By Emma Excell​, Special AFS Contributor

Despite the potential revenue that can be generated from secondary spend on products such as personal training, vending, supplements, merchandise and specialist classes, most clubs, and studios fall short of maximizing the opportunity.

Here, Rob Lander, CEO of Fisikal, shares how digitalizing your business can drive significant secondary revenue, creating a positive impact on that all-important bottom line.

The idea of encouraging members to make purchases in addition to their membership or entry fee is not a new concept. However, digitalization and technological advancements have meant that savvy operators can now use an online platform to better promote, manage and fulfill consumer buying across a broad range of products. Here are just a few examples.

An Online Shop (or Marketplace)

Businesses can launch their very own marketplace, creating a complete online shopping environment for members, accessible via a smartphone app.

Deliver essentials direct to your members; anything from branded merchandise, home fitness accessories and body scanning through to nutritional supplements, PT bookings or VIP exercise classes.

Operators can select from multiple vendors creating a bespoke portfolio of products, choosing either to be the direct vendor or to partner with third party vendors to fulfill member orders. Once an order has been placed, online payment can be received and processed by an app and the vendor will be notified of the sale. The entire purchasing transaction can be completed digitally. If operators choose to partner with a third party fulfillment company, there is also no need to hold any stock on site, negating the issues associated with a lack of storage space.


Virtual Personal Training

Face to face personal training typically engages less than 10% of the membership with the majority of members feeling they are ‘not ready’ or perhaps ‘can’t afford’ or simply ‘don’t want’ to employ this service.

As a result, it’s not uncommon for members to engage in digital training solutions provided by third-party apps to support their training journey.

It is now relatively easy and cost-effective for operators to implement virtual personal training, giving members access to advice and support 24/7. This not only provides a wraparound service to members, but it also enables operators to extend brand influence beyond the walls of their facility and into daily lives, promoting loyalty and a continued association. Members not prepared or able to buy a face to face PT service may be more willing to commit to a virtual service.

Via an online platform, members can also be granted access to generic workouts and exercise technique instruction. They can communicate directly with a physical personal trainer associated with your facility,  and keep tabs on performance progress and goal achievements. When they are ready, they can also book a face-to-face consultation with a trainer, upselling the premium 1-1 personal training service.

By connecting member behavior across subscriptions, online shop and PT sales, operators can make informed decisions about which virtual services are most in-demand. This knowledge can then drive further spend. For example, equipment accessory kits, available at the click of a button from the online shop, could be promoted to members who enjoy regular virtual HIIT sessions - and that’s just for starters!  

Closing Thoughts

Digitalizing your business opens the door to almost limitless revenue-generating opportunities which are extremely low maintenance to maintain and manage. Be sure to analyze the impact of your club’s secondary spend as this will be instrumental in identifying what products and services have the highest earning power and are in demand from your members.

If you have not yet explored opportunities available, I suggest doing so immediately so you can start to reap the benefits.

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Emma Excell is the COO of Fisikal and heads up the operations team. Emma has over 4 years of experience in investment banking and over 14 years international property development. Emma has a degree in economics, provides business analysis, digital marketing strategies and project management skills.

Rob has over 20 years of experience in the Health and Fitness industry, as a former personal trainer who built a successful business of 50 sessions per week. Rob has also spent many years as an international presenter lecturing on “Technology in the fitness industry”.

Rob was the guy with the problem and is the content matter expert. Rob started with little knowledge of technology other than the vision that one day we would all be using it for many areas of our lives.

Organizations all over the world now come to Fisikal seeking our advice on how systems and processes can be optimized. As Rob has worked in all areas of the Fitness Industry this gives him multiple perspectives to help advise on how solutions could be created but also with his advanced knowledge of technology – what the future holds and how we can adapt internal processes so they can leverage technology efficiently.

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