The Program Membership Opportunity

Approximately 5% (10-12 million) of the total adult population in the U.S. joins some type of fitness facility every year. In the coming 12 months, two factors will play a decisive role in determining the composition of that group. The first factor has already been discussed. It is previous club membership. Approximately 15% of former club members indicate that they will "probably or definitely" join a fitness facility in the next 12 months. In 1997, 54% of all new club members were "former club members." Previous club membership increases the odds that a person will soon again become a club member by approximately 300%.

The second factor that substantially increases the odds that a person will join a club may be, from a strategic perspective, even more important. This factor relates to previous club experience of any kind. Indeed, more than 18% of adult men and women who "worked out" in a health club during the past few years report that they "probably or definitely" plan to join a health club in the coming 12 months.

These two statistics show that some kind of previous health club experience increases the likelihood of someone saying that they will "probably or definitely" join a health club by 300% to 400%.

MAKING IT EASIER TO JOIN

When people who have never joined a club before or never had any type of previous club experience are asked what would make them most likely to join a health club, their answers consistently suggest the importance of being offered a "trial" or "short-term" experience of club membership. In a recent survey of men and women who had never been members of health clubs, IHRSA asked what would make them "more receptive to joining a health club." Some 46% answered that they would be more receptive, "If they could pay for specific programs, rather than a blanket fee." This criterion ranked higher than even the much vaunted "time factor," i.e., "if I had more time," which drew positive responses from only 42%.

Moreover, a separate survey of former club members drew almost identical results. In this survey, 40% of former members-39% of men and 42% of women-said they would be more likely to join a club if they could "pay for specific programs or activities," rather than a blanket membership fee.

Thus, a 40% block of former members and a 42% segment of those who have never been members are saying substantially the same thing. They are saying that while they may not yet be prepared to buy a one- year, two-year, or three-year membership, they are positively predisposed to consider buying shorter-term participation in a program that meets their specific and immediate needs. How do such "program" mem- berships differ from the normal "term" membership? They differ in six basic ways:

1) They have a limited and defined structure, including a relatively short period of time with a specific schedule of events that have a beginning and an end.

2) They involve an exercise leader. As such, they include coaching, education and support. 3) They have a very specific goal and aim to address specific needs and produce specific results.

4) They usually involve a relatively small group and this, therefore, reduces the likelihood that participants may become "lost in the crowd," a powerful dissuader from participation.

5) They have a fixed and published price. There is no confusion about costs or length of commit- ment.

6) They imply clear and specific expectations. The person knows what to do, what to expect, when to show up, when it starts, and when it finishes.

All of these factors reduce perceived risk, increase the likelihood of interaction with staff, and enhance the likelihood of meeting someone "just like themselves." Similarly, all of these factors increase the opportunity for personalized coaching and support. Since we also know that 68% of all non-members admit that one of the hardest parts of exercising regularly is having the discipline to do it alone, such "program" memberships are likely to do a better job of integrating new participants than the normal "term" membership.

In short, such initial programs experiences address an entire array of factors-financial, psychological, social, and behavioral-that can make the beginning experience of belonging to a club more manage- able, more beneficial, and more enjoyable.

A FULLER MENU OF PROGRAMS

In a sense, the health club industry has been the victim of its own success. Much like a successful restaurant that has sold steak to its loyal customers for so long that it cannot sell anything else, the fitness industry has been so successful selling memberships (to people who are prepared to buy mem- berships) that it has not learned to sell anything else. But the problem for every steakhouse is that at some point the restaurant will run out of people who are prepared only to buy steak. And even the most carnivorous of patrons will not always want to eat steak. If that restaurant wishes to go deeper into the market, or if it wants to ensure the loyalty of customers who want to try different kinds of food from time to time, it will need to broaden its menu of dining options. It will need to listen to non-patrons more carefully.

The parallel with fitness clubs is precise. We already know why people join clubs. We know, for example, that 74% of women members join to lose weight, and that 73% of male members over the

age of 35 are focused on cardiovascular training. We know that 78% of young men and women, 18 to 34, list improving "muscle tone" as an extremely important reason why they joined a health club. We know that 82% of men and women, over the age of 55 cite improving their health as the most important reason why they joined their club (Figure 11.1).

Thus, we not only know why people join clubs and, therefore, what type of programs they would be most receptive to, but we also know what health and fitness concerns preoccupy the general public. For example, losing weight is a major concern for 36% of all American men and 54% of all American women. We know that 36% of all non-members and 45% of women non-members have stated that they would be more receptive to clubs if clubs "would offer a beginner program for out- of-shape people." We know that 47% of women said they would be more receptive to clubs if they would offer an "individualized fitness program." And 37% of women and 24% of men said they would be more receptive if the club offered a "special weight-loss program" (Figure 11.2).

In short, not only has the non-member population told the industry what it wants, but it has said so in convincing detail and in large numbers. In short, if the American health club industry plans to accelerate health club membership growth, the American public has already told it what it needs to do, and how it needs to do it.

THE PROGRAM MEMBERSHIP OPTION

Thus emerges the "program membership" option, an entrée to full and long-term club participation that speaks directly to people's need to lose weight, improve muscle tone, enhance cardiovascular condition- ing, maintain and improve overall health, and be connected with people like themselves. This program membership option confers great advantages on clubs, enabling them to retain their status as member- ship organizations even as they enhance their reputation as community health promotion and wellness centers. By making the club more accessible to more people, not only will club membership and club revenues climb, but the club's relationship to the broader community it serves, and to the larger health care community to which it is related, will improve.

In addition, the development of the program membership option addresses a specific charge, often levied by tax-exempt competitors, that commercial clubs only cater to members, and never reach out to the entire community. This complaint has unfairly enabled tax-exempt organizations to position tax-paying health clubs as elitist. Clearly, this is not true today, nor was it ever true. But the perception exists, and it is not one that serves the industry from a marketing, community relations, or political perspective.