COVID-19 Impact: Fitness Industry

COVID-19 Impact: Fitness Industry COVID-19’s Impact on Gyms and Health Clubs and How Brands Can Continue to Support Customers While Preparing for Reopening The $38 billion fitness industry was already battling new at-home smart bikes and trainers when the coronavirus (COVID-19) pandemic hit, further challenging their bottom line. And unlike past recessions which were primarily financial, the impact of a health-related recession means gyms and health clubs will be among the hardest hit industries.

Most gyms across the U.S. were forced to close their doors in mid-March and many remain on lockdown.

However, smart fitness brands are pivoting their message to stay relevant with consumers as stay-at-home orders continue. Promoting products and services for in-home fitness routines, brands are responding to an increasing demand for fitness at home options. “Our sales are up ten-fold,” said Lou Lentine, CEO of Echelon in a mid-March interview. “We did more sales in the last three days than we expected to do in a month.”

However, these in-home equipment brands have their own COVID-19 hurdles, such as in-home set-up, consumer training, and manufacturing to keep up with demand. "At least 50% of our customers call back saying, I can't figure this out," shared Brandon Smith, an online sales lead at River City Bikes in Portland, Oregon. Prior to COVID-19, brands like River City Bikes were able to provide white-glove service, assembling bikes in customer homes and walking them through proper use. With social distancing, these brands are forced to provide contactless delivery and training. Additionally, certain parts are manufactured internationally, creating longer than expected delays in product shipments.

In the meantime, some brands are turning to new apps and software to provide a steady revenue stream.

Echelon app class attendance spiked 40% during the third week of March, and the company has also added daily rides just for children. © 2020 Goodway Group. All rights reserved.

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Where to Focus Today for the Greatest Impact Later Today, fitness is a mainstream movement with consumers prioritizing their health and physical appearance more than ever. Many consumers will want to keep their fitness routine as consistent as possible during this crisis, so some avid gym-goers plan to rent or purchase equipment to use during the pandemic. As a direct result, many may cancel their gym memberships or cut back on gym add-ons, like personal trainers. However, research shows that almost half of gym members prefer to work out with another person – meaning the fitness industry outlook is still hopeful.

Adaptability and innovation are what will help gyms and fitness clubs weather this crisis and rebound postCOVID-19. For marketers looking to prepare for the post-pandemic routine, here are a few areas to focus on now: •

Build Messaging Matters to Consumers: Some customers will cancel their membership during this time as they find alternative fitness solutions and aim to minimize expenses. Instead of focusing on inevitable attrition, fitness marketers should make the health and safety of their customers and staff top priority. Consumers are paying careful attention to how businesses respond during this period, so providing support, demonstrating genuine care and concern, and finding new ways to serve members will set your brand up for success. Exhibiting these values through your messaging and actions will result in a win-win for businesses and consumers.

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Shift to On-Demand Content: Consumers are turning to online content to continue their workout routines at home. Gyms and fitness clubs can provide needed resources and distraction as consumers navigate this period of change and stress. Leverage owned platforms, such as branded apps and social media channels, to connect with consumers and stream fitness classes, post motivational content, or offer other on-demand wellness services.

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Offer Equipment Access Alternatives: Consider creative solutions to combat a lack of home workout equipment. Days after a small indoor cycling studio was ordered to close about a month ago, one gym owner put out feelers to her members on Instagram: If you could rent one of our 56 stationary bikes for the duration of the coronavirus pandemic, would you be willing to pay? All were rented within a day, where members pay $250 a month for the bike rental and an unlimited number of virtual classes. This is just one example of how in-home remedies can take on a whole new meaning for those who cannot afford to purchase equipment themselves. Trainers can also incorporate household items (chairs, water bottles, peanut butter jars, etc.) into their online training sessions to help all consumers feel they can participate in your workouts.

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Data Collection: Don’t forget to take time to review your first-party data processes – both your data collection and your strategy on putting it to use. Tap your most loyal customers to provide feedback as you test and streamline new services, both now and as you plan to reopen. Capture contact information from online workout classes to connect with these consumers after reopening and encourage foot traffic into your facility. Modeling audiences and gaining insights based on your consumers’ patterns will help guide your data strategy through the slow transition into the new normal after COVID-19 ends.

Goodway Group is the digital partner advertisers trust to drive campaign performance and media efficiency. Proud to be completely independently owned and operated, Goodway provides trustworthy expertise that meets its clients’ needs — and no one else’s. Using predictive intelligence, Goodway helps advertisers get the most value out of every impression across all paid digital media. Through the combination of employing the smartest technology and the most experienced people in the industry, Goodway delivers authentic results. © 2020 Goodway Group. All rights reserved.

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