The #1 Focus of Incredibly Successful Health Clubs

Updated: Sep 3, 2019

Image by Tintri

“The number one thing that has made us successful by far, is an obsessive, compulsive focus on the customer, as opposed to obsession over the competitor. “ - Jeff Bezos

Focus on the customer NOT competitors 

As a health club owner, it’s only natural to want to keep tabs on your biggest competitors. 

“The club down the street just joined Instagram maybe we should too.”

“Did you see their incredible T.V. commercial? Maybe we should grab a 30 second spot.”

“Ugh… Did you see they added another two hot yoga classes? We only have one. 

We get it. Given how incredibly competitive our industry is, having a slight edge on your competition is more important than ever. Unfortunately, in keeping up with the competition many health clubs today take their eyes off of what really matters…

The members! Which can have disastrous results.

The Biggest Problem In Fitness Tech

Despite having more availability, apps, and classes, clubs all across the world continue to struggle with incredibly high churn rate. Current estimates suggest that an average performing fitness studio operates with a 35-50% churn rate. 

While the nature of fitness and health clubs will always involve some amount of churn, according to Dr. Paul Bedford, the Retention Guru some gyms  have a churn rate as high as 50% - 80%. As you can imagine that amount of churn is not sustainable in the long run no matter how ‘great’ your club may be.

What’s the cause of such a high amount of churn?

Gyms not caring about their customers.

Many health clubs claim their #1 focus is their members, but their heavy focus on customer acquisition at the cost of serving their current customers says otherwise. Getting more members is important, but you have to know who your ideal member is first. As the saying goes, it’s far easier to keep your customers happy than it is to acquire new ones

Focusing less on your competition and more about providing a great experience to your members is without question one of the most effective ways to reduce churn. Yes, actually caring about your customers is work, which is why so many health clubs don’t do it.

Instead of overthinking your competitors every move, take some time to have your team get to know Lisa. What are her favorite classes? Why did she join? How can you make her experience better? The more you can understand your members every need, the better you can serve them.

The Secret To Dominating Your Competition 

There’s a reason why some of the most successful companies in the world are ruthless about serving their customers. 

Amazon for example, became the company it is today by ALWAYS putting their customers first. In numerous shareholder letters, Jeff Bezo Amazon’s CEO constantly said  that they were playing the long term game. Even when profit expectations fell short, Bezos knew that taking care of their customers would pay off. 

To be a successful club owner, you must become OBSESSED at understanding your customers every wants and needs. Some join to lose weight. Others want to join a club for the social element. 

Once you understand the why behind your members you can make strategic business decisions that will help reduce churn. Buying a brand new treadmill is easy. Any club can do that. But understanding WHY your members want a new machine or new set of weights will give you the edge. 

It’s counterintuitive, but the less you worry about your competition and focus more on your customers, the more your competition will begin to worry about you.

Use Data To Improve Retention 

The most effective way to deliver a great experience for your members is by collecting the data and info you need to serve them best. 

Do you know what types of interest your members have? How about their training level? It's not enough knowing average age or popular days, the more data collected on your members the best you’ll be able to understand them. You have to believe in Amazon's rule and Jeff Bezos mindset if you want to be somewhat close to becoming Jeff Bezos in your market. 

Give 100% attention to your members, be obsessed with them, understand them and create the atmosphere they are looking for and help them reach their goals. If you need a highly effective system to help track the data that matters, schedule a demo with us today.