Press Office

Standards and Service Focus Pays Off for Esporta

Date: 09 Feb, 2005

The January rush for gym memberships has come to an end and Esporta attributes its 10% above budget performance - a 2.8% increase in members on January 2004 - to improved attrition figures and not just to new member gains.  Esporta now serves 239,428 members in the UK and Europe.

The health club market historically relies on consumers' January resolutions to underpin its performance throughout the year.  This focus on recruiting members at the start of every year has led to an industry-wide discount culture.  Esporta has maintained its position as a non-discounter focusing instead on the two areas of the sector which make the difference to members - customer service and club standards.

Member retention for January 05 was up 5% as a result and the company's chief executive Neil Gillis attributes this to three factors in Esporta's approach to the market:

• The introduction of the Club Class¹ programme in early 2004
• Abolition of the discount culture has led to a more committed membership base with more staying power
• The introduction of the On Track programme (now emulated by some of Esporta's competitors) which is based on research that shows the key to securing member loyalty lies in the initial induction phase into a new health club².

"Our approach last year was novel for an industry that has relied on recruiting annual memberships in January and then having to replace these disillusioned members the following year. 

"The focus for Esporta throughout 2004 was to raise the overall expectations of members in the service and standards that they should receive from their health club.  In doing so we have reduced attrition rates; maintained joining fee levels and enhanced our reputation with members.

Most of the growth is organic and does not come from new club openings.  Esporta opened one new club in September 2004 in Guildford.  

Ends

¹ Club Class is Esporta's internal standards and service initiative which incentivises and rewards clubs which adopt the company's minimum 'Gold' standard.

² On Track offers new members a personalised induction programme and one to one sessions with a personal trainer in the first two months of membership.

For further information please contact:
Joanna Randall, Corixa Communications, 0117 949 3394
E: Joanna.randall@corixa.co.uk
Date of issue: 9 February 2005