Owning a gym business amid our present state brings about new challenges to overcome. However, we have to face it head-on and focus on our goals at hand.
The club industry is 95% production-based business. The remaining 5% is performed by operations, which is vital for overall success.
Production-based is anything that produces or increases revenue like inviting new registries, selling fitness programs and goods, even member retention.
Therefore, business profitability is determined by the production rate generated by the fitness club, and that is what we’re going to tackle in this article.
Maximizing Your Sales Opportunities
Building sales is not something that automatically happens; it’s something gym owners and managers need to be proactive in achieving. It involves consistent sales outreach and marketing strategies. Let’s look at ways to maximize today’s sales opportunities.
Bringing In New Members
Having new members month after month is the core of your fitness business. Gym owners must have a target to accomplish in terms of the number of new members you need to get each month for maximized profitability.
If you can’t monitor the number of your new gym members coming into your club, that’s officially a red flag.
1) What are you currently doing to invite new members?
If you’re primarily relying on word of mouth, that’s not a very good strategy. Even though passive referrals are solid advertising grounds, it does not guarantee consistent production. If you want a sustainable business, you need to have more powerful marketing strategies that boost constant sales.
2) So, what do you need to improve in your marketing plan to bring more members into your fitness circle?
Using your current marketing plan, you’re going to have leads. To improve that, you need to convert those leads into sales.
In addition to developing a good referral program, you also need to work on proactive methods, such as following up on potential members. They’re the next people who have shown interest in your fitness club, which means they’re viable targets.
There’s a 2% chance of closing in a sale in the first follow-up. At first sight, it’s pretty low. However, there’s about 80% of sales between the 5th and 12th follow-up. From this difference, you can see the importance of effective follow-up. It’s crucial not to lose any of those leads. Instead of wasting any part of your marketing plan, you can turn them into added production.
Invest in Member Retention
Increasing the member retention rate is more cost-effective than acquiring new clients.
Profits can scale from 25% up to 95% higher if you can grow at least 5% of your member retention. This is one advantage that should encourage gym owners to keep more members than spend more on replacing them.
On top of that, upselling to existing clients also increases your chance at around 60-70%. That’s significantly higher than having a 5-20% success rate in closing in new deals with new customers.
The key to this is knowing what makes your current members happy with your services. Use the trust you established with the customers you already have, and you can draw information that will help you revise your marketing plan according to what has proven to be effective. You can conduct a survey that allows you to identify the things you should continue doing, those you need to improve in, and the ones you should altogether avoid from doing.
Ancillary sales are a type of revenue that is not part of your core products or services. However, it enhances the total income of your business. Revenue diversification can be a tool for developing your business model, which can benefit your core goals.
Owners do not necessarily focus on improving strategies in marketing these goods, but they can significantly help increase accumulated sales.
If you treat ancillary revenue as a business within your business, it can even impact increasing current memberships, which is the ultimate goal of fitness clubs.
Maintaining Outstanding Club Services During COVID-19
Reopening during the COVID-19 makes it more challenging to achieve maximizing sales opportunities. Necessary precautions are in-line with our community guidelines for the safety and security of all the establishments.
However, owning a gym business doesn’t make it impossible to achieve success amid these difficult times.
Building Connection with Your Members
Owners only need to reconstruct their business models in a way that allows them to continue building connections with gym members, despite the contactless protocols.
Gym owners can still make the members’ experience as personal as possible by sticking to the basics like knowing the names of your regulars, keeping tabs of your members’ interests, and engaging with their progress.
Keeping Your Staff Motivated
Some of the things we’ve discussed above greatly involve the roles and participation of your staff. Without them, then it would be impossible to accomplish your objectives.
If your staff is not on-board with what you’re trying to achieve, that’s going to be a huge step back. That is why you need to ensure that you’re on the same page of how you want to run things. Show them a team environment to establish that you’re trying to reach one ultimate goal. You can enforce this by training them and leading by example.
Now, if you see your staff doing their best for the benefit of the business, don’t think twice in incentivizing them. It’s a motivation for your employees to continue to work harder. If they’re making you money, they should make money for themselves, too. This upholds the universal goal of helping everyone enjoy the success of the business.
Lastly, give your employees ownership of the skills and roles they’re good at, which they use to contribute to the team. Reinforcing them with positive feedback also goes a long way.
To recap the essential points, gym owners need to pay attention to the current marketing plan’s effectiveness if the results are according to the goals you want to achieve. Owning a business is undeniably challenging, although you can definitely thrive as long as you know your numbers and identify the things you have to tweak.
The final takeaway we can offer is to leverage technology if you want to scale up your business efficiently while dealing with the COVID-19 situation.
Find out more about our gym management solutions. Contact us for a quick demo!