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This question has been closed, and points have been awarded.
Can Not Seem To Get A Handle On Marketing My Gym
Posted By: physfit7* on 3/10/2005 2:38 AM (CST) 250 Points
We have been in business for 1 year. We only have 41 members to show for it. We have spent over $30k on ads (Valpak, money mailer, flyers in local paper in the surrounding zip codes) and we get very little response, between 0 to 9 total calls in a month on 20,000 to 40,000 mailings/flyers. We did do well on one flyer in the paper for our Grand Opening (4 months after we were officially open), we had 30 people in one day and 20 signed up. We are similar to Curves for Women, but better in the respect that we have extremely better hours thru the use of a proximity card entrance when staff is not on duty, so we are open 365 days and are hours are 5am to 10:30pm. Also, we have special classes done by instructors ie. Strength training, Abs class, Pilates, that Curves does not have. And, we have better equipment, were members can adjust the tension on the equipment, with Curves you can not do this. We have expressed this in our advertisements. We are in a city of aprox 500k and we have aprox 65k people in a 3-mile radius of our gym. Of our members only 25 actually signed up thru our advertising (20 in one day), the rest just saw our business while getting a video at blockbusters in our strip mall. We are in a visible location, yet some of the people that have recently become members said they passed by us every day for a year and never noticed us. I just do not know what we are doing wrong. Any help would be appreciated. We have about 3 months left to get membership up or we will not make it. We have about $15k left for advertising. Any Ideas?

Posted by: LindaS* Accepted Answer
3/10/2005 3:22 AM (CST)
You've spent a fair amount of money on advertising with limited or no results. It sounds to me like the problem then is one of two things: either your message is not resonating with people or you're not reaching the right target audience (You mentioned Curves a few times. Is it safe to assume you are targeting women?). You may want to consider investing a portion of your budget with a marketing professional to assess the strengths and weaknesses of your previous campaigns so you don't burn through the last $15K with similar results.

That aside, here are a few suggestions to take into consideration.

--You're smart to be thinking about how your gym stacks up against your competitors, but don't forget about the larger vision/message. That's what makes Curves so successful. Women aren't approaching the decision of whether or not to sign up based on the equipment or the opening hours, per se. Curves appeals to women's emotional reasons for making the decision. In essence, women are buying the concept of "a gym where women change their lives 30 minutes at a time." Think about who you are trying to target and why they sign up for a gym membership. The women who sign up for Curves have far different reasons for choosing that gym than those who sign up for Bally's. Talk to a few of your current members and ask them why they signed up with you. Take it a step further and ask people who decided to go somewhere else. You can even ask people who haven't even considered a gym what their decision-making criteria was. It can be very informal, but it may be just what you need to better understand your target customer and craft a message (and marketing campaign) around that.

--A great way for small businesses to get the word out is publicity. If you have a good story to tell (as one idea--has one of your members lost a significant amount of weight or corrected health problems, etc as a result of working out at your gym?), send a query to the appropriate journalist at your local paper. I've seen some discussions on this site about PR--try doing a search to read some of the advice other business owners have been given.

--Word-of-mouth is very powerful. Consider offering a special discount for current members who sign up new members. The more new members they bring in, the higher their discount. Give them a flyer or coupon or special new member sign-up card to hand out.

--Since your grand opening seemed to be very successful, why not consider hosting some other event and open it to the community?

--People like to try before they buy. How about a two-week trial or something like that? Give it a theme (something that pertains to spring or getting a jump start on the upcoming summer months for example).

Good luck!

Linda
Simplify Global Business Solutions
 
Posted by: LindaS* Member Response
3/10/2005 3:25 AM (CST)
...Oops...that is, you can even talk to people who haven't considered your gym....
 
Posted by: Stokefire* Accepted Answer
3/10/2005 6:59 AM (CST)
Many months ago I helped someone in this industry with a similar question. They were in a saturated market and looking for a way to find customers.

This may help you too... (Look for the post by Stokefire)

http://www.marketingprofs.com/ea/qst_question.asp?qstid=3056

Good luck!

Tate
 
Posted by: blanalytics Accepted Answer
3/10/2005 9:23 AM (CST)
It sounds like your problem is initial trial. I recommend a direct mail campaign where you offer free 3 month trial memberships or something like that. Your issue is simply to get people in the door. If your services are better, once they get the trial, you should be able to convert a fair number of them.
 
Posted by: koen.h.pauwels Accepted Answer
3/10/2005 11:30 AM (CST)
Given your urgency, the main point is to give prospective customers a STRONG reason to try NOW. Within the excellent communication ways suggested, make sure they understand that if they don't, they will loose out on a great gym! A controversial issue is whether you should play all your cards by actually telling them you will otherwise close in a few months. Such statement is rare (and so stands out) and shows your vulnerability and honesty. On the other hand, some prospective customers may be reluctant to join a gym that may close down in 3 months. You could say something like 'Get in shape NOW and bring your friends for a risk-free trial! Your action will ensure this excellent and convenient gym next door will stay next door!'
 
Posted by: whitefeud Accepted Answer
3/11/2005 9:14 AM (CST)
May be you have positioned the Gym wrongly in the market or your campaign's BIG idea was bad.
I suggest to relaunch or refresh the campaign with emotions in it, tell them great stories and leave some mystery so that you can have another campaign. Try a PR event. Show the values of your Gym.
 
Posted by: wilreynolds* Accepted Answer
3/11/2005 9:15 PM (CST)
I would recommend buying keywords for your web site (you do have a site right?) for phrases like
"Gym in XXXXXX" (Where XXXXX is your city). Do it for only a month and remember to ask or have your staff ask people how they heard about you, see if the online route paid any dividends. Maybe offer a coupon in your paid keyword ads, so it stands out over other gyms who may be advertising in your area.

The publicity recommendation is good too. Here in Philly a local PR firm got makeovers for a few of local sports stars at a local salon. They had a local news station pick it up, and people (because we are so star struck) started flocking to this salon simply because sports star XYZ was there. Something like that is hard to pull off yourself, so maybe a PR firm would help.
 
Posted by: Colleen Sharen* Accepted Answer
3/13/2005 2:35 PM (CST)
Here are some very tactical ideas for you, since you really need to get some numbers soon.

Is there a local weight watchers or other weight loss organization with whom you could do a cross promotion? Offer a reduced rate or introductory rate?

Could you do something with the Blockbuster in your strip mall? Rent 3 DVDs and get a free month of gym?

Could you have a walmart style greeter outside your gym doors inviting people in for a tour?

Are there local hiking, skiing or other outdoor activity clubs that might want to offer a discount to their members to stay fit in the off season?

Could you do a family membership offer (whole family for a flat price) and provide it to local schools? One of our local gym owners teaches at the local youth centre for free once a week - in return he gets to send a membership flyer home with the kids.

Consider investing in signage -- it sounds like your current signage at your gym just isn't standing out and people don't know you're there.

Are there any small or medium size businesses nearby that would be interested in a corporate rate or special offer for their employees? If they get 20 employees to sign up everyone gets 20% off?

Perhaps their could be a friends and family program, where if 5 people join together, they get a reduced rate.

Doing these reduced rates to increase your membership makes sense, since you have a largely fixed asset so any incremental revenue makes sense.

You also might want to consider that there are 3 times a year when women in particular are interested in starting fitness and weight loss programs. New Years is the shortest and strongest period, followed closely by "get fit for bikini" season which, depending on the geography, could start as early as march. Now might be the time to launch a "fit for summer" offer.

Good luck.
 
Posted by: Matt* Accepted Answer
3/22/2005 5:35 AM (CST)
I don't work in the leisure industry but .... You say some current members passed you by for a year and never noticed you despite being in a visible location?

Is the building set back from the roadside? If so how about stretching your presence onto the pavement / sidewalk with a sign of some description? The message on the sign still has to be right but this may catch peoples attention walking buy. Many gyms in London use this technique. Also how about getting permission to stand for a saturday morning in the local shopping presinct handing out information - this is a very direct approach, and you can also get market feedback at the same time when you talk to people.

Fixed memberships allow you to manage cashflow more easily but do you offer "pay as you go" as well?

In terms of messages bear in mind a lot of people both male and female don't feel confident or comfortable going to a gym, especially if they think it's going to be full of people in great shape where they may feel inferior or silly. There might be something worth tapping into here.
 
Posted by: lucia_cotis* Accepted Answer
3/25/2005 9:04 PM (CST)
Most people that need gyms with flexible hours either work a lot or they have kids. So, one option is to do some promotions w/ local corporations. Offer a "corporate discount" to members of large companies in the area.

Also, try to leverage existing businesses that do well. Will blockbuster allow you to leave coupons on the counter? What about a local pizza place, can you get your coupons delivered w/ the pizza :)

Perhaps hair salons will allow you to put coupons at their establishment, in turn for promoting them?

Also, you clearly have a visibility issue. Evaluate your sign, parking, roadside presence.
 
Posted by: obrewton* Accepted Answer
4/2/2005 3:17 PM (CST)
your message may not be wrong, but who your message is reaching may be(just imagine all the men that see your message). Go where there are a large concentration of women, I would talk to my local grocery store about placing a kiosk or table in there store so you can pass put promotional material, you can also rent kiosk in a malls to do the same thing, both these has a high concentration of women. Placing flyers in hair salon, nail salons, and tanning salons may also be beneficial. Approach local church leaders to offer there members a discount on membership to your gym, you maybe need to offer some type of health seminar. How many hospitals do your community have? offer a discount to new mothers,you may even be able to get in there new parent package, don't forget all the women who work there. I am sure you can think of other ideas that are simple, creative, inexpensive, as well as effective

hoping for your much improved success
obed brewton
 
Posted by: bob* Accepted Answer
5/12/2005 9:15 PM (CST)
You've got $15,000 left. What I would do is TARGET the right market with the RIGHT OFFER.

I am a firm believer in solo direct mail, not val pak, money mailer or any direct mail cooperative. The key to making your remaining budget work for you is to do a solo direct mail and tele marketing campaign that goes directly to our best market. First step is to identify the right market and make a strong offer. I would go after target markets that other gyms in the area don't reach.
Identify your competition and understand where they advertise and do direct mail, if they do direct marketing.
Personally, would go after speciality lists like: new movers, new moms, newlyweds, women with weight problems, to name a few of the target markets.

Get yourself a good database person and have them offer to find your best market. Keep in mind that using "permission marketing techniques" is recommended. First by telephone, and ask if you can send a strong offer to them. This way you are sending mail out to only those who have granted permission for you to send.

I continue to see the power of direct marketing if used correctly. Hope this helps you.

Best
b_perlstein
 
Posted by: rbooth3399* Accepted Answer
5/13/2005 7:48 AM (CST)
I agree with many of the responses you've already received: Appealing to Emotion; using Targeted Direct Mail (get rid of ValPak immediately - typically the folks that use this are shopping on price, not on quality and they are far from loyal); New Signage and Co-op Advertising.

There is a company in Canada that works on direct mail campaigns for the gym industry. It's called Susan K Bailey Advertising. Their number is 888-349-4594, press x28 and talk to Chris Russo about the offerings they have. They can put together large mailings for you at price points of roughly $.32 each including printing and POSTAGE.

I also recommend reading the book EVEOLUTION by Faith Popcorn if your target market is women. When marketing to women (who, btw, make 80% of all buying decisions) you need to make sure that you can make life easier for her. Convenience is key.

You're smart in limiting your search to a 3 mile radius of your gym, but don't forget about people who work. People typically work out in a 5 mile radius of where they work or where they live. Convenience.

I worked with a client who launched a new gym concept last year. We gave away 14 day memberships, versus 7 days memberships. 14 days allowed someone to "get into the groove" more than the 7 day. They also had packaged deals if you signed up sooner versus later. While this can be perceived as being somewhat sneaky, if you position it right and aren't too aggressive in making the pitch it could work for you.

Love the idea about working with Blockbuster next door. What about placing ads in your local church bulletins or in your school board's monthly newsletters? These are generally very inexpensive and can get your message out too.

Think about a bring a friend and extend your membership for a month promotion as well. There are many things that you can do, and the $15K you still have will work to your advantage.

Industry standards show that you'll sell the majority of your memberships in January. A large group of your membership will join and come for approximately 3 months before they quit. Every year you'll lose about 40% of your membership due to the bad habits we all have about not sticking with a health regimen. Sorry, but it's true. But don't forget to stay in touch with the membership you have throughout this whole process. It'll be important too to speak to those people who've stopped by but never have joined. They already know who you are, so turning their heads again should be easier.

Unfortunately the summer is a bad time to start recruiting new customers. We can exercise for free outside in the summer months. So think about launching your new push after the kids go back to school. Take this time for planning and strategizing. You'll do fine!

Good luck to you!
Rebecca Booth
Marketing Goddess
Imagine That!
 
Posted by: NoStressXpress Accepted Answer
5/13/2005 2:55 PM (CST)
Common sense would tell me that if you intend on comparing your Gym to Curves for Women then you should at least study their marketing activities and simply resolve to do it better.....and add on a few but rather obvious unique features about your Gym.

Benchmarking with a competitor is not a new concept but I believe it's a start in the right direction. As for adding some uniqueness to your Gym you might want to partner with an upscale womens' clothier and run a promotion where any women who achieves their desired weight and shape (by exercising in your Gym) would be entitled to some free apparel or a significant discount. This is just one idea.....I hope it helps.

Conrad
 
Posted by: carrie77 Moderator Response
5/15/2005 4:10 PM (CST)
Hello all. I am closing this question since it's more than 2 weeks old. We do this to reward the contributions of participants in a timely manner + to give increased visibility to the newer questions.

Thanks for participating!
Carrie, Production Editor
 


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