Research Paper on Fitness Industry in Singapore

Introduction

Over the last decade, the fitness industry in Singapore has experienced an extensive and accelerated growth to become an important economic field. According to Genzberger (2014, p.22), Government statistics confirm that there is an overall rise in demand in the fitness industry from 1.8 million in 2010 to 2.7 million in 2017. However, different studies that have been conducted show that there is a huge decrease in the number of permanent customers in many organizations. The studies reveal the difficulties that have been encountered in retaining members in organizations providing fitness services. Additionally, Singapore Business (2008) shows that the findings portray high dropout levels. Competition among different players in this industry has increased the expectations of the customers which have in turn made it difficult to retain the customers. Notably, expectations among the consumers are considered as aspects that organizations are supposed to provide based on the desires, motivations, and needs of consumers (Gupta et al., 2010). One fact that is recognized is that it is not possible for a business to exist without customers.

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Improvement in the living standards of the citizens in Singapore has created interest among many people who seek fitness services. In addition, the desire to promote and improve health in the region has increased demand for the services provided by the fitness industry (Thompson, 2017, p.10). Both locally, as well as globally recognized organizations, have managed to establish a strong presence in the country. In this constantly changing environment, many companies are largely confronted with the risk of losing major customers to the competitors (Millington, 2018). However, the increasingly expanding business environment has strongly contributed to an increase in choices for the consumers as well as lower prices in the services provided by the fitness industry in Singapore. Studies have proven that increased competition among business leads to better services among the customers which in turn raise their expectation. In such a situation, according to the Griffin (2011, p.30), customers are in a better position to make conscious as well as unconscious comparisons between the various service experiences provided by different fitness companies.

Many fitness organizations in Singapore have been left to rely on the potential existing customers with the aim of developing their businesses as most of the customers are not satisfied with the services offered (Barlow & Moller, 2008). Failure by the fitness organizations to make profits has negatively affected even their internal capacity to operate. Additionally, the employees such as the trainers in these organizations have found it hard to keep their jobs. Such a situation, in turn, affects the remaining customers as they find it hard to develop a strong working relationship with newly introduced employees in the organization. The loyalty of the existing customers is affected as newly introduced employees are not aware of the customers' expectations and needs. In such cases, even the existing customers are also forced to move from such organizations (Kelly, 2016). A decrease in the number of the customers leads to a reduction in the profits and revenues which negatively impact the trainers. Similarly, a decrease in profits made by these organizations translates in a reduction in the amount of salaries earned or delayed payments which leads to high rates of turnover. Moreover, according to Duren (2013), an increase in competition among the employees has necessitated the introduction of strategic changes in the ways that these fitness organizations operate as well as how they relate with their customers. Fitness companies, need to adopt strategies that will ensure that they remain relevant especially in meeting their customers' requirements in the face of increased competition and decreased profits. Although different studies have been conducted to establish the importance of customer retention in other countries, few studies have been done on the unintended consequences of the failure to retail customers in the fitness industry in Singapore.

Aims and Objectives of The Study

This study will seek to achieve the following aims and objectives:

• To investigate ways the failure in customer retention has resulted in trainers' turnover in Singapore's fitness industry.
• To examine the various factors that have led to low customer loyalty in the various organizations in Singapore's fitness industry.
• To find out the unintended consequences that are faced by organizations in Singapore's fitness industry as a result of the repeated cycle of failure to retain client and trainers' turnover.
• To establish the various strategies that can be adopted by the fitness industry in Singapore to control the failure to retain customers and maintain customer loyalty.

Research Questions

The primary research problem in this study is the lack of evidence on how failure in customer retention can negatively impact the ability of the fitness industry in Singapore to retain its trainers. With the aim of addressing this problem, this research gives a response to the following questions:

1. What is customer retention and what role does it play in fitness organizations?
2. What factors lead to low rates of customer retention in the fitness industry in Singapore?
3. What are the unintended consequences of the repeated cycle of failure to retain client and trainers turnover?
4. What strategies can be applied in the fitness industry to enhance customer loyalty and hence promote customer retention?

Research Hypotheses

The following presumptions have been made and will either be supported or challenged by the research findings: -

H0: failure in customer retention results in an increase in the rates of trainer's turnover in Singapore's fitness industry.

H1: low rates of customer retention in Singapore's fitness industry arise from failure to exceed customer expectations, failing loyalty programs, and lack of any unique relevance.

H2: repeated cycle of failure to retain client and trainers turnover result in the unintended consequences of low profitability and business failure.

Research Context

This research will focus on the established organizations in Singapore's fitness industry. Information, in this research, will be obtained from the evaluation of the performance of these organizations in the fitness industry. Government reports also provide statistics portrayed the existing trend in this industry. The fitness industry was chosen as the context in this research because its daily activities involve strong interaction between the employees and customers which make it suitable to investigate the role of organizations in client retention (Thompson, 2013, p.11). Using Singapore as the basis for the research was appropriate because the changes being experienced in the fitness industry reflect the growth of this business in many parts of the world. In addition, being a Singaporean, the researcher is conversant with this industry in the country, he is able to obtain information relating to this topic easily. As such, the research will not examine other industries apart from the fitness industry and will focus on Singapore as opposed to other countries.

Research Significance

This research is significant not just to the fitness organizations who will understand ways to deal with customer turnover but also the entire fitness industry in Singapore which will plan better to ensure increased customer retention. According to Forbes (2017), the customer is the center for all activities in the fitness industry due to the increased competition among various players in this business to gain a greater market share. Concentrating on the customer satisfaction in this industry has therefore been the most effective way of increasing service quality to increase customer satisfaction (Barlow & Moller, 2008). The quality of services provided in an organization is a clear indication of its ability to meet the demands and desires of the customer. Therefore, organizations in the fitness industry must improve their services to enable them to fulfil customer expectations.

This research is significant in providing an in-depth examination of how the failure of client retention has impacted the turnover of trainers in the fitness industry in Singapore. Given that people in Singapore are increasingly opting for fitness and wellness choices in the country, the fitness industry is experiencing a boom. According to Tan (2013, p.552), although it was earlier categorized as a luxury, fitness is quickly becoming a way of life. From turning on the TV, opening a magazine, to browsing the social media, it is very common to come across on advertisements showing how various organizations in the fitness industry are assisting people to improve their health. With such a high demand many fitness organizations have invested in this sector (Grantham, 2008). However, one challenge that these organizations have encountered is the difficulty to retain their customers due to a high competition. This research is significant in exploring how this challenge has led to trainers' turnover as they start looking for job opportunities which satisfy them and where they can deal with more satisfied customers. This research shows how the repetition of this cycle lead to other unintended challenges such as the shrinking of profits and revenues due to the reduced number of customers as well as increased costs associated with the employee turnover. Fitness organizations also experience loss as they attempt to boost themselves through advertising as well as public relations effort. Failure to retain the employees in this organization also largely contributed to a destruction of the organization's reputation. (Cavallone, 2017). A major significance of this research is that it provides mechanisms for the retention of customers and thus ensure increased profitability and business success.

This research is significant in examining the various strategies that can be used by the organizations in the fitness industry to improve their ability to retain their customers and hence reduce trainers' turnover. This research looks at the most effective and applicable strategy that can be applied to help these organizations meet the customer's expectations and trust. The research looks, among other things, on the importance of rewarding the loyal customers, and giving discounts and promotions to deepen the loyalty of the existing customers to entice them into seeking more services in the company (Barlow and Moller, 2008, p.40). Additionally, this research is important in addressing the major factors associated with customer dissatisfaction, red flagging high-risk customers, as well as acting quickly to retain them and employ qualified employees who will help fitness organizations achieve their goals.

Literature Review

The Fitness Industry

The fitness industry includes a wide range of activities which helps people achieve and maintain their health and wellness. The largest portion of the fitness industry is that of gyms and exercise studios Franchise (Opportunities.com. 2018). Other franchises in the fitness industry include businesses geared towards the provision of specialized types of fitness lessons (Wilkinson, 2017). People around the world have been conscious of the need to maintain a good health and hence avoid complications which arise from ill-health. In Singapore, wellness is on the increase as various international brands have set up their franchises in the country with the launch of boutique studios as well as the provision of not only springboa...