25 Strategies to increase revenue from existing members for Health Clubs and Gyms
Introduction
Clubs and gyms tend to focus on selling more memberships to generate more revenue and underestimate the potential in revenue from existing members, a.k.a ‘expansion revenue’ (.
According to a Club industry report, it can cost up to 9 times more to acquire a new customer than to retain an existing one.
Another study by IHRSA estimates that the churn of each club member can cost up to $674 in annual revenue, including non-dues revenue.
What would you say is vital to bring in extra revenue? Member Retention.
And the key to membership retention? Engagement.
In this article, we present a treasure trove of 25 strategies for increasing revenue from existing members. While you may already have some of these in place at your club and gym, I am sure you will find some new ones on the list.
1. Introduce Fitness Challenges to motivate members
A fun way to keep members engaged is to start a group or individual fitness challenge, like a 6-week challenge or 12-week challenge. This motivates members to achieve their targets. You could even add an enrolment fee in the range of – $40 to $60 to enter these challenges. Offer cash prizes or complimentary spa sessions to winners as an incentive for members to compete.
2. Seasonal classes and campaigns leading up to the Holidays
Imagine a scenario where during Christmas you launch a holiday-themed exercise program. For example – 12 days of Fitmas that you can run each day leading up to Christmas. Every day you can send notifications and instructions about the regimen or workout that has to be followed. These campaigns will drive higher member engagement and retention.
And this is my favorite: Host a Holiday Raffle: If a member checks into the club a specific number of times during the holiday season, they will automatically enter into a raffle for a prize!
3. Sell merchandise and Retail Items using Purchases
The next most popular way to increase health club revenue or gym revenue is to sell merchandise. Members love to be associated with their Health Club, build a connection with it, find other members to go to the same club, and even bring new leads. The possibilities and benefits are endless. Sell t-shirts, water bottles, mugs, socks, headphones, locks, notebooks, gym accessories, supplements, and anything.
For example, a premium Washington DC club, Vida Fitness sells merchandise on their website making it easier for members to purchase their products
4. Organize Workshops for introducing new fitness concepts
People have more time and money than ever. And they want to spend it all to learn something new. Online courses and workshops. So why not take advantage of that?
Charge monthly or on a pay-per-class structure with a class pack option. Also, it goes without saying that if you add a class pack to your game, it also has great potential for word-of-mouth promotion, just like any referral program. That’s how you’ll quickly generate more leads.
Workshops, again, are a great way to introduce new health and fitness concepts. Bring like-minded people together. Let them fulfill their goals and interact. An example of this is offered by City Fitness, Philadelphia – a WE/FIT a premier Boot Camp Workout that includes two signature HIIT formats – Strength and Circuit Training.
5. On-Demand Videos & Live streaming
Deliver high-quality video content to your members via their phone, TV, or computer. You can protect all the content behind a paywall and introduce differential pricing for members and non-members. Also, offer live streaming classes that your instructors can stream from any device.
See how you can deliver a Netflix-like experience to your members with SHC
6. Run Loyalty Programs to keep your members hooked
Reward your members for their loyalty to you with a Loyalty Program that offers benefits such as discounts on services, point-based systems, and VIP programs. This can also work to decrease member churn when you give incentives for the members to keep returning to your Health Club – helping you increase recurring revenue and customer lifetime value.
City Fitness, Philadelphia has a City Fitness Rewards program where members can earn points for coming to the gym, referring friends, taking group classes, and more. The points can be instantly redeemed for rewards and savings
7. Offer a SilverSneakers program to appeal to Senior members of your Health Club
Offering a program such as SilverSneakers will appeal to Medicare beneficiary members under the age of 65 at your Health Club or Gym. The Medicare Supplement plans and Medicare Advantage are benefits where they can get maximum utility. SilverSneakers pays Gyms/Health Clubs based on the number of times a beneficiary visits the center and helps generate more revenue. Several top clubs such as Zone Health and Fitness, Cascade Athletic Clubs are already using this program.
8. Set up a Kids Zone to engage your members’ children
Do you have parents who visit your Health Club? Set up a Child Care space. Organize kids’ night outs where parents can take the night off and leave the kids at the club where they’re taken care of by club staff. Curate kids’ activities that they will enjoy such as – pool time, inflatables, movies, games, food, etc. A busy parent who doesn’t want to sacrifice their workout time will gladly pay extra if they know their children are in safe hands nearby during their workout session. Several top clubs such as Cascade Athletic Clubs, Peak Health and Wellness Center, and MESA Fitness are already using this program.
9. Launch Social media contests for members
Run social media contests to increase brand awareness and engage members. A key point is to pick a relevant prize, something that will appeal to your target audience. Instead of generic prizes (Amazon vouchers), you can offer – a month of free training, a weekend Zumba session, etc. When you have many members who sign up it raises your Health Club or Gym’s revenue
10. Provide a bonding opportunity with “Parent and Child” classes
Introduce “Parent and Child” classes. It will give both a shared experience when they take part in activities such as Yoga, Aerobics, etc. together. It is an excellent way to give them a chance to bond while getting the essential activity and movement.
11. Introduce Referral Programs
Referral programs are powerful tools for promotion. Attract new members and make the most of your relationship with the current members at your Health Club or Gym. Referral programs not only help acquire new members, but it also assures you that the referring member has a vested interest in staying on in the club.
12. Offer Wellness Treatments (Spa days, Massages, etc) for a Holistic experience
Everyone loves a spa day! When there is a chance for you to use that to increase your Health Club’s revenue, why not capitalize on it? Wellness treatments can include – Massages, Spa treatments, Hairdressing, etc. Who wouldn’t want a soothing massage before or after a rigorous workout? Advertise these services as a luxury experience that only your gym or health club offers.
13. Offer Fitness and Body Camp Assessments for members to gauge their progress
Offer Fitness Assessments for any new members who join your Health Club or Gym. Get them started on their fitness journey and set realistic goals based on the results of the Assessment. Make Fitness Assessments a regular element for your Health Club and Gym for a small fee and this will once again help to increase revenue. You can even offer them a complimentary nutrition plan as an add-on
14. Add Medical Fitness Programs to support members with chronic and non-chronic conditions
Healthcare costs have been on the rise and many have realized that patient treatment goes beyond just medicine.
“Exercise is medicine” and it is used to treat several people with chronic conditions. Maple Tree’s Exercise Oncology program is one such example. Studies were done on over 11,000 people who had cancer, and all of them showed improved treatment outcomes. They have a reduction in symptom severity, dose reductions when it comes to chemotherapy, and reductions in healthcare costs.
Exercise also plays a crucial role to treat other diseases. So when you offer Medical Fitness Programs as part of your club offerings you will pique the interest of your members who will want to invest in their health!
An added advantage to offering these medical programs is you can also have the local hospitals refer patients to your Health Club or Gym post- treatment. Tying up with local hospitals to get more referrals can also be another great revenue source!
15. Introduce Nutrition and Health Coaching for Comprehensive Plans
Nutrition accounts for almost 80% of an individual’s fat loss. Sell food plans, online nutrition libraries, or one-on-one appointments with a nutritionist. These plans can generate more income for your Health Club or Gym and also be an invaluable service addition for the members. Imagine a member who is keen on weight loss signs up for a nutrition plan and a fitness regimen to accompany it. They would be able to lose weight and improve their health in one shot.
16. Launch Programs and Clinics for Children
Offer programs such as – Swimming, Dance, Tennis, Karate, or Ballet for kids, especially in the summer. Form different groups based on the ages of the children. For kids between the ages of 6 weeks and 3 years of age, you can introduce creative activities as well and encourage free play. Kids between the ages of 4 and 8 years old can take part in activities that include messy play, arts and crafts, etc.
17. Build a Fitness Blog and Monetize it
Blogging builds authority on a subject. Your members will trust your expertise and look to you for guidance. Monetize the blog once you have sufficient followers. Some aspects to consider when you design your blog are – Design, Content, and Keyword Placement. Sell your fitness training courses, e-books, webinars, and more with just a few clicks on your blog.
18. Schedule Workplace Break time sessions and Invest in Corporate Fitness
Everyone needs a break from the strenuous hours at work. Imagine a relaxing Hatha yoga session or a stress-busting boxing session during a hectic workday! Introduce workplace exercise sessions for your members during their break time. It will encourage them to sign up for these classes. Include office ergonomics and other lifestyle-related best practices in your sessions.
19. Charge monthly rentals for Changing and Locker Rooms
The Changing and Locker rooms are a mandatory space in your Health Club or Gym that all your members will visit. Charge a nominal fee for members to block a particular locker monthly.
One of our existing customers – Montana Athletic Club offers full-length lockers that members can rent monthly and also a towel service so members need not carry around extra burden with them. And fact of the matter that all these minor conveniences add to the overall member experience not just your bottom line.
20. Add a Popup or a Concession Space to Boost Revenue
Create space for a Popup or a Concession stand at your Health Club or Gym. You can also charge rent to the businesses that set up the stand. Some businesses that you can have a tie-up with are – smoothie franchises or merchandise stands. Even if they are on a short-term basis you still end up adding revenue.
21. Introduce Consultation sessions with Industry Experts and leverage their expertise
Besides working out at the Gym or the Health Club, members may need additional help from experts to reach their fitness goals. Offer consultation sessions with different experts from – Stress Management, Nutrition, Diet, Mindfulness, Wellness, and more. The sessions can be made available at a base fee and can be entirely online or offline.
22. Rent out Facility Space, Studio Space, or Meeting Rooms and make the most of unused space
Have a big space at your Health Club or Gym that is underutilized or not utilized at all?
Rent out the space. Use it for other Fitness Group sessions, Workshops, or even Corporate events during off-peak hours. This can bring in additional revenue and also potential new members to the facility.
23. Recharge user experience with Outdoor workouts
Move your Health Club or Gym sessions outdoors. You don’t need to invest in any equipment and just need to follow basic safety guidelines. Run outdoor boot camps over several weeks to generate additional income.
24. Curate bespoke experiences at other locations for your members
Some clubs today add bespoke experiences like Goat Yoga at a farm in the outskirts of the city and offer those to their members. This is a fantastic way to keep them enthralled and super excited about your offerings. One of our clubs, Wisconsin Athletic recently organized a Goat Yoga offering in a similar way and, of course, their members loved it.
25. Invest in a Health Club Software with Marketing Campaigns and Purchases solutions
Finally, you want to make it very easy and simple for your members to select and buy your services.
The best way to do this is to automate and digitize the complete purchase experience for your member.
Look for software that comes with Marketing Campaigns and Purchases capabilities. Smart Health Club (SHC)’s Member Retention Software prepares you for just that!
Our Purchases solution helps members self-serve and make purchases in just a few clicks. It allows you to set up inventory, price anything and everything (Classes, Products, On-Demand Videos, Services), access to reports and analytics and gives you the flexibility to run all purchases through your billing company or Stripe.
Our Marketing Campaigns solution is designed to help your Health Club or Gym increase engagement and revenue through your existing members. It can help with fine-tuning your segments/target audience, planning and creating campaigns, reaching members across multiple channels, and making purchases friction-free with Deep Links.
Summing Up
All these 25 strategies are related to non-dues, and non-dues are like a “safety net” for member retention.
It is very simple:
The more the members do at the club→ the more their family members do at the club→
The more friends they bring to the club→ the more engaged they are→ the less likely they are to leave.
These 25 strategies eventually add upto a higher lifetime value of each member.
And as importantly in terms of intangibles, they help grow your brand, its reputation, and its member experience.
Which is your favorite strategy among these?
