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Tuesday
Aug302016

3 Marketing Secrets That Helped West Wood Clubs Survive Ireland’s Recession 

Can you name every single element of your health club business that falls under the umbrella of marketing? The answer may be longer than you’d think. 

“Marketing is everything you do that influences someone's decision whether to buy or not to buy from you,” said Alan Leach, regional manager of West Wood Clubs in Ireland, during his 2016 IHRSA Institute session. “It’s everything we do that influences someone's decision whether to continue to buy from us or not continue to buy from us.” 

During his Wednesday, August 3 session, Leach outlined the sales and marketing strategies that allowed West Wood Club to thrive during Ireland’s economic recession, which caused many health clubs to declare bankruptcy. 

The following are Leach’s top three marketing secrets: 

1. The Price is Rarely the Issue in Most Buying Decisions 

Leach cited a study done for Priceless: The Myth of Fair Value (and How to Take Advantage of It) by William Poundstone. For the study, researchers interviewed people who bought a slew of products—cars, gym memberships, etc.—and asked them how important price was in the buying decision. 

For those who bought the product they were considering, 14% said price was the most important factor. But when researchers asked the salespeople how important they thought price was in the buyer’s decision making, 84% said it was the most important factor. 

“In a lot of cases, the price is a far bigger issue for the people selling [the membership] than the people buying it,” Leach said. 

Knowing this, West Wood Clubs continued to charge a joining fee during the recession, while other clubs that eliminated their joining fees struggled. 

2. Winning the Battle for Sales Leadership Will Clinch the Victory for Decades 

“When it comes to sales, the golden rule is that ‘winning the battle for sales leadership in a single year will often clinch victory for decades to come,’” Leach said, quoting Jack Trout’s book Jack Trout's book Positioning: The Battle for Your Mind. “When you have sales, you can fix anything.” 

3. Only Spend on Marketing if it Generates a Profit 

West Wood Clubs only spends on marketing if it has delivered a proven return-on-investment, Leach said. As a result, they only spend $35 on marketing and sales per new member.

Read more coverage from the 2016 IHRSA Institute.

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