September 12, 2019 Beth Cadman

Why Brand Partners build Brand Loyalty

Branding partnerships can be an intelligent move for those working on member retention strategies and can turn disengaged members into passionately loyal ones.

When it comes to driving new customers to your business, retaining loyal ones, and securing business growth and success, branding is everything.

With continuously increasing competition, gyms have had to fight harder than ever to attract new customers and hold onto their existing ones. When a customer feels connected to the gym, and believes that they are able to resonate with the brand or they feel that it aligns with their way of thinking, the more likely they are to stay loyal to that gym. The member will then continue to renew their membership and not be swayed by hovering competitors, however tempting an offer they dangle. 

Developing a positive, smart company brand is, therefore, critical. Developing a loyal following of customers can ensure continued success, and boost sales of the associated products and services as well.

According to the Pareto Principle, 80% of your company’s future revenue will come from 20% of your current customer base. This means that while focusing efforts on enticing new customers it is crucial to turn the spotlight on those you already have, as continually nurturing that relationship, is going to have a significant impact on your business going forward.

Discovering relevant brand partnerships can help gym owners deliver unique customer experiences, enriching their offering, and surprising the customer in unexpected ways. A successful collaboration will not only help to bring a more satisfying and positive product offering but will also boost the brand by affiliation and give the gym access to a broader customer base who are already primed to become loyal customers due to their association with the partner brand. 

A loyal customer will not only continue to renew their gym membership year upon year; they are also likely to increase their spending if they feel positively towards the brand. In fact, 67% of millennials will spend more with brands they love compared with older shoppers, and with an increase in younger people joining the gym, this statistic is undoubtedly an important consideration to bear in mind. 

Building brand loyalty is an evolving process, and gym owners must be prepared to adapt their strategies according to member data, fitness trends, advances in technology, and impactful events that can change perspectives and attitudes. If a gym wants to build brand loyalty, they must expect to be malleable and flexible and to understand that in the digital age there is a higher demand for more significant benefits, and for those benefits to be immediately available. 

How brand partnerships can boost business equity

A successful brand partnership has numerous positives for the businesses involved, and if utilised effectively, they can:

Increase trust – partnering with a reputable brand gives an impression of being trustworthy. If the partner company is viewed positively and offers excellent customer experiences, this will reflect well on the other brand too.

Provide value: If a gym partners up with a brand that is relevant they will each bring something unique to the table that enhances their customer experience adding intrinsic value to the products and services that each of them provides.

Creates a buzz: If two big-name brands decide to partner together, this usually creates some buzz and excitement in the industry and beyond. This can help businesses reach new customers, promoting awareness, and also opening up PR opportunities that may not have otherwise been available to them.

Brand partnerships and member retention

A significant factor affecting member retention is brand loyalty. If a customer has a positive perception of your brand, they are more likely to develop a sense of dedication and emotional attachment to it. By partnering with another business, gyms should be able to offer an entirely unique customer experience which advances them ahead of their competitors and demonstrates that they are committed to continuing to evolve and improve and provide their customers positive, memorable experiences, thus rewarding them for their continued loyalty and motivating them to remain so. 

Building multiple partnerships is a common feature of big brands’ marketing strategies. The smartest of these think beyond the obvious and instead consider creative, surprising alliances that make them stand out amongst the competition.

British Airways, for example, partnered with The White Company to try to provide an enhanced experience for those who find it difficult to sleep in the sky. Manchester United and Uber also teamed up to create a dedicated ”Uber zone” at Old Trafford helping fans to get to and from matches with ease. Dunkin’ Donuts and Waze were an even more surprising partnership but their offering of giving driving commuters the option to place their Dunkin’ order ahead of time was a clever one, providing something unique and valuable in exchange for downloading the Waze app and becoming a rewards member of Dunkin’ Donuts, of course. 

Data – the key to perfect partnerships 

Using member data to understand the current reach of your brand and where that reach falls short can help gyms ensure that they pick a brand partner that can reach the gaps they want to fill. If those in charge of the marketing strategy understand how to expand the reach in a measured and targeted way, the partnership is likely to be much more successful as it will be relevant and more natural to integrate. Picking a brand with common goals and values and making sure that agendas align is, of course, crucial to ensure that the partnership is valid. 

Considering how members are engaged through CRM and assessing the popularity of the brand partner on social media and other platforms can also determine whether a collaboration will be beneficial. It may be that a potential partner has an influence on platforms where you do not, or that they have had success in areas and through marketing campaigns in the past that would address specific problems and challenges that gym members currently face. 

Tackling member retention battle

Gyms have been facing an increasingly severe retention battle for many years now. Genuine and considered brand partnerships can undoubtedly be an impactful way to increase engagement overall and turn members into fiercely loyal customers. By building meaningful connections and collaborating with impressive partners, gym owners can hope to excite and inspire their members, thus influencing them to remain faithful both now and in the future.

September 5, 2019 Beth Cadman

What Are The Warning Signs of At-Risk Members?

Recognising the warning signs that indicate a member is at risk can help gym owners step in before it is too late, thus improving their retention rates.

Turning new gym members into loyal customers is a huge challenge for any gym, and seeing those churn rates increase no matter what you do can feel frustrating and make the future of your business seem uncertain. In fact, a study of behavioral statistics in the US by The Good Body found that 50% of the people starting an exercise program will drop out in their first six months. The ability, therefore, to identify when a member is becoming or has become at risk can have a significant and positive impact on member retention rates, as doing so gives gyms time to implement an effective strategy to re-engage those members and prevent them from terminating their membership.

So what are the warning signs that might indicate a member is at-risk?

1. A decline in attendance

If a previously frequent attendee starts skipping their workouts and you can see they are no longer following their usual routine, this could indicate that they are becoming disengaged with the gym or have found an alternative fitness regime elsewhere.

2. Increased dissatisfaction

If a customer starts to complain either to a member of staff or via telephone or email, they may be contemplating leaving the gym. 

Training staff to be alert to complaints and to make a note of these can help gyms ascertain whether they are no longer meeting their customer’s needs. 

3. Their workout partner leaves the gym

If a member usually attends with a friend or joins the gym with a partner and that friend or partner leaves, this should automatically ring warning bells and flag up that member as at-risk too. 

Customers tend to listen to their friend’s opinions over any type of marketing, so if one goes, the other could be on their way out too.

4. An inability to hit pre-defined fitness goals

If a member feels as though their workouts aren’t working, they aren’t going to feel the benefit of coming to the gym. Making sure you capture each members fitness goals when they join and monitoring their progress will ensure you can flag up any members who are struggling. 

5. A change in routine

A change in routine could suggest a member is less dedicated to their workouts, is dissatisfied with the facilities or is having to wait to use certain equipment – all of which could point to them becoming at-risk.

6. Missed or late payments

If a member misses a payment or starts to pay late, they could be struggling to afford their gym membership. Most view their membership as a non-essential item, and therefore it could be the first to be cut if the purse strings are in need of pulling a little tighter.

7. A change of address

If a member changes their details and they have moved further away from the gym, this could be a warning sign as what was once a convenient location becomes less so. 

So how can gyms address these warning signs? 

1. Inspire attendance

Remind members why they joined the gym in the first place. Send aspirational emails that encourage fitness and health. A member may feel disengaged, but by providing motivation and inspiration, they might feel encouraged to stick at it.

2. Ask for and act upon feedback

Businesses tend to hear only 4% from customers, the other 96% will just leave. That’s why it is essential to ask for feedback from gym members.

If a customer complains or expresses dissatisfaction it is important to take this seriously. By listening to customer feedback and acting to make improvements, you demonstrate that you care, and this can help customers to feel valued. 

3. Encourage member socialisation

The more engaged a member feels with the gym, the less likely they are to leave. Encourage inter-member socialisation and train staff to be warm, welcoming, and friendly to each member and treat them as an individual. Offering a group fitness class can also improve retention as members tend to visit their facility specifically to engage in group classes.

If at-risk members feel as though they are part of a community and associate the gym with having fun and being social, they will be less likely to leave.

4. Adjust their fitness plan

If a member feels as though they aren’t achieving their fitness goals they may wish to cancel their membership. Turn this around by offering a PT session and assessment to help them manage their expectations but also to reach their goals faster.

5. Assess facilities

If your gym has become more crowded or some facilities need fixing or replacing, make sure that you manage this and fix any broken machines or other equipment to ensure continued member satisfaction.

6. Offer discounts

If a customer no longer feels that the expense of the gym matches the value, they may be tempted to cancel their membership. It could be that they have had to reduce their spending and see the gym membership as an inessential spend. Offering discounts and free classes may help them to feel as though it is worth it once more.

7. Incentivise and encourage brand loyalty

While some membership terminations are unavoidable if gyms work hard to incentivise their members to continue to use their facilities over a competitor they can keep retention rates high. By offering excellent customer service and value, they may be able to retain those customers who are considering leaving the gym for reasons of convenience as it will be worth the extra effort to stick with the brand and service they love.

By recognising the signs that a member is no longer enjoying their membership, it is possible to intervene and change that customer’s perspective. If gyms make sure that they have the tools in place to capture customer data and monitor customer behaviour, they can ensure that they will be able to identify at-risk members and do something about it before it is too late. 

If you want to easily identify at-risk members, our AI-powered retention tool can help you capture data the smart way.