Club Business for Entrepreneurs

Club Business for Entrepreneurs is tailored specifically to owners and operators of small, independent U.S. health clubs.

Fall 2011

Need to Know - Keeping the New & Attracting the Potential Member

According to the 2011 IHRSA Health Club Consumer Report, nearly 28% of health club members were new in 2010 and more than 35% of active consumers plan to increase spending on health club membership fees over 2011. Understanding some of the characteristics of the new and potential members can help you boost your membership retention and acquisition efforts.

Summer 2011

HICCUP Your Way Past Competitors on Facebook

Every company is trying to use Facebook in an attempt to move their business forward and stay connected to their customers in this fast paced world. Why are some companies more successful at this than others? Content is the key to staying in touch with your customers and keeping them informed. The content, however, must be a rich mix of information, education, humor and fun. Use the HICCUP approach to make your Facebook page more successful.

Need to Know - Profit Center Analysis

What are the most lucrative non-dues services at your club?
According to IHRSA’s annual Industry Data Survey, clubs can offer a variety of profit centers. Beyond personal training, participating clubs indicated that spa services, food/beverage, and pro shop/retail contribute a significant amount of revenue to the bottom line. The following table shows what percent of total revenue is attributable to select ancillary services.

Spring 2011

Need to Know: Membership

During the challenging times of the economic recession, member acquisition was challenging. According to the 2010 Industry Data Survey, participating clubs faced challenges in growing membership. In spite of this, these clubs were able to retain members as membership retention rates remained consistent with reported retention rates for previous years. All clubs reported a median rate of retention of 71.1% in 2009. Independent clubs reported the highest membership retention rate by segment type at 74.1%.

Winter 2011

Need to Know: Sales & Marketing

In an industry as competitive as the health club business, sales and marketing initiatives can help set you apart from your peers. One way to determine the effectiveness of your sales and marketing departments is to compare how much you budget towards sales and marketing measures up against leading clubs. Insight into these club benchmarks and key performance indicators (KPI’s) can help you better plan your sales and marketing expenses.

Increasing Customer Retention at Health Clubs with Predictive Analytics

A major problem in the health club industry is customer retention - it may well be the industry's single largest issue. Hence the constant aggressive push to get members signed up and in the front door, at a rate faster than they are exiting out the back door. I have seen figures showing that as many as 40% of members churn in the average health club, regardless of the exact numbers, it is a known fact in the industry that it is a higher number than any health club manager wants it to be; and obviously any reduction adds directly to the club's bottom line.