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The Radial Group - Improving Profits At A Wellness Center: Athleta Club's Story

Improving profits at a wellness center: Athleta Club's story

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Background

Ella is the general manager of Athleta Club*, a 10000-square-foot health club in a suburb near many corporate offices. Ella has introduced several programs, including tanning, a senior citizens program, and a 30-minute circuit. She also used a direct mail campaign to try to increase awareness of Athleta in the local healthcare community. However, none of these efforts led to significant new revenues or profits.

Athleta continues to see high member turnover and recently lost two large corporate relationships when those companies contracted with specialized workplace wellness providers.

The club owners are pressing for more revenues and profits. Ella recently attended an industry conference and noticed that "wellness" came up frequently. She and her staff thinks adding wellness might be the key for Athleta, but she's not sure where to start.

*not actual company name

How we helped

Ella thinks wellness services will jumpstart revenues, so she calls Radial and enrolls in the 30-Day Wellness Business Bootcamp. Radial discusses Athleta's business goals with Ella and the owners. Since they're losing customers and struggling to win new ones, Radial suggests they start by looking at updated market and demographic data. The analysis shows that Athleta's suburb is adding young families but has few seniors or 20-30 year-old singles. Radial advises refocusing on family fitness and moving away from senior-oriented programs and tanning. Ella and her staff develop family-friendly programs like pre-and post-natal fitness and kid-oriented classes. They work with Radial to build Athleta's image in the medical community. By year-end, Athleta adds broader wellness programs to its family-friendly foundation.

The bottom line

Athleta gets off the "program of the month" one-size-fits-all merry-go-round, with a clear picture of their target customer and specific plans for growing their business now and in the future.

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