Consumer Services

In the face of shifting generational preferences as well as both geographic and at-home competition, the ability of consumer services providers to stay on top of customer needs and assess the potential for growth is more important than ever before.

L.E.K. Consulting is an expert advisor in the consumer services arena, supporting location-based companies such as fitness centers/gyms, salons, massage clinics, weight management centers and more. We apply our deep industry expertise and worldwide resources to services that include growth strategy formulation, ancillary revenue strategy, consumer segmentation, store portfolio optimization, labor optimization, M&A support, international expansion and more.

Key questions and challenges

Our experienced professionals have a deep understanding of consumer services’ business challenges in today’s marketplace. We encourage our clients to ask themselves a few key questions:

Do we have a comprehensive understanding of our core and adjacent customers? How satisfied/loyal are they? What are the most effective levers to activate them? How much accessible runway exists?
How will the differing preferences of Millennials and Gen Z affect our business? How can we better position ourselves to service these groups (offering, experience)?
How do we combat disruption from competitive at-home solutions (e.g., customized hair coloring for at-home application, on-demand digital fitness services, handheld dermatological treatments)?
What is our Edge Strategy® to effectively monetize and find growth in areas around our core business?

How well have we penetrated existing markets? What is the potential number of attractive locations for us? What are the drivers of successful location performance? What locations align with these characteristics?
What other markets likely present an attractive expansion opportunity for us?
How can we better work with our franchise base to be as productive as possible?
What is the best deployment of capital, given strategic priorities and target return levels?