What The Fitness Industry Can Learn From Tony Ueber’s Customer Centric Leadership

Prior to his appointment as CEO of 24 Hour Fitness in January 2019, Tony Ueber had never worked in the fitness industry before.

But the belief of the board was that this inexperience wasn’t a weakness, but a strength, representing a much-needed injection of a fresh perspective.

And the new hire soon set about proving that theory correct.

Tony Ueber’s customer service philosophy

Ueber was shocked by how many gym members would drop off after a few months, or within a year. This fact formed the basis of his leadership philosophy: fitness businesses don’t grow by selling memberships, they grow by delivering the sort of meaningful value that keeps members engaged for life.

He saw customer-centricity as core to this focus on retention. Having only ever been on the customer side of the equation before, he knew the importance of customer service, convenience, community, and providing a space where members felt totally at home. He would therefore place the needs of his customers at the center of every strategic decision he made.

While his tenure was less than three years long, and defined by the gym-killing Covid pandemic (and subsequent bankruptcy and corporate restructuring), Ueber very much left his mark on the industry, and in many ways has transformed how fitness leaders operate their businesses.

And there are plenty of lessons that large and boutique fitness business owners can take from his seamless approach to efficiency, marketing and focus on customer experience.

What customer centricity means in the modern fitness industry

Today’s fitness industry is very different to that of 2019, when the word ‘pandemic’ felt like a relic of the distant past. The term ‘customer centricity’ was certainly around, but it didn’t form as much of a focus for fitness businesses as it does today.

In a post-Covid and post-Ueber world, customer centricity in the context of a gym means a few things:

• A focus on retention: Shifting from a transactional view of memberships and a focus on attraction, to experience-driven loyalty that focuses on retention (and subsequently attracts new members through word of mouth).
• Capitalizing on tech: Using technology (mobile apps, smart gym equipment, livestreamed classes) to grant members more control over their memberships and fitness journey.
• Building a community: Developing a sense of community within the gym to make members feel part of something larger and more meaningful.
• Committed support: More actively supporting members in their quest to reach their fitness and body goals, whether through technology, specialized training programs or one-on-one assistance.
• Membership flexibility: Allowing members to upgrade, downgrade or pause their memberships easily, to maintain a connection with them even when life gets tricky.

A lot of these changes can be directly attributed to the pandemic, as gyms around the world had to figure out how to service their customers through lockdowns and social distancing.

But Tony Ueber drove a lot of these changes too, by bringing an entirely new approach to how gyms and fitness businesses viewed their customers.

Tony Ueber’s key customer experience strategies

What exactly were the customer-centric insights that Tony Ueber brought to the fitness industry? Let’s look at a few key strategies that he helped to pioneer.

Personalization through digital innovation

Under Ueber’s watch, 24 Hour Fitness leaned heavily into technology. The company’s 24GO app had been released in 2017, but it was Ueber who recognized the power of data, and who used the app to increase member touchpoints and enhance the member experience.

The app was significantly improved through input from behavioral research that 24 Hour Fitness conducted in partnership with the University of Pennsylvania. The result: personalized programs, guidance and content served to individual members, like having a PT in their pocket.

Community building and member engagement

Covid revealed exactly how important a sense of community is within a gym. Livestreamed classes, while convenient, simply don’t offer the sort of experience that most members are looking for.

Ueber realized when you foster unity within your gym, you create loyal customers who you are more likely to retain. After the worst of the pandemic had passed, he set about launching challenges and social events to rebuild that sense of community. The emotional connection and accountability helped to increase member retention.

Accessibility and value-driven membership models

In the midst of Covid, 24 Hour Fitness attempted to build loyalty beyond its physical locations and make fitness accessible from anywhere at any time. As the pandemic gradually subsided, the company offered its customers options for digital-only, hybrid or full access memberships, allowing people to choose the experience that best aligned with their lifestyle and budget.

Enhancing the in-gym experience through data-led decision-making

Under Ueber’s leadership, 24 Hour Fitness increased its use of customer feedback loops, surveys and engagement analytics. The member insights generated by these sources were then used to inform strategic decisions about programming, staffing and facility improvements.

Where the focus had previously been on revenue or sign-up metrics, Ueber prioritized KPIs like member sentiment and behavioral data, which told deeper stories about customer satisfaction.

How gym owners can apply Ueber’s great customer service principles

From marketing to member management, there are a variety of ways in which gym owners can use Tony Ueber’s customer-first approach to craft a more compelling and competitive pitch to members.

Conducting member listening and feedback sessions

How do you work out what customers want? Simple: just ask them!

Actively solicit feedback from your members on what they like about your gym, and any suggestions they might have to improve it. You could run monthly in-person feedback sessions, or you could place a feedback box at the front desk where members can anonymously drop their suggestions.

By giving your members an opportunity to share their thoughts on your gym, you offer them a sense of belonging and even ownership - they feel invested in the future of your gym, and are more likely to stay committed to it.

Leveraging digital tools to personalize the fitness journey

The 24GO app significantly enhanced the quality of the member experience at 24 Hour Fitness, by making it more convenient and personalized. The good news: even small gyms can now secure their very own fully-featured member app for a surprisingly small investment of money and effort.

Take GymMaster, which offers features like class bookings, Bluetooth door access, membership management, member comms and progress tracking, all in an app that can be loaded with your gym’s branding and placed in the major app stores.

Creating hybrid (online + in-gym) experiences

While Covid highlighted the value of in-person gym experiences, it also showed members that they could enjoy expert, personalized training from the comfort of their own homes. From personal training to group classes, online fitness can be a hugely convenient option for parents and busy professionals.

Smart gyms are recognizing the value of combining online and gym experiences, like livestreaming gym classes that members can enjoy in-person or at home. This ensures that remote members still feel part of the community, while offering them unmatched ability to fit workouts in and around their busy lives.

Hybrid experiences also grant a gym the opportunity to make more money, as there’s (hypothetically) no limit to the number of members who can join a stream.

Building strong community culture to reduce churn

How do you build a sense of community amongst your customers? It’s surprisingly simple: you give them opportunities to get to know each other. These can include:

• Partner workouts: Have members pair up during classes and training sessions.
• Member challenges: Run monthly or seasonal fitness challenges that encourage some friendly competition between members.
• Community groups: Create a private Facebook/WhatsApp group or a physical board for members to share milestones, personal bests and events.
• Social nights: Step out of the gym by hosting nights where your members can have a drink and a chat.
• Small group programs: Offer specialist, long-form programs - beginner weights, boxing training, a run club - where people connect over shared goals.
• Member spotlights: Feature notable member achievements on social media, where other members can offer their support and congratulations.
• Welcome introductions: Train instructors to introduce any newcomers at the start of a class, so they feel part of the community from day one.

Measurable outcomes of a customer-focused model

The importance of a customer-centric focus is made clear by the numbers.

Attracting new gym members can cost five times more than retaining current members, so keeping customers can save you a huge amount of money on marketing.

In the first month of a new membership, 63% of gym-goers train frequently, but after six months that number falls to just 33%. This means that there’s also a huge opportunity to better engage with members, to keep them around for the long haul.

To understand how well you are currently engaging your customers, and how your efforts affect member engagement over time, you should track the following key performance indicators (KPIs):

• Member retention rate: The percentage of members retained over a specific period, e.g. a year. The higher the rate, the more effective your customer-centric efforts.
• Annual renewal rate: The percentage of members renewing their memberships every year.
• Average membership tenure: Average length of time that people stay on as paid-up members (aim for 3+ years).
• Net promoter score (NPS): The likelihood that a member would recommend your gym to friends and family, which offers insight into their level of satisfaction.
• Referral rate: The percentage of new members joining via referral, to track the success of any referral programs you’ve put in place.
• Customer lifetime value: The total revenue generated per member, which should rise from your customer-focused efforts.

Conclusion

While he was only CEO of 24 Hour Fitness for less than three years, Tony Ueber managed to leave an indelible mark on the fitness industry.

His tenure spanned January 2019 to December 2021, perhaps the most volatile period the industry has ever experienced. But by focusing on creating a positive experience for his members, he showed how gyms and fitness businesses can remain competitive even in the most challenging of times.

The lesson is simple: gym owners should recognize that a sales-centric model will only get you so far. By switching to a customer-centric strategy, powered by smart tools like GymMaster, you can enjoy long-term growth and leave your sales-focused competitors in the dust.