Friday 3 April 2020

Fitness Business Survival & Minimising Cancellations

The global fitness industry has taken a massive hit from COVID-19. But health and fitness are now trending keywords, and everyone is talking about being more active, from Boris Johnson to Joe Wicks. If you’re ready, being a gym owner or personal trainer is about to become the new astronaut - one of the best jobs ever!


Gyms have had to close their doors, but the transition to online digital solutions is incredible. The industry was slowly heading in this direction, but now our hand has been forced, and we’re adapting quickly to change. At the same time as adopting tech solutions, we also need to keep a positive mindset, be more kind, and talk more.

Membership sales focus is out of the window. Now is the time to work harder than ever on your member retention. Here are 3 tips for fitness business survival and coming out the other side fighting fit with as many members as possible.




1. Member engagement 

You will have emailed all your members by now. Many (but not all) will have received that email, some will have read it, and a few will have replied. Check your email stats – open rates, and either resend or send via another channel (sms, mail) to the remainder, if you can. Email can be very one-directional communication. You can make it more interactive by asking questions or including surveys, but response rates are usually low.

You’ll have also made some announcements on social media and got some comments and feedback. Social can be more interactive, but you’re still reaching a small subset of your members, and typically those are the engaged ones!

You need to talk as many of your members as possible. Ask them what they want of you at this time, and listen to their feedback now more than ever. Are the classes you’re putting out good for them right now, or just satisfying your instructors?

Online / App based workouts

Do they want workouts or programmes for home, and how would they like to receive them (app, email, or post?) Are they missing other members, and would a fitness challenge help them connect? Again, should this be on the app, or would a WhatsApp group or facebook page work better for them?

There is a plethora of fitness apps and digital solutions out there, which your most dedicated members will have already found, signed up for, and be engaged with (so find out what these are from them!) But your less engaged members will need something simpler, and they’re the ones that need extra support to ensure they return after this is over. It might be as simple as a call or SMS once a week to check in on them; easier, cheaper, and simpler for the member too!

Challenges

Set-up some simple challenges for your members to join and feel connected to your club and other members. Distance run, Calories burned, and Classes completed are all simple, but think outside the box. How about sending a protein bar (short expiry) to everyone who logs over 3 workouts per week, a coffee voucher (long expiry) for all those who upload over 3 exercise selfies a week, or a certificate to people who log over 10 family workouts, exercising with their partners or kids? Track these challenges as simply as possible; self-reported via social media, for example, then set up and share weekly leaderboards.

Stay in touch 

Some members will need more support than others. Your club was their stress relief, so they might just want a chat, to let off steam, or to share their worries with you. Personal trainers are the modern bartenders, to some extent! Find out who is talking to other members, or if they are missing friends from the club, and see if you can put them in touch. You’ll get a bunch more feedback and ideas, get closer to your members, and might even adapt your member journey for the better as we come out the other side.

2. Staff engagement

As well as talking to your members, this is a key time to ask your staff how you can help them, and how they want to help you.

Lots of staff will need a sense of purpose at this time. Do they want to run online classes, would they rather setup workouts and programmes for members who need them, or do they want to build and manage (simple!) fitness challenges.

Some will miss the member interaction (but not all!) They might like to help with member calls, perhaps with a basic script, but definitely with a log of calls made and feedback garnered.

Finally, this is also an excellent time for personal development – would any staff like to complete some online training, become a mental health first-aider, for example?

3. Minimising Cancellations

You might have frozen all memberships or had some great messages of support from your members saying they're going to keep paying. But some of your members will be cancelling without your knowledge or communication... how are you tracking this, and what's next in the process.

Should you freeze Gym Memberships? 

There has been a lot of debate on membership freeze, understandably. Many large operators are doing the right thing and freezing or suspending all memberships, since members can't visit their centres, and while they provide an app, it’s largely self-service.

Smaller operators and independent clubs are also doing the right thing, and taking membership payments to keep their businesses afloat. Many members at these clubs are saying they still want to pay because of the connection they have.

It's a really difficult call, made tougher by the increased stress levels and financial hardship that nearly everyone is under at the moment. There's no right answer, it depends on your club and your members.

What's important is to communicate with (talk to) as many members as possible before deciding on your options. If the majority want to keep paying, or to freeze, then there's your default. Next you must choose what other options you give them. Can they still pay in full (if so, what do they get in return), or will you take a small monthly fee? Your choices might also be defined by what you can offer in return, such as online classes, workouts through an app, and access to instructors or challenges. Or as mentioned above, regular, tailored touch points, or phone calls!

Reducing prices – the freeze charge

If you decide not to charge full price still, then a freeze charge is a good idea. This shows you who's still engaged, or who's dropped off... if you just suspend all your members payments, then you will naturally lose a few when you resume, but you won't know until it happens.

Monitor your DDs

Whatever you decide, keep an eye on your Direct Debit reports. Full-service payment companies can provide a report of any cancelled instructions before it comes to payment day. You can jump on the phone to these members next day (assuming your DD provider isn’t doing this for you) and have a chat with the member, check how they are doing, see if they know what you’re still offering, and would they rather freeze or suspend payments.
If you’re with a gateway provider, it’s harder to get this information – we only really know they’ve gone when the payment fails.

Members are going to cancel

It’s a fact. You might as well wipe your sales target spreadsheet clean, and set a target for cancellations, or saved cancellations. Timing is critical. Monitor your cancellation attempts daily or weekly, and try to talk to every member. Show that you care, get their feedback (there’s lot to learn from leavers, so make the most of this!), and see how many you can turn around. If you monitor this properly, you’ll soon learn what works, how to talk members into staying, and who’s best at it.

Stand by Your Gym

As an industry, we are in a great position to help everyone to be active through this crisis, and come out the other side as the good guys, and a part of the solution. You need to consider your needier members now more than ever.

Talk to as many members as you can, every day and every week. Talk to your staff too, and check and action your cancellations regularly.

Reach out to them, ask them to “Stand by Your Gym” and they will stick by you and bring their friends with them when they return. Keep a positive mindset, be kind, and let’s talk more!

This article was originally published in the April 2020 issue of Gym Owner Monthly.
Book a free call with Gym (normally £75) to discuss your fitness business options during COVID-19 lockdown. www.ggfit.com/gom

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