Going beyond subscriptions to diversify & grow revenue

Subscriptions are the lifeblood of most gym and fitness businesses. That’s undeniable. Yet, going beyond subscriptions to offer other membership and access options can help you diversify and grow revenue. Read on to find out more.

When most people think about gym memberships, paid monthly subscriptions come to mind. These subscription-based memberships bring predictable revenue. And that makes them essential to the long-term success of most gyms and fitness clubs.

But, subscriptions aren’t the only option when it comes to gym memberships and access. And demand for flexibility has grown in recent years.

What alternative membership and access options should you consider offering? And how can you build demand, grow loyalty, and bring in steady revenue from these?

Let’s get stuck in!

Subscriptions matter

Before looking at how you can go beyond subscriptions to diversify your offering, let’s touch on why subscriptions matter so much.

Subscriptions vs. memberships: What’s the difference?

Subscriptions. Memberships. These two terms are often used interchangeably. Yet, there is a difference between the two.

According to the Cambridge Dictionary:

For most gyms and fitness clubs, memberships are sold on a subscription basis. Subscriptions are usually paid monthly via Direct Debit. And will last for a set contract period or on a rolling basis.

Maximise membership sales

Benefits of subscription-based memberships for gyms

Subscription-based memberships are hugely important for fitness businesses as they:

Reasons to go beyond subscriptions

So, it’s clear that subscription-based memberships are essential to the long-term success of most gyms and fitness clubs. But, subscriptions are just one option to get more people through your doors.

There are many reasons to look at other membership and access options to extend your reach:

Flexibility

Over the last decade or so, gymgoers have increasingly sought flexible access to gyms.

The flexibility to commit for a set period of time. The flexibility to try different clubs. The flexibility to try new workout options. Thinking beyond subscription-based memberships can help cater to the demands of these gymgoers.

No/lower commitment

Signing up to a subscription-based gym membership involves a level of commitment. Even with flexible gym contracts, a notice period of some kind is usually required. This perceived commitment can be a barrier for some.

With a careful approach, no or low commitment access options can help in overcoming these barriers in the long-run.

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Lifestyles

No subscription options suit gymgoers with a variety of lifestyles. Lifestyles where habits and necessities mean that a traditional membership doesn’t make sense.

That includes the 26% of Australians who have hybrid working patterns – travelling to work and working from home.

Short-term travel

Summer holidays. Work-related travel. Visiting family and friends. Many gymgoers want to keep up with their training programme while away from home.

Many hotels have no or limited workout options. And many travellers are now opting to stay in short-term lets rather than hotels. So, for lots of gyms and fitness clubs, offering alternative access options can help you reach this captive audience.

Seasonal demand

No subscription membership and access options cater to seasonal demand for gym access.

Most Australian gym owners notice that exercise levels drop to their lowest levels in winter. Seasonal and casual access options may encourage those who prefer outdoor activity to work out during the winter.

Short fixed-term gym memberships are also popular with certain demographics. For example, university students returning to hometowns and cities for summer or Christmas breaks.

Diversify & boost revenue

So far, many of the reasons listed have been focused on why there’s demand for alternatives. What about the benefits from a business perspective?

Promoting and introducing new access options can help you reach new gymgoers. And even people who’ve never set foot in a gym before.

With that comes the opportunity to diversify revenue streams coming into your business. And with the right gym pricing strategy, you’ll have the opportunity to boost revenue and profitability.

Lead generation

Sometimes, alternatives to subscriptions can help you build a pipeline of engaged gymgoers. And with care, you’ll be able to create lasting relationships and upsell subscription-based memberships.

Subscription-free membership and access options

Those are just some of the reasons why it may be worth thinking beyond subscriptions to grow your gym.

Whether you already offer more than subscriptions, or you’re looking to add new options, here are common alternatives to consider:

Annual paid in full memberships

Typically paid as a one-off transaction, 12-month paid in full memberships give you full revenue upfront. And they appeal to those who want to commit for a sizeable period of time without paying monthly.

Often annual paid in full memberships are one of the lowest cost access options for members.

Short-term paid in full memberships

Similarly, you could offer paid in full memberships for shorter periods of time. Think 1 month, 2 months, or 3 months.

These are great for those in the area for a short period of time like students. And also give others the opportunity to try your club for an extended period of time – commitment free.

Pay-as-you-go / pay-per-use

Pay-as-you-go (PAYG) access lets gymgoers pay for a single visit or activity. That might cover as session in the gym or a group fitness class. This type of access is popular with those who only visit occasionally. And with those who are in the area for a short time.

Often, PAYG prices are the most expensive option for members and visitors. So, it can be a way for people to assess the value of subscription-based memberships at your club.

Surge pricing

Tip

Does your club get busy at certain times or do you have classes that are very popular? You could use surge pricing and charge more for PAYG access for these sessions.

Day or week passes

Like PAYG, passes give gymgoers access to your club for a specified period of time. Popular passes include 1 day, 3 days, or 1 week. For the duration of the pass, gymgoers can visit and use the facilities included.

So, this type of access option will appeal to gymgoers who want to visit your club on multiple occasions over a short period of time. For example, holidaymakers or people in the area for work.

Packs / bundles

Think ’10 PT sessions’ or ’12 spin classes’. Create bundles of classes, activities, and one-to-one sessions. And you’ll give gymgoers a different way to commit to a series of visits.

These particularly suit people working towards particular goals. And those who only want to do a certain class/activity.

Corporate partnerships

Corporate partnerships are another option to diversify and grow revenue. Ideas of ways to work with businesses in your area include:

Aggregators

Finally, you could consider opening up your gym and/or certain classes to non-members. Non-members who hold memberships with, or have purchased a pass, via a third party.

Over the last decade, more gym and fitness club aggregators have emerged. These businesses run passport schemes. Gymgoers can sign up for memberships or buy passes to access workouts at a variety of clubs.

This type of access option appeals to people including:

And for you it’s another way to get more people through your doors. Some may even choose to become a member.

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6 ideas to help you build loyalty & desirability

So, there you have it. Those are some of the ways you can reach gymgoers who don’t want or need a subscription-based membership. And in doing so you’ll diversify your revenue sources and create opportunities to grow in new ways.

Lack of predictability. That’s the big challenge of subscription-free membership and access options. It can be tough to forecast revenue and plan for the future.

So, you need the right approach to achieve steady demand and revenue. Building loyalty and desirability is essential.

Here are 6 ideas to help you create fans and make your club a go-to workout destination:

Take the right approach for your business and members

Tip

To be successful here, you need to take a nuanced approach. One that’s tailored to the type of membership and access options you offer. And based on who you’re targeting.

1. Give everyone a warm welcome

Often, new gym member onboarding processes focus on those members who’ve just signed up to a subscription-based membership. And perhaps extend to cover annual and fixed period paid in full memberships.

Yet, it can be worth having some kind of welcome or onboarding journey for those:

Make these journeys digital. Personalise and automate communications using your gym management software. Focus on helping these gymgoers make the most of their time with you. And encourage them onto visit again.

Consider how you handle people who live far away from your club.

2. Seek feedback

Gymgoers visiting you for the first time, or who only visit occasionally, can provide feedback that’s just as helpful as other members. And sometimes they can also be more honest too!

Make it easy to give feedback. That might mean sending an email a short time after they’ve checked in. Or having readily available feedback forms in your club.

In doing so, you’ll also encourage these gymgoers to tell you directly about any issues they encountered. And that’s much better than seeing it first time in a negative review online!

Acknowledge and action both negative and positive feedback. Find ways to improve the service you offer to everyone who visits your gym.

3. Stay in touch

In some cases (and where you have permission), you’ll want to make sure you keep in touch with members or visitors without subscriptions. Take a careful approach here.

Build a marketing programme that uses channels like email to deliver relevant, timely messages. Focus on delivering value over selling. That way, these gymgoers will be more likely to come to you for their future fitness needs.

4. Deliver consistently high levels of service

A smooth purchase process. Ease of access and entry. A clean environment. Make sure all gymgoers are happy every step of the way.

Your staff will play a big role in delivering the type of service that encourages these gymgoers to return. And even to sign up to a subscription-based membership in some cases.

Staff should be friendly, professional and approachable at all times. Their knowledge about fitness and your club should be excellent. And they should be ready to help anyone who approaches them. Everyone should feel welcome and valued.

5. Reward loyalty

Consider how you can reward loyalty like you would for other members. This is particularly important for PAYG, and other subscription-free access options, where gymgoers may visit on a regular or semi-regular basis.

Ideas include:

6. Create a destination brand

A destination brand is one that people will go out of their way to seek out. Make your gym a destination gym, one that gymgoers from far away will want to visit.

You’ll need to create a brand and experience that’s distinctly different from others. One that people can’t wait to visit.

Want to become a destination brand? A deep understanding of your target audience is vital. You need to know what makes them tick, what gets them excited, and what they want from a workout experience.

When you’re a destination gym, price becomes less of an issue. People are willing to pay more to experience what you have to offer. So, it’ll be easier to bring in a healthy flow of gymgoers willing to part with their cash to spend time at your club.

The secret to a powerful fitness business

Go deeper

Get gym branding right and you’ll create strong member experiences powering growth and inspiring loyalty.

Find out how to make your gym the preferred choice

The wrap up…

Memberships paid for on a subscription basis are essential to the success of most gyms and fitness clubs. Representing the bulk of income, subscription-based memberships make it easier to:

And still, for many clubs, there’s a clear need for alternative membership and access options. Popular options include PAYG memberships, short/long-term paid in full memberships, day/week passes, and class/activity bundles.

Going beyond subscriptions can help you reach new gymgoers. Think frequent travellers in town for a short period of time only. Or those who’re not ready to commit to a subscription and favour flexibility instead.

With the right approach, you can build loyalty amongst members and visitors without a subscription-based membership. And that’ll help you achieve steady demand and sales – ultimately boosting revenue.

Your gym management software should make it easy to go beyond subscriptions. And provide the type of experiences that keep gymgoers coming back. Software like Xplor Gym.

See Xplor Gym in action – request a demo.