First we need to do a little research and ask ourselves some questions to determine how much a health club member is worth over the lifetime of the membership.
What is the lifetime value (net worth) of your health club member?
How much will they spend upfront at the point-of-sale to become a member of the health club?
How long does the average member keep his/her health club membership?
How much, on average, will the health club member spend over the duration of the relationship?
Now that you know the residual value of your member, find out what you can afford to spend to get him/her in the door.
It’s important to look at both “prospective members” and “health club members”, so you will know the value of both.
What is your closing percentage, i.e., how many prospective members that come into your health club commit their loyalty to the health club?
Example: Ten prospective members come in and ask about a health club membership, what is the percentage of the ones who will be pledging their loyalty to the health club by procuring a health club membership?
Let’s say your closing percentage is a dismal 20%, which means you need to get 10 prospective members to your door to sell 2 health club memberships.
You already know the value of the health club member now what does it cost you to lock-up the relationship?
Add up your entire marketing budget for the past 3 years and you will be able to determine how much it has cost to capture these new members. You will also learn if your marketing efforts were effective and if so, which mediums and health club marketing campaigns were the most productive giving you the greatest ROI.
The nice thing about doing this research is you will now know what you can afford to invest into acquiring new members. The goal is to invest into results; not just advertising.
Know the monetary value of each prospective member and you will grow your health club and your health and fitness career.
For more free tips on increasing traffic at your health club, growing your health club membership base, 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.