The fitness industry is not very research-rich. But now and then, there are some immersive studies done that shed some real light on what is happening in the industry.
Toward the end of last year, ClubIntel released its This 76-page report is detailed. But a look at it shows that there are some trends that health-club owners of all sizes and locations should probably be watching, if not already be involved in.
Here are the five key takeaways in this report:
1. Technology isn’t as common as techies may think
The Findings: Despite what seems like an onslaught of Fitbits, Internet shopping, and even workouts and studios that are entrenched in tech-savvy workouts, most health clubs aren’t there yet. According to the report, technology is still in its infancy in the health and fitness industry. The exception, however, is social media, which is currently in its growth phase and adopted by 50 percent of the industry—which is still low compared to other sectors. The report makes the case that the industry is continuing to be slow when it comes to the adoption of technology as an “asset to enhancing the efficiency and productivity of their business.”
Furthermore, the researchers make the case that clubs are “unprepared or unwilling” to adopt technology that is already integrated into the consumers lifestyle that they covet—particularly Millenials and Generation X. According to the research, 70 percent of today’s consumers purchase products and services online (with 44 percent using smartphones to make these purchases), yet less than 30 percent of fitness players sell memberships online.
Our Take: Clubs and studios that are quickest to evolve and catch up to the penetration of technology in consumers’ lives may gain a competitive advantage.
2. Size matters when it comes to technology
The Findings: Technology trends are heavily influenced by specific business models, according to the study. For instance, the more personalized and convenience-driven technology trends are driven more by boutique fitness studios than by traditional health and fitness facilities. The research showed that these types of fitness businesses were more apt to use technology that facilitated online scheduling and reservations, online purchasing, and online training. Meanwhile, the research showed that large-scale technology trends, such as social media, Internet banner ads, , tend to be driven by what the study termed “commercial health/fitness clubs.”
Our Take: It is possible for the smaller boutique club and studio to make use of some of the that have been more readily adopted by the “big boys.” Conversely, larger, multi-location fitness clubs that can bring some of that personal touch to their membership base might see a boost in ancillary sales and retention rates.
3. Programming, services, and training trends may reflect the industry’s attempt to chase fads
The Findings: Results show that approximately 50 percent of these trends are classified as niche trends, while another 34 percent are classified as emerging or growth trends. Seven of the trends are classified as mature. The heavy focus on niche trends, some of which have experienced declining growth since last year, “speaks to the industry’s programming tendencies to be voguish and operators’ reactive efforts to leverage the programs receiving the most hype and buzz.” And of all the categories measured, this group typifies a “faddish” approach to the business, according to the study.
Our Take: While a health-club or studio operator may not know whether the latest class or training hot spot is a fad (pole-dancing class, anyone?) or something that seems as if it will become a staple (H.I.I.T. training, for instance). The key is to research, test, and be ready to pull the plug quickly on those that don’t work for your studio or your members.
4. Programming, services, and training trends are heavily influenced by the type of business model
The Findings: The kind of business you are in may have more impact on the kind of programming you do than what is hot. For example, the study showed that non-profits are much likelier to offer programs targeted at youths and seniors, sports-related programs, and socially-driven programs like dance-related classes and prechoreographed classes (e.g., Les Mills, Zumba, etc.). Meanwhile, boutique fitness studios tend to have the lowest level of adoption for the various programming, services, and training trends. This is most likely the result of their highly specialized business model, the researchers said. Private clubs that tend to serve an affluent family audience appear to have more success adopting programs such as personal training, nutritional counseling, youth personal training, and health/wellness coaching, as their members tend to have more discretionary income. Finally, it noted that commercial clubs lead adoption rates for most of the remaining programming trends—much like a department store trying to offer everything to everyone.
Our Take: It’s fine not to be a one-stop shop. If your studio’s niche is rowing-based classes or obstacle-course training, you don’t have to have Zumba. If you are trying to train young athletes, skip the senior boot camp class. But if you see a need or want to attract a wider group of members, it may be worth looking at what you can add to your mix to bring in as many people as possible.
5. Commercial clubs dominate when it comes to adoption levels for the more traditional facility and equipment trends
The Findings: Boutique fitness studios and private clubs do not have the same degree of adoption for the facility and equipment trends as their counterparts in the commercial and non-profit sectors. ClubIntel said it believes this reflects the “heavy reliance [that] commercial facilities and non-profits place on using their facilities and equipment to drive their value proposition and establish a point of differentiation.” Boutique studios and private clubs seem to rely more on programs and services as their value proposition and less on their facilities and equipment, per the study.
Our Take: It doesn’t matter what you are selling, be it programming and your people or your equipment and facility. The key is to know what it is you do well and let the market know that so that you bring in the members whom you will do best with and can keep them long-term.
This is just a glimpse of some of the findings in the If you get a chance, read the report and see what others in the industry are up to.
How does industry research like this impact your business decisions?
Photo by Scott Webb on Unsplash