VIEWS: 3 PAGES: 2 POSTED ON: 1/23/2011
Is your health club or wellness center addicted to bad profits? Profits earned at the expense of member and client relationships hurt your business. And businesses without good customer relationships flounder, wither and die. Avoid these five bad profit practices to build loyalty in your health and wellness business: 1) Steep penalties that "trap" members who would otherwise switch to other health clubs or fitness centers Sure, you've found a way to make a little more money. The downside: customers who feel trapped often make sure everyone they know hears their complaints. Is your business really willing to pay that price? 2) Stringent refund policies blindly enforced, often with unrealistic timelines A client develops minor health issues she attributes to nutritional products she bought from you. When she tries to return the products, you refuse - no returns on opened products. True, you keep the profit from the initial sale, but at the expense of the customer relationship and tremendous ill-will. She's mad and she'll make sure everyone knows about it. 3) Nuisance charges that far exceed the value provided to your member or client Frequent offenders in health and fitness businesses: towel service fees, overpriced bottled water, a steep fee if you forget your ID card, another steep fee to replace an ID card, charges to use other locations within a single chain of gyms or fitness centers. It's not unusual for charges like this to make up 20 - 30% of the bottom line for some health clubs and wellness centers. Yet squeezing as many dollars as possible from members when they feel they have no or poor alternatives is a lousy strategy for building long-lasting relationships. 4) Offering discounts to new customers only Yes, it creates short-term profits by attracting lots of new customers. However, they'll switch as soon as they find a slightly better price. Meanwhile you've ticked off your loyal customers by charging them higher rates. Plus, service often suffers while your business tries to handle the jump in new business. 5) "Special offers" that abuse otherwise faithful fans One of the biggest offenders: the in-home exercise video market. Instructors pre-announce videos, hinting that the actual products will follow shortly. They offer aggressive discounts for fully-paid pre-orders. Multiple delays then occur, pushing the final release date out as much as two years from the original pre-order. This kind of treatment turns even raving fans into disillusioned cynics who share their disgust and fury with friends, family, and coworkers.
Pages to are hidden for
"Is Your Health Club Addicted To Bad Profits-"Please download to view full document