Club Insider

How Technology Improves Referral Success AND Saves Money

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Casey ConradCasey Conrad

Every club operator knows the value of obtaining referrals at the point of sale. New members are happy about their purchase. They are excited about starting a new exercise program. They are more likely to give referrals when the "asking" is part of the paperwork process, and unconsciously, they are looking for ways to justify their purchase. Certainly, getting friends and/or family members to join is one way to validate their purchase and help them stick with their exercise program through a better support system and the accountability of a workout buddy.

For years, I have been a passionate advocate of a structured point of sale referral process. The elements necessary for the success of any referral program are founded on value, scarcity and urgency. The components needed to implement a system include:

  • A clearly defined policy for guest passes, ensuring that the passes offered new members during their enrollment process have a greater value than any other pass available to members or the general public at any other time.
  • A written script that all salespeople memorize. It should inform new members of the club's guest policy and introduce them to the new member special pass program, emphasizing that it is a new member-only privilege and has a short expiration date (i.e. these particular passes expire 2-4 weeks after enrollment).
  • A cap on the number of passes given to each new member, which helps create a scarcity component.

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