Why Fitness Businesses Need Referral Marketing (And How To Make It Happen)
Did you know that 92 per cent of consumers say they trust referrals from people they know? Your customers can be one of your best marketing channels and can bring in high quality leads — but the benefits don’t stop there!
Once they sign up, a referred customer will offer you 16% higher lifetime value compared to non-referred customers.With data like that it’s pretty clear that if you’re not using an effective referral marketing program at your gym, now is the time to start.
Check out the post below so you can learn more about referral marketing, why you should implement and it and how you setup an effective referral program.
What is Referral Marketing?
Referral marketing is all about rewarding your current customers for telling their friends, family, and colleagues all about your business — in this case, your gym.
Referral marketing programs reward the existing customer that referred you as a thank-you for bringing in new business. Ideally, this will incentivise others to refer friends and family as well (and the cycle continues).
92 percent of consumers say they trust referrals from people they know.
Why Referral Marketing Is Important
Referral marketing is one of the most valuable types of marketing for businesses of all kinds, including gyms. Here are the top six benefits it can offer…
1. It Brings In High Quality Leads
According to 60 per cent of marketers, referral programs generate a high volume of leads for their business. Furthermore, 78 per cent say that referrals help them to generate high quality leads.
A high-quality lead is someone who is highly likely to covert into a paying customer. Generally speaking, the friends and family of your current members have a better chance of signing up for their own membership since they already have a connection to your gym (vs a total stranger).
2. It Saves Money On Advertising Costs
The same research linked above also reveals that 54 per cent of marketers find that this channel has one of the lowest cost-per-leads. This means that your business has to spend less money on a marketing campaign to generate a potential customer.
Are you running your gym on a tight budget? If so, using referral marketing will help you get more bang for your buck and save money without sacrificing the effectiveness of your marketing strategy.
(And even if you’re not on a tight budget, implementing an effective referral program can help you drive a greater return on investment).
3. It Increases Member Retention Rates
If you want to attract more gym members without sacrificing your current ones, referral marketing is an excellent strategy to utilise.
Referral programs make it easier for you to build and nurture long-term relationships with your existing members. These people, in turn, will not only be more likely to recommend your gym to their friends and family, but they’ll also be more inclined to stick around themselves.
4. You Can Measure Customer Satisfaction More Easily
Running a referral marketing campaign is an easy way to check in and see how your current members are liking your gym. After all, if you run a campaign and nobody refers their friends or family members to you, that might be a red flag.
You may find that you need to take a step back and work on increasing the value offered at your gym so people are more eager to participate in the referral program.
Referral programs also help to increase engagement among your existing members.
5. It Increase Your Brand Awareness
Even if someone isn’t ready to join your gym based on a friend or family member’s recommendation alone, they will at least be aware that it exists. Then, in the future, when they are ready to join, they’ll be more likely to think of your gym (not a competitor) and check it out.
6. It Increases Customer Engagement
Referral programs also help to increase engagement among your existing members. When they know that they’re going to be rewarded for bringing in new clients, they may be more interested in engaging with your gym in other ways.
For example, they might follow you on social media, comment on your posts, or share them with their own followers.
(Also, gym-goers can be quite competitive, so it makes for a fun and healthy competition for who can bring in the most friends!)
In Summary…
From better lead generation to increased customer engagement, all the other benefits of referral marketing programs add up to one more major benefit: Increased conversions. If you want to make more sales and boost your gym’s bottom line, seeking out more referrals is the way to go.
How to Create a Great Referral Program
Eager to enjoy all those benefits listed above? Here are some tips that can help you get started:
Start with a Compelling Offer
A good referral program needs a compelling offer. Ideally, you’ll reward both the referrer and referee so everyone is motivated to participate.
Keep It Simple
If your referral program is too complex and requires too many steps (for the referrer, the referee, and/or your team), people are going to be less interested in participating. Keep it simple and make sure everyone on your team understands the rules so your members get rewarded for their referrals.
Advertise the Program
You won’t see great results from your referral program if you aren’t advertising it. The following are some of the most effective ways to do this:
Utilise posters throughout the gym
Post about the program on social media
Display referral cards at the front desk (and put up a sign so everyone notices them)
Talk to your members about the program when they arrive or when they’re leaving
If your referral program is too complex and requires too many steps, people are going to be less interested in participating. Keep it simple.
Incorporate Referral Marketing into Your Content Strategy
Be sure to incorporate your referral marketing campaign into your other marketing efforts. For example, talk about it in your gym’s blog posts or in your social media posts to spread the word and get people excited about it.
Provide Supportive Programming
For gym referral programs, specifically, supportive programming is key.
Offering an on-ramp class or an introductory training session to the new members who’ve been referred to you helps them transition more easily. It also reduces their chances of getting hurt or feeling intimidated — neither of which is ideal if you’re trying to keep them around long-term.
Conclusion
As you can see, implementing a well-planned refer-a-friend gym program is an excellent and cost-effective way to attract new customers, boost gym sales, increase retention rates, and set your fitness business up for long-term success.
If you want to increase your gym sales and conversion rates even more, check out GymLeads. It’s the #1 sales software for gyms. Our gym lead management software helps you see and manage all of your gym leads in the one place, set reminders to follow up and a bunch of other great tools to bring in more revenue.
Click here to check out all the features.
And if you want more tips on marketing or how to increase gym members? Check out our other post Gym & Fitness Marketing: 13 Simple Ways To Get More Leads And Sales