National fitness clubs fight member churn, but better marketing integration is needed

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National fitness clubs fight member churn, but better marketing integration is needed
National fitness clubs fight member churn, but better marketing integration is needed

24 Hour Fitness
400-plus locations

17 states

Town Sports
170 locations
4 states

There are more than 30,000 fitness centers in the US, double the number from just 10 years ago, according to a study by business research firm IBISWorld. Two fitness franchises, Town Sports and 24 Hour Fitness, are trying to maintain an edge in this growing sector, though they vary in size and approach.

Town Sports' name varies depending on the four US cities it 
inhabits, e.g., New York Sports Clubs, Boston Sports Clubs, Philadelphia Sports Clubs and Washington Sports Clubs. Town Sports has been successful in maintaining a consistent customer base in the past year, growing its member base 1.4% in 2010 compared with 2009 to a total of 493,000 gym goers, according to its year-end financial report. Despite its membership growth, 2010 revenue declined about 5% to $462 million, year-over-year. 

Though 24 Hour, which has locations spread throughout the country, does not make financial records public, the company boasts 3.5 million members on its website. Despite 24 Hour having twice as many locations nationally, Town Sports has several times as many locations in its four cities of operations, often placing its gym locations only blocks away from another, a la Starbucks a decade ago.

Both retention efforts and acquisition marketing play a strong role in the fitness club industry that has a 24% annual customer churn, according to The International Health, Racquet & Sportsclub Association's 2010 Health Club Consumer Report. Company websites help promote membership benefits across regions and serve as brand differentiators for both marketers. 

After visitors to 24 Hour's website select whether they are a current member or not, they are redirected to the appropriate landing page. Messaging on each is tailored according to membership status. 

The first three items a non-member sees in the rotator are offers: a $0 initiation fee; refer a family member; and discounted personal training sessions. Non-members are also greeted with a prominently placed offer for seven days of club use at no charge. The offer includes the option to sign up for future messaging from the company as well. Both sites provide access to class schedules and nearest locations through search. "There are a number of prominent calls to action, even on the member site," explains Cristin Siegel, director of user experience and research at Designkitchen. "Once a user selects one of these options, the flow is understandable and 
convenient. 24 Hour Fitness is trying to make it easy to encourage sales, which is great, but they should make sure that their users aren't feeling overly sold."

Visitors to Town Sports' see a similar rotator feature in which three of the four items are discount offers or personal training sessions. The homepage is busier with more text boxes and additional links. Finding basic information, including e-mail list signup is simple enough, but the site lacks the richness of content found 
on 24 Hour's site. 

"The navigation area is straightforward, and it's clear which options the user would need to choose to start their membership application process," Siegel says, but "except for the brand story, all content has an identical visual weight. With nothing taking priority, the user's eye has nowhere to land." 

Neither company has perfected its e-mail strategy. E-mail messages examined included a refer-a-friend and customer feedback survey from Town Sports and several "join now" acquisition-focused 
e-mails from 24 Hour Fitness. Both sets of e-mails from the fitness clubs were sent to existing customers, meaning that perhaps 24 Hour Fitness needs to adjust its e-mail customer database. In terms of frequency, 24 Hour sent e-mails out on a weekly basis, while Town Sports delivered e-mail closer to a monthly schedule. 

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