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How Market Research Impacts Business Decision-Making: A Climbing Gym Perspective


Hot Take: A single business decision can be the difference between your climbing gym thriving or facing closure. Market research is not a luxury but a crucial tool in decision-making.


Climbing has increased in popularity over the last decade, with gyms proliferating in cities worldwide. As our sport continues to draw more fans, and therefor more business, the role of market research in guiding climbing gyms toward informed, data-driven decisions becomes highly important. Whether you're considering something as big as a facility expansion or minor tweaks like a new class introduction or membership rate adjustment, market research allows you to know your customers and can shape decisions.

 

Climbing Gym Expansion: Building Where It Counts

One of the most significant investments a climbing gym can make is deciding when and where to expand. The sport's growth has created opportunities for new gyms to open in untapped regions and for existing gyms to increase their footprint. However, an expansion can lead to costly missteps without proper market research.

Market research helps gym owners:

1—Identify demand: Research helps determine whether the local community has enough climbers or potential members to sustain your business before opening a new location or expanding your existing facility.
2—Analyze competition: Research helps identify gaps in the market by helping you understand the significance of the number of climbing gyms in your area, the size of their memberships, and their offerings.
3—Select the right location: A good climbing gym is more than just walls and holds. Proximity to public transport, parking availability, and local climbing culture all play critical roles. Researching those aspects will help determine the ideal place for your next facility.

For instance, a climbing gym could plan on opening a new location in a nearby city, assuming the existing climbing community would naturally flock to its doors. However, the market research showed that the city already had three well-established gyms and that the climbing demographic wasn't large enough to support another one. With this information, the gym owners decided to target instead a nearby suburban area with growing interest in outdoor activities, ultimately launching a highly successful facility there. This is an example of how market research can guide expansion decisions and lead to business success.



the 3 levers: Increase Volume, Increase Average Transaction Amount, Increase Lifetime Value
Take the time to do the research to inform your decisions, but remember that you will never have ALL the info. At some point you have to decide the path forward
 

Understanding Your Members: The Power of Segmentation

The climbing community is a very diverse populace—encompassing everyone from experienced outdoor climbers to complete beginners trying their hand at bouldering. If you understand the different segments in between, you can create tailored experiences that keep members engaged and returning.

Through market research, gym owners can:

1—Segment their members: If you understand your customer base and the subgroups it consists of, you can create targeted marketing campaigns and specialized classes. For example, you may offer advanced training workshops for seasoned climbers while running beginner-friendly courses for those new to the sport.
2—Cater to diverse needs: Market research can help identify customer preferences, such as parents seeking after-school climbing programs for their kids or working adults preferring evening sessions. You can adjust your class schedules to meet these needs with that information.
3—Price accordingly: Market research can help you understand what different customer segments are willing to pay for memberships, classes, or day passes. If the price is too high, you'll alienate budget-conscious climbers. Too low, and you risk leaving money on the table.

For example, a gym conducted a customer survey to learn more about its members. The managers discovered that a significant portion of its membership base was young professionals interested in improving their climbing skills, which anyone can easily conclude. But what the market research also disclosed was that that same group valued the gym's social aspect. With this new insight, the managers came up with a new climbing workshop that also functioned as a social event—a move that will definitely help increase member retention and attract new clients.


 

Optimizing Climbing Classes and Programming

There is more to climbing gyms than just climbing. Climbing gyms offer community, fitness, and growth. With the perfect mix of classes and programming, your gym can stay relevant in the market for a long time. Whether it's yoga for climbers, injury prevention workshops, or lead climbing courses, your programs can set your gym apart.

Market research enables you to:

1—Understand your climbers' needs: Is bouldering more popular than rope climbing in your gym? Do your clients prefer structured classes, or are they there for the open gym hours for independent practice? You can fine-tune your offerings by using member surveys and analyzing participation data.
2—Test new ideas: Are you considering introducing a new class or event? Conducting research before launching can provide feedback and help gauge interest. Whether it's a youth climbing league or an outdoor climbing excursion, market research ensures you're not investing time and resources into something that won't resonate with your community.
3—Adjust based on demand: Participation data can inform which classes to offer more frequently and which to cut back. Correctly responding to demand helps you make the right decisions for your gym and your members.

For instance, if a climbing gym wants to increase participation in its off-peak hours, it can conduct surveys. This could eventually lead to the gym discovering that many members worked remotely and were looking for mid-day fitness breaks. Introducing lunchtime climbing and fitness classes could increase attendance in a previously slow period.

 

Leveraging Competitor Analysis to Stay Ahead

In the world of climbing gyms, competition is fierce. A new gym can quickly steal your market share if it offers a better experience, lower prices, or more attractive membership perks. To stay ahead of the curve, you need to be aware of what other gyms in your area are doing, and only market research can provide a structured way to monitor the competition.

With competitor analysis, you can:

1—Compare offerings: Are nearby gyms offering services or features you're not? Perhaps they have a dedicated kids' area or offer monthly competitions. Knowing what's available allows you to differentiate your gym or match what competitors are doing.
2—Benchmark pricing: Are your memberships competitively priced? Researching competitor pricing ensures you're not overcharging or underselling yourself.
3—Understand customer satisfaction: Reviews, testimonials, and member feedback from competing gyms can provide insight into what customers value most. You may discover that while another gym has newer facilities, its customer service is abysmal, allowing you to capitalize on that gym's vulnerability.

Here's a real world example: A climbing gym I worked with was feeling the heat from a new competitor offering cheaper rates. Competitor analysis found that instead of lowering its prices, it would be more profitable if it focused on improving the overall experience for its members by investing in better customer service, organizing monthly social events, and updating its routes more frequently. Awareness of competitor feedback gave marketers the ability to identify gaps in a competing gym's offerings, allowing them to refine the existing marketing message to focus more on community and customer satisfaction.
 

Predicting Trends and Anticipating Member Needs

Climbing gyms, like any business, need to adapt to evolving trends. From the rise of indoor competition climbing to being knowledgeable about the mental well-being needs of the participants, staying ahead of trends can significantly attract new members and retain existing ones.

Market research helps gym owners:

1—Anticipate industry trends: You can identify new opportunities by analyzing broader fitness and climbing industry trends. For example, the increasing focus on sustainability in climbing gear and gym operations could attract eco-conscious climbers by supporting eco-conscious suppliers.
2—Respond to lifestyle changes: The COVID-19 pandemic shifted the way people approach fitness, with many now seeking hybrid options, including in-person and virtual classes. Changing behaviors create new needs, pushing gyms to adjust offerings to meet the ever-evolving customer demands.
3—Innovate your offerings: The growth of competition climbing, especially after its inclusion in the Olympics, has spurred interest in more structured training programs. Knowing the significance of this trend can open up new revenue streams for your gym by offering specialized coaching for competitive climbers or launching youth leagues that attract early participants to the sport.
 

Market Research as a Tool for Growth

Market research is more than just an exercise of collecting data. It is about creating a blueprint for sustainable growth and a thriving community. When you understand your members, know your competitors, and stay ahead of trends, you can make well-informed and impactful decisions that drive formidable business success. As climbing grows, gyms leveraging research as part of their decision-making process will remain at the front of the pack.  If you want your climbing gyms to remain agile, competitive, and responsive to the ever-changing market, Rise Above collaborates with clients to identify market trends and customer needs and build actionable plans for success based on that market research
 

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