Why you should be offering yearly subscriptions

Digitizing your health & fitness services has helped us realize how popular subscription models actually are and the many advantages for both you and your clients.

You may have also noticed that annual subscriptions are increasing in popularity. This article will tell you why that’s the cause and why you should do the same for your online fitness business.

Why should you offer yearly subscriptions to begin with?

There are three main reasons:

1. When your clients purchase yearly subscriptions instead of monthly, you receive the money upfront. This means that you can use this money to reinvest it on your business
   
   Our recommendation: more ads on social media, better equipment, course improvements.
   
   
2. We all know, motivation comes and goes. This is the case for anyone in life. So to keep retention up it’s advantageous to lock your clients into a yearly plan at the moment they feel most motivated to workout. This way you’ll keep them active throughout the year instead of making it too easy for them to stop exercising. In the end, you’re helping them stay committed ;). 

3. Subscribing for a year means a longer commitment from your clients. This will help you improve your client retention, as it helps you to get to know your clients better and build a stronger community, through more personal feedback.

How to create a yearly subscription?

The main expectation everyone has from a yearly subscription is a nice, juicy discount. The percentage is up to you, but it usually goes from 10% all the way to 30%. That’s a lot of money, you may be thinking, however keep in mind the reasons we discussed earlier and the benefits you will get from that.

A client that will stay for at least a year is much more valuable than a new one that’s only going to be around for one month.

Lock in your customers! Build that value! Listen, listen, listen. 

Having said that, you can do more!

While a big discount is essential to convince them to choose the yearly route, it’s the added value that will keep them coming back for more. It can be in the form of some free one-to-one sessions to check in on their progress, and get that valuable feedback to make them feel heard.

Make people choose the yearly subscription

Now that you have made up your mind and created a yearly plan for your clients, you need to convince your existing and potential clients to purchase it. 

For this to happen make sure to very clearly explain the benefits they get by going with that option. This way they can easily compare it with the monthly membership and understand why it’s worth it.

One of the most important ways to convince your clients is by offering a free trial.

A year is a long time commitment and it may seem like much, especially for new clients, but if they get the option to try it first, they will feel more confident.

We recommend giving a 7 or 14 day trial.

Upselling existing clients

Selling new customers on a yearly plan is great. But what’s even easier to do is converting your existing clients into yearly subscribers. These clients already know you, and trust you. This is key for their purchase decision.

For starters, choose who you want to upsell to a yearly plan. We recommend people who have been subscribed for at least two months and are consistent in their training. Reach out to them and explain the extra value they get by buying a yearly plan.

What is my client retention?

Analytics are essential for running a successful fitness business. Within your Fitune account you can see tons of analytics to get a sense on how you’re performing. For example, you can easily see your retention rate, which can be a very insight for getting a sense of how much of a positive impact yearly subscriptions can have on your revenue.

To conclude, you should definitely extend your offer by adding longer plans, if you feel a bit hesitant you can start by adding 3 or 6 month plans and see how it goes. Your clients will always appreciate having more options, especially if there’s more value for them.