A few thoughts on how Covid-19 will facilitate the evolution of digital based services...
The search for guidance and expertise to help transform bodies, minds and lives has regularly resulted in the solicitation of a Personal Trainer (PT) particularly in big-name gyms where those from all backgrounds aspire for improvement. For many, the monetary outgoing associated with this has been a luxury and in many examples a temporary commitment.
However the market demand for PT has evolved beyond traditional gym based relationships to encompass a wider range of activity including diet, lifestyle, and other aspects of wellbeing. Coupled with the rise of social media, the market has significantly widened and enabled business and customer relationships to flourish digitally.
Like many other services, consumers searching for these business actives often choose the digital route for the usual benefits;
On - the -go convenience
Privacy
Non- committal
Whilst the market has expanded, the abundance of services available has meant it’s a highly competitive area and ultimately pushed down the equilibrium price of the average service. Social media and video sharing platforms such as Instagram, Facebook and Youtube have fulled the availability of free advice, demonstrations and best practice and have also pushed existing providers to change revenue strategy by moving away from traditional customer to business transactions to indirect income through advertising and affiliate marketing.
The market provides an opportunity for many new entrants looking to capitalise on low start-up costs and pursue a lifestyle business. To be successful and competitive will require branding, differentiation and take advantage of customer experience strategies.
Prior to the Covid-19 pandemic, approximately 18% of adults confirmed interest and/ or participation for digital based activity (source; Mintel Academic). Furthermore the same research has shown that just 17% of adults plan to go back to their usual routines post Covid-19 restrictions creating an opportunity for digital based platforms to capture new clients and leverage revenue propositions.
Mintel’s Leisure Review (UK, December 2019 report) shows the % that completed a fitness activity at-home with virtual instructions eg workout DVD/ YouTube video, workout app.
Capturing this customer acquisition opportunity using the right strategy is crucial to longevity of initiatives in this space as with this opportunity also arrives the ability to customers to survey the options more freely and ‘try out’ flexibly.
Regardless of the Covid-19 impact, new entrants in this space need to pay careful attention to customer expectations and experience to deliver a holistic service that meets key requirements;
Customer centricity - tailoring a service or range of services to effectively build a personalised plan that makes the customer feel empowered and individualised for their plan.
Performance oversight - clear and robust performance measures and method to monitor progress with intention of clear interventions where necessary.
Social inclusion - a large proportion of customers use public facilities for the community aspect which can often be easily overlooked for digital relationships.
Effective strategies in this area will undoubtedly help to meet increasing demand expectations, especially in the older age groups and will likely leave a lasting impact on the profile of digital based activity in this area.
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