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Study shows Australian fitness operators need to improve membership inquiry handling

Study shows Australian fitness operators need to improve membership inquiry handling
September 4, 2024

The Australian fitness industry is under the spotlight following the release of a groundbreaking report from Keepme which reveals concerning gaps in lead response times and quality to membership inquiries.

The report, Australia - 'Time to Reply' Fitness Industry Study, highlights critical shortcomings in how Australian fitness operators handle membership inquiries, revealing that delays and poor-quality responses are costing businesses potential members and driving up the cost of member acquisition.

Key Findings from the Study:

• High Rate of Unanswered Inquiries: A significant percentage of membership inquiries across all channels went unanswered. Facebook inquiries were the worst affected, with 33% receiving no response at all, while 18% of email inquiries were ignored.
• Slow Response Times: The average response time across all platforms was far from optimal. Email inquiries took an average of 7.5 hours to receive a reply, while Instagram inquiries lagged with an average response time of 31 hours - well beyond the industry’s critical five-minute ‘golden window’ for conversions.
• Poor Quality of Responses: Even when inquiries were answered, the quality was often lacking. Over 28% of email responses did not address the question posed, and only 19% of replies across social media channels suggested a tour, trial, or visit - essential steps in converting leads into members. In fact, a disheartening number of replies simply advised the prospect to see the website for more information.

Impact on Member Acquisition and Profitability
Conducted by Keepme, a leading AI-powered sales and marketing platform for the fitness industry, 

The study underscores the vital importance of timely and high-quality responses in driving gym membership sales. With research showing that leads responded to within 5 minutes are 100 times more likely to convert into genuine opportunities, the delays uncovered in this study highlight a significant missed opportunity for fitness operators.

Commenting on its findings, Hilary McGuckin, Director of Marketing at Keepme, stated “every interaction with a prospect is an opportunity to impress, engage, and ultimately convert.
“If fitness operators aren’t prioritizing quick, relevant, and action-oriented responses, they risk losing potential members to competitors who are more responsive. This not only increases the cost per lead and cost per acquisition but also negatively impacts profitability.”

Segment-Specific Performance
The study segmented responses from various types of fitness operators, including multi-site independents, council facilities, franchise/corporate chains and independent health clubs/gyms. While there were variations in performance, the overall results were concerning:

• Multi-Site Independents showed the shortest overall email response times but struggled with social media, where Instagram responses averaged over 2,500 minutes.
• Public Leisure Authorities had the lowest email response rate, with 30% of inquiries unanswered and average response times exceeding 24 hours on both Facebook and Instagram.
• Franchise/Corporate Chains fared better in response rates but still lagged in speed, particularly on Instagram, where response times averaged 1,902 minutes.
• Independent Health Clubs/Gyms led in response rates across social media, but still fell short of the golden window, especially on Instagram.

A Call for Change: Embracing Technology to Improve Response Times
The findings from the Time to Reply study serve as a wake-up call for the Australian fitness industry. To remain competitive, fitness centres must prioritize both the speed and quality of their responses to membership inquiries. The adoption of generative AI solutions could provide the industry with the tools needed to ensure immediate, high-quality responses, thereby improving conversion rates and reducing acquisition costs.

McGuckin added “speed married with personalization is crucial for capturing intent and converting membership leads.

“With the right technology, fitness operators can mitigate for a lack of resources and optimize their lead response processes, enhancing both their top-of-the-funnel performance and overall profitability of acquisition strategies.”

Click here to access the full Australia - 'Time to Reply' Fitness Industry Study.

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