case study
Training Existing Management for Financial Success
Summary
13%
increase in membership sales
8%
increase in sales retention
$1M
added to net operating income
overview
Since opening, our client, a health system fitness center, had operated in the red. We transitioned the management to our trained associates and implemented a sales-driven fitness management strategy and culture resulting in increased memberships and retention. Today, the center maintains a second place Net Promoter Score rank — a key industry-wide metric measuring overall member satisfaction for all fitness centers across the entire industry.
Situation
Before coming to us, our client’s health system fitness center had not seen a profit in two decades. System leadership, consisting of the Chief Financial Officer and VP of HR, connected with us to help them implement a strategy to get them out of the red.
Action
When Midtown took over operations, we initiated a comprehensive service, sales and marketing-based management strategy designed to run like a successful health club, not a hospital service line.
In the process, we retained all their existing fitness center employees and introduced them to our ongoing sales education program. This consisted of sales summits, weekly training sessions and daily sales calls. To ensure long-term employee engagement, we constructed clear career ladders and development plans. We then followed up with best practices in marketing, prospecting, sales tracking and member retention.
Results
With new, true fitness center management and a committed, informed salesforce in place, our client saw a 13% increase in membership sales and 8% retention. They added more than $1M to net operating income in less than three years. This club now achieves the second highest Net Promoter Score in member satisfaction in the entire health club industry.
