June 8, 2023
Insights

Maximizing Profitability: Strategies to Boost Your Fitness Business and Gym

Encourage additional revenue by tapping into tactics that are easily accessible and sustainable.

Maximizing Profitability: Strategies to Boost Your Fitness Business and Gym

Did you just open a gym—or is your fitness business a seasoned staple in your local community? Whether you’re trying to revitalize and expand your yoga studio or trying to make your mark in a new space, analyzing and optimizing your revenue stream is always an opportunity to increase profitability wherever you are in your business journey. 

So what are the top tactics you can leverage at your gym or fitness studio to help you hit and succeed in your profit goals? Here are our easy-to-implement steps to start acting on tomorrow to boost revenue, retention, and conversions, further expand your community, and plan sales and client base. 

Get creative with your specials and offers: Special summer class packs? Limited plan discounts for new members? Test and promote offers and discounts to encourage new clients to join and existing members to stay engaged with deals that showcase worth and flexibility and promote accountability to meet (and exceed) wellness goals. Plus, with Walla, you can easily measure offers and conversions, empowering you to push or pivot deals based on performance. 

Introduce challenges and classes in unique places: Organizing fitness challenges or competitions with exciting rewards is an easy way to keep your members motivated and engaged, especially during different seasons. Also, think outside your studio's four walls by taking advantage of local spots to host classes. Hotel rooftops, parks, gardens, winery, historic location—increase revenue as you attract a wider audience, create memorable experiences, and refresh what your regular members can expect. (Plus, they will be sure to post on social media and invite their friends!) 

Collaborate with local businesses: Partner with local businesses such as sports retailers, health food stores, complimentary fitness businesses, or wellness centers to cross-promote each other's offerings, attract new clients and increase brand visibility. Your gym or studio will not only get the opportunity to engage with potential, like-minded prospects who prioritize well-being, but you can also monetize these partnerships and interactions by creating deals and offers targeted to convert and get more new clients through your door.  

Run referral programs: Retaining your current members is always easier (and less expensive) than marketing to new ones. Incentivize your existing members to refer their friends and family by offering discounts, guest passes, access to exclusive events, renewal offers, or free classes for successful referrals. Incentives show that you appreciate their loyalty and want to reward them, organically encouraging them to continue their membership to receive the perks they enjoy. Word-of-mouth marketing is a powerful tool and can bring in new customers at a low acquisition cost, which is a result of keeping your gym or studio members happy!  

Offer individual, personalized experiences: Private yoga flow, personal training, partner Pilates session—promoting high-quality packages and plans with higher profit margins that cater to clients who prefer one-on-one attention or want to finetune a part of their fitness and wellness routine can generate additional revenue for your gym or studio. And with Walla, you can easily schedule, market, and sell personalized experiences with our appointment functionality.  

Host workshops, seminars, and special events: Organizing educational workshops or seminars on topics such as nutrition, injury prevention, or mindfulness and a variety of events that involve a local charity, for example, is a great way to increase profitability through new channels and verticals. Charge a fee for these events and provide valuable content to position your studio as an authority in the fitness industry while enhancing your member experience and building brand loyalty at your gym or studio. 

Utilize social media marketing: Leverage the power of social media platforms to promote your fitness studio. Share engaging content, post user-generated content (UGC) from your clients, highlight success stories and run targeted advertising campaigns to attract new customers. And don’t forget to market client milestones on your social profiles! Walla makes it easy to recognize milestones in real-time, too, so you can share them on social and your members will be inspired to re-share through their channels. Now that’s the power of word-of-mouth marketing. 

Expand class offerings: What are the most booked workouts right now? What are your competitors offering at their gym or studio that could complement your business? Assess the demand for new fitness classes and wellness experiences and consider introducing new offerings that align with popular trends. For example, high-intensity interval training (HIIT), yoga, or dance-based workouts could attract a wider audience. You can also tap into new instructors and hires to bring more people into your business and enable your current members to try new opportunities in a place with a community they already trust. 

Enhance the client experience: Think about why you are loyal to a brand: Yes, it has to do with the product, but it also has to do with the relationships formed and the overall feel-good experience. Focus on providing exceptional customer service and ensuring a positive experience for every member at your gym or studio. Create a welcoming and inclusive environment, address feedback promptly, and maintain cleanliness and hygiene standards in a space where they feel comfortable.

Market livestream classes and online training programs: Giving your clients ultimate flexibility is key, especially when accessing your studio wherever they are. Develop online fitness programs or classes that can be accessed remotely, allowing you to reach a wider audience beyond your local community and generate additional revenue streams that keep your members engaged no matter where their schedule (and travel) takes them. 

Utilize data analytics: Understanding how your gym or studio performs is fundamental to running a profitable fitness business. Use data analytics tools (like the ones built into Walla) to gain insights into customer behavior, preferences, and attendance patterns. Walla also helps you quickly analyze instructor performance. This information can help you optimize your class schedules, pricing strategies, and marketing efforts to maximize profitability.

Offer incentives for memberships and create tiers: Encourage customers to commit to longer-term memberships by providing discounted rates, exclusive perks, or priority booking for popular classes to improve cash flow and increase customer retention. Try introducing different membership levels with varying perks and benefits. Doing this at your gym or studio can cater to a broader range of clients and capture additional revenue from those seeking premium features or services.

Sell branded merchandise: There’s no better way to promote your gym or studio than by selling branded merchandise like workout apparel, water bottles, gym bags, hats, supplements, or accessories at your business. Remember to consider your demographic when choosing t-shirts, tanks, sweatshirts, and more. You can also consider limited edition or event-specific items to encourage member purchases. This generates extra revenue and serves as free advertising as customers promote your brand while using and wearing your gear. 

Optimize business operations, costs, and technology: Regularly review your operating expenses and identify areas where you can reduce costs without compromising the quality of your services. Negotiate better deals with suppliers, optimize energy consumption, or streamline administrative processes to improve profitability. Consider investing in a modern, time-saving studio management platform like Walla that can simplify everyday operations, reduce staff training time, and improve your new client and member browsing, booking, and buying experience. Better software is an investment in your fitness business and eliminates any barrier to member purchases, making it easier for them to buy memberships and reserve classes!

Always remember that profitability results from attracting and retaining customers, optimizing revenue streams, and controlling costs. By implementing these strategies and continuously evaluating and adapting your business model, you can make your gym or fitness studio more profitable.

 

Customer retention is the key

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What are the most relevant factors to consider?

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Don’t overspend on growth marketing without good retention rates

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What’s the ideal customer retention rate?

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Next steps to increase your customer retention

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