A new study from Wellhub reveals how gyms and studios are capitalizing on the membership, retention and revenue benefits inherent in the booming corporate wellness partnership space.
The headlines related to the fitness industry are typically dominated by new modalities, advanced equipment and flashy gadgets. But the real engine driving member acquisition and retention is often quieter, back-office endeavors.
Attracting, converting and maintaining membership rolls can sometimes feel like a neverending task, one that can also easily balloon into a full-time job. But most gym and studio owners have many other hats to wear. They need a way to streamline the process and drive consistent revenue to provide them the time for staffing, programming and community building. For many, corporate wellness partnerships are fulfilling this role. These relationships have the potential to be a vital unlock for new members, better engagement and higher retention.
By contracting with corporate platforms, gyms, studios and wellness apps are tapping into multiple corporate clients that translate into predictable revenue streams and scalable growth opportunities.
“The benefits for providers are significant and they go straight to the bottom line,” said Daniel Mazini, executive vice president of partnerships and new ventures for corporate wellness platform, Wellhub.
Based on survey findings in “The Corporate Wellness Report for Gyms, Studios and Wellness Apps,” Wellhub highlights the state of corporate wellness today and the strategies providers can use to maximize these relationships. The poll of gym, studio and wellness app leaders around the world found that 73% of respondents experienced increased profitability — some significant — thanks to corporate wellness partnerships.
And as the popularity of these programs continues to grow, there’s plenty of opportunity for fitness and wellness providers to come on board.
Calculating the benefits
Corporate wellness has been on the upswing as companies search for new ways to help drive productivity, reduce absenteeism and boost retention among their employees. The global corporate wellness market is projected to grow from $70.4 billion in 2024 to over $106 billion by 2029, significantly outpacing many other wellness segments, according to The Business Research Company.
While employers once were content to cobble together disparate offerings, today they’re leaning into corporate wellness platforms that provide a menu of choices all in one place. In this way, they’ve found an easy mechanism for supporting employees and bolstering benefits packages. For operators working with these platforms, it’s an opportunity to attract major corporate deals that can deliver new members with just a click.
“This is not a trend; it’s a permanent shift in how businesses value their people,” Mazini said. “For gyms, studios and apps, it’s about tapping into a huge, expanding network of potential members who are already motivated and supported by their employers to prioritize their health.”
The survey found that with these partnerships comes an influx of conversions. Nearly 85% of respondents reported corporate wellness partnerships are an effective avenue for acquiring new members.
And unlike social media ads and other paid tactics, there are often zero upfront costs associated with these partnerships. Overall, survey respondents said acquisition costs were 36 percent lower for corporate members.
That’s good news in a market in which advertising costs are going up and engagement rates are softening across channels. Plus, that savings can be funneled into other areas of the business.
Similarly, the visibility on these platforms and relationships with employers can save owners and operators the time it takes to cultivate new members, one by one in the traditional model.
“It’s all about creating stability and growth in a way that’s smart and scalable. These platforms act as an outsourced sales channel, saving providers from having to spend a ton of time and resources building individual relationships with hundreds of different companies,” Mazini said. “This model is incredibly efficient.”
And the benefits extend beyond marketing.
With their employers either subsidizing the cost of the memberships or simply providing an environment in which healthy choices are celebrated, these members are also more likely to continue to show up.
Eighty-nine percent of respondents reported member retention rates are higher for members acquired through corporate wellness partnerships.
“These partnerships help maximize capacity during off-peak times and provide a consistent revenue stream through guaranteed contracts, improving cash flow and increasing the lifetime value of a member,” Mazini said.
In fact, business owners reported these relationships improved cash flow by 48%.
That consistent revenue is a welcome boost in an otherwise volatile market.
Making it work
To reap the rewards of corporate wellness partnerships, providers must first do a little homework.
Mazini said it’s important to find the platform that’s the right fit. One that’s simply a marketplace could fail to deliver as expected because it’s too easy to get lost in the shuffle of other providers. A collaborative partner, on the other hand, is one that offers flexible terms and provides strong marketing support to help gyms and studios stand out and reach the right audience.
From there, companies should focus on making a strong first impression. High-quality images, compelling descriptors and accurate schedules are the building blocks toward getting noticed. Next, it’s critical to remove friction from the check-in process so these new members feel welcome and retain their excitement upon joining. Finding a partner where you can integrate your existing CMS (booking system), provides for an even easier set up and seamless customer experience. A helpful, friendly staff rounds out the welcome.
“Ultimately, success comes down to what you can control: building a polished business profile and delivering an exceptional member experience. By focusing on your unique value and choosing a partner who invests in your growth, you can overcome any obstacles and truly thrive,” he said.
The last piece of the puzzle is remembering to continuously activate the partnership. Mazini said the providers that have the most success not only leverage their corporate partner’s marketing efforts, they promote the partnership via their own channels. Amplifying these offerings helps maintain awareness and pads the bottom line.
With the right fit and the right approach, your business could be one of the 83% of providers for which corporate wellness partnerships play a critical role in business growth.
