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April 8, 2024Being in the fitness industry, you’re very familiar with working up a sweat, and on the workout floor, it’s celebrated. But where’s the celebration in sweating over the management of your gym?
Unfortunately, there is none.
There’s nothing to gain from sweating it out over an outdated gym management system when your time could be spent far better in other places. But, in an exceptionally results-driven industry, the challenge comes with staying ahead of the competition rather than catching up.
Whether you’re running a large-scale franchised fitness club or a small niche gym, there are some pitfalls along the road to success. Luckily, there are also fantastic solutions, and taking control of your gym has never been more exciting.
A quick look at the gym and fitness industry in a post-Covid world
Looking back at the COVID-19 pandemic, it wouldn’t take long to see the incredible impact the global health crisis had around the world.
Few industries were affected as profoundly and rapidly as health and fitness. According to the Global Health & Fitness Association’s 2020 Report in the United States, pre-Covid, the health club industry’s revenue totalled $96.7 billion.
The report also showed that more than 184 million members belonged to about 210,000 health and fitness facilities in the country. Locally, before the pandemic, Virgin Active reported a total member count of 740,000, a record high.
Things were going well.
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Then COVID-19 happened, and in South Africa, a total of 55,000 people terminated their Virgin Active memberships while 200,000 members opted in to freeze their fees. That doesn’t even take into account how hard the smaller gyms, boxing, and yoga studios (all with little to no insurance to keep them afloat) were hit.
The health and fitness landscape didn’t look the same when clubs started reopening.
Post-Covid, people started engaging in online fitness classes, which have now become the ideal way to keep in shape for some. Others now benefit from a hybrid work schedule allowing them more time to show up to their gym classes.
Towards the end of 2020, gym attendance bounced back to 91% of pre-COVID levels, according to the ABC Glofox Fitness Industry Report. Courtesy of this, gyms and fitness studios have a future of growth to look forward to.
Consider MissFit Boxing. Operating three facilities in 2018, the fitness brand started using Octiv with the aim of streamlining its business in support of its members. Since then, MissFit has grown their business to 22 facilities nationwide, even with the impact of the pandemic.
Clearly, the importance of organised, simplified, and streamlined processes and systems can’t be understated. This is especially true if you’re eager to expand or franchise your fitness business. Using a gym management system like Octiv will help you get the fundamentals right so that you can grow your business.
In 2024 the health and fitness industry is more focused on connectivity, community, and innovation, with a group of consumers who deal with a rising cost of living. Although a gym membership is a luxury for some, people continue to pay for outstanding service.
Since the pandemic, knowing how to keep subscription rates up, improve customer loyalty, and create a constructive environment has never been more important.
Understanding and overcoming gym management challenges
Courtesy of how quickly the health and fitness industry is evolving to meet fresh and growing consumer needs, you’re guaranteed to face several hurdles when trying to keep up with your competition. On the other hand, modern problems require modern solutions, and there are plenty to take advantage of.
Staying relevant within the fitness industry
It’s no secret that the health and fitness industry is more competitive than ever, which post-Covid isn’t surprising. Nowadays, you have to understand precisely what your customers are after and offer it in the best way possible, all to stay relevant. Relevance is vital to keeping your revenue stable.
Members will quickly turn away from your gym if your promise doesn’t meet expectations. Customers grew accustomed to being able to choose to attend in-person or online coaching sessions, and now offering both, as well as flexible class schedules, is becoming more important.
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Beyond that, remember that your members live in the digital age and will potentially pass your club if you aren’t. This starts with small elements, such as the ability to book in-studio classes online or via a dedicated app, and scales to more critical things, such as managing membership subscriptions both online and in-studio.
Another limitation to your success comes from whether or not your gym allows online booking of once-off classes and drop-ins. Let’s not forget that a seamless sign-up and payment process for potential new members is overly enticing. No matter what business model your gym uses, providing customers with an efficient and secure way to do both is essential to membership management and growth.
Building a community and fostering loyalty
Within the fitness industry, recruiting new members is a monumental task, and having a consistent influx of new members is crucial. These new sign-ups are necessary for maintaining profitability, paying for operational expenses, and expansion plans to stay strong.
But these new members often come with an expiry date, and those who join your club in a New Year’s resolution haze don’t become lifetime fitness fanatics. This raises the need for effective and lasting membership retention strategies, and as a gym owner, you must innovate to keep members engaged.
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Luckily, there are countless ways to do this. Rewards programs entice members to keep coming back, to set and reach goals, and to engage with coaches. Partnering with local brands that promote healthy living is a tried and tested way to build and foster a loyal community. And offering a discount for members who recruit their friends and family? A classic win-win situation.
These small elements all tie together to create an overall member experience and how enjoyable, innovative, and effortless yours is, the better. A key to enhancing the membership experience is to make engagement easy. Offering an effortless way to pay for training packages, participate in new classes, or reactivate a lapsed membership will help clients and your gym thrive.
Improving financial stability and revenue
Some challenges remain the same no matter what happens, and maintaining consistent revenue, managing expenses, and budgeting effectively all remain as business hurdles. Ideal financial management plays a significant role, now more so than ever before.
At the heart of your gym lies membership fees, but having a gym management system that overcomplicates payments or underwhelms in functionality could lose members. When dealing with recurring payments, you want the billing process to be as convenient as possible.
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Simplifying gym management administration
Keeping your gym operations and processes as streamlined as possible makes life a whole lot easier for you and your customers. Any effort you put into improving your gym’s efficiency both on the floor and in the admin offices will be noticed by your members.
Expecting members to spend hours filling out sign-up forms and then adding the processing of these new members on top of your administrative load has never been more redundant. There’s already a lot of paperwork that passes through your gym every day, and sticking to traditional solutions just doesn’t cut it anymore.
Offer members the ability to pay their fees via monthly debit orders instead of an outdated invoicing process. For your customers, this takes away the headache of remembering to pay their membership fees each month and in turn, for you, guarantees a steady influx of funds. The bigger gyms might already have this in place, but imagine how much easier it would be for your intimate yoga studio if you knew your clients were all automatically paying their monthly fees every month.
Another major player in your financial stability is the presence of competing gyms and fitness facilities, each fighting for members and market share. This makes it especially important to run a tight business focusing on convenience and ease of access.
Managing a gym is a constant challenge for seasoned entrepreneurs and newcomers alike. To compete with the heavy-hitters (pun intended), you need to minimise the burden of manual operations to increase cash flow and decrease the possibility of human error.
Instead, use gym management software that ideally features purpose-built integration systems that bring together both the administrative side, payments, and access control like Itensity or Octiv. Doing so improves your gym’s operational efficiency, and keeping it running smoothly raises member satisfaction and simplifies cost management.
Another element of successful gym management solutions is enhanced staff management. Remember that you’re dealing with a diverse team of trainers, front desk staff, and cleaning crews, each with a unique set of challenges. This is where effective leadership and a pioneering attitude are key to achieving a more harmonious gym environment.
Smash your gym management goals | Wrapped up
Regardless of whether you’re running a booming fitness club or a fresh-faced start-up studio, there are challenges that you’ll have to face.
From day-to-day operational issues to member experience and retention, taking advantage of gym management solutions that scale to fit your business and integrate into your existing ecosystem should be a top priority.
Thankfully, there are well-oiled environments like this that already exist, and combining the advantages of platforms such as Octiv or Itensity with a payment solution like Netcash is doable within minutes. Join the more than 100 leading South African fitness brands using Netcash, today.
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Author:
Percy Schultz
Head of Business Development
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Percy’s a results-oriented financial services pro with a knack for sales, product management, and building strong teams. He’s all about smashing goals and turning strategies into wins. With his communication skills and EQ, he connects with everyone, internal or external. Clients and colleagues love his laser focus, product expertise, and sharp business mind.
