Blog 66: Consumer Lifetime Value Health Club Marketing

Knowing the value of your member over the lifetime is extremely important because this information tells you how much the member is worth to you. It helps you in all aspects of your health club marketing efforts, especially in budgeting. The value of your member will tell you how much you can afford to spend to attract, engage and procure new a member. These are very important statistics and tools to measure how much the member spends in your health club throughout his or her relationship with you.

Once you know the value of your member, you will know how much you can afford to spend to acquire a new member. A lot of health clubs are reluctant to invest into health club marketing because they are unaware of the true value of each prospective member. They know they need new memberships to run the health club but they don’t realize the impact on how much a single prospective member can attribute to the bottom line. This is why MMC® is against programs like discounted memberships because the prospective member is not being engage properly by the health club and programs like these will not help you in building a relationship with the prospective member.

It is important for you to start thinking about long-term revenue as opposed to what you need today. Each prospective member has a value and let us use “X” as a value multiplied by how many prospective member you can attract through a single health club marketing campaign. This is what we do at MMC®; the “X” amount will determine how much we should spend on each campaign. We are focusing on the bottom line, i.e., how many new members will the health club marketing campaign attract, how much immediate and residual revenue is it going to raise, etc. Then we work our way back through the numbers and find out how much money we are going to invest in our health club marketing campaign to acquire each new prospective member for our client. After that, it is just simple arithmetic that makes the call whether it is a good investment or not.

Another important aspect of knowing the value of each prospective member is, once you know the dollar value of each prospective member you tend to work harder on building the relationships. The reason is because you know that the value of the prospective member is not just $20 (or whatever your rates are) but could end up being $5,000 to $10,000 in the future.

Find out the lifetime value of your prospective member and you will grow your health club and your health and fitness career.

For more free tips on increasing your health club membership base through health club marketing, health club promotions, professional health club membership sales, and advancing your health and fitness career visit us today @ www.healthclubmarketingmmc.com or call 904-448-5727.