Business

Saturday April 18, 2009

Fitness First plans world-class loyalty programme

By LEE KIAN SEONG


FITNESS First Malaysia admits it is harder to bring in new members currently due to the cautious spending pattern in the country. However, the company has prepared itself for the situation and plans to launch a world-class loyalty programme in May.

“We are currently in the process of consulting a cross-section of our members to get their views on what they see as important elements of a world-class loyalty programme,” the owner of Fitness First Malaysia, Sportathlon (M) Sdn Bhd’s managing director Shaun Measday tells StarBizWeek.

The company targets to have the first phase of its loyalty programme – The First Club – in May. “We are looking to increase our members’ loyalty to our brand, increase their frequency in visiting the clubs and ultimately encourage them to stay longer with us through our rewards programme for loyal members,” he says.

The programme will help to create a win-win situation for its members and the business, says Measday.

Shaun Measday ... We have to be more creative and start to rethink our strategy in hard times.

“Being a member of the First Club will entitle a member to take advantage of several special privileges, such as bringing a friend for free to the club on weekends and special discounts for different products and services,” he says.

Providing the best service is an ongoing promise by Fitness First Malaysia and the company is continuously looking to deliver the best quality.

“We have to be more creative and start to rethink our strategy in hard times, such as how to bring in new members and improve our service quality,” he says.

The company would ensure it “exceeds customer expectations.”

“We want our staff to be more proactive in interacting with our members,” he says, adding that educating its members on the real benefits of taking part in the club is essential.

It provides Body First manual for its members to guide them in their exercise and help them in goal achieving. “We also provide WiFi service in our clubs and we will continue to bring in new features to create a better and comfortable environment for our members.”

On its advertising and promotion (A&P) allocation, Measday says the company spends about 20% of its total A&P budget in outreach advertising (roadshows and workshops), 60% for the advertising activities in its club and another 20% for above-the-line advertising.

“Advertising in the club includes banners, buntings and posters that are put up in all the Fitness First clubs about new launches,” he says.

The company also runs online advertising, such as on Facebook and its website. Members can get their exercise schedule and the workout tips online.

To make sure the company delivers the best service, Measday says, the company conducts the Member Insight Programme (MIP).

MIP is an independent research that is being done with some members of each club to find out the experiences that its members have received. The feedback will help the company to be more focused in solving problems.

“Bringing in new members is important but a major aspect is to ensure our current members continue to enjoy the great experience and value-for-money products,” he says.

He says 70% to 75% of its new members come on a referral basis. Its target market is working adults aged between 25 and 40 years.

On its customer retention rate, he says about 5% of its member base leave on a monthly basis. “While this is comparatively low by industry standards, we see there is a huge opportunity for improvement,” he says.

On its expansion plan going forward, he says the company is waiting for the right time to expand due to the economic crisis. “We have a number of plans in the pipeline and we will implement them when things turn for the better.”

He says the company has considered venturing into the southern states and Sabah and Sarawak, but currently the Klang Valley is still its main focus. It has over 37,000 members from 12 clubs, of which 11 are in the Klang Valley and one in Penang.

On whether the market is saturated in the Klang Valley, Measday says no.

“In comparison to a city of similar size, we have 45 clubs in Sydney, not to mention our competitors,” he says.

He says the penetration for the fitness centres in Malaysia is just between 1% and 2% compared to between 10% and 15% in the United States, Australia and European countries.

He says sales for the last three months were still encouraging.

Fitness First registered RM59.7mil in sales last year compared with RM56.4mil in 2007.

Sportathlon is a wholly-owned subsidiary of Britain’s Fitness First plc whose regional head office is Fitness First Asia.

It is the largest fitness chain in the world with about 540 clubs and over 1.7 million members in 19 countries.

Its Asian business generated £90mil (RM486mil) in revenue last year, with Malaysia contributing between 14% and 15%.

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