How Coupons Are Helping Membership Driven Services Stay Afloat


Operating a business using a membership model is difficult. Whereas stores can offer a revolving range of products available for a one-time purchase, businesses such as healthcare and fitness centers are required to maintain engagement with their customers to stay afloat.

Let’s work with the business model of a fitness center or a gym as these operate under a true membership model.

The challenge comes in the form of maintaining high membership numbers for a base service which is both available elsewhere at a number of competing centers, and isn’t evolving.

Alongside traditional services such as weights and automated fitness machines, quality gyms in Boston now provide CrossFit Sessions, aerobics classes, and personal training options.

However, as profitable as these additional services are, their membership numbers provide their bread-and-butter. That is, the more recurring memberships they have, the more money they make as a base.

Many gyms have found the answer to this challenge to come in the form of offering coupons and vouchers for the additional services they provide in-house. However, these coupons are connected to an ongoing membership. This means that to utilize, for example, a 50% discount for a Crossfit session, you need to be a member of the gym.

It is important to remember that this, in no way, puts the customer at a disadvantage because these coupons are used to retain existing customers who already enjoy the benefits of a base membership. It simply works to keep them engaged with the gym, and in turn their recurring membership, through offering appealing ways for them to enjoy additional services.

By providing these discounts and coupons for other in-house services, gyms can ensure their members return and continue to pay their ongoing base membership fee.

Nobody said that operating a business under a membership model was easy. Then again, nobody said that running any business was easy. However, by utilizing coupons in this way, the operation is made easier, and projected finances become more reliable.

The winners? In this example, both business and customer. Businesses are able to sustain cash flow while customers are receiving deep discounts on products which may have been previously been out of reach.