Cheers, where everybody doesn't know your name ???

Developing Brand loyalty, 2009 v 2017, does the Cheers concept still apply ?

I wrote the following article on “Developing Brand Loyalty” for Fitness Business Canada Magazine back in 2009.

Since that time we have had 2 new major forces enter the Fitness Industry in North America. The low cost operator ie:Planet Fitness  plus the advent of the Boutique fitness Center modelwith Brands like Soul Cycle, 9 Round boxing, and Barre.   

Does the “Cheers Concept” espoused in the following article still or today in 2017 is it all about cost and convenience?  Let me know what you think Trendsetters !

With the advent of huge 24 hour, 7 day a week fitness facilities   throughout Europe, the United States and soon Canada how does the small owner operator compete?

Developing Brand Loyalty with your members could be the answer.

What is Brand Loyalty? How do you develop it, and more importantly, keep it?

Mike James reports from Washington DC

Metropolitan Washington Dc comprises the suburbs in the District of Columbia itself and the bordering states of Virginia and Maryland. The area is well serviced by a variety of Fitness Clubs from the small operators to larger chains serving fast developing urban communities lured by the city lifestyle and a way to escape one of the worse daily traffic commutes in the United States.

Where I live in Alexandria Virginia is typical example, with a dozen clubs within a 10 minute drive. Many of these clubs have been operating for over 20 years. In 2007 one of the older established privately owned clubs closed.

Two years later in June of 2009 it was replaced by a brand new facility. This new club has taken has added an adjacent 50,000 sq ft which was formerly restaurant retail and office space.  Xsport Fitness out of a Chicago now operates an 80,000 sq ft facility with brand new equipment, basketball court and swimming pool.  It is open 24 hours a day 7 days per week, 365 day a year. Membership IS only $40 per month.
 

Many of the local clubs are really hurting because they just can't compete in terms of price, accessibility, and range of equipment.  The average membership of nearby Alexandria clubs is approximately $65 per month with a range between 40- $90 per month.  .  Local clubs are reporting drops in membership of over 30 % in the 5 months since Sport Fitness opened
 

                  However there are still people have decided to stay in their previous clubs.  What makes these people stay even when a nearby club is offering bigger, newer and more extensive facilities with significantly lower membership rates?

When I ask the stayers why? There are a variety of answers but the most consistent is "Oh I am loyal to such and such a club”.  

What makes the Stayers Stay?
 

I recently spoke with 10 of these “stayers” and asked “What inspires your Brand loyalty even when the opposition is newer, bigger, more accessible and much cheaper? 

Convenience, unwillingness to change and fear of high pressure sales tactics are some common sentiments.   Brands that offer reciprocal rights at other locations was a factor for frequent travelers. “I know what to expect from each club whenever I travel and that my favorite piece of Cardio equipment will be there” said.

A strong group exercise program was another factor that kept people from changing their club brand

There appears to be 2 common sentiments among the many “stayers”

Huge facilities can be seen as impersonal and lacking in ambience, warmth and a neighborhood atmosphere.   Joy Romviel a 20 year member of another Alexandria Virginia club said she felt the new club “was like walking into a huge department store with too many bright lights, blaring televisions and loud music”. “Intimidating, A threat to the senses with a distinct lack of ambience”was how John Luna described his experience in merely touring the new facility.

But by far the biggest factor in keeping people at a particular club was the personal relationships. Sophia Waldemichael has been going to the same club for 18 years and has built up relationships with the front desk staff and Management. “They know me on a first name basis and understand what I am looking for in a gym membership” she said.

The Cheers Concept!!

This appears to be the key to competing with larger clubs. Many books and articles have been written on Brand Loyalty.  Creating Band loyalty starts with simply knowing people’s names, greeting them as they arrive and leave your center.  A smile, and genuine warm hello and goodbye, makes a people feel like they are appreciated.  This builds lasting relationships that at least make people think twice before joining another club.

If this seems too simple well maybe it is. The big mistake many clubs make is that once members’ sign on they become just another number.  People like to be recognized.  Many fitness centers are hopeless at this.  Swipe your membership card and that is virtually the last human contact you have.

.Obviously we are taking for granted that you have a clean facility with good equipment, group exercise and strong member friendly and approachable management.  Add to this a place where everybody knows your name and you will create a lasting Brand loyalty that will bring Cheers to both you and your customers.