Testing the Hypothesis

The Hypothesis: I hypothesize that a need exists for an industry-specific CRM (Customer Relationship Management) software designed for use by manufacturers of fitness equipment.

The Who: The “who” of this opportunity would be firms that produce and/or distribute fitness equipment (machines, free weights, fitness devices, accessory equipment, etc.) for sale to fitness centers.

The What: Currently, the capabilities of business-to-business (B2B) CRM technologies are limited to generalized, cookie-cutter functionalities that fit the largest common denominator of B2B sales (e.g. Salesforce). This fails to meet the specific considerations inherent in fitness equipment purchases, including: lifespan of the equipment, repair and preventative maintenance of equipment, timetable for replacement of aging equipment, etc.

The Why: The nature of fitness equipment purchases involves a variety of needs throughout the lifespan of the product, spanning from the initial purchase to the product's eventual replacement. By enabling manufacturers/distributors to be involved with the buyer throughout the product’s lifespan, the sales process will take on a more consultative approach, thereby significantly increasing rates of successful upselling and customer retention.

Testing the Hypothesis: To test “The Who,” “The What,” and “The Why,” I have interviewed five individuals actively employed in the fitness industry. The findings of these interviews are as follows:

Kenneth, Gym Franchisee: According to Kenneth, having sellers more involved in the start-to-finish lifecycle of their products would make him much more likely to reorder or purchase additional products from the same seller. Additionally, he noted that he would be more likely to purchase warranty/maintenance contracts from these sellers.

Summer, Personal Trainer: Although Sommer’s role is not directly involved in the supply chain, she stated that the quality and maintenance regularity of the gym’s equipment has a noticeable impact on her clients’ satisfaction toward her training and likelihood to continue the service.

Keith, Sales Representative: During the interview, Keith stated that one of the most compelling selling points of his gym’s memberships is the quality of their equipment. This, according to Keith, is a significant determinant of whether or not prospects choose to buy memberships.

Nico, Sales Representative: Nico’s responses were nearly identical to Keith’s. He, like Keith, believes that equipment quality is a significant factor in a prospective client’s decision to purchase a membership at his gym.

Omar, General Manager: Omar, Kenneth’s direct report within the franchise, echoed Kenneth’s remark that the seller’s involvement throughout the lifespan of the product would make a reorder from that seller significantly more likely.

Summary: “The Who” of this opportunity is significantly larger in scope than I originally hypothesized. Although I initially limited the hypothesis to the buyers of fitness equipment (Owners and/or General Managers), it appears that everyone involved in the provision of fitness services may benefit from a solution to this unmet need. Additionally, each of the individuals who were interviewed echoed the validity of the need and the need’s impact on the execution of their roles. These interview findings lead me to more strongly believe that this need does, in fact, exist.