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Aggregation in Fitness report: one in five join a gym after using marketplace
10 Feb 2020 . BY Tom Walker....
The report addresses, and offers analysis, on three key questions identified by Hussle as ones that are often debated by operators
Photo: Hussle
The data in this report gives us great confidence that we are helping the fitness industry grow
– Jamie O’Keefe
A white paper charting the effects of intermediary services – or aggregators – in the fitness sector has revealed that 21 out of every 100 users will go on to join a gym directly.

The Aggregation in Fitness report, published today (10 February) in collaboration between Fusion Analytics and online fitness marketplace Hussle, aims to provide fitness operators with increased data to support the wider industry debate on the topic.

In an industry first, Hussle has now made its data available for Fusion Analytics to produce a report.

The report addresses, and offers analysis, on three key questions identified by Hussle as ones that are often debated by operators.

These are substitution (do existing gym members cancel to use Hussle instead); intervention (does Hussle acquire customers that traditional gym operators would have acquired anyway); and incrementality (does Hussle provide incremental value to the market).

For fitness club operators, the question of incremental vs. substitutional users is often a pivotal one. If an operator is confident that the aggregator would provide new, incremental users – rather than substitutional users – striking a deal with the aggregator would make commercial sense.

The report shows that there is some substitution, as one out of every 100 Hussle users cancelled a gym membership to use Hussle exclusively.

However, this is offset by those who find a gym they like through Hussle – 21 out of every 100 Hussle users will go on to join a gym directly.

What more, there is evidence that aggregators are able to keep some consumers in the sector, despite their plans to quit a gym. The data shows that 16 out of every 100 Hussle customers cancelled their membership for "organic reasons" – ie. not because of aggregation services – but continued to use a gym through Hussle, continuing to bring in revenue.

"Hussle enables these users to continue their fitness regime, representing ‘recovered’ market value that would otherwise have been lost to operators, albeit at a lower yield," the report states."

On the intervention front, there is evidence that Hussle does acquire some customers that traditional gym operators would have acquired anyway.

According to the report, four out of every 100 Hussle customers were searching for a gym and came across Hussle. Some of these users may have found gym regardless, thus representing potential marketing intervention.

However, the evidence also shows that 71 per cent of respondents were unlikely or very unlikely to have visited a gym without Hussle.

Consumers also used Hussle to explore other options for keeping fit – 92 per cent of respondents said that Hussle had enabled them to visit a new gym.

Hussle's head of fitness partnerships, Jamie O’Keefe, said the data and the report will, for the first time, provide the information needed for a proper analysis of intermediary services.

"Hussle is completely focused on growing the fitness industry and the data in this report gives us great confidence that we are doing that in three ways - the direct revenue we pay to our gym partners, significant downstream revenue through converted members, and secondary revenue through spend in-club," O'Keefe said.

The report is based on data from 2,557 respondents across three separate surveys – a random sample of active Hussle users, a survey question asked of all Hussle "Monthly Pass" customers as they cancel and a single survey question sent to "Day Pass" customers to ascertain if they had gone on to ‘join a gym directly’. All three surveys were conducted between December 2019 and January 2020.

• To register and download your free copy of the Aggregation in Fitness report, click here for www.aggregationinfitness.com
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Jobs   News   Products   Magazine
PRODUCT NEWS
Aggregation in Fitness report: one in five join a gym after using marketplace
10 Feb 2020 . BY Tom Walker....
The report addresses, and offers analysis, on three key questions identified by Hussle as ones that are often debated by operators
Photo: Hussle
The data in this report gives us great confidence that we are helping the fitness industry grow
– Jamie O’Keefe
A white paper charting the effects of intermediary services – or aggregators – in the fitness sector has revealed that 21 out of every 100 users will go on to join a gym directly.

The Aggregation in Fitness report, published today (10 February) in collaboration between Fusion Analytics and online fitness marketplace Hussle, aims to provide fitness operators with increased data to support the wider industry debate on the topic.

In an industry first, Hussle has now made its data available for Fusion Analytics to produce a report.

The report addresses, and offers analysis, on three key questions identified by Hussle as ones that are often debated by operators.

These are substitution (do existing gym members cancel to use Hussle instead); intervention (does Hussle acquire customers that traditional gym operators would have acquired anyway); and incrementality (does Hussle provide incremental value to the market).

For fitness club operators, the question of incremental vs. substitutional users is often a pivotal one. If an operator is confident that the aggregator would provide new, incremental users – rather than substitutional users – striking a deal with the aggregator would make commercial sense.

The report shows that there is some substitution, as one out of every 100 Hussle users cancelled a gym membership to use Hussle exclusively.

However, this is offset by those who find a gym they like through Hussle – 21 out of every 100 Hussle users will go on to join a gym directly.

What more, there is evidence that aggregators are able to keep some consumers in the sector, despite their plans to quit a gym. The data shows that 16 out of every 100 Hussle customers cancelled their membership for "organic reasons" – ie. not because of aggregation services – but continued to use a gym through Hussle, continuing to bring in revenue.

"Hussle enables these users to continue their fitness regime, representing ‘recovered’ market value that would otherwise have been lost to operators, albeit at a lower yield," the report states."

On the intervention front, there is evidence that Hussle does acquire some customers that traditional gym operators would have acquired anyway.

According to the report, four out of every 100 Hussle customers were searching for a gym and came across Hussle. Some of these users may have found gym regardless, thus representing potential marketing intervention.

However, the evidence also shows that 71 per cent of respondents were unlikely or very unlikely to have visited a gym without Hussle.

Consumers also used Hussle to explore other options for keeping fit – 92 per cent of respondents said that Hussle had enabled them to visit a new gym.

Hussle's head of fitness partnerships, Jamie O’Keefe, said the data and the report will, for the first time, provide the information needed for a proper analysis of intermediary services.

"Hussle is completely focused on growing the fitness industry and the data in this report gives us great confidence that we are doing that in three ways - the direct revenue we pay to our gym partners, significant downstream revenue through converted members, and secondary revenue through spend in-club," O'Keefe said.

The report is based on data from 2,557 respondents across three separate surveys – a random sample of active Hussle users, a survey question asked of all Hussle "Monthly Pass" customers as they cancel and a single survey question sent to "Day Pass" customers to ascertain if they had gone on to ‘join a gym directly’. All three surveys were conducted between December 2019 and January 2020.

• To register and download your free copy of the Aggregation in Fitness report, click here for www.aggregationinfitness.com
PRODUCT NEWS
FORA works with Power Plate to raise awareness of sitting disease through movement and vibration
With office workers spending over eight hours per day sitting at their desks, and one in six affected by mental health issues every year, it is no surprise that businesses are looking to introduce ‘wellness’ to the workplace
Training provider explains how a partnership with Fisikal transformed their business
Drummond Health & Fitness Education Academy has been providing quality health and fitness training and education for more than 35 years.
Iyashi Dôme: the original Japanese sauna
In 2004, Shogoro Uemura, CEO of Iyashi Dôme, was inspired by his father’s work to create a new treatment protocol based on the Japanese tradition of sand bathing.
Speedflex enters new partnership with Gateshead Council
HIIT specialist, Speedflex, is set to launch a new studio at Gateshead International Stadium in partnership with Gateshead Council.
Life Fitness launches on-demand workout library for cardio equipment
Fitness equipment manufacturer Life Fitness has launched Life Fitness On Demand, a digital library offering a wide range of fitness classes, exclusive to its range of touchscreen cardio equipment.
EXF Fitness successfully completes its fifth installation project for Third Space at new Islington club
Boutique Fitness equipment manufacturer, EXF Fitness, has recently completed its fifth installation project for luxury health group, Third Space.
New Rotator Shields rehabilitate rotator cuff muscles
Personal trainer Alex Klein has partnered with lawyer and entrepreneur Raj Umayavan Yadhunanthanan to create the Rotators Shield, a weighted plate that is designed to rehabilitate the rotator cuff muscles
Tribe Sports launches line of sustainable running apparel
Tribe Sports, a UK-based running apparel company, has launched its Core range, a collection of high-performance running attire made from up to 90 per cent recycled materials.
Auster training system combines functional training and gymnastic exercise
Auster, a supplier of premium bodyweight training equipment, has launched a new functional training system that combines dynamic resistance training with gymnastic exercise and traditional suspension training.
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active-net unveils Gen Z-themed agenda
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Auro, a London-based fitness tech start-up, has developed a motivational fitness app that delivers audible on-demand workouts and fitness classes.
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Netpulse

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+ More catalogues  

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MyZone - How to use the MZ-Bodyscan
The Best Product for the Best Clubs Find out more...
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+ More diary  
 


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Leisure Media, Portmill House, Portmill Lane,
Hitchin, Hertfordshire SG5 1DJ Tel: +44 (0)1462 431385

©Cybertrek 2020

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