Get With the Program: Starting a Loyalty Program
While some gyms like C3 Cheer and Dance have full-fledged loyalty programs, others implement targeted initiatives with the same aims. For example, Deana Ellison at Revolution Cheer and Tumbling Center offers referral credits. “We do not currently have a loyalty program, but we do offer a referral credit of $100 for referring a new cheerleader and a $50 credit for referring a new tumbler,” she says. “That can add up to a lot of credit, but it also brings us a ton of new clients.”
Let’s Get It Started
Before putting a loyalty program in place, here are two questions to ask yourself: 1) what do you expect to achieve from a loyalty program and 2) how do you plan to reward your clients? Ridout says she focuses on enrollment numbers in the gym and rewards loyalty with items that enhance the experience in the gym—such as local food coupons, cheer shoes, leotards, dance costume sponsorships and scholarship funds for tuition.
“I think it’s important to reward clients with tangible positive contributions that are used in the gym,” she says. “That way I see them back in the gym, year after year.”
Money for rewards doesn’t necessarily have to come out of the gym budget, either—Ridout says sponsors account for 99 percent of the loyalty rewards given at C3 Cheer and Dance. “It is positive and also allows me to toot the horn of local vendors and individuals and let the donors feel like a part of my gym program,” Ridout adds.
At Mississippi-based Oxford Cheer, Zach Lee has gone high-tech with his loyalty program—by enlisting a text service to send out regular messages to teams and parents on the latest developments in the gym. “It really is about keeping everyone in the loop. Sometimes it’s something as simple as saying ‘Have a good day’ or informing them about cancellation of practice because of bad weather,” he says.
The loyalty program is also integrated into the text service. As part of the program, parents and athletes receive texts about contests and other loyalty initiatives, and they can get juicy rewards for spreading the word. “If they show [the text] to a non-student, who then logs in to the Oxford Cheer system to enter the contest, the member who originally referred the contest to the new person gets discounts, open classes and open gym that week,” Lee explains.
Striking the Right Balance
Some gym owners choose to incentivize families with tuition cuts—offering incremental rewards for the amount of time spent as a customer. For instance, at Legion of All Stars in Georgia, tuition drops by $15 after a member’s first all-star season. At Cheer Fusion All Stars, tuition drops by $5 per year, so an athlete who has been at the gym for three years would receive $15 off tuition every month.
Many loyalty programs focus on monetary awards, sometimes as high as $100 per athlete for new client referrals. Could some gyms be giving away too much? It was a hot topic at various conferences this year, but ultimately, each gym owner must decide what works for his or her individual gym (with many learning through trial and error).
According to Lee, incentives and perks can only help so much. He believes that educating the parent is the most important part of fostering loyalty. “The more they know what’s going on, the more we’re on the same page and the more they know what to expect,” he explains. To achieve that end, Lee also makes it a point to frequent the open area of the gym where parents watch their kids practice. “I try to answer all their queries one-on-one,” he says.
And no matter what method you use to reward loyalty, consistency and organization are the keys to making a program work, says Ridout: “Setting goals and deadlines, establishing criteria for selecting [contest] winners and sticking to the awards posted is key.”
–Dinsa Sachan