They’re stealing from your gym, right?

Spotify continues to grapple with user sharing, particularly concerning family plans. The updated terms and conditions now require the primary account holder and all members to provide proof of residency. According to CNET, Spotify will periodically verify addresses. This follows previous attempts by the company to address sharing, such as requesting users to confirm their GPS coordinates, which was discontinued due to privacy concerns. Similar action is being taken at other streaming platforms like Netflix and Apple TV.

For gym owners, the answer to stealing by sharing key fobs or keycards could lie in phone apps secure enough to allow gym access and build customer loyalty. Plastic key cards and key fobs are easily passed between friends, taking money away from the owners of 24/7 gyms and creating theft and liability concerns. "Account sharing" hurts gym profits. This type of loss, which is the insurance term for theft, is a problem for many gyms.. and many don't even know it!

Health clubs rely on monthly memberships to support their core business. Few fitness centres focus strongly enough on ancillary services such as personal training and product sales to make up for weak membership numbers. But what happens if members can easily share key tags with friends and family? Unfortunately, most members—even happy, loyal ones—don’t see it that way. After all, the gym is open 24 hours a day; what’s a few hours between friends? However, every time an unregistered guest exercises at your gym, they’re creating two serious business concerns:

  1. Reduced revenue: In business MBA-speak, theft-of-access increases your customer concentration, meaning there are fewer customers providing more sales. This lopsided revenue stream can easily tip at the onset of a recession or another economic challenge. For example, if new customer sign-ups slow down, but members are still sharing key tags, you’re spending money to support these clients with zero revenue. Mobile phone secure credentials like the system from Kinect can solve these concerns relatively inexpensively. Think about it... nobody shares their cell phone.
  2. Increased liability: How are gym owners liable? You may not be held liable—gym injury lawsuits can be complicated. Often, attorneys target the equipment manufacturer. However, if the plaintiff can prove negligence, your business could be in for an expensive and rocky ride. And if this happens by an unauthorized member.. meaning nor waiver on file... uh-oh. Why put your gym (and your family) through this when a mobile access system makes it easy to avoid this situation altogether?Again, who is going to share their phone for a few hours?

Mobile Phone Gym Access: Cheaper, Safer, and Smarter

Mobile phone access for gyms cuts costs, improves security, and boosts profits. It eliminates the need for expensive, outdated options like plastic RFID cards, fobs, and barcodes — all of which are becoming costlier (often over $2 each) due to rising petroleum prices and supply shortages. Replacing these physical tokens is also a hassle.

By contrast, a mobile access pass, costs just ~23 cents per member per year and can’t be lost, damaged, or destroyed. Since it’s issued directly through your gym-branded app, you also save time and labour: new members can sign up and gain access themselves, without waiting for staff at the front desk.

Technology is changing how health club owners run their businesses.

Good tech is just making it easier for small gyms to compete with the big players on services and rates. Ironically, despite these improvements, recent research reveals that customer experience is a better barometer of client satisfaction than either price or product. So, think about that. How your members experience your club is more important than how much they pay or what they receive for that price. Customer experience is their “perception of how your company treats them,” according to recent studies. Technology is at the forefront of this change as it streamlines the sales process. Millennials, in particular, according to research by Club industry, prefer not to talk to salespeople, and easy sign-up procedures minimize this natural barrier. Why? Because with the right software in place, a prospective member can sign up for your club, retrieve their key, and enjoy their first workout without ever encountering a staff member. That leaves time for you to grow your club and member base on a sound financial footing without worrying about running late for a new customer.