The COVID-19 pandemic had a severe impact on the fitness industry. According to statistics, gyms were closing more than any other industry. Many gyms in the country experienced the rollercoaster of being closed completely, reopening with limited capacity, and then closing again during surges. Then, they reopened with strict rules and regulations. IHRSA reports that 22% of studios and gyms had closed permanently as of July 1, 2021. The number of gyms and studios that closed their doors permanently is likely to be higher as the pandemic continues through 2021. This amounts to millions of job losses and billions in revenue loss.
These statistics are not encouraging, but the daily impact of COVID-19 is decreasing, and many gyms have reopened. ASF, which provides software for gym management and Club OS, surveyed more than 200 club operators and high-ranking club professionals to determine the industry’s future direction. Below are the key insights.
Virtual workouts are still very popular, especially since many companies have adopted hybrid work schedules. Many people are returning to the gym.
The majority of gym memberships are composed of the 36-50-year-old age group (49.8%), with the 18-25 age group accounting for 29.6%.
According to the report, 27.4% of gyms were selling the same amount of memberships before the pandemic. 22.9% even sold more than before.
People are enjoying exercising outside of the gym, as well as the rising cost of memberships to gyms, which is why more people are not returning to the gym. Inflation is at an all-time high, and operating costs are on the rise. 67.3% of gyms that were surveyed had to raise their membership fees in the past year. While 51.7% had to raise their costs only slightly, 15.6% raised their prices significantly. Some were fortunate to be able to maintain their prices, while 29.3% managed to do so with a minimal increase, and 2.4% could even reduce their prices slightly.
Gym owners face two challenges: retaining and recruiting new members. Post-pandemic, almost half of the respondents to the survey reported a slightly higher percentage of members being canceled than before. The good news? 43.3% of members retained their memberships for the same duration as before the pandemic.
Communication with members is key to member retention, engagement, and recruiting new members. Surprisingly, however, the report shows that social media is now less effective than texting in communicating with members. Emails and phone calls were the most effective.
A mobile app is becoming increasingly important as technology continues to drive the world. Although some sectors of the fitness industry have been slow to adopt apps, 61% of clubs that were surveyed now have an app. However, owners were not able to rate their members’ experience with the app. This shows the need for improvement.
Referral programs are still a strong way to gain new members. Owners are now using social media ads to drive lead generation. Word of mouth is still the best way to grow memberships.
These statistics are only applicable to gyms. How about the general state of the fitness industry?
Another sign of hope for the industry is that 65.1% of respondents gave the industry a rating of 5 on a scale from 1-10. Many see more opportunities now than ever before.
There are still major challenges facing the industry. Cost and profitability are the main concerns, just like many other businesses in this current economic climate. It is also important to consider new membership sales. It is a good idea to adapt to current trends to increase profitability.
The report lists the following trends
Hybrid wellness experiences
Low barrier to entry
The need to be healthcare advisors in order to collaborate with healthcare providers
Coaching for small groups
Integration technology in member experience
Short-term membership options
Quality social media content and outreach
What are the practical lessons to be learned from this report, given all the statistics and the constantly changing landscape?
Instead of focusing on new members, focus on member retention. Loyal customers often have a higher lifetime value than those who are not loyal.
Text messaging is a great way to engage and generate new leads.
Invest in a quality mobile app.
Referral programs are a great way to get new members.
Incorporate technology.
Quality social media content.
Additional wellness services are available.
