Case Study: How Points Based Rewards Programs Can Affect Revenue and Retention in Health Clubs

 

To thrive in the competitive health and fitness industry, club operators must focus on what differentiates their club from their peers. “The gyms and centers that do best are the ones that know who they are and do not try to be all things to all people. Most importantly, they truly focus on customer service and on making sure that they deliver an environment and services that will help their members meet their wellness goals,” said Meredith Poppler, VP of Industry Growth at IHRSA in May 2012 of South Source. Points based membership rewards programs, such as Perkville, provide businesses with a competitive advantage — giving businesses a platform to drive lifestyle changes by providing gamification tools to boost retention, referrals, and social media. Perkville enables businesses to address the real long-term challenge of converting the public’s sedentary status into active lifestyle habits. Many forward-looking fitness centers have already adopted Perkville’s gamification features, helping their clients achieve their fitness goals and in the process, improving engagement and retention. This paper will focus on how a forward-thinking health club brand, elements fitness for women, uses points-based membership rewards to drive revenue and retention. “Lets face it… it’s all about the member experience in a club. If members love it, they stay – if they don’t… they leave. Perkville has really helped elements® measurably increased member engagement, which in turn has increased retention,” says Chris Palumbo, Brand Director, elements®fitness for women.

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