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 Sorry, My Club is Sold Out: The 3R's of Business Development    
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Mike Chaet

Sorry My Club is Sold Out The 3Rs of Business Development

Wouldn't you like your club to be one of these places where no one wants to go because it's too crowded? …

By Mike Chaet

 



Let me ask you…

Are you sold out ?
Over subscribed?
Overcrowded?
Do you have a waiting list for new memberships?
Do you have a waiting list to get into your club on a daily basis ?


If you answered "No" well, Why Not?

In the words of that great philosopher, Yogi Berra, "No one wants to go there anymore, it's too crowded"

Wouldn't you like to be one of these places where, "No one wants to go"?


"Sold out clubs focus obsessively on the ever-so- fragile customer relationship experience."



What is it about certain businesses that are sold out?
Sold OUt
By adopting the 3R's of business development, your club can be on your way to being sold out.
Think about the places you are aware of that are sold out on a regular basis. Maybe it's a nightclub or a restaurant. Or perhaps a music concert or even a college course that is constantly oversubscribed.

What do these sold out examples have in common. But more importantly what do they have that you don't have?

Let's take a look at the sold out phenomena and see how it works. If you look carefully you'll see they have some common factors:

First of all, the customer experience is extraordinary. It may be something extremely creative or something based on a theme such as Disneyland.

In other cases the experience is totally unique such as a hot musical group, or the great delivery style of a professor.

Other times the experience is created by a high level of service or uniqueness, or in the case of the Durgon Park restaurant in Boston, the experience is almost abusive service but great food. They have a two-hour waiting line.

The Common Thread

Anyway you look at it the common thread is that the customer is paying for some form of experience which creates a strong bond between the company and the customer. Interestingly enough the customer will continue to pay for this experience and will tell their friends they should experience it for themselves. They do this because they feel compelled to share their experience with others.

Industries such as the movie and the book industry live and die by this process. The up front marketing cost to launch a movie or book can be astronomical.


"The relationship dynamic between a customer and a business is a constantly changing process. "



Once the product is launched, the marketing budget is slashed to almost nothing. Success or failure is then left in the hands of the customers. If they liked the product and enjoyed the experience they will tell their friends. If they don't, there is no marketing budget large enough to drive further sales to make the project profitable.

How do you fit into this up-front marketing process?

To find out, think about using my 3R's of business development.
    1.Repeat sales
    2. Referrals
    3. Relationship
The relationship dynamic between a customer and a business is a constantly changing process. For example, think about the changes that affect parenting or friendships or the relationship between a coach and an athlete.
Making the relationship a positive one should include these points.
    1. The experience must meet or exceed expectations almost all of the time. This is usually defined by the customer as a strong value for the money paid,

    2. The experience should be bilateral with communications flowing in both directions.

    3. The experience needs to be refreshed regularly. Innovation, change, and improvement are a must. Next, we can classify the Consumer/Business relationship into several categories:

    The Convenience Relationship

    Your business is frequented and products are sold because your business is at the right place at the right time. To put it simply, you are convenient.

    The Emotional Relationship

    This purchase is usually driven by some motivating factor such as discounts, premiums, fear of loss or pain.

    More…
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