Many health clubs and fitness facilities overlook the importance of market research when setting their marketing strategies. Members have different motivations for joining and utilizing club and fitness facilities. Understanding these inherent expectations and motivations and targeting these consumer segments accordingly can result in increased revenues, more efficient and effective marketing and promotions, and reduced member attrition.
Too often in the rush to sell new memberships, existing members are forgotten. Most fitness clubs in the industry face annual attrition rates of about 40%. Therefore, even a small reduction in attrition each year can significantly add to a clubs’ bottom line. With a better understanding of its core target segments, a facility can determine which targets have the highest potential of becoming a member, how to identify which consumers are most likely to leave the facility and at what point in their membership, and which interactive events, promotional ideas and experiential marketing campaigns are most likely to get results. Facilities can also understand how to modify their customer service, sales, and marketing strategies to better achieve these goals and to differentiate themselves from the myriad of competitive fitness alternatives in their locality.
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