Why a Hybrid Business Model is the Way Ahead in the Fitness Industry

Our friends at Bookee were kind enough to write this guest post. Enjoy!

The fitness world was once ruled by brick & mortar studios. The onset of a global pandemic and consequent shutdown of all things offline paved the way for fitness entrepreneurs to dive into the realm of online fitness.

But, soon as the COVID situation got better, governments across the world started easing restrictions and fitness studios started opening up. Surely, not everyone who once used to be a member, joined back. Some opted for virtual classes. Some for at-home classes and so on.

After all this back & forth between offline and online fitness, we now stand at a crossroad where everyone’s confused about what will happen next.

Every year the ACSM Health & Fitness Journal publishes a list of fitness trends for the coming year, which serves as a good indicator to assess the future direction of the fitness industry. 

This year one of the most obvious trends that stood out was- Hybrid Fitness

What is a Hybrid Fitness Business?

A hybrid fitness business is a facility that offers both onsite and offline services. 
Onsite is whatever goes on within your brick & mortar studio premises. Online is what you offer to your users via live-stream and/or on-demand video content.

In-person Studio + Digital Accessibility = Hybrid Business Model 

2020 was a pressing time that urged fitness entrepreneurs to revamp their business models and address the needs of a post-pandemic consumer. 

But, we still need to keep in mind the people’s desire for community and real-life experience.

The solution? Go Hybrid!

Breaking Down Hybrid

To keep things simple, a hybrid fitness business constitutes the following three offerings;

On-site Classes - Conventional classes that are conducted in-studio, be it in private or group with instructors, trainers, and gym equipment. 

Live Streams - Live Streams are online classes useful for course types that require real-time action. 

On-Demand Videos - On-Demand Videos are an ideal choice if you wish to teach complex movements that require a single demonstration but multiple repetitions.

Virtual Private Sessions - Virtual Private Sessions are suitable for high-profile clients, groups, or learners who require special attention.

Before we further explain the above points, let us get a clear idea of a few things that we should know to start or sustain an online venture.

Market Demand

Just like you did sufficient market research before opening an offline fitness studio, you need to figure out if there is an online demand for the type of fitness you have been offering.

This is the time to explore your virtual audience and see which fitness styles are the most popular in the market and to what extent you can offer them.

The kind of fitness that you’ve been offering offline may or may not work online. So it’s a good time to reflect upon your course structure and deliverables.

Decide Your Forte

Once you know the fitness types which are in demand, the next move is to decide how well you are equipped with resources like fitness trainers, instructing space, content, video equipment etc., to service your future members who would be interested in trying out your fitness class.

Scan Through The Market

There is no denying that the competition out there will be strong, and you need to be prepared for the same. Some things to keep in mind are: 

• type of fitness courses being offered
• their structure and pricing
• their target market
• their marketing strategy, 

And how your class can differentiate from all other competitors already out there.

Your Target Segment

Your chosen fitness type decides your target audience and in turn your marketing strategy. Often, a single fitness type can cater to multiple target segments.

Here, it is important to decide whether you want to offer content that is relevant to a particular fitness group (say middle-aged women) or maybe you want to target a different niche of customers (say a young clientele in their 20s).

Structure Your Course

Finally, after all that is done, it’s time to start creating your content for real. The structure of your course needs to take into consideration the following points –

• What will be my lesson plans?
• What learning milestones will I set?
• Will the lessons be sequential or random? 
• How can my services create long-lasting results?

Once you’ve got content that is ready to be shot and distributed, it is now time to choose the channel that you would like to push it through to your customers.

Live Streaming

Live streams are online classes useful for course types that require real-time action.

Live streaming fitness classes is one of the most popular forms of virtual fitness.

Once you get it right, it is a great tool for gathering people and making them feel a part of the whole community. 

You can open the live stream 15 minutes before class, so clients can just get comfortable with one another, maybe chat and discuss their lives. And even after the class ends, let them take time to settle down before closing the session.

As the person who is in charge of live-streaming the session, there are some practices that you can pursue to make the overall experience significantly better – 

• Use a good camera with a full battery 
• Secure it at a good angle for streaming
• Ensure that your Internet connection is stable
• Choose a spot where the lighting is good enough to maintain video quality 
• Wear comfortable clothing 
• Choose an open and clean area and make sure to test your set-up before actually going live!

But, where to stream your classes?

Zoom

Zoom is a pretty handy option for live streaming a session that involves a large number of participants. All participants need to do is follow a designated link and join the meeting.

The availability of the mic and video feature that can be used at the discretion of customers to facilitate intra-class interactions also makes it a popular choice.

Facebook

Facebook is also quite in use for setting up virtual classes by many businesses. 

Here, you need to log into your business page and select the Live option to start a live stream or you can simply upload a video using the upload option to your Facebook page for the customers. 

Instagram

Instagram has also become a widely used application for conducting online classes using either its live option or the IGTV option.

Instagram users can broadcast live videos of up to 1 hour with its story feature that will be visible for 24 hours or upload directly on their page.

For shorter workouts, the IGTV feature can help in uploading videos of up to 10 minutes that will be visible directly on their account page.

Video On Demand

The on-demand video feature is an ideal choice if you wish to teach complex movements or routines that require a single demonstration but multiple repetitions over a while.

You can use the video-on-demand service to provide your members with a complete library of fitness videos that they can undertake in their own time and setting.

To record such videos, the tips given above for live streaming can be used in a shooting capacity so that it has maximum impact on your customers as well as their fitness experience.

Where can you upload such videos?

You can upload these videos on YouTube if your fitness business has a functioning YouTube channel.  There is an established demand on YouTube for fitness content.

But it also paves a direct way to your competitors' videos that offer similar things.

Besides that, your fitness studio website can act as the number one option for uploading VOD content. 

A separate section of the website can be devoted to uploading such videos in purchasable packs or subscribing courses, which creates for you a separate revenue stream.

Virtual Private Sessions

Such sessions are suitable for high-profile clients, focus groups, or learners who require special attention. 

Meeting clients one-on-one requires greater privacy and attention to detail. Your sessions must have greater depth and quality, not only content-wise but also production-wise. 

While considering or undertaking such clients, make sure to:

• Adhere to all the live streaming norms
• Get an initial check-up on clients about their existing fitness status
• Help them set up their virtual space and avoid any technicalities
• Make sure they have any special needs catered to
• Keep the session engaging and continuously interactive
• Upsell their sessions with additional consultation and health advice

With different price ranges and several means of executing your class, you can package products differently for each client group. 

But how do you price them?

Pricing Is Both An Art And A Science

Pricing an online fitness class can be difficult to get right. People often expect discounts for online classes thinking a dilution of real life experience.

In that case, it all comes down to pitching yourself rightly, to the right people, so that you can keep your price range intact all the while upgrading the quality and quantity of your value offering.

Just be clear with the mindset of the community you’re targeting and get an estimate about how much they’d be willing to pay or are already paying for similar classes of competitors. You have the flexibility to create multiple price points and let customers figure out what works best for them. 

For instance, you can offer an option that consists of only online classes, alongside a second premium option, which includes an additional live-stream one-to-one session.

People won’t back down on the in-studio price range unless they see the value in your classes. And here’s where marketing your classes comes into play.

Market! Market! Market!

Without an audience, it would be difficult to sell your course. 

And to gather an audience, you need to market, and you need to market properly.

If you don't have an audience before your classes launch, chances are that you won't have it afterward either.

The idea of a hybrid business is diversification. And the digital content you offer lends your studio a holistic touch. Here are some strategies you can follow:

Social Media

Start by setting up profiles on at least 2 to 3 popular social media handles. Keep those handles active and post content that is relevant and captivating for your target fitness audience.

Content Marketing

Start by setting up profiles on at least 2 to 3 popular social media handles. Keep those handles active and post content that is relevant and captivating for your target fitness audience.

Networking 

Start by setting up profiles on at least 2 to 3 popular social media handles. Keep those handles active and post content that is relevant and captivating for your target fitness audience.

Email Marketing

Used cold and warm email marketing to create leads. Send out weekly updates, offers and newsletters to keep your existing and potential customers connected and stimulated about your online fitness studio.

Paid Ads

Paid advertisements that hit your target audience via Facebook, Google, YouTube, Twitter, and LinkedIn help to increase traffic and convert leads. 

It is one of the most popular means to generate an audience and therefore, consistent leads and potential customers for your fitness business.

Be Prepared for a Hybrid Future

A recent report from Harrison Co. surveyed approximately 1000 fitness club users and found that approximately $10 billion of annual revenue could pass from traditional clubs to home fitness options.

But the brighter side is this - the report also found that 37% of all the surveyed users expressed how they intended to work out more after COVID, and 50% had a reawakened appreciation for their health & well-being.

Equinox. You can’t NOT have heard of this fitness brand. The company and its chain were on a high-growth phase, so much that as of August’19 they were able to delve into a digital division named Equinox Media. 

Equinox CEO Jason LaRose expressed:

“People want access to those brands. So our ability to bring them to you whether you’re a member who lives across the street from a club or a SoulCycle or maybe 500 miles away but aspirationally wants to workout with these same coaches, and has that same access to content… I think it becomes an ‘and’ strategy for sure.” 

By March’20, Equinox sped up the rollout of Varis - an on-demand fitness content provider. Varis in itself is more than a means to help the brand survive COVID. 

“When you see a $4 trillion wellness economy, when you see gym or club memberships at an all-time high in this country while you also see digital content going through the roof, I think you’re onto something where you really need to follow the consumer.”

Jason LaRose, Equinox Media CEO.

Be Specific But Be Different.

Use your fitness style to build a community for your clients as well as for your business. Promote good practices to retain customers. 

A holistic and well-designed online fitness offering is a sure-short way to have a successful business practice and keep ahead of your competitors in the fitness industry.

Virtual + Offline = New Model of Success

Going Hybrid. It’s easier said than done. It’s difficult to manage an offline studio itself, let alone a hybrid one. Therefore it becomes important for you to choose a companion in this journey.

Bookee is designed for adapting your fitness business to the post-pandemic world. With a modern hybrid software like Bookee, you can constantly be on the ground & on the cloud.

-Drive more bookings with an awesome website.
-Offer clients a great experience with personalised apps.
-Make it easy for users to join every online class.
-Switch between offline & online studios effortlessly.

“Bookee is an easy to use fitness management software for boutique fitness studios, yoga studios, boxes, and gyms. It makes discovering and booking classes at your hybrid studio a fun and easy experience.”

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