficial to your clients and would consider moving business elsewhere. Instead, reward members with merchandise with your company logo, such as shirts, hats, water bottles, towels or any other items that reflect back on your brand and the industry.

A rewards program–if implemented correctly–can be a major source of revenue and growth for your business. Build relationships with your clients by offering efficient, trackable, result-driven programs to promote brand loyalty and establish a community that members and prospects want to return to.

If at first you don’t succeed, try, try, again. It’s an age old proverb and one that many successful entrepreneurs live by. The fact of the matter is, failure happens–things fall through. What defines your brand and business is how you bounce back. True success comes from those who face failure head-on, get back on that horse, go back to the drawing board and never, ever quit.

So how DO you bounce back from a failed business-specifically in the fitness and sports industry? Here are three ways to consider:

1. Explain the failure and don’t make excuses: Transparency is key

Transparency is key and clients will appreciate your honesty. Own your failure–everyone makes mistakes. By admitting your mistakes and making it clear how much time and effort you will allocate to improving your products and services, you will give them the impression that you take your business extremely seriously.

2. Analyze the fail

The trick is to view failure as a great learning experience. Before you embark on a brand new business plan, take dedicated time to evaluate the factors and elements that lead to the failure. You need to really understand what worked and what didn’t. This way, you don’t have to completely scrap your old plan. Instead, you can build upon what worked and reevaluate what didn’t. Did clients love your product but hate your customer service? Were your prices too high? Dig deep and really analyze your client data.

3. Ask for Help

Don’t do it alone. You need to find other professionals and services that can help streamline your business. Are you tracking everything –from memberships, class packages, rentals– on paper? This can be both time consuming and stressful and can also lead to numerous inaccuracies and financial loss. An all-in-one secure management software is key. Not only can you track all your client data and class schedules, you will also be able to set up automatic billing, create a customised app for online purchases, send targeted email campaigns, access accurate reporting and more! The more you streamline your business processes, the more time and effort you can put into creating those exceptional, personalized customer experiences at your facility.

4. Refocus your brand

While you are analyzing your client data, identify your target audience. Was a vast majority of your clientele composed of young adults? Senior citizens? Elite athletes?

Once you recognize your main client base, focus your efforts on delivering products and services to this specific demographic. You need to create exceptional client experiences to attract and retain members. For example, if the majority of your clients are between 15 and 25 years old, you may want to focus on group classes or specific sports skills training to get these youngins’ in the door.

5. Actually Do it.

Now that you have evaluated what works and what doesn’t, refocused your brand, sought help and created a new business plan: set it in motion. Don’t let the failure freeze your ambitions. Most successful businesses fail more than once but it is only after failure that you will find success. Bounce back!

Have you ever wondered if there’s really any point to your retention strategy? You offer everything under the sun, do double back-flips, and consider giving away your first-born any time a member tells you they’re ready to leave, and then they go ahead and leave anyway. Ever get the feeling that there’s just nothing you can do?

The fact is, everyone in the industry wonders, but it’s something we try not to acknowledge. We hold on to the idea that we must continually try new approaches and inexhaustibly explore all possible avenues, plus a few impossible ones, and never give up on the lofty goal of retaining 100 percent of our members. Well, what if that’s the wrong approach? What if, instead, we conceded that we never will retain 100 percent of our members, and that our energy would be better spent on other aspects of running our clubs? What if we actively prioritized new sales over member retention?

These are questions Rob Bishop and Barry Klein, owners of Elevations Health Club in Scotrun, Pennsylvania and regular contributors to Athletic Business magazine, hash out in a recent article for Athletic Business. Having focused on retention over sales for two decades — never employing salespeople or using high-pressure sales techniques — Bishop and Klein found themselves one day wondering why, despite all their daily concerted efforts to get members to stick with their gym, they nevertheless almost always lost the members they were expending energy to retain. As long-time gym owners, they considered their “retention program” nothing more than everything they did everyday and every dollar they spent on their staff, facilities, and programming. As they put it, “Is your club clean? Are people greeted properly? Are members well-integrated into your facility with training programs, group fitness classes, seminars and other offerings?” Those elements, along with other offerings vital to the success of any club, are critical for keeping any member signed up for any length of time, they argue.

Given that, they realized that most members “cancel for reasons that are beyond our control — relocation, financial reasons, work conflicts. And while reasons such as ‘no time’ might be shorthand for ‘I don’t want to be a member anymore,’ it’s clear to us that once someone has crossed that threshold, we are not going to bring them back.”

If that’s the case, they ask, what can gyms do? The answer may lie in shifting the focus of your business premise, so that rather than privileging retention, you start thinking more about sales. “Our point isn’t to give up,” they write. “It’s to focus on something we think we can more directly impact and to some degree control.” Thus, Bishop and Klein are trying out a “sales focused” approach that aims to attract many happy members. Basically, they consider happy members ambassadorial assests — vital elements of the community who spread the word to new potentially happy members. It’s a subtle shift, but focusing more on sales than retention — while still aiming to keep members as happy as possible from day to day — allows the duo to value referrals even more than a forever commitment from a member (which, they say, is an ideal that doesn’t exist). For example, if the stated purpose of “bring a friend” event is to acquire new members rather than to keep existing members engaged, they now might find themselves, if spots are limited, turning away a member in favor of a guest. This isn’t something they ever would have done previously.

That’s not to say it isn’t still worth trying to keep members forever. Who knows? Perhaps it’s possible and the industry just hasn’t yet discovered the right lever or formula? Still, it might be worth exploring strategies that are potentially more realistic — if for no other reason than achieving greater peace of mind. “The real difference will be this,” Bishop and Klien write. “When a member who has sent us 10 referrals suddenly cancels, we’re not going to stress about it anymore…. The trick is to have a gym full of happy members, regardless of how long they are with us.”

At the climbing gym I frequent, there’s a man whose left arm ends in a stump. He’s a veteran who lost his hand in Iraq. I know how hard it is scaling those thirty-foot walls with all my limbs intact; watching this guy, I can’t help but feel humbled and awed. He does it with no special accommodations. He just figures out what will work for him, and up he goes.

Indoor climbing is especially flexible in this way — the whole point is to do what you have to do to get to the top, no matter what particular challenges you might be facing. But, what about other, less universally approachable sports or exercises? What about just watching sports? How can we make participating in sports, working out, and being a fan in the stands more accessible for anyone who wants to take part?

There are a few things to consider as you gauge your facility’s accessibility and think about what changes, if any, to make. First, there’s the ADA, or Americans with Disabilities Act. Enacted in 1990, this law requires public places and commercial facilities to comply with guidelines that allow for wheelchair accessibility and other disability considerations. Facilities constructed before 1990 are not required to meet the specific stipulations of the ADA — such as that wheelchair spaces be at least 36 inches wide, with equal, adjacent space for a companion — but such facilities are under obligation to remove existing barriers. And any facility refurbishing its space must bring it into ADA-compliance.

So, for example, when Hampton-Dumont High School in Hampton, Iowa, decided to replace its fifty-five-year-old wooden bleachers recently, it had to create a new deck with room for six wheelchairs, plus companion seats, and a ramp. The project’s total cost was about $20,000 — but the alternative, building an entirely new stadium, would have cost the school at least a quarter of a million dollars. The lesson here is that changes you make to bring your facility into ADA-compliance, whether you run a gym, niche fitness center, or sports venue, need not cost a fortune. The money you spend will pay off. In Hampton-Dumont’s case, the school forged a better relationship with the community after the reconstruction because now no one was shut out. In the end, more tickets were sold at events.

If you’re not ready to refurbish, there are other steps you can take to make your facility more welcoming of people with special considerations. If you’re a gym with regular exercises classes, consider the possibility of designing a wheelchair class. You’d need to hire an experienced instructor and make sure the room where the class will be held is completely accessible. Also consider hosting workshops about exercising with a disability, and see whether you can create areas in your free-weight, cardio, and machine spaces solely for wheelchair users or others who need particular physical accommodations.

In addition, think about how you can make your commitment to inclusivity known. No matter what kind of facility you run, the more you spread the word about your accessibility, and the more you make it known that you welcome all kinds of members, the greater your standing in the community will be, and the more chances you’ll have of attracting an untapped segment of your local population.

Overall, you want to think in terms of being an ally to folks who are differently abled. As an organization dedicated in some form or other to physical activity, you bear a particular onus: how to enable physical activity for everyone. When it comes to issues of accessibility, gyms and sports facilities have a chance to shine.

For a few years, my son and I loved going to Bucca, a pizza place in our neighborhood. The food, first of all, was excellent and affordable, but what we liked most were the friendly staff that greeted us by name when we walked in and the cool décor: Bucca’s manager had a photography hobby and covered the walls in photos that were always interesting to look at and discuss. We were crushed when we walked by one day and found the name changed to Bucolino’s. The menu was similar, but when we entered no one recognized us and, worst of all, the photos were gone. In their place were bright, graffiti-style murals that might have been welcome in some other context, but that felt so jarring and ugly in our beloved space.

We ate at Bucolino’s only once. When I asked the waitstaff what had happened, all I got in response was a curt “new owner.” This new owner was too busy to speak with us. It’s a shame, because the food was still pretty great, but no one had made any effort to sell us on the new identity. I kept thinking that if the new venue had tried to reach out to Bucca’s customer base, maybe we would have felt differently; maybe we would have given it a chance. So I was interested to read a recent blog on IHRSA’S website that takes up the issue of new ownership. The blog asks: “How can we market a club that’s under new ownership to let consumers know we’re making major changes to what had been a mismanaged facility?” Bucca had never been mismanaged, but the question stood: How do you let your customers know things are going to change?

Paul Brown, CEO of Face2Face Retention Systems in Queensland, Australia, told IHRSA, “When you take over the reins of an existing business, be excited, be bold, and be loud.” Joe Cirulli, Founder and CEO of Gainsville Health & Fitness Center, suggests making it a priority to ensure the facility is in tip-top shape, connect with existing staff and make efforts to meet their needs, and use word-of-mouth advertising to let the public know. All of these pieces of advice are good ones. I wish Bucolino’s had followed them. If you’re taking over a new facility, spread the word, and — whether there were problems that need fixing or you’re taking an already great business to new heights — advertise widely and positively about the change. A few specific steps to consider taking:

• Hold town-hall-style meetings with members, seeking useful feedback. This could be done in real life or virtually. Using social media outlets like Facebook and Twitter to elicit members’ ideas about what to keep for the facility’s new incarnation and what to alter would be a great way both to let your customers know about the change and to include them in your process.

• As Brown suggests, “Solicit editorial coverage in local and regional newspapers and websites. Invite interviews and offer to submit prewritten pieces.” The goal in taking these steps would be to inform the public and give yourself some degree of control in the way news of the new ownership is announced and received.

• Plan a grand relaunch celebration. Go out of your way to make the new incarnation a big deal. Rather than doing it without a word, like Bucolino’s did, almost even pretending it didn’t happen, blow horns and send up flares. Invite local dignitaries and offer incentives to get both members and prospectives in the door. During relaunch events, make yourself available and accessible to anyone who might have questions about the facility’s new direction.

• Save yourself time and money by investing in an all-in-one gym management software to streamline your business practices. Do your research to find a software solution to address all of your needs. For example, more health and fitness management software include features such as trainer scheduling, membership management, a point of sale system, and a sophisticated member check-in system compatible with most mobile devices.

It doesn’t take much to make a facility under new ownership as great — or much better — than whatever existed before. But you do have to make some efforts.

I have a confession to make: Exercise bores me. Don’t get me wrong — I love staying fit, and I love the way I feel after a great workout, but no matter what exercise routine I try, after a while I get bored and want something new. For a while I was into spin classes. Then it was Zumba. Then aquatic aerobics, HIIT-style repetitions, and just plain jogging. Now I’m all about indoor climbing. I was starting to think there’s something wrong with me, but then I stumbled across a post on the “Be Active Your Way” blog, a publication of the Department of Health and Human Services. Written by Alexandra Black, a dietician and IHRSA’s Health Promotion Manager, the article is not about keeping exercise interesting — but it nevertheless put my mind at ease and inspired me to continue trying new routines.

What the article is about is this: using trial and error to determine the best workouts for individuals. “Each person,” Black writes, “has a unique genetic makeup, different life experiences, and varied medical histories that make it nearly impossible to prescribe one great diet or one great fitness plan for all.” Because of this, she says, the best way for individuals to figure out what works for them is through trial and error. The health and medical industries are beginning to recognize this, and the result of moving away from a one-size-fits-all mindset is better care and better long-term health for people. Black puts it this way: “As the trend towards individualized healthcare continues, we’re recognizing that every person is different, and that treating them as such — both in healthcare and in wellness — is often where the real magic happens.”

Which brings me back to my boredom issue. Reading Black’s thoughts on trial and error made me realize that the only way for me to find a routine that doesn’t eventually bore me is to keep trying new ones — and that it’s okay to do so. Maybe I just haven’t found the right one yet, and I need to keep searching until I do. Or maybe it’s the case that my genetic makeup, life experiences, and medical history make me a person who needs constant changes in her workout routine in order to most benefit from working out. Whatever the case, thinking about fitness as something that requires an individualized approach completely changes the way I think about working out. It gives me a feeling that I have permission to keep trying whatever I want to try.

Why am I sharing all this? Because chances are that an individualized fitness approach is something that would appeal to your members too. Of course, if you have personal trainers or some kind of personalized workout program, you already promote individualized fitness — but doing so explicitly could put your members at ease (enough so that they renew their memberships and talk your facility up to all their friends and social network connections). Defining individualized fitness and explaining its benefits — through posters, emails, social media, and one-on-one sales and promotion pitches — can help your members feel freer to engage in their own trial and error, giving new workouts and exercises a try, experimenting until they know what works best for them. And helping them in that way greatly increases the chances that they’re going to keep coming back to you.