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Income and participation growth

Client: Woking Borough Council 

Testimonial

 "Woking Borough Council is very pleased with the new Key card which is more than just a leisure card. It currently includes almost 30 partners and more new developments are planned. The simplification of the pricing structure helped receptionists and customers understand the leisure scheme better and also improved business during the poor economic climate. Because some prices were reduced this meant people could increase the number of times they visited the centre. Increases have also been seen in casual swimming as well as attendance of fitness classes. Consultation played a key part in understanding the customer's needs and changing our product offering accordingly".

Riette Thomas, Marketing and Research Officer at Woking Borough Council. 

In 2006, Woking Borough Council had two key objectives when reviewing its current charges and associated programmes : 

1.      To maximize the markets opportunities for the services and therefore raise more income, making the services more cost effective.

2.      To increase accessibility from all sections of the community in particular those on low income

New Horizons undertook market research with our partners the Leisure Database Company from this we were able to examine the various services that were offered by the centres and link them to market demand. For example health and fitness the research showed that

 Current Gym members were affluent people who could afford to be members of private facilities.

The membership profile matched the dominance in the borough of affluent populations. However, the low and middle earners were under represented in usage of the leisure facilities.

Many gym users were casual users rather than members.

There were a number of quality private health clubs operating in close competition to the Council's facilities all at the higher end of the charging spectrum, none at the lower end and there were no new clubs planning to enter the Council market place.

Prices at private health clubs were very close to those at the leisure centre.

Amongst the conclusions drawn by New Horizons from such findings for all products were: 

 a) Usage volumes of the centres were deemed to be vulnerable to the local competition for health fitness;

 b) Income could be increased by encouraging all users, whatever their main activity, to join a membership scheme;

c)  the whole pricing structure needed to simplified and be more market led; and 

d) the swimming pools should have a more meaningful off peak period. 

Some of the actions agreed by New Horizons with the Council were:

 a)   Monthly adult membership for the Evolve Fitness Gym reduced from £49 to £35;

b)   All fitness classes whenever possible to be run in house in order to control prices and include in membership schemes

c)    A leisure card would be launched and promoted configured to attract the majority of regular users and include partners;

d)   Casual charges be based on three categories available at the same levels at all operational

e)   One charge for all pools with the off peak period being extended.

f)    Group charges should offer discounts on the basis of best practice. 

Results after 12 months to April 2009 

a)   Membership for the Evolve Fitness Suite increased from 650 to 2,000, fitness classes usage increased by 23%

b)   Membership income overall up by 83%, concession membership more than doubling ( Evolve membership income from £194K to £324K)

c)    Concession casual income rose by 45%

d)   Casual swimming usage up by 23%