Fitness Center Unfit for Business
A friend mentioned that he’ll probably drop his fitness center membership this month to save money. He enjoys the new facility and programs, though he only uses the workout room. Apparently, other customers are feeling the financial pinch, too, so the facility is in a budget crunch … and what does the fitness center plan on doing about it?
They will raise the fee on the remaining members as of January 2010. Should we start painting the Out of Business sign now? Will the paint have time to dry before hanging it?
Unfortunately, this everyday circle-the-wagons business response misses the opportunity for creative customer engagement and retention … and growth.
What if, instead of raising the single, comprehensive membership fee, the fitness center broke the fee structure into three levels, each with greater degrees of access to facilities?
What if the inexpensive basic package allowed access to just one program … say, the workout room … and those customers had a black rubbery wristband that allowed them access to the workout room. Those signed up for swimming had a blue wristband. Mid-level access (and price point) is a bundled package with its own, single distinguishing wristband. The premium level has the ultimate colored wristband.
What if the fitness facility staff came up with an even better approach than this one to segment their products?
Now their customers have lower barriers to entry, more purchase options, and, perhaps, a visible status incentive to increase their membership levels.
Never allow “Never done that before” to define your customer service.
Always default to “What if …”
