The strength of community in small group with Lise Kuecker
In our last LegitFit Session "Strength of Community in Small Group Training," Lise Kuecker, the CEO of Studio Grow, shared valuable insights into the fitness industry's current state and the importance of building a strong community to enhance retention in boutique fitness studios. As someone who has transformed a modest initial investment into nearly $100 million in sales, Lise’s insights are grounded in both experience and extensive research. Here are some of the key learning highlights from her talk.
Watch full webinar with Lise Kuecker
The retention crisis in boutique fitness
Lise began by addressing a significant challenge in the fitness industry: retention. She highlighted the alarming statistic that only about 9.2% of clients remain with a boutique fitness studio after 13 months. This low retention rate signals a critical issue for studios that often invest heavily in acquiring new clients but need help to maintain them. The retention issue, as Lise described, is like a "leaky bucket" - no matter how many clients you pour in, if your processes and community-building efforts aren’t solid, clients will inevitably slip away.
Common misconceptions about profitability
A striking point Lise made was about the unprofitability of many studios. Despite making substantial revenue, most are set up on unprofitable models. She emphasised that increasing leads or revenue doesn’t fix the underlying issues if the business model is flawed. The root causes often lie in ineffective marketing, sales processes, and a lack of a strong, community-oriented approach that could foster better client retention.
Understanding the client's "why"
Lise stressed the importance of understanding why clients walk through the door. Drawing on Bain & Company's Elements of Value Pyramid, she explained that while clients may initially join for functional reasons like improving health or losing weight, deeper emotional and social needs often drive long-term engagement. Addressing these needs—such as providing motivation, a sense of belonging, and hope for a better future—is crucial in building a community that clients want to remain a part of.
Sales process as the foundation for retention
Surprisingly, Lise connected retention back to the sales process. She argued that most studios don’t have a robust sales process, leading to low conversion rates from introductory packages to long-term memberships. Lise highlighted the importance of having one-on-one conversations with potential clients, understanding their specific needs, and clearly outlining the value proposition of the studio. This personalised approach not only boosts conversion rates but also sets the stage for long-term retention.
The power of referrals
Lise shared a compelling statistic from a University of Pittsburgh study showing that 95% of clients who join a fitness studio with a friend or family member are still active six months later, and 65% continue two years later. This highlights the power of referrals and the importance of fostering a community where clients can bring in their network. This not only enhances the client’s commitment but also strengthens the overall community within the studio.
Retention of team members
Beyond clients, Lise also touched on the importance of retaining key team members. She emphasised that a well-trained and motivated team is essential for delivering the kind of service that keeps clients coming back. Without a strong team, even the best marketing strategies and community efforts may fall short.
Understanding buyer types and tailoring communication
Lise Kuecker emphasises the importance of recognising and addressing the different buyer types that walk through your studio doors. There are four key types:
- Spontaneous Buyers: These individuals are ready to buy immediately, with minimal persuasion needed. They’re the ones with their credit cards out, ready to take action.
- Methodical Buyers: Typically men, they need to ask questions and understand the reasoning behind your methods. They require detailed FAQs and clear communication to make an informed decision.
- Humanistic Buyers: Mostly composed of women, these buyers connect through stories and experiences. They want to see themselves in the narrative you create. In this case, you're not competing against competition, you're competing against their time.
- Competitive Buyers: These are the procrastinators, often waiting until the last minute to make a purchase. Surprisingly, engaging with them multiple times on the final day can lead to a higher conversion rate, as Lise discovered when she increased her conversions by 40% after sending several follow-up emails.
To effectively communicate with these buyer types, it's crucial to use a variety of channels—email, SMS, WhatsApp, chatbots, and in-studio interactions. For competitive buyers, Lise found that sending multiple emails on the final day wasn’t just effective—it was appreciated by those buyers who thanked her for the reminder.
Personalised sales and retention strategies
Lise suggests that studios should frame their services as a form of preventative medicine, offering customised plans tailored to each client's needs. The sales process should be approached like a doctor's visit: listen, diagnose, and prescribe a solution that fits the client's goals. For example, based on a client's needs, you might recommend a combination of private sessions and small group training to ensure they achieve their desired results.
Lise stresses the importance of starting the retention process right from the sale. This involves an extraordinary onboarding experience during the first six to twelve weeks of membership, ensuring clients are consistently engaged during this critical period. Drawing from her visit to The Houstonian, a fitness centre with a 98% retention rate, she highlights how clients's behaviour patterns in the first 6-12 weeks can predict their long-term commitment.
Operational excellence and team retention
Daily, weekly, and monthly operations should be structured and efficient, with clear processes in place for marketing, sales, and client retention. For team retention, Lise emphasises the need for a well-defined recruiting process and thorough onboarding to align new hires with the studio's culture and expectations.
She also discusses the importance of empowering your team to become decision-makers, rather than just doers. This shift not only relieves you of constant oversight but also fosters a sense of ownership and responsibility among your staff. However, this requires letting go of some control, which can be challenging for perfectionists.
Finally, Lise touches on the critical aspects of managing a team, including clear job expectations, aligned compensation, and ongoing coaching. These elements are crucial for maintaining quality control and ensuring that your team is motivated and capable of contributing to the studio's success.
Conclusion
Lise Kuecker offered a deep dive into the intricacies of retention and community-building in the fitness industry. Her emphasis on understanding client needs, refining the sales process, and fostering a supportive community provides a clear roadmap for studio owners looking to enhance both client retention and profitability. In a competitive industry where retention is often the difference between success and failure, these insights are invaluable for any fitness studio aiming to thrive in the long term.
Stay tuned to future LegitFit Sessions coming up.
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