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Texting Turned into a Source of Revenue for These Health Clubs

Three health clubs that were missing out on revenue developed different SMS campaigns that helped them find new members and new revenue.

The ubiquity of texting may be annoying to parents of teenagers and downright dangerous for anyone on the road with a texting driver. However, the fact that so many people are trained like Pavlov's dogs to respond to the ding of their smart phone at the arrival of a text can be a source of revenue for businesses such as health clubs, according to Nick Miniello, vice president of sales and co-founder of Textmunication, a mobile marketing technology company. Last week, Miniello led a free webinar, sponsored by Jonas, sharing how club operators can cash in on missed revenue with texts. (The webinar is now available for free on-demand.)

Email marketing was the most used form of marketing for the participants in the webinar, but email marketing generates just a 15-18 percent open rate, according to Constant Contact. Texting generates a 97 percent open rate, Miniello said.

He shared how developing different SMS campaigns helped increase revenue for three health club brands.

One text by a nine-location Crunch Fitness franchisee helped him get 700 new memberships and more than $10,000 in revenue in 24 hours, Miniello said. The franchisee sent a text offer on membership to the phones of 21,000 people who were former members or were part of the club's prospect database. That text got a 4 percent redemption compared to the typical 1 percent redemption of direct mail pieces, Miniello said.  

WOW Workout World, an 11-club chain in New Jersey, increased its billing decline collectability by 12 percent by converting from a collections call center (who answers their phone anymore anyway?) to text messaging.

The operators of Big C Athletic Club, a high-end health club in Concord, California, wanted to increase the club's membership base and acquire new leads, so they invested in a marketing campaign that used text messaging. They place an ad on a billboard at a BART subway stop near the club. The ad asked people waiting for the next train to text in a code to redeem or claim a free trial at the health club. The campaign generated 75 opt-in leads and converted 22 of those to memberships at dues of $75 per month.

To find out more about how texting can be a source of revenue, sign up for this free on-demand webinar, sponsored by Jonas.

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