Cost of Gym Membership:
Student Rate Adult Rate
Joining Fee £40.00 £50.00
Monthly payment £28.95 £38.95
Pay As You Go £2.50 £5.00
Research has shown that offers available to potential customers has a 68% pass rate. A Free month’s membership would entice 20% of potential customers to join, and half price joining fee would entice a further 15% of potential customers to join. Offers are a good strategy for businesses to use, they can entice potential customers, although it may cost the company in the beginning, it pays in the long run.
Research and development has shown that by refurbishing the lower floor into a sauna, steam-room, café, and waiting area would increase the client database by up to 40%. The increase in new facilities available would increase the client database enough to pay for the refurbishment itself. By developing a new layout for the machines, it means that a further two rowing machines, four treadmills and two more cross-trainers can be placed in the gym, thereby preventing customers from having to wait for the machines.
Customer needs are one of the most important parts of running a business, by pleasing customers you are building a good reputation, and improving the company in the process. (Continuous improvement – Kaizen) Evidence suggests that longer opening hours and a nursery for children would increase customers by 50%.
Current Opening Hours: New Opening Hours:
Mon-Fri 9:00am-9:00pm Mon-Fri 6:30am-10:00pm
Sat & Sun 10:00am-4:00pm Sat & Sun 8:00am-4:00pm
Conclusion:
The location is in an ideal place due to the large quantity of shoppers able to see the gym and that it is easily accessible.
The pricing of the gym is found to be on average fairly priced and has not caused a loss in customers due to it.
Offers are a great way to entice new customers and the offers available seem to be working effectively with an increase of customers.
Refurbishment is often a good way to preserve the fresh image of the company and can also attract new customers with new facilities available as well as keeping current customers satisfied.
Longer opening hours have increased the amount of customers drastically. This could be due to customers able to go before and after work without having to rush. Also longer opening hours has allowed the amount of people at the gym at one time to spread out, therefore not overcrowding the gym.
A new nursery has meant an increase in female customers by 28%, mothers can now leave there children at a nursery while they go to the gym and collect them when they have finished.
These innovative ideas have been achieved through research and development.
By Ashley Bennett
