By offering discounts or special offers through promo or discount codes, you can entice potential customers to sign up for your gym or try a new service. And for your loyal customers, these codes can show your appreciation and encourage them to continue using your services.
RetailMeNot’s 2021 annual report suggested that 80% of consumers are more likely to purchase a new brand if they have a coupon or promo code. In addition, 90% of consumers now actively use coupons. These stats demonstrate promo codes' power and potential impact on your gym's customer acquisition and retention.
In this article, we will explore how promotional codes work, the different types and their benefits. We’re also happy to share some ideas for creating effective discount codes to attract and retain customers in your gym business. Let’s jump into it.
What Are Promo Codes?
If you're running a business, you may have heard of promo codes, but you need to be more sure of what they are. Simply put, they are special codes companies offer their customers to provide discounts or special offers.
Promotional codes are becoming increasingly popular among businesses of all sizes and with good reason. According to a survey by Statista, 88% of consumers use promo codes, and 94% search for a deal when shopping online. Gyms can attract new customers and retain loyal ones by being proactive with their distribution, ultimately increasing revenue. To emphasise, 67% of consumers have made a purchase they weren't originally planning to make solely based on finding a coupon or discount.
So, how do you create a promotional code? There are several ways to do so, including offering a discount on a specific service or membership, providing a limited-time offer, or offering a referral discount to incentivise your current customers to refer friends and family. By implementing them strategically, you can boost customer engagement and drive revenue growth for your gym.
How Do Promo Codes Work?
Now that you know what they are, let's dive into how they work. Gyms can utilise their website, social media, or email marketing platforms to promote their promo code. They can offer a percentage or amount of money discounted from the customer's purchase, free shipping, or a free trial.
To redeem a coupon, customers typically enter the code during the checkout process, and the discount is automatically applied. It's crucial to ensure they are easy to find and use, as 75% of consumers who have abandoned an online shopping cart have done so due to cost issues (RetailMeNot). Conversely, 67% of consumers have made a purchase they weren't originally planning to make solely based on finding a coupon or discount.
Gyms should analyse customer behaviour and preferences to create an effective promo code. For example, if a gym notices that customers are more likely to purchase a monthly membership, they could make one that offers a discount on monthly memberships.
Harder, a chain of boutique-style fitness clubs, implemented promo codes to re-engage members, which led to a 14% increase in class size and a 7-9% increase in membership sales.
Promotional codes can be a powerful tool for gyms to attract and retain customers. With the right strategy and analysis of customer behaviour, gyms can create effective marketing strategies that drive revenue and growth.
Efficiently Manage Your Gym Promotions with Perfect Gym
Perfect Gym’s software is designed for fitness centres and gyms to manage their operations efficiently. The platform offers promo code implementation to attract and retain customers. Gym owners can create and manage different types of promotional codes, with specific requirements and limitations for each code.
Customers can redeem codes directly through the gym's website, kiosk or mobile app, making it easy for them to take advantage of the promotions offered. Perfect Gym's software also tracks promo code usage and provides detailed analytics, allowing gym owners to evaluate the effectiveness of their promotional campaigns.
Overall, Perfect Gym's software enables gym owners to create and manage effective promotional campaigns that drive revenue growth.
What Are the Benefits of Using Promo Codes for Your Business?
In the competitive fitness industry, gyms must be prudent and tactical in marketing efforts to attract and retain customers. There are fewer more productive ways to do this than harnessing the power of a discount code. The following section will discuss the benefits of using them at your health club.
Increase Customer Acquisition and Retention
Promotional codes are a powerful tool to attract new customers to your gym and retain existing ones. According to research, offering a discount increases the likelihood of a purchase by 80% and encourages customer loyalty by 88%. Gyms can entice potential customers who are on the fence to try their services, and retain existing customers who may be considering leaving.
A study by Martech found that a 5% increase in your customer retention rate can lead to a 25 to 95% increase in company profits! When it comes to retention, a little can go a long way.
Encourage Customers to Make a Purchase or Try a New Product/Service
Promo codes can encourage customers to try new products or services they may be hesitant to try otherwise. For example, a gym may offer a promo code for a free personal training session or a discount on a new class or program, which can lead to increased sales and revenue.
Create a Sense of Urgency and Boost Sales During Slow Periods
Gyms often experience slow periods throughout the year, and promotional codes can create a sense of urgency and drive sales during these periods. For example, a gym may offer a promo code for a limited time, such as a "24-hour flash sale," which can encourage customers to make a purchase they may have been putting off.
Track Marketing Efforts and Measure the Effectiveness of Campaigns
Promo codes can help gyms track their marketing efforts and measure the effectiveness of their campaigns. By assigning unique codes to different marketing campaigns, gyms can see which drive the most sales and revenue. This data can be used to refine and optimise their marketing strategy and make data-driven decisions.
Reward Loyal Customers and Incentivise Repeat Purchases
Promo codes can be used to reward loyal customers and incentivise repeat purchases. For example, a gym may offer a discount on the customer's next purchase after making a certain number of purchases. This tactic can help build customer loyalty and encourage repeat business.
Build Customer Loyalty and Establish Long-Term Relationships with Customers
Finally, promo codes can build customer loyalty and establish long-term customer relationships. By offering exclusive coupons to loyal customers, gyms can make their customers feel valued and appreciated, increasing customer satisfaction, positive reviews, and word-of-mouth referrals.
Promo codes are a simple and effective way for gyms to increase customer acquisition and retention, drive sales, track marketing efforts, reward loyal customers, and establish long-term customer relationships. By incorporating promo codes into their marketing strategy, gyms can stay competitive in the industry and continue to grow their business.
What Are The Different Types of Promotional Codes?
Companies can offer various promotional codes, each with unique benefits and limitations.
Public Promotional Codes
Public promotional codes are widely available and can be used by anyone. These codes are typically advertised on a company's website, social media accounts or other marketing channels. Public promotional codes are a great way to attract new customers and can be used to promote a new product or service. As referenced earlier, in a study by RetailMeNot, 96% of consumers admit to using coupons, making public promotional codes an effective way to attract new customers.
Private Promotional Codes
Private promotional codes are only available to specific customers or groups, such as email subscribers or loyalty program members. These codes are typically sent via email or other direct communication channels. Private promotional codes are a great way to reward loyal customers and can be used to promote repeat business. Research by Experian showed personalised emails, such as those containing promotional codes, have a 29% higher open rate and a 41% higher click-through rate than non-personalised emails.
Restricted Promotional Codes
Restricted promotional codes have specific requirements or limitations, such as a minimum purchase amount or a particular product category. These codes are typically used to promote a specific product or service and can increase sales for that particular item. Research compiled by Invesp indicates that 59% of consumers search for promo codes before buying anything online, making restricted promotional codes an effective way to drive sales.
Time-sensitive Promotional Codes
These codes have a specific expiration date and can create a sense of urgency among customers, encouraging them to purchase before the offer expires. When you have a limited-time promotion or time-sensitive offer to share with your customers, SMS marketing can be an effective way to communicate it quickly. Unlike emails, which can be overlooked for extended periods, text messages have a high chance of being read immediately. Nearly 60% of people consider text messaging the fastest way to reach them (ZipWhip 2021)!
One-time-use Promotional Codes
These codes can only be used once per customer and can be used to prevent the abuse of promotional offers. But beware, RetailMeNot’s 2018 consumer survey found that 60% of online shoppers in the United States stated they would abandon their purchase if they found out that a coupon code they intended to use was not working.
Free Shipping Promotional Codes
These codes offer customers free shipping on their purchases and can be used to increase the average order value. Statista says that 63% of online shoppers have abandoned their carts due to high shipping costs.
7 Great Ideas For Gym Promo Codes
Free Trial or Class
A free trial or class is an excellent promo code for new customers who may hesitate to commit to membership without first experiencing the gym's facilities and services. This promotion can encourage potential customers to visit the gym and try its offerings, ultimately increasing conversions.
A promo code for a discount on the first month or year of membership is an excellent way to incentivise potential customers to join your gym. Offering a discount can reduce the perceived risk of commitment and entice customers to try out your gym's services for a reduced cost.
A referral program promo code is a fantastic way to reward current members for bringing in new business. The coupon can be shared with friends and family, who will receive a discount on their membership, while the current member receives a reward, such as a free month or a discount on their subsequent payment.
Seasonal promotions can be an effective way to drive sales during specific times of the year. For example, a New Year's promotion may offer a discounted rate on a year-long membership, while a Black Friday promotion may focus on engaging price-sensitive customers.
Social Media Promotions
Promo codes shared on social media or through influencer partnerships can increase your gym's visibility and engagement on social media platforms. This promotion can be a great way to reach a wider audience and attract new customers who may have yet to hear of your gym.
Offering customers a discount on their membership or a free session on their birthday can be a great way to show your appreciation for their loyalty. This promotion can encourage customers to renew their membership or upgrade to a higher membership tier.
Offering discounted membership rates for students or faculty at local schools and universities can attract a new demographic of customers to your gym. This promotion can also help to establish a relationship with local educational institutions and potentially lead to partnerships or sponsorships in the future.
In conclusion, promo codes have proven to be a powerful tool in attracting and retaining customers. By offering discounts and exclusive offers, businesses can incentivise new customers to try their products or services while keeping existing customers engaged and loyal. However, it's essential to use them strategically, considering factors such as timing, target audience, and budget.
With careful planning and execution, promo codes can help businesses achieve their marketing goals, increase sales, and ultimately build a solid and loyal customer base. So, whether you're a small startup or a large corporation, consider their power in your marketing strategy and start reaping the benefits today!