Integrating the Opportunities

The 10 membership growth opportunities prioritized by industry leaders can be divided into two groups. First, there are five market segments: Baby Boomers, Gen Xers, Special Populations, Families, and Minorities. Second, there are five programmatic initiatives: promoting the benefits of exercise, forming healthcare alliances, improving sales and service, developing better new member integration programs, and developing program membership opportunities. All of these oppor- tunities are interrelated in various ways.

In some cases, all 10 of these growth opportunities relate to different dimensions of the same opportunity. For example, the sales and service initiative relates to all the market segments and to all the other pro- grammatic initiatives; similarly with "improved new member integration" programs.

In short, with respect to each of the market segments, there are sales, service, programming, promotion, and retention issues. Thus, one useful way to integrate these opportunities is to view them within a program/market segment matrix. In the matrix presented below, an "X" indicates that the particular program initiative has direct relevance to the specific market segment.

*S&S stands for Sales and Service, MR for Member Retention, BE for Benefits of Exercise, PM for Program Memberships, and HA for Healthcare Alliances.

Viewed from this perspective, it becomes clear, for example, that an industry-wide campaign to strengthen sales, service and hospitality skills (column 1) supports all the other opportunities. So, too, would an industry-wide initiative to improve member retention through better integration of new members. And these two opportunities themselves (sales/service improvements and improved new mem- ber integration), are themselves related. For example, an improved new member integration program becomes an integral part of an enhanced service delivery system, which will, at the same time, generate additional referrals for the sales department, etc.

The same kind of synergy is apparent when we consider the five distinct individual markets opportunities. For example, with regards to the Baby Boomer Opportunity, it is apparent that as men and women mature, they become more discerning customers. As such, they require a more professional sales presentation, as well as higher levels of customer service. Furthermore, no group is more focused on health, or more interested in how exercise can protect and promote their health, than this demographic segment.

The same can be said of the Special Populations, or the Family Market, or Gen X, or All of America opportunities. Each of these markets requires a distinctive marketing and sales sensitivity, as well as a customized service delivery system and highly effective and distinctive new member integration programs.

Further, as the various program initiatives are implemented, they each, in turn, become incremental sales opportunities. Improvement in any one dimension enhances opportunities in all the other dimen- sions. The club, for example, that masters hospitality skills becomes more attractive to every market segment and at the same time improves its membership retention capabilities, etc.

In short, the industry leaders have created an integrated loop-a closed circle of opportunity, in which every link supports and strengthens every other link. Nor can one dismiss any of these segments or any of these program opportunities as if they had no bearing on one's future prospects for success. Choices need to be made, and every choice has its consequences.

But this is not to say that all of these opportunities are equal. Every club will make its own decisions, and every club will establish its own priorities. Optimally, every club will identify those one or two linchpin opportunities that provide the greatest degree of growth leverage.