Larry Page, co-founder and CEO of Google, recently said, “We are no longer in a mobile-first world, we are in a mobile-only world.”
You only have to look around to realize the authenticity of this statement. By the numbers, there are roughly 6.8 billion mobile phone subscriptions, compared to a world population of 7 billion. In fact, more people have access to a mobile phone than they do a functional toilet.
It really makes you think about the reach of mobile devices and how much of a priority they are to the everyday consumer. Marketers around the world have digested this information and are rapidly adopting mobile marketing as an effective means to reach their customers and to expand their businesses.
4 Trends that Can Boost Your Club Marketing
More and more consumer-facing businesses are ramping up their mobile marketing efforts everyday. Not only are they ramping up their efforts, but they’re also getting excellent results. Let’s explore 4 effective mobile marketing tactics by examining real-life examples and how health clubs can capitalize on their success.
In 2014, online vacation rental company Airbnb redesigned and re-launched their “underutilized and underperforming” referral program. Since most of their referrals were read through mobile devices, they decided to optimize their referral program for mobile. The results were incredible; they were able to increase booking by as much as 25% in some markets. Not only that, they found that referred customers tend to be better than the average customers and remained engaged with Airbnb to book future trips.
By unlocking mobile referrals, Airbnb was able to increase revenues and gain customers that have a longer lifetime value. This presents an incredible opportunity for health clubs to seize. As discovered in the Airbnb case, most referrals are read on members’ mobile devices. Therefore, health clubs need to consider optimizing referrals by using mobile. Health clubs can leverage members’ phone contact book or Facebook friends to send easy referrals as push alerts to their friends and families, which are more likely to be read and claimed. In addition, like in the Airbnb case, these prospects are more likely to have a longer lifetime value than the average new member.
Digital Trial Passes
Before it became the market leader in taxi services, Uber had to first get customers. This was not an easy task as it was a foreign experience for consumers to book rides with a mobile app. To eliminate this barrier, Uber offered free rides and $20 off coupons to first-time customers. Once they tried Uber, they were instantly delighted by the experience and became repeat customers. Uber’s customer base and revenues grew exponentially and it was so successful that they still offer these free trial rides to this day.
By offering free trials, Uber was able to get consumers to try their services risk-free. Health clubs can apply the same mobile marketing tactic. Clubs with a mobile app can offer free digital guest passes for prospects to come and try out the club. Members can sign up entirely in-app, go to the club and check-in as if they were a member. This is a hassle-free process to get prospects inside the club without the messy paperwork of paper trials. Even better, a club’s sales team can view the prospects activity such as classes attended and workout tracking to help the sales team convert the prospects into members.
In 2011, Starbucks offered a mobile version of their loyalty rewards card. Customers could use the mobile loyalty card to do everything from pay, tip, track and earn rewards from their mobile phone. By 2014, 15% of Starbucks revenue was from these mobile payments and had over 12 million customers using their app regularly. After Starbuck’s success, more retailers have been developing their own mobile rewards program like Target, CVS, Kohl’s and others.
With all these large retailers adopting a mobile rewards program, members are becoming increasingly accustomed to tracking and redeeming rewards through their mobile device. According to a report, 37% of US mobile phone users had used mobile rewards programs to collect or redeem points and 21% were interested in trying one. Just by looking at this research, rewards programs are trending towards a mobile platform for multiple reasons. They’re highly accurate, easily trackable and accessible for members. Moreover, they increase engagement and club loyalty for members when executed properly.
In 2014, fast food chain Dunkin' Donuts experimented with a mobile technology feature called “geotargeting” to steal customers away from their competitors. Inside each and every smartphone is a GPS computer chip that tracks where the smartphone is located. Dunkin' Donuts set a parameter that whenever a consumer was near one of their competitors, they would push a mobile coupon to them to entice them to choose Dunkin' instead. The results were promising, 36% of consumers clicked the mobile ad, 18% saved them, and 3.6% redeemed the coupon immediately. Dunkin’ Donuts found this to a be such a promising campaign that they expanded it to new markets.
The brilliance is that Dunkin' Donuts was able to successfully apply a strength of mobile technology to their advantage: location. Today’s consumers are always on-the-go and with mobile marketing, you have the ability to cater special messages to them based on where they are. According to statistics, the click-through rate of Geotargeting notifications is 30%, which far exceeds that of generic push notifications, which is only 2%. In addition, studies have found that 47% of consumers reported that they are more likely to shop in a store that pushed a coupon or promotion to their smartphone when they were in a store or nearby.
With geotargeting, clubs can push relevant advertisements to members based on their location. One great application is to send them alerts of deals when they’re already inside the club. These alerts can be about open classes or PT sessions or a discount at the juice bar. These types of promotions are more likely to be redeemed because they are already inside the club. Moreover, they can be read at the convenience of the member because they’re likely to check their phone while they’re working out.
Mobile Marketing is the Future
The world is going mobile. It is a fact that cannot be refuted. Everyday the population of smartphone users increases. Businesses cannot ignore this trend and are rapidly adopting mobile into their core strategy, especially when it comes to their marketing.
In this article we have discussed 4 mobile marketing tactics that successful companies are using and how health clubs can leverage these tactics to their advantage. Clubs can use the power of mobile marketing to engage and delight members and prospects while also increasing their reach and revenue stream all at the same time.
We’re in an exciting time in club marketing. Never before have we seen innovation that can truly revolutionize the industry. Mobile marketing, when done properly, can help clubs acquire more members and sell services faster and more efficiently than ever before.
Get results like Starbucks, Airbnb, Uber and Dunkin' Donuts by getting mobile marketing for your health club