The purpose of this paper is twofold. First, we will propose a balance scorecard with objectives and measurements for LA Fitness to adopt in their clubs. Second, we will determine whether adopting a balanced scorecard is the right decision for LA fitness, based on their business model, competition, and objectives.
Analysis, Findings & Discussion
The overall mission of LA Fitness is “to help as many people as possible achieve the benefits of a healthy lifestyle.” The company’s mission statement further clarifies that in order to achieve that mission it will focus on providing its members with the widest range of amenities and the friendliest service at an affordable price. We will examine each of those three objectives …show more content…
Providing the friendliest service is critical to its business model. Customer service training must be mandatory for every employee who works in a club or deals with customers on a regular basis. This should include all levels of management at the clubs and training should include greeting customers, providing assistance, dealing with upset customers, and how to escalate complaints. Training hours and customer survey scores should be monitored. A system must be in place that allows employees to document and escalate serious problems that cannot be easily remedied on the spot by the employee. Such as system must allow the problem to escalate quickly to the appropriate level and have follow-up procedures in place to ensure that problems are fixed and the customer is satisfied with the results. The percentage of complaints successfully resolved, and the average amount of time taken to resolve a complaint should be closely monitored to determine whether the system is working. In order to improve customer service, employees need more than training and an internal process to succeed. They also need an incentive to excel. So, a club-wide incentive program should be adopted that reward employees based on the percentage of returning customers and the number of referrals given for new …show more content…
Management must adopt a system that continuously monitors prices offered by competitors and surveys customers about how they feel about pricing at LA Fitness. Adjustments should be made to pricing as necessary by evaluating the dollar amount charges and the types of packages offered. Success can be gauged by percentage of returning members. In addition, a retention program should be implemented at each club, which encourages existing members to renew and attempts to determine why some members do not renew. Those who fail to renew should be contacted by a manager and efforts should be made to remedy problems when necessary that might act as barrier to a customer returning. Again, success can be gauged by percentage of returning members. Finally, LA Fitness should continually monitor how its pricing strategies affect its overall financial performance. One benefit to the large number of clubs is that it would be easy to implement pilot programs to test different pricing strategies as necessary in a handful of clubs before they are adopted nationwide. Return on investment at each club will help determine