In 2023, NorthBay Health, a locally managed nonprofit hospital system in Solano County, CA, hired Active Wellness to reopen its wellness center after a three-year closure. Previously operated by another management company and under a different brand, the wellness center was closed due to the mandated shut-downs at the onset of the pandemic.
Active set out to reopen the facility, rebranding it under the Active Wellness Center brand and officially opened its doors in August 2023. Now operating as Active Wellness Center at NorthBay Health, this location marks the fifth Active Wellness Center location of the commercially branded wellness center chain on the West Coast. The rebrand of the 53,000-square-foot wellness center repositioned the facility in the market, attracting a broader member base.
As part of the restart effort, Active hired 32 employees and continues to recruit for additional fitness professionals to deliver on an elevated member experience. In addition to staffing, Active improved the facility by adjusting the equipment layout and designing new workout zones to cater to a wider demographic of members to help attract new members and grow the club community. New experiences include specialized small group training spaces, dedicated boutique fitness studios, stretch and recovery zones, and an improved weight room for those highly focused on strength-based training. The enhancements made to the facility were completed to align the experience with the Active Wellness Center model and brand.
Active also focused its marketing efforts to segment, target and convert prospects into new members during the presale period. The solid acquisition strategy was executed with hyper-focused digital tactics and localized community outreach efforts to help drive both website traffic and prospects through the doors. The results of those efforts achieved a two-year membership growth goal in just six months. This was done by strategically capturing a key market segmentation of members through digital marketing and reestablishing value for previous members of the center.
At the time of closing in March 2020, the wellness center recorded an average monthly dues rate of $35.18, well below the advertised dues rate of $85 a month. This was mainly due to the improper setup of the membership management system as it related to the reporting structure of the primary account holder with subsequent member add-ons. The previous type of configuration left 45% of the membership base as non-paying dues members, causing major reporting issues within the financial reporting systems both internally and within the health system.
Within the first month of operations more than 1,300 members were enrolled with an increase in average dues up 61%, compared to operations under the former brand and management.
Our partners at NorthBay Health shared:
“Active Wellness has delivered a novel business strategy with their Active Wellness Center brand, and it has exceeded our expectations. We struggled for three-plus years with significant operating losses and membership growth. In just six months, our wellness center is now well on its way to becoming the asset we’d always envisioned. We continue to look for ways to integrate the promotion of health between our patients receiving care in our clinics and therapy centers.”.
And new members are raving about their experience with Active at NorthBay Health. On Yelp, one member wrote,
“Since reopening under new management, this place has been great.” And another posted, “It’s so good to be back to exercising and having fun! The front desk employees are helpful and friendly. Thank you for excellent customer service!”
OVERVIEW:
Challenge
- Reopen a distressed Wellness Center after 3-year closure
- Optimize revenue per square foot
- Implement a successful member acquisition strategy
Solution
- Hire Active Wellness to:
- Recruit and manage onsite staff
- Optimally redesign equipment and facility layout
- Rebrand the facility to an Active Wellness Center to attract a broader audience
Results
- Increased Average Dues Rate by 61%
- Achieved 2-year membership growth projections in just six months
Why Active Wellness Center?
Active Wellness is forging new ground with the introduction of the first commercially branded, wellness center chain, Active Wellness Center and now operates 5 locations.
Active Wellness Centers attract members of all ages and skills from athletes to those dealing with chronic conditions. With a larger audience reach, we engage more of the community and create a stronger health impact, setting you apart from the competition.
