When the Kosher Gym originally opened in Brooklyn, it was quite a different world. I would imagine that the gym had a pretty sound business plan at the time and was pretty successful. However, the internet revolution changed everything. Customers are more empowered than ever.
Here are some points that every business owner needs to know about doing business in this era:
1. Focus on customer value - not ROI
It's a very competitive world out there. If your business does not establish itself as providing value for its customers, it will churn right through them. If your vision is only on how much you are making per customer, you lose the opportunity to build long term loyalty. Marketing budget is better spent keeoping your customers happy than trying to acquire new ones. Happier customers means more renewals and referrals as they will want to share their experience with others.
2. Open the communication channel
Every time a customer complains, it is an opportunity - a gold plated chance to engender good will and loyalty. It also presents you with a new insight into how you can truly innovate and grow.
3. Follow up with "Deadbeats"
You have the ability to track the comings and goings of your patrons. A call every now and then from a gym rep can go a long way in helping you help them get the most out of their membership. When you wait until their membership has lapsed or is close to it, you may have already lost the game.
4. Build a community driven website, not just a brochure
If all your website does is provide pictures of your facilities, you send the message that the site is about you, not them. There is a place for your brochure, but you can create a great value add for your customers by having a site where you can post blogs, videos and tips. Invite your members to take part. If you have done a good job making them enthusiastic about you, then they will do most of the "heavy lifting" for you by engaging others. Plus, it will be a great way to Point #2 as well.
5. Don't pretend the competition does not exist
You may be the only "Kosher" gym in town, but don't forget, you are competing against other separate gyms. Actually, your biggest competition is yourself. Your patrons don't need a gym - they need to be fit. If they don't sense that they are getting that value from you, then they will leave. They may buy equipment or start jogging and eating better. They may decide to keep the money and stay unfit rather than spend the money and be just as unfit. Some may just join another gym, separate or not. Either way, you have to understand what their expectations are as far as the services you provide. If classes are free in other clubs, than by golly make them free at yours. Remember, the more the gym helps them achieve their goals at a fair price, the more willing they will be in continuing to pay that price.
My wife and I have a thing where we go (or try at least) to eat out for at least one meal on the first day of the Jewish month. Tonight, we will be most likely dining at Al Di La in Monsey.
In honor of this, I decided to start things off with a post about restaurants. Until this past Summer, I lived in a Brooklyn, home to a plethora of kosher restaurants. I was surprised but not shocked to read this blog post about the fact that many eateries in the NYC area - even well established ones - have closed down of late.
Elan Kornblum of the Great Kosher Restaurants magazine and website (which he does a great job with. - I'd love to meet him.) is quoted in the story as saying that many of the recent closures were not surprises since "they were struggling for a long time.". I am sure that he has contacts inside the businesses which lead him to that conclusion.
Why is it so hard to keep a good restaurant going? Without having actually spoken to any owners, I figure it's based on some of the following:
High overhead in general for restaurants + the added expense of certification.
A lot of competition
Cost conscious patrons
I was thinking about this 3 new moons ago when I first saw the post. I was sitting in a nice restaurant and enjoying a real good Japanese steak. The service was OK but not great.
I asked my wife. What is compelling me to come here again? The fact that the food was good? I can have good food in other places too at about the same prices. The service? It wasn't bad, but it was nothing special either. About the same as anywhere.
I'll tell you one thing that did irk me though - the 16% gratuity charge tacked on without my permission. I want the discretion to choose the size of my tip, thank you.
Why aren't more restaurants trying to be more engaging? As engaement guru Seth Godin once said, if they took my number when I made the reservation, why aren't they calling me the next day to ask how it went? Most of the time when I go the places are not busy (!?!). Why isn't the staff spending a little more time talking to me and enticing me to come back? How many restaurants have blogs? How many interact with patrons on sites like Kornblum's? I have nothing to back me up yet but I would venture a guess that the most success full restaurants are good at the following:
Great service (like Bertolucci's)
Specially items or famous master chefs .(Abigael's)
A fan following (Dougie's, LaMarais)
Booze! (Amazon Cafe)
Enough for now, my stomach is growling. More on this later as I hope to get a chance to talk to Mr. Kornblum and other restaurateurs.
What do you say?
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