Although referrals and direct marketing are the fitness industry's time-tested methods for attracting new members, smart club owners are looking to digital options, such as Internet and e-mail marketing, to reach new clients during the current economic recession.

More traditional advertising vehicles, such as print and TV ads, are losing ground to digital media campaigns, according to Advertising Age's 2008 Agency Report. Revenue at U.S. digital specialty agencies rose 27 percent during 2007, compared to a 9 percent revenue increase for all agencies.

"You have to have a presence on the Internet. It's critical and cost-effective," says Rick Bouza, owner of RHB Solutions, a consulting firm that specializes in single-source management for health clubs.

Community strategic alliances and referrals have always been core marketing strategies for health clubs when the economy gets tough, Bouza says, but the same messages that were used in the past with much success now are being used with only moderate success. For instance, club owners who normally relied on direct mail may not be getting the same return on investment with those campaigns today, so they may need to rethink their marketing options.

"People get hundreds of pieces of mail, and you really have to scream to get noticed," he says.

Instead, Bouza says that club operators need to use a five- or six-pronged approach to marketing, rather than the two- to three-pronged approach of the past. That's why traditional lead generation techniques now are being combined with digital outreach campaigns as a cost-effective way to add a new dimension to the sales strategy at many clubs. In a down economy, club owners should use every tool available to reach their target market and cut back on options that don't work, Bouza says.

Even national club chains like Curves are using a multifaceted approach to draw new members. Curves spokesperson Becky Frusher says a versatile approach, coupled with an enticing offer, helped make January 2009 a successful month for her company, a month in which leads were up 113 percent over the same time last year

"These are hard leads — either phone calls from TV ads or people who filled out an e-mail request for more information," Frusher says.

Curves advertised a special discount offer for 50 percent off the membership fee, plus 30 days free. The company also promoted its CurvesSmart personal training technology to attract new members. By using a variety of media choices, Curves was able to reach a broader demographic.

Although TV ads helped Curves announce national promotions, TV and radio advertising is expected to decline by about 5 percent in 2009, while online ad spending is expected to rise 9 percent, according to projections by eMarketer, a digital marketing company. eMarketer estimates that search engine optimization (SEO) Web marketing will grow nearly 15 percent this year, and that e-mail marketing will grow 3.5 percent. SEO involves using targeted search and keyword strategies to ensure a site appears among the top search engine results (see SEO and Social Networking story).

"We do print and TV ads, but this year, I plan to cut that budget back by 20 percent and put that into Web-based advertising," says Howard Brodsky, CEO of New York Health & Racquet Club. "The Web is our No. 1 priority by a long shot."

By turning to a Web-based strategy, club owners can capitalize on generally cheaper ad rates, save on printing and mailing costs, and reach a targeted demographic.

Bouza, who advises his clients to opt for online marketing, says, "In our experience, the market overwhelmingly is looking to the Internet for health club information, especially if you are between 18 and 50 years old, which is a substantial part of health club goers."

Web demographics are evolving to reflect more women coming online, as well as more users ages 35 and older, eMarketer says. It predicts that in 2009, the number of U.S. Internet users will grow to 200 million people — nearly 65 percent of the population.

Want to use this article? Click here for options!
© 2012 Penton Media Inc.