Secondary Spend, A New Revenue Stream
As a fitness-based business owner, you are likely focused on memberships as your main stream of income. However, secondary spend is a way to increase your potential revenue and reduce your reliance on new members by activating your current client base.
In the fitness business, there are only a handful of ways to increase revenue: increase members, reduce costs or drive higher spend from existing members. The third option is appealing as it can be difficult to drive membership levels in a well-established location and reducing costs may not be a realistic option. Whilst increasing membership fees is often the first thought that comes to mind, the concept of secondary spend is an even better way to bolster business whilst expanding your offering to members.
An important first step in introducing secondary products to your fitness club or studio is to ensure that they are a good fit for your business. Make sure that the products or services you are making available to members align with your current offering and have the potential to add value to their overall experience. You may opt to introduce products such as nutrition, supplements and sports drinks, a range of activewear or workout gear, or even services such as cryotherapy and massage. There is a wealth of options available to fitness business owners which can all act as an additional stream of revenue.
Activating and retaining your current membership base is key in order to drive long-term success and sustainability. Not only do secondary spend offerings encourage repeat purchase behaviour among members but can also be an important aspect of developing a culture and community around your brand and business. These secondary offerings can become a unique selling point that set you aside from consumers, reinforcing existing members decision to train with you, and attracting new customers.
So, whether you are a budget provider looking to boost income, or a boutique business looking to define your culture, introducing ancillary offerings to drive secondary spend could take your business to the next level.