| Serving the New Health Club Consumer |
|||||||||||||||||||||||
| Establishing a Competitive Advantage by Adding Complementary and Alternative Medical Services to Your Facility Offerings By Donald DeMars |
|||||||||||||||||||||||
![]() |
|||||||||||||||||||||||
| In the 1950's the adult consumer's involvement in health club activities was epitomized by the Muscle Beach or Charles Atlas "all or nothing" phenomena. In the 1960's, with its focus on youth, came the emergence of the President's Council on Physical Fitness and Sports and the influence of Jack LaLane. The "self actualization" seventies saw the post-war baby boomers entering the workforce, and both Richard Simmons and aerobic exercise came into prominence. In the 1980's both corporate fitness programs and medically-based fitness/wellness centers emerged, and exercise science validated the efficacy of anaerobic and aerobic exercise for both sexes. In the last decade of the 1990's, fitness became synonymous with wellness as only one important aspect of being healthy. It was identified as essential for youth, middle age and seniors, and it could be achieved through walking, spinning and rock climbing, and by focusing on nutrition, smoking cessation, cholesterol levels, etc. There is no question that this evolution of the health club business has been driven by the most egocentric generation in American history. Born between 1946 and 1964, the 76 million Americans who comprise the baby-boomer generation have changed every industry they've encountered. In their early years, new elementary and secondary schools had to be built to accommodate them. In college, boomers redefined the pursuit of higher education. In the workforce, they gave birth to headhunters and personalized business services. In the same way that their wishes and demands have transformed the retail, housing and financial services industries, these consumers are increasingly taking things into their own hands as they age and face quality of life issues through their awareness of their own mortality. For healthcare and for the health club industry, meeting the needs of this new groundswell of consumerism is "an imperative for survival". Fueled by the abundance of health information available through the Internet, increasing regulatory changes in healthcare driven by the balanced budget amendment, the rising popularity of nontraditional care, and frustration over how consumers and their families feel they have been mistreated by the system, a revolution is underway not only in health care but in the health club or fitness industry as well. Those businesses who adjust and provide new products and services to this consumer will survive, and those who don't, probably will not. One very evident characteristic of the changes taking place is the fact that the average age of health club consumers has risen dramatically over the past two decades. Although different types of clubs cater to different age groups by the very nature of their programming and their environments, even national health club chains, such as Bally, that have traditionally served a younger, more price sensitive consumer have been forced to alter their approach to remain competitive. One of the advantages that larger club facilities have is that they have a greater capacity to adjust to consumer demands because of their size and scale. By adding medical programs to their normally recreational/social approach, they have more potential to reach the aging market. Why? Smaller facilities have fewer spaces, and these spaces are usually dedicated to principally active, physical fitness programs, such as weight training, aerobics, spinning, etc. Larger facilities usually have more passive program areas, such as educational classrooms, spa treatment components, rehabilitation areas, and social gathering spaces. Nevertheless, in my opinion, as a health club/fitness center/spa designer who has worked within this industry for over twenty-five years, all facilities can reach aging consumers if they keep the following things in focus: All facilities should have a balance between active and passive spaces. Exercise, sports, and adrenalin drive active spaces. These spaces are louder; they pump us up; they provide the conditioning effect. Passive spaces are quieter; they slow us down; they quiet our stresses; they balance us; they center us; they heal us. Young consumers are attracted to primarily active programs, whereas aging consumers are attracted to quality passive programs. Aging consumers experience their first serious illness in their forties or early fifties as the prevalence of chronic illness rises. Arthritis, high blood pressure, hearing problems, diabetes, and heart disease are among the most common ailments. As these chronic conditions emerge, people spend more on healthcare products and services. Baby boomers are avid consumers of "quick fix" and "magical cures". Clubs that offer credible programs to reach these will have a decided advantage. In a competitive arena, branding, or being known by a particular program strength, is a strong advantage in reaching particular consumers. Developing medical alliances to accomplish these goals and advertising effectively will automatically bring added credibility to your facility for aging consumers. Adding such expanded wellness services to your membership fees and dues revenue base builds ancillary income, and this leads to greater overall financial stability. It is a surprising fact that eighty percent of all patient visits to primary care physicians are linked to stress-related causes. Stress, in fact, is known to affect the six leading causes of death in the United States. It affects cancer, lung ailments, accidental injuries, cirrhosis of the liver, suicide and, above all, heart failure, the leading cause of death in the United States. The core of stress management programs is teaching people to relax. Relaxation is achieved through quiet, singular focus, a lack of interruption, solitude, low lighting, and a passive unawareness of the rest of the world. The health club industry has traditionally served this consumer need through clean and vibrant spa facilities and programs. This has included self-serve spa components, such as sauna, steam, whirlpool, and cold plunge. In addition, spa treatment facilities have included rooms for hydrotherapy, massage, and other relaxation services. With the fitness industry's expanded awareness of their role in potentially treating many chronic ailments that surface as consumers age and the consumer's need to have these problems solved, health clubs and fitness centers can adopt new service strategies revolving around complementary and alternative medicine. These can largely be accommodated in existing health club spaces. The terms "complementary and alternative medicine", "integrative medicine", "holistic medicine" and other variations are hard to define with precision because popular culture uses them synonymously and interchangeably. This conceptual fuzziness complicates communication between parties seeking to share information, observations, and ideas about health and healing practices that exist outside the realm of conventional medical and fitness programs. Misunderstandings about terminology can at times lead to heated discussion and polarization, impeding thoughtful consideration of such nontraditional treatment modalities. To minimize this confusion, there are two constructs that are defined as follows: A) "Complementary and alternative medicine" (CAM) refers to self-care products, nontraditional treatment modalities and belief systems that are widely embraced by consumers today. Collectively, these constitute the backbone of a multi-billion dollar medical economy in which traditional healthcare and the fitness industry have had only marginal participation. "CAM providers" are those individuals and organizations that supply selected products and services in response to consumer interest and need. Consumer interest in CAM has exploded in recent years: Studies indicate more than 40% of the adult population has used one or more CAM therapies in the past 12 months to manage a health concern. Expenditures on CAM-related products and services are now estimated in excess of $20 billion annually, the majority of which is out-of-pocket. A small but growing number of health plans and health systems have responded with programs designed to capitalize on this trend. B) "Integrative medicine" does not refer to a specific set of products or modalities; rather, it encompasses a process that seeks to combine the best ideas and practices of traditional and nontraditional medicine into optimal therapeutic combinations that serve the best interests of the consumer. There were a number of major national surveys and published research reports documenting consumer interest in and utilization of CAM therapies in the year 1998. These included: "Understanding Consumer Trends in Complementary and Alternative Medicine: A National Survey". Stanford Center for Research in Disease Prevention, Sept. 1998. The Landmark Report on Public Perceptions of Alternative Care. www.landmarkhealthcare.com,. January 1998. J. Astin, "Why Patients Use Alternative Medicine: A National Survey," JAMA, 1998, 279, 1548-1553. D. Eisenburg, et. al., "Trends in Alternative Medicine: A National Survey in the United States, 1990-1997," JAMA, 1998, 280, 1569-1575. All of these studies have documented that the following interventions have all been identified as useful therapies by consumers: Nutritional Counseling Massage Biofeedback Meditation Acupuncture Vitamin therapy Chiropractic Yoga, Tai chi Imagery or Hypnosis Botanical/Herbal Medicine Homeopathy If you are involved with operating an existing fitness facility, and you are wondering whether you could integrate some of these services into your present offerings, notice that all of these services and programs are staged in passive component areas. In other words, many can be operated out of existing passive program spaces, like classrooms, massage rooms, low impact exercise or aerobic rooms, offices, and other all-purpose spaces. If you are building a new facility, then allow for additional, all-purpose, acoustically sound proofed spaces that can be individually mobilized for developing "brand value" programs which, according to David Shore, associate dean of the Harvard School of Public Health, create "strategic awareness plus perceived quality plus singular distinction". These initiatives are what create a competitive advantage. Through each decade of change in the fitness industry, our understanding of health has changed, and with it our program dimensions of service have expanded. This subject is still in transition, and predictions as to where it is all going is anybody's guess. Nevertheless, everyone seems to agree that whatever changes come, they will be driven by the new consumer. So stay tuned! There's going to be a lot of interesting things happening in this area as the millennium moves forward. Ignore it at your own peril! |
|||||||||||||||||||||||
| For more information about Donald DeMars International, Inc., email us at donald@donalddemars.com |
|||||||||||||||||||||||
| All contents contained herein, Copyright ©2003 by Donald DeMars International, Inc. |
|||||||||||||||||||||||