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July 2009

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Referral, Reward, and Loyalty Programs

Featured Question

Tips On Strengthen My Membership Base
Posted by Joleen from New York, NY, US on February 17, 2009

Any tips on how I can strengthen my membership base via new sales and better retention?

During this recession consumers are still spending money, however they are more critical with their buying decisions. According to a recent study conducted by the department of consumer affairs, health clubs memberships made the top 10 list of what consumers are still buying.

When speaking with new prospects, it is more crucial now than ever that your health club’s membership is presented as the greatest and best value in the area. One way to do this is to make sure your membership team uses USP (unique selling proposition) phrases prior to every statement. This includes preceding most statements with the words First, Best, Different, and Only. For example, “We are the first facility in the area to offer Pilates. That is why our members will tell you that comparatively, due to our credentials and experience, they receive effective results from our classes.” Or, “We are the only facility in the area that offers a reward and loyalty program for our members; it’s our way of giving back to the members for their hard work and dedication.” These are simply a few statements out of many that can help position you as a preferred choice in the mind of the consumer.

When it comes to member retention, research demonstrates that usage, results, and relationships, combined with proper integration have the greatest effects on member retention. Developing programs that fulfill these values are proven to have a measurable effect on retention. As an example, we know that usage increases retention so your club should be taking all measures possible to encourage usage. You can do this by rewarding your members with points every time they use the club and also quickly identifying members that haven’t used the club in 30 days to taking measures to re-engage them through friends, phone, email and mail.

Tracking Points?
Posted by Susan from Chicago, IL, US on September 30, 2008

I understand that my members’ points will be deposited into a personal account. How are the points tracked and do I have to do this manually?

fitRewards works with your club’s management software so that the banking of points is easy and not done manually! Behaviors such as usage, purchasing, and referring friends are tracked are tracked in your CMS and run as reports. These reports are then easily uploaded into the fitRewards website by your assigned Points Administrator weekly and our system puts those points into each of your members’ personal accounts. fitRewards is compatible with any CMS and as a fitRewards client we will train you in points processing and data input. The whole process will take less than an hour per week! Our preferred strategic partners are Conexion and Twin Oaks.

Loyalty success?
Posted by Joel from East Brunswick, NJ, US on August 7, 2008

I see a lot of different industies using reward programs to increase customer loyalty, barnes & nobel, american express, staples, etc. How is it working in our industry, are your clients seeing increase loyalty? How do they measure that?

The magic question is what's "loyalty"? In the health and fitness industry thus far we have measured our programs performance and impact in following ways with the following results. We have seen up to a 15% improvement in referral generation, 8% increase in non-membership dues revenue and 5% improvement in annualized retention. We are currently compiling more measurable data on some of our clients who have instituted the program to impact healthy behaviors. Provided you agree that an increase in referrals & club spending and decrease in cancellations constitutes a "successful impact on loyalty" then YES we are seeing an increase. Thanks Joel, great question!

About reward program
Posted by Jennie from Los Angelos, CA, US on August 4, 2008

How Does The Program Work?

fitRewards is a customized referral and retention program that offers turnkey solutions in motivation, member loyalty, employee retention, and premium incentives. This program will motivate your members like never before. You can expect up to a 15% improvement in referrals, 8% profit center increase and 5% improvement in retention annually.

Fitness Rewards
Posted by John from Albany, NY, US on August 4, 2008

What is FitRewards?

Each time a club member or employee completes a qualifying action, points are earned and easily deposited to their personal online fitRewards account, along with a congratulatory email sent to them. The points are redeemed online from your club's customized site and selective catalog of rewards, which includes brand-name quality merchandise, personalized embroidered club logo apparel and club services and merchandise.

Ask the Experts

	Software for Club Management Michael Scott Scudder: Club Management Expert		Referral, Reward, and Loyalty Programs Maria Parella-Turco: Executive Director
Submit Your Questions About the Software.		Submit Your Questions About the Programs.