Loyalty Programs for Fitness/Gym
Loyalty programs in fitness are similar to offerings in other industries in their general idea, but they vary significantly in detail. A definition of a loyalty program suggests that it is aimed at customer retention, presupposing that loyal clients are ready to spend more with the company. In this regard, fitness is no different from other industries that utilize loyalty programs. Gyms provide rewards to their returning customers, thus saving funds on advertisements. Selling to existing customers is much simpler than gaining new ones, which makes client retention the main target of loyalty programs. Gyms frequently utilize bonus systems that presuppose granting points for accomplished actions to reward their returning clients. Points serve as a means of showing the customer’s progress in achieving a certain bonus. Members of a fitness club can receive the points for any sort of expenses or actions, depending on the club’s promotion policies.
Advantages for CompaniesFitness clubs benefit from loyalty programs significantly as they gain a loyal customer base at a negligibly low price. For companies, such promotions commonly presuppose carrying no direct expenses as they are based on promises for the future. All that any fitness club has to do is to adjust points’ distribution evenly so that customers would feel that rewards are granted in accordance with their expenses. Numbers suggest that loyalty programs have proved their effectiveness in practice. Eighty-six percent of businesses that have launched such promotions experienced revenue growth. Customer retention has increased in 74% of companies that offer rewards for frequent buyers. Besides, 55% of members of loyalty programs state that they are more likely to invite their friends to join. Thus, fitness clubs make customers willingly promote their businesses by offering rewards.
Loyalty Programs’ Benefits for CustomersBuyers like being rewarded for the purchases they make; so, they would more likely stick to a company that grants the bonuses, even if its prices are higher compared to other offers on the market. Members of a reward program can save money without inputting any significant efforts, which increases their satisfaction with the company’s services. When clients know that the company cares about their needs and values their engagement, they would stay with this entity for longer, thus creating a mutually profitable environment. Clients whose loyalty is rewarded will encourage their friends to purchase from the company as well, strengthening the ties between the local community and business.
How to Design Technologically Advanced Promotions?Creating a complex reward system requires using a psychology trick based on dividing customers into 2 categories: low spenders and loyal high spenders. Advertising promotions to these groups would require different approaches: Low-point ratio: 1 point granted per every dollar spent; High-point ratio: 100 points per each dollar. The high-point ratio is aimed at rewarding newcomers and low spenders as they would feel closer to a bonus when granted 100 points. Large numbers bear more significance even if they do not mean anything. Loyal member, on the other hand, should be rewarded at a low-point ratio, as for them, 8 points out of 10 seem to be more attainable. Loyalty programs are not that simple to implement for small or inexperienced companies. Professional assistance from mLoyalty can save a significant amount of time and effort spent on planning, designing, and supporting a decent reward system.
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