While gyms, fitness centers, and studios have experienced several setbacks this year, don’t count the fitness industry out just yet. By expanding your revenue streams and taking a hard look at your sales processes, you can minimize financial losses and continue to grow your business.
Member retention is the key to business success. It’s one thing to attract new customers, it’s another to keep hold of them. By diversifying your revenue stream and continuing to provide an epic level of customer service, you can work to increase your gym revenue. In this article, we talk about preparing for a post-COVID world and 12 ways you can boost revenue for your fitness business.
Skip ahead to:
- Adapt and Evolve: Preparing for a Post-COVID World
- Why You Need to Make Epic Customer Service a Priority
- 12 Ways to Generate Additional Revenue, Boost Member Retention, and Drive Sales
Adapt and Evolve: Preparing for a Post-COVID World
Although restrictions are still in place all around the world, people are starting to emerge out of lockdown. Businesses must start to think about adapting to consumers’ behaviors to not only survive but thrive in a post-COVID world. Before COVID hit, you probably had a clear grasp on who your customer was. However, the pandemic has shifted both consumer behavior and spending. As a result, fitness businesses need to think about what your customer’s primary needs are.
By evolving adapting and evolving your business to the needs of your members, you can continue to deliver the level of service and experience they expect from you. The COVID-19 crisis has forced many traditional businesses to change the way they operate. Now, we’re looking at a massive rise in popularity in digital fitness, health apps, and home fitness equipment.
Some creative thinking and tools can help you to adapt the member experience today so that you can create a stronger bond for the future. Many brands in the fitness industry pivoted to a digital fitness offering to survive through an initial lockdown period. But now those digital platforms are growing even more. It seems that digitalization has allowed brands to push forward innovative solutions quickly. If you’re looking to increase revenue and grow your business, digital technology is at the heart of service, engagement, and fitness.
Why You Need to Make Epic Customer Service a Priority
When it comes to increasing gym revenue, your customer service is at the core of your success. You can implement a range of strategies to generate income, but without incredible customer service, you will fall short. Your customer experience should be felt in every part of the business. Here are three reasons why you need to make epic customer service a priority.
Foster Customer Loyalty
Excellent customer service fosters member loyalty. Loyal members are more likely to stick around and keep renewing their membership. Great customer service increases retention and boosts the overall value of the business. Good service leads to positive interactions and impressions. Service quality is a big contributor to customer satisfaction and plays a key role in decision making.
Increase Member Referrals
If you have a great level of customer service, you’re more likely to have good customer satisfaction. Happy members refer your brand to their friends and families. Your member referral program can form part of your member acquisition strategy. By providing exceptional customer service, it benefits all areas of your business.
Customer service increases member retention, in turn, boosting your bottom line. From the moment a customer has contact with your business, they should feel listened to and valued. Whether it’s a phone call, email, or in-person, every trainer, instructor, and front desk staff should be crafting a positive and memorable customer experience. As fitness businesses adapt to a new way of delivering services and working, customer experience should remain a priority.
The Fitness Founders Podcast has a fantastic episode on the new normal for member experience and how the best are doing it post COVID-19. Listen to a key takeaway from Glofox Connect as industry experts discuss the value you need to provide to keep members engaged.
12 Ways to Generate Additional Revenue, Boost Member Retention, and Drive Sales
While many businesses in the fitness industry have taken a hit this year, others have shifted to digital fitness to support their members’ needs. The coronavirus pandemic has emphasized the need for fitness for both physical and mental well-being. Governments around the world are telling their people to exercise to help maintain a healthy weight and a strong immune system.
This has led to a consumer focus on why exercise is so important, making way for a new era of fitness. There is an opportunity to generate additional revenue streams while supporting gym members’ needs and boosting retention.
1. Focus on Your Niche
To increase revenue, it’s a good idea to niche down and be really good at one thing. Boutique fitness studios are known for doing exactly this. They provide exceptional service and experience in a specific type of training. Whether it’s HIIT, boxing, or Pilates, specialized experiences provide high value. You can take this approach to your marketing as well. Focus on one thing and do it really well by creating incredible content and using a strategy that will deliver your message to the right audience.
The Top 10 Barriers Slowing Your Fitness Business Growth
2. Online Personal Training Sessions
Offer online personal training sessions for both existing and new members. For your current membership base, online personal training sessions can keep your members from canceling if your doors are closed. For new customers, offering both in-person and digital training options caters to a wider audience. You also take into account members who are anxious about attending the gym. Your members might not have access to gym equipment or struggle to motivate themselves to exercise. Personal training sessions offer an individual approach to fitness while creating additional revenue.
3. Digital Group Fitness Classes
If you don’t already have a digital fitness platform to run group classes, now is the time to look for a solution. Often, group classes provide a level of motivation that many members struggle to achieve on their own. This is one of the reasons group fitness classes are so popular. It also gives gyms the chance to instruct several paying customers at the same time. With digital group fitness classes, you can either stream to all your digital members or you can offer more private sessions with a set number. Although social distancing guidelines are in place, people still want to work out with their friends and feel more confident together.
4. Virtual Health and Fitness Workshops
Virtual health and fitness workshops tend to focus on developing one area. This could be healthy eating and easy food swaps or how to lose weight sustainability. You also have the opportunity to educate fellow professionals. For example, you may have a specific training method or can offer to speak to virtual conferences as an industry expert. Depending on your business, you will find different things that are more beneficial foryou.
5. Create Flexible Membership Pricing
Consumers crave convenience and flexibility. Create flexible membership pricing to adapt to your members’ needs. If you have revamped your digital, in-person, and virtual training offerings, your pricing needs to reflect this. Your audience personas are shifting and your pricing should adapt. Consider having digital-only, hybrid, and physical memberships as well as convenient ways to pay. Perhaps your members would like to spread out payments more efficiently or have more control over when and how they pay.
6. Switch it Up With Outdoor Workouts and Bootcamps
Although digital fitness is a great way to exercise at home, some people crave human contact in a fitness setting. Move your gym outdoors with park workouts and intense bootcamps. If you’re not considering running an outdoor bootcamp, why not? You don’t need any equipment, you can maintain social distancing, strengthen your gym community, and follow all health and safety guidelines. You also have the added benefit of getting your members outside. You can run bootcamps over several weeks to create additional revenue streams for your business.
7. Expand into Ecommerce
Fortunately, there are several product categories that naturally slot into a fitness business. For example, as a yoga studio, you could sell yoga mats, activewear, water bottles, and healing crystals. When you sell an item, you’re giving your stamp of approval. Members know that they are buying a trusted brand from you that will help them achieve their goals. You can sell items on your website or in-app like Instagram Shopping. Think about products such as protein powder, gym gear, home fitness equipment, and wearables. You also have the option to develop your own line of branded products.
8. Offer Nutrition and Wellness Coaching
To achieve fitness goals, many members need additional help. Provide even more value to your members by offering nutrition and wellness coaching. Often, nutrition, stress management, and mindset can stand in the way of weight loss and living a healthy lifestyle. Coaching sessions can be carried out online from the comfort of the client’s home. To offer nutrition coaching, you can collaborate with a local nutritionist or hire in-house experts.
9. Consider Corporate Fitness Options
Corporate fitness has massive potential. Despite many people working from home, mental well-being, stress, and fitness are still key to productivity and health at work. Outdoor workouts and bootcamps, as well as virtual personal training, are ideal for corporate fitness. You can also offer workshops specific to home working and moving more at home. This could include sessions like how to switch off when home working and the best desk setup for a good posture.
10. Build Partnerships with Local Businesses
Now is a great time to build partnerships with local businesses. Find businesses that complement your brand without competing against it. For example, a juice bar or activewear brand fits with a HIIT gym or yoga studio. Partnerships are a cost-effective way to help both parties out and encourage referrals. Ensure that the businesses you choose to align with reflect your values. You should be picky about who you collaborate with.
11. Review Your Sales Funnel and Assets
Your fitness business has probably seen many changes this year. While you may be reacting to the situation in the world, you need to make sure your sales funnel and assets have had the chance to adapt too. Is your sales funnel supporting your needs as a hybrid fitness business? Are your sales assets still relevant? Take the time to reflect on the changes you have made and make sure your sales process supports that. Finding problems with your sales funnel is key to making the most out of your marketing spend.
12. Diversify Your Revenue Streams
If you can diversify your revenue streams, it will prepare your business for changes in the industry. In the long-term, this will give you greater financial security. If one area of the business starts to slow down, you don’t have to panic. In the case of the coronavirus, many businesses were completely reliant on having a physical facility. Now, those businesses have diversified and created additional digital fitness streams. This has put brands in a stronger position. At the same time, it also offers your members a more diverse service and product range, which increases value and boosts member retention.
When the coronavirus pandemic hit, few gyms already had digital fitness platforms in place. Fast-forward a few months and many businesses are diversifying their revenue streams with virtual fitness services and products. With changing consumer behavior, brands need to adapt and evolve to prepare for a new post-COVID world.
By listening to the needs of your customers, you can look to find a solution to their current problem. Show your members that your membership is valuable by providing a range of services to help them hit their goals. When you create multiple income streams, you can continue to support and strengthen your community.