The Current Evolution of the Fitness Industry

As the country starts to emerge from COVID-19 social distancing restrictions, one thing is remarkably clear. Things will have to change. But how? And for how long? We spoke to entrepreneurs across different industries to understand how they will alter their business plans so they can survive and thrive in our new normal.

While almost every business has been impacted in some way by the pandemic, fitness centers and gyms have had to shut down completely. As businesses whose services require a good amount of personal contact in relatively tight quarters, their existing business models just didn’t work during this pandemic. 

Jon Gallo, CEO of Results Boxing and Fitness in East Brunswick, NJ said the key to survival was speed. His team quickly transitioned to an online operation. It was so critical that full-service operations not be interrupted, they made the change in a single day. The team created online classes as well as an app members can use to track their progress. Doing so allowed Results Boxing and Fitness to continue providing a full-service experience, virtually.

Tony Bianchino owns Outrun Your Fork Personal Training and Nutrition Counseling in Westfield, NJ. He focused on continuing to build relationships with his clients. He created a “gym in a box” for those who didn’t have fitness equipment at home. The kit not only included tools but also the support of a personal trainer, nutrition plans, daily guidance and accountability. It was important that his customers really felt the “value” of his services, even at home. He also leveraged social media heavily, using social listening to guide the creation of game-nights and other fun, interactive activities designed to engage and grow his audience.

Early lessons:

• Doing a bit of competitive research gave both insights into what might work and what wouldn’t. Not all platforms are created equal, and it took some time to figure out the formula for success

• Less tech-savvy members struggled with the transition and needed a little extra hand-holding at first. Helping members learn and adapt to new technology is a key to a successful program 

• Despite the transition, some members struggled with maintaining a commitment to their fitness goals without the personal connection, and subsequently canceled or paused their memberships. Therefore, it was important to sell the idea that virtual training was going to be just as good online as it was in the studio

• Even with previous experience producing online content, it was still a huge time commitment and added cost to develop quality workout videos in a safe environment

• Marketing tactics and messaging had to change. The focus needed to be about support, motivation and community to support customer retention

Social media was hugely important because it allowed us to listen and pay attention to what everyone was saying, not just our clients.

– Tony Bianchino

Facebook Live and Zoom created a nice mix. With Zoom we can see our members, critique their performance and really connect to keep them motivated and engaged.

– Jon Gallo

Now that things are starting to get back to normal, what does “normal” look like?

Only time will tell, but many business owners must ask themselves this question. Tony and his team sent a brief survey to members so that they could learn, and not guess, what was really needed before their customers would be willing to walk through the door again.

Safety is the biggest concern. It will be vital to identify the right measures to take so that people feel safe to return. Implementation and strict adherence to enhanced cleaning and sanitizing procedures will be the first step. Class sizes will need to be smaller and schedules will need to be adjusted, among other things, to limit personal contact. The proposed changes should be clearly communicated to all members and staff well in advance of reopening to keep everyone on the same page.

We have to find a way to supplement income in case this happens again. Also it made us realize that we can take our message and send it out to the whole world. It doesn't just have to be contained in our brick and mortar box.

– Jon Gallo

Beyond safety, business owners are looking to make sure they don’t find themselves in this kind of situation again. Developing additional streams of revenue will be key to keeping the lights on when the next crisis is upon us. One of the most important things to do is to continue to grow and support their online community of members and followers. Developing fully-virtual, stand-alone programs that can be sold independent of the traditional brick-and-mortar business will be key to their continued survival in lean times to come.

We're not the big-box chains. We are small. We are able to pivot...I have heard people for years saying that personal training studios are like dinasours and they're going away and big-box gyms are the way to do it now. It's a great model. It's profitable. The only problem is what to do when you have another situation like this.

– Tony Bianchino

What does the future bring?

There are many different perspectives. Jon Gallow is looking at this as an “opportunity to grow.” Jon and his team at Results Boxing and Fitness are excited about moving into a new, larger space, a plan that they had in place before the shut-down began. The added space and resources will naturally make socially distancing much easier, and they hope the “fresh out the box” environment will help members feel safe and excited about a bigger and better experience. Tony Bianchino from Outrun Your Fork Personal Training and Nutrition Counseling has a different approach. He prefers to keep things intimate. He thinks bigger, cookie-cutter gyms will struggle to adjust and adhere to the new safety guidelines.

I think a lot of people are going to be afraid for a long time to come into very large gatherings, especially hot, sweaty, nasty gyms. Once there's a vaccine for it, I think people will start to feel better. But this is going to change people. This is scarring people emotionally, mentally and cognitively for a long time.

– Tony Bianchino

In the beginning, there is change, but then people drop their guard. I believe they will be more cautious in the short-term but people are not really made for social distancing long-term.

– Jon Gallo

It’s hard to say what will happen in the long-run. Ultimately both Jon and Tony believe (and hope) that things will eventually go back to normal, but finding a vaccine for #COVID19 will be a big part of it. In the meantime, they both plan to stick to the same basic principals: create meaningful relationships, provide value-based services and clear communication.

Stay tuned for the next report in our Industry Evolution series. For more information about how to start virtualising your business, contact us for a free consultation.