Last year Fitness First underwent a global rebrand as part of its £225m transformation plan. Changing their trade dress and logo, however, was only the start of an attempt to change consumers perception of the company. An 18 month research project gave the company valuable insights into the health club's shortcomings. The research indicated that competing on prices and deals alone was not going to attract prospect customers or keep existing ones. In the words of David Jones, UK marketing director for Fitness First,“the industry has been a bit too obsessed with membership sales and deals....the plan for us and our brand spend will not be about falling into that trap but will be focused around developing the consumer’s experience from the inside out.” This customer-centric approach was necessary if the brand wanted to stave of the competition from from fast-growing budget chains such as Pure Gym and the Gym Group, and become the No.1 health club company. Working with The Clearing on the rebrand, the brand now want to focus their attention on creating a more interactive, rewarding experience for existing customers rather than concentrating on the attracting new ones.
Apart from the introduction of the new logo, which according to the brand symbolises energy and strength, changes included updating equipment and the launch of a digital programme designed to give the gym goer a 'holistic gym experience.' The digital strategy began with the revamp of the website which not only allows members to track their personal progress, but communicate with the brand and interact with other customers. Coupled with the launch of a fitness app in the latter part of last year Fitness First is in essence creating a social network which exclusive to its members. With more than 50 per cent of Fitness First UK members accessing the site via mobile devices, the new mobile-friendly website and app reflect the brand's promise to motivate and support members both inside and outside of the gym.
Initially, all these changes were promoted across key commuter media channels in and around central London, before it was rolled out globally at the end of last year. But the nearly a year on, how has the rebrand faired? Has it yielded the results the company so desperately needed?
Let's look at the numbers. In October of last year, membership numbers had fallen from 916,000 to 873,000, but revenues at rebranded clubs has increased by 4%. Furthermore, revenue forecasts for next year show 5% growth. Not too shabby but P&L sheet is not everything and with the company whole rebrand centred around the member in good to know whats happening the old customer experience front.
Well, the company is investing heavily in their customer service. Out of the £86m put aside for this task, £18m will be used in the UK alone. Already the company has trained 10,000 staff over the past 12 months , and is looking to hire up to 400 new staff and 250 personal trainers all in a bid to deliver a more personalised service. And it seems to be working with members staying for longer, with retention up 6%. Also frequency of workouts – an important metric in an industry where a customer that comes less frequently tends to stop coming at all – is also up 5%.
Now admittedly I am not exactly blown away with these numbers but they are encouraging and indicates that customers are responding positively the rebrand. As strategies go, rebranding is one of the most risky and difficult to pursue. This type of overhaul should only be concerned when all the original brand equity is spent and the customers are disenchanted with the brand. This is exactly the case for Fitness First who reached an all time low back in 2012 when it was at the precipice of falling into administration. That being said, it was still gamble, a gamble that in my book that will eventually pay off!
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