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Editor's letter: Friend or foe?

Aggregators connect with consumers at a scale beyond most fitness operators and – where they’re credible – look for a win:win relationship with gyms. A new report gives insights into how this is panning out

Published in Health Club Management 2020 issue 2

The debate about whether aggregators are good for the industry prompts different and sometimes extreme views from people, depending on their own business model, level of market penetration and ambitions for expansion.

In a bid to introduce more facts into the conversation, industry company Hussle has published The Aggregation in Fitness Report to scrutinise its own impact on the industry.

The insights will be useful for operators when considering whether or not to engage with aggregators, although Hussle is clear that the numbers only relate to its own business model.

Gym users were polled to establish the impact the service has on their behaviour in three key areas: substitution – do they cancel to use Hussle?; intervention – does Hussle acquire customers traditional gym operators would have signed up; and incrementality – does Hussle create incremental value?

Data and methodology for the report were audited by research company, Fusion with a variance of ±6 being noted.

The report shows that 21 out of every 100 Hussle users will go on to join a gym directly, while only one in 100 cancelled a gym membership to use the service.

When it comes to intervention 3-6 in 100 Hussle users were acquired through potential marketing interventions and in relation to incrementality, findings show that 22 in 100 have a direct gym membership and use Hussle in addition.

There’s evidence aggregators are able to keep some consumers in the sector, despite their plans to quit a gym. The data shows that 16 of every 100 Hussle customers cancelled a membership for ‘organic reasons’ – ie, not because of the aggregation service – but that they continued to use a gym through Hussle, meaning they still contributed to revenues – albeit it at a lower level – and also via their secondary spend.

Tellingly, 83 per cent of the people polled who were lapsed health club members had not belonged to a club for an average of nearly 18 months, indicating that Hussle may be acting as a gateway back into health club membership.

So, with their huge reach, do aggregators tap into new markets that gyms can’t reach alone? It seems this is the case.

In addition, the report found more flexible models are popular with consumers, as fifty per cent of those polled who had never belonged to a gym said they’d avoided taking on a membership because they didn’t want to be tied into a contract. This appetite for a more flexible model has been one of the factors driving the (membership-free) budget sector and illustrates why budget operators are among those who most often question and challenge the role of aggregators.

Flexibility is emerging as a major driver for many consumers when making choices. With 35 per cent of non-members saying they value the opportunity to exercise close to home and to work and also when travelling, we expect aggregators to play to this strength and demand in developing their businesses.

Congratulations to Hussle for the transparency and for bringing more facts into the debate to move the industry forward.

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features

Editor's letter: Friend or foe?

Aggregators connect with consumers at a scale beyond most fitness operators and – where they’re credible – look for a win:win relationship with gyms. A new report gives insights into how this is panning out

Published in Health Club Management 2020 issue 2

The debate about whether aggregators are good for the industry prompts different and sometimes extreme views from people, depending on their own business model, level of market penetration and ambitions for expansion.

In a bid to introduce more facts into the conversation, industry company Hussle has published The Aggregation in Fitness Report to scrutinise its own impact on the industry.

The insights will be useful for operators when considering whether or not to engage with aggregators, although Hussle is clear that the numbers only relate to its own business model.

Gym users were polled to establish the impact the service has on their behaviour in three key areas: substitution – do they cancel to use Hussle?; intervention – does Hussle acquire customers traditional gym operators would have signed up; and incrementality – does Hussle create incremental value?

Data and methodology for the report were audited by research company, Fusion with a variance of ±6 being noted.

The report shows that 21 out of every 100 Hussle users will go on to join a gym directly, while only one in 100 cancelled a gym membership to use the service.

When it comes to intervention 3-6 in 100 Hussle users were acquired through potential marketing interventions and in relation to incrementality, findings show that 22 in 100 have a direct gym membership and use Hussle in addition.

There’s evidence aggregators are able to keep some consumers in the sector, despite their plans to quit a gym. The data shows that 16 of every 100 Hussle customers cancelled a membership for ‘organic reasons’ – ie, not because of the aggregation service – but that they continued to use a gym through Hussle, meaning they still contributed to revenues – albeit it at a lower level – and also via their secondary spend.

Tellingly, 83 per cent of the people polled who were lapsed health club members had not belonged to a club for an average of nearly 18 months, indicating that Hussle may be acting as a gateway back into health club membership.

So, with their huge reach, do aggregators tap into new markets that gyms can’t reach alone? It seems this is the case.

In addition, the report found more flexible models are popular with consumers, as fifty per cent of those polled who had never belonged to a gym said they’d avoided taking on a membership because they didn’t want to be tied into a contract. This appetite for a more flexible model has been one of the factors driving the (membership-free) budget sector and illustrates why budget operators are among those who most often question and challenge the role of aggregators.

Flexibility is emerging as a major driver for many consumers when making choices. With 35 per cent of non-members saying they value the opportunity to exercise close to home and to work and also when travelling, we expect aggregators to play to this strength and demand in developing their businesses.

Congratulations to Hussle for the transparency and for bringing more facts into the debate to move the industry forward.

Sign up here to get Fit Tech's weekly ezine and every issue of Fit Tech magazine free on digital.
More features
Editor's letter

Into the fitaverse

Fitness is already among the top three markets in the metaverse, with new technology and partnerships driving real growth and consumer engagement that looks likely to spill over into health clubs, gyms and studios
Fit Tech people

Ali Jawad

Paralympic powerlifter and founder, Accessercise
Users can easily identify which facilities in the UK are accessible to the disabled community
Fit Tech people

Hannes Sjöblad

MD, DSruptive
We want to give our users an implantable tool that allows them to collect their health data at any time and in any setting
Fit Tech people

Jamie Buck

Co-founder, Active in Time
We created a solution called AiT Voice, which turns digital data into a spoken audio timetable that connects to phone systems
Profile

Fahad Alhagbani: reinventing fitness

Alexa can help you book classes, check trainers’ bios and schedules, find out opening times, and a host of other information
Opinion

Building on the blockchain

For small sports teams looking to compete with giants, blockchain can be a secret weapon explains Lars Rensing, CEO of Protokol
Innovation

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App analysis

Check your form

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Profile

New reality

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Profile

Sohail Rashid

The app is free and it’s $40 to participate in one of our virtual events
Ageing

Reverse Ageing

Many apps help people track their health, but Humanity founders Peter Ward and Michael Geer have put the focus on ageing, to help users to see the direct repercussions of their habits. They talk to Steph Eaves
App analysis

Going hybrid

Workout Anytime created its app in partnership with Virtuagym. Workout Anytime’s Greg Maurer and Virtuagym’s Hugo Braam explain the process behind its creation
Research

Physical activity monitors boost activity levels

Researchers at the University of Copenhagen have conducted a meta analysis of all relevant research and found that the body of evidence shows an impact
Editor's letter

Two-way coaching

Content providers have been hugely active in the fit tech market since the start of the pandemic. We expect the industry to move on from delivering these services on a ‘broadcast-only’ basis as two-way coaching becomes the new USP
Fit Tech People

Laurent Petit

Co-founder, Active Giving
The future of sports and fitness are dependent on the climate. Our goal is to positively influence the future of our planet by instilling a global vision of wellbeing and a sense of collective action
Fit Tech People

Adam Zeitsiff

CEO, Intelivideo
We don’t just create the technology and bail – we support our clients’ ongoing hybridisation efforts
Fit Tech People

Anantharaman Pattabiraman

CEO and co-founder, Auro
When you’re undertaking fitness activities, unless you’re on a stationary bike, in most cases it’s not safe or necessary to be tied to a screen, especially a small screen
Fit Tech People

Mike Hansen

Managing partner, Endorphinz
We noticed a big gap in the market – customers needed better insights but also recommendations on what to do, whether that be customer acquisition, content creation, marketing and more
More features