Pole Dancing at Crunch Gym
I have no idea whether this is effective as an exercise regimen, but it’s clear that Crunch knows the difference between offering a service and staging an experience. Offering access to exercise bikes and treadmills counts as a service, but this is something else. With weekly live DJs and engaging classes, gyms of this ilk are re-framing exercise as an experience, and providing the means for personal transformation. That’s always been the ostensible rationale for joining a fitness center, but gyms haven’t had a great track record when it comes to following through on that promise. Attrition rates industry-wide are nearly 50%. The trouble is, offering a service isn’t enough.
This is a classic example of Pine and Gilmore’s economic theory of services, experiences and transformations.
Each level in the hierarchy of economic offerings serves as the building block for the next. Experiences are built on services and transformations are built on experiences. It’s too big a leap from services directly to transformations. That’s why attrition rates at traditional gyms are so high. But if a fitness center can build an engaging experience around their service, they’re in a much better position to guide transformation.