Gym Group Reports Impressive Membership and Revenue Growth

Budget gym operator The Gym Group has reported 30,000 new members since January and a revenue increase of £112 million....

Budget gym operator The Gym Group has reported 30,000 new members since January and a revenue increase of £112 million. City AM writes that the company is on track to 'deliver full-year results at the higher end of market expectations' 

Improving member satisfaction and retention has been a big focus for the company. According to Gym Desk, 50% of new members quit within the first six months, with many quitting during the first 45 days. The Gym Group must engage new sign-ups during these early stages, providing support beyond just the initial induction.   

One of the biggest reasons is a perceived lack of progress. New members start with endless motivation and expectations, only to realise that even modest transformations take time. Failing to set realistic fitness or health goals can make it harder for new members to build effective exercise habits, and failing to track progress can make this even harder. 

Xplor gym argues that 64% of gym goers under 35 think gyms should offer tech that helps members track performance.  If gyms don't have the technology themselves (and bearing in mind that The Gym Group is a budget operator), it could be as simple as showing people how to effectively track performance and progress using wearable technology or fitness trackers they already own. 

The Gym Group also offers classes in several of its membership packages. Research by Les Mills found that those who exercised in groups and visited a club just once a week were 20% more likely to be loyal members than those who visited three times a week and only worked out on the gym floor. Classes can be very helpful for membership retention, therefore. But joining a class can intimidate new members, especially those just starting a fitness journey, so it's helpful to introduce them to class schedules and instructors.  

The Gym Group also has the advantage of being at the low-cost end of the market during a cost-of-living crisis. The average cost of a UK gym membership is £40 a month. Off-peak membership with the Gym Group costs £13.99 per month, while their standard membership costs £19.99. Other more flexible packages are available, too. 

According to one Office for National Statistics study, 'more than two-thirds of adults were spending less on non-essentials because of the rising cost of living'. It goes on to say that 8% of British people said they'd cut out gym memberships due to the cost of living. People are likelier to swap premium gym memberships for cheaper alternatives, such as at-home workouts, outdoor exercising, or a more affordable gym offering.

And gym members are not the only ones struggling with the cost of living. Gyms have also had to contend with rising energy and operating costs.

Budget operators like The Gym Group aren't for everyone. Some people prefer additional services or exclusive access to niche classes or workouts, but low-cost gyms can make fitness accessible to more people. Getting a cheaper membership doesn't stop you from getting in a killer workout or from achieving your fitness goals.  

Find out how Energym's electricity-generating RE:GEN bikes and software can transform your gym or studio.

We're also about to open pre-orders for our electricity-generating home bike too.  

 

  

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