We have been putting some energy into a longterm market analysis tool, wanting to read our market as it moves on an on-going basis.
Now most of this stuff is owned by the company so I can;t share it, but would really love some thoughts on this follwoing.
It appears affilate growth has ground to a hault worldwide. 12 months ago it was around 300 gross affilliate growth / mth, now its around >80
Now this is Gross Affilate growth, it doesnt account for death rates. It's just total world wide affailte increase.
There could be multiple reasons for this, I'd be interested in thoughts.
1 - So it's that maybe HQs still getting 300 / month but there's a huge death rate, word on the street is this is happening in the Australia market big time. Classic market saturation means boxes without good marketing or retention startegies can no longer compete well, and membership slwoly drops below break even point.
2 - Or it may be that the market is flooded and people are shying away from opening new boxes. I have rubed sholders with alot of box owners, and I feel it's fair to say few have the professional experiance to really gather or understand the information to know if their market is flooded, so most are still opening with little understanding of their local market conditoins.
Also define flooded, traditional advertsing, (open the doors and they will come) is surely a failed strategy in most areas, where as strategic thoughtful prospecting, matched with excellent value delivery will still likely work, its unlikely that one prospective client has a close friend in two different CrossFits - aka Refferal selling.
3 - It could also be HQ has cracked down on affiliation? I'm hearing they now do a phone call with each applicant. And their not just accepting every affilaition. Rumour?
4 - Or worse case, boxes are still opening all over the place, but just not affilating, I think this is unlikely. In most situations, $3000 for brand usage is more than worth it. attract two clients and its paid for itsself.
A little on point 4. here in NZ, we got some marketing interns to do some pretty damn good market research, becuase there is zero brand control spending in NZ, I don't beleive any CF here get together and control brand, the only person contrlling brand here is the media, and it generally aint good.
The CF brand is really damaged here. For example, when asking in a street survey the first three words that come into a target demographics head, when told "CrossFit"....go. The answers revolved around unsafe, fanatic, and not for me.
We did something similar in the US with a buddy of mine, not quite as detailed, and the numbers are still coming in but the answers where more, "I don't think I'm fit enough to do it". Two VERY different objections to overcome. Overcoming brand damage is one thing compared to just showing people its for unfit people too.
Anyway, just some meandering thoughts from a startegic marketing guy with some numbers.
Love to hear thoughts
Sean
Affilate growth ground to hault - market stauration?
Now most of this stuff is owned by the company so I can;t share it, but would really love some thoughts on this follwoing.
It appears affilate growth has ground to a hault worldwide. 12 months ago it was around 300 gross affilliate growth / mth, now its around >80
Now this is Gross Affilate growth, it doesnt account for death rates. It's just total world wide affailte increase.
There could be multiple reasons for this, I'd be interested in thoughts.
1 - So it's that maybe HQs still getting 300 / month but there's a huge death rate, word on the street is this is happening in the Australia market big time. Classic market saturation means boxes without good marketing or retention startegies can no longer compete well, and membership slwoly drops below break even point.
2 - Or it may be that the market is flooded and people are shying away from opening new boxes. I have rubed sholders with alot of box owners, and I feel it's fair to say few have the professional experiance to really gather or understand the information to know if their market is flooded, so most are still opening with little understanding of their local market conditoins.
Also define flooded, traditional advertsing, (open the doors and they will come) is surely a failed strategy in most areas, where as strategic thoughtful prospecting, matched with excellent value delivery will still likely work, its unlikely that one prospective client has a close friend in two different CrossFits - aka Refferal selling.
3 - It could also be HQ has cracked down on affiliation? I'm hearing they now do a phone call with each applicant. And their not just accepting every affilaition. Rumour?
4 - Or worse case, boxes are still opening all over the place, but just not affilating, I think this is unlikely. In most situations, $3000 for brand usage is more than worth it. attract two clients and its paid for itsself.
A little on point 4. here in NZ, we got some marketing interns to do some pretty damn good market research, becuase there is zero brand control spending in NZ, I don't beleive any CF here get together and control brand, the only person contrlling brand here is the media, and it generally aint good.
The CF brand is really damaged here. For example, when asking in a street survey the first three words that come into a target demographics head, when told "CrossFit"....go. The answers revolved around unsafe, fanatic, and not for me.
We did something similar in the US with a buddy of mine, not quite as detailed, and the numbers are still coming in but the answers where more, "I don't think I'm fit enough to do it". Two VERY different objections to overcome. Overcoming brand damage is one thing compared to just showing people its for unfit people too.
Anyway, just some meandering thoughts from a startegic marketing guy with some numbers.
Love to hear thoughts
Sean
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