Corporate Sales - What are the options?

Corporate sales and wellness programming is an evolving market that can offer tremendous income potential for fitness facilities; however, most clubs approach this market with the belief that they can sell corporate memberships simply by offering group discounts. This approach is usually ineffective, since it only aims to satisfy the facility's desire for revenue without considering what the targeted corporation may want or need. It also fails to address the basic underlying principle for corporate sales and wellness programming, which is to assist a corporation or business in creating and maintaining a healthier workforce. In developing its corporate sales and wellness programming, a club needs to decide what its corporate sales approach will be, think about how to structure a program and then market the program effectively.

Overview of programs

Various corporate programming scenarios are available to clubs. Following are some common scenarios and the opportunities they offer:

Group enrollment, self-pay. Group enrollment, self-pay is the most common current corporate sales category. In this scenario, a club approaches a corporation (or vice-versa) and creates a plan that enables employees to join the club by paying a membership fee (usually discounted) out of their own pockets. Using only this sales approach is somewhat akin to a club having only one person work in every department: It can work, but it is very limiting. Fortunately, club operators are expanding their horizons and offering companies more options.

Group enrollment, payroll deduction. Group enrollment, payroll deduction is a step up from the self-pay approach, and usually results in more individuals joining a club. In this scenario, employees who join the club may pay fees through payroll deduction. If the company is not set up for payroll deductions on a formal level, the club provides payroll deduction forms and instructs the employer how to administer the program. The easier this program is for the corporation, the better it is for the facility. This approach takes more effort from the facility's salespeople, which is true for all of the remaining options.

Group enrollment, company contributory. The group enrollment, company contributory method is very desirable, as it can dramatically increase employee participation. With this approach, the participating company pays a portion of its employees' membership costs. It works well for all parties, as it demonstrates the company's care and concern for its employees' well-being, it gives employees a discount, and it gives the facility a financial advantage, as it does not have to offer a "corporate discount" and it collects the same amount of revenue as a regular new membership.
Group enrollment, company paid. The group enrollment, company paid approach means that the participating company pays 100 percent of the participating employees' memberships. With this scenario, it is to the facility's benefit to offer a discount to the employer to increase the likelihood of its paying the entire amount.

Corporate onsite fitness programs. Corporate onsite fitness programs offer many valuable options to a facility, depending on the type of onsite programming offered. Be careful about onsite programs that involve extensive use of facility employees: This type of relationship can become negative, as the corporation's expectations can easily exceed the agreed-upon program, resulting in your employee becoming a "workhorse" for the corporation. However, this type of program demonstrates commitment by the employer and offers the facility extraordinary access to the corporation employees.

Corporate programs for special populations. Corporate programs for special populations can involve any combination of methods. Some may be educational/wellness programs for deconditioned people, the obese and seniors, educational/ wellness/self-defense programs for women, etc. These programs may be conducted at the fitness facility, the corporation, a local business event or other local business.

Corporate fitness/wellness programs involving martial arts. Corporate fitness/wellness programs involving martial arts offer a great diversity of programming options. Martial arts programs can appeal to a wide cross-section of individuals, and can be easy to implement and manage. If your facility does not currently use martial arts programming, you may be missing a golden opportunity.

Structuring the programs

Each program option requires separate pre-planning and set-up. The fitness facility must be completely prepared to execute every detail of a program before approaching the corporate/wellness community. If the facility isn't entirely organized, details will come up that make the facility look unprofessional and ill-prepared. CEOs and directors of human resources expect professionalism from facilities with which they plan to do business.

In structuring each program, write down all information in a clear, concise and orderly fashion. A contract or written agreement with the corporation will help to keep the relationship professional and let each side know what is expected. The facility should also create a manual to be used in-house to keep everything consistent among staff. This allows the facility to stay consistent and make modifications as needed.

The program structure should include who in the facility will administer each component of the program (including who will contact the targeted corporations), what materials will be used at each level of corporate/wellness lead development, who will service the account once it is established and the time frames for each follow-up. The plan must also include guidelines for handling any obstacles that may arise, the compensation for participating employees, and how and when compensation will be paid. The plan should clearly state its objectives and include budgeting information with tracking methodology so that the facility stays cost-effective. Meetings must be scheduled on a regular basis to ascertain progress and to ensure that problem solving is done quickly and effectively. Every detail should be oriented to keeping the relationship and program professional.

Marketing the programs

Direct and indirect marketing options can be used for corporate wellness programs. Other important aspects of marketing include staff preparedness and making contact with the targeted corporations.

Direct marketing. Direct marketing options include newspaper advertising in the business section of your local newspaper, direct mailings and emails to corporations' CEOs or directors of human resources, your club's website and telemarketing. Different markets find different levels of success with each of these strategies.

Indirect marketing. With indirect marketing, the marketing campaign can include health fairs either onsite at a corporation or at another location, a wellness newsletter sent to all targeted businesses, in-club wellness seminars and workshops that are marketed with press releases, emails or faxes to targeted businesses, in-club information displays, and PSAs (public service announcements) on radio or television.

Indirect marketing may also include presenting wellness topics at targeted businesses. By presenting wellness topics to employers at no charge, you will immediately strengthen your credibility and rapport with the company, and your facility will stand out as a wellness authority. The presentation itself must be excellent, and, after the presentation, a follow-up thank-you card can enhance the already positive situation.

Partnering. Another approach, which combines direct and indirect marketing, is to partner with local businesses that want to appeal to the corporate/wellness marketplace in a medically-based capacity. The partnership options can range from chiropractors and sports medicine practitioners to hospitals. The possibilities and opportunities are tremendous for a well-thought-out plan that vigorously pursues the wellness opportunities.

Staff. To prepare your staff members to market your corporate programs, they must first be educated. Ensuring that your employees have degrees in a related field and certifications helps. However, your staff members still need to be educated about the corporate marketplace and the relevant wellness statistics so that they sound intelligent and are prepared. Don't rely on volumes of written statistics to try to sell corporations on your programs -- the majority of CEOs and directors of human resources are already familiar with this information. There are various sources that can provide your facility with valuable information about how to approach the corporate marketplace effectively, such as the International Health, Racquet and Sportclubs Association's website (www.ihrsa.org). Or, you can email me at geofflhampton@aol.com for more information.

Contact tips. When contacting CEOs, directors of human resources and other key personnel, remember that they do not like to spend a lot of time listening to what may appear to be a typical health club sales pitch. Keep their time in mind and your message to the point. Always offer to send some limited information (a program overview, not a bunch of statistics) for them to review before you have any further discussions with them.

After the first contact, the next step is to arrange a specific appointment as quickly as is practical. Optimally, the appointment should take place at the fitness facility to add dimension and credibility to the presentation. The presentation needs to be concise and positive, and your goal should be to close the deal in the most time-efficient manner. The business of corporate/wellness sales is not for the timid or meek. It requires friendly, professional aggressiveness, or valuable time and effort will be wasted on both sides. The facility salesperson needs to direct the corporation's representative to the bottom line and close the sale.

Once the sale is finalized, time is of the essence. Provide deadlines and clear expectations of what is expected from the corporation in terms of project development. The more the corporation can handle on its own, the better it is for the facility. Employees are more likely to respond in a timely fashion if the information is facilitated by their employer rather than the facility. However, do not "dump" your follow-up and responsibilities on the corporation. Some of the details the corporation can effectively communicate to its employees include a registration deadline and complete information about the program. Employees' immediate family members should also be included in the package, if possible. This will require the corporation to effectively get the word out to all qualified employees. But the club still needs to be there every step of the way to facilitate these beginning stages.

Negotiating the corporate/wellness marketplace requires time and effort, but can be extremely rewarding both financially and by boosting a club's credibility. Spend the time to research your approach completely, make a commitment to the program and watch the benefits blossom.

Yours in Success and Motivation,

Geoff Hampton

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