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Want to increase gym revenue? Focus on yield per member
November 11, 2021 •

As an operator, when you’re looking to increase gym revenue, where do you naturally turn? Chances are your gym sales team is often your first port of call, focusing on new member acquisition with targets designed to increase gym membership sales.

No doubt secondary revenue opportunities are on your radar too: F&B, apparel and so on. But are you really maximizing these opportunities? And when it comes to gym sales, are you selling the right gym memberships in the first place?

Increase gym revenue the member-centric way

Our view is this: that focusing on yield per member should sit at the heart of any strategy designed to sustainably increase gym revenue – and that the secret is to do it in a genuinely member-centric way.

This isn’t about squeezing every last buck out of your members without offering real value in return. Quite the opposite, in fact: it’s about creating a fantastic, customer-centric experience that engages members, adds value – and in turn commands a premium, whether through higher dues or additional secondary spend.

In short, focus on your members first and the money will come.

This is where AI gym software comes into its own. By automatically gathering and collating every conceivable data point on every member, this intelligent CRM software can tell you exactly what each individual wants and needs. You can then present exactly the right product at exactly the right time, in a way that genuinely resonates with people.

We’re talking optimized in-gym marketing campaigns: upsell and secondary spend initiatives that become so well-targeted your members don’t even feel like you’re selling to them.

We’re talking fine-tuned products that members are willing to pay more for – and feel good about in the process – as they represent an enhanced, value-added customer experience.

We’re talking retention management at the heart of your efforts to increase gym revenue, growing yield per member in a customer-centric way that goes far beyond a simple post-workout coffee or the occasional smoothie.

Enhanced experience, higher gym membership prices

Willows Health & Lifestyle Centre in Australia is a great case in point, having redesigned its entire product around its members to drive higher average yield.

Scanners around the club track the activities members are doing so that, as managing director Troy Morgan explains: “We know exactly which activities are popular among our high-value members. This allows us to better direct our investment to maximize engagement and ROI, reallocating space in the club to deliver more of what they want.”

He continues: “As an example, we now know group exercise is our biggest retention tool – members stay with us on average eight months longer if they do classes – so we’re building our studio and small group training offerings and have designed our gym induction around this.

“Off the back of this product evolution, we’ve also been using Keepme to restructure our memberships to drive higher yield per member. We now have a fitness membership – cardio, strength, group ex and pool – and a high-experience membership, maximum 20 people per class, that’s based around the four areas of mind, strength, intensity and fitness. Data is already showing the length of membership to be twice as long for this high-yield group – and they get better results, which is what we’re all about.”

Health club marketing that doesn’t feel like a sales pitch

In fact, this product reconfiguration began as a test: an upsell campaign, underpinned by AI, that generated A$35,000 of additional revenue for Willows in the space of just three weeks.

For this campaign, Keepme was asked to identify general fitness members who had done some yoga classes, and who might therefore benefit from a premium package that offered more strength-in-depth in this area. The AI factored in other variables too: length of membership, frequency, likes, age profile, risk profile and so on.

A couple of hundred people were then sent highly personalized offers in emails that – worded and designed in a way that made them feel the club genuinely knew them and what they wanted – enjoyed an incredible 85 per cent open rate. Around 60 per cent of those contacted went on to make some sort of upgrade, with A$35,000 the instant result.

“It made us think: we’d had all that data sitting there for decades, unused. It represented so much money left on the table,” observes Troy Morgan, managing director at Willows.

“Whether an existing member or a new lead, we’re now confident in our ability to connect the right person with the right product. It becomes less a sale and more a personalized offer.”

Get more gym members spending more with you

It’s easy to see how your gym marketing could also harness this approach to maximise secondary spend. Imagine a scenario in which AI has segmented your yoga enthusiasts to give you such a deep understanding of who they are that selling everything from yoga apparel to yoga retreats becomes almost effortless, because you’re offering them exactly what they want. You can even present different commercial offers based on different probability of purchase, which again your AI can tell you.

The following personal training example brings this to life perfectly. Say you offer PT as individual sessions, or as packs of five or 10. Your AI can first identify the individuals from your database who will purchase from you. It can then segment them further into those most likely to purchase each of the particular packs.

Andrew would buy a five-pack, but he’s just as likely to purchase a 10-pack, so serve him that offer. Cathy, meanwhile, is highly unlikely to want anything but a single session, so don’t scare her off with a five-pack offer. Banking the one-session sale is the best way to increase gym revenue in this scenario.

Add gym automation and you have AI working 24 hours a day, seven days a week to find customers who would be receptive to an offer, before serving them with the correct one in a piece of communication that at the very least is relevant to their age and gender, and delivered in the optimal engagement format for them. It ensures you aren’t leaving any potential revenue on the table, and it’s all achieved with no human intervention.

The outcome in this example: you sell more personal training and increase gym revenue. And the potential really is massive, with broad relevance and application: one customer adopted this approach for non-dues revenue among its membership and grew it by 43 per cent in the space of just six months.

How to get more high-yield gym members

Finally, it’s also a fact that gym sales and member retention are two sides of the same coin when it comes to increased gym revenue. Recruit the right members in the first place and they’ll be more likely to both stay and spend with you.

Here’s how this works. Once your AI has built up a picture of your ideal customer – the customer who buys a 10-pack of PT every month, who recommends their friends, who has a juice on most visits, but above all who stays with you the longest, with the highest lifetime value – it also knows the factors that underpin this: everything from their age to the classes they do to the source through which they first came to you.

This is invaluable when it comes to your gym marketing, allowing you to, for example, create a custom audience for your Facebook advertising. This ensures your gym membership sales pitch is served only to those who look very similar to your best customers, helping you attract high-value, high-yield customers.

Once again, Willows has done exactly this and, says Morgan: “We aren’t just signing members for the sake of it. We’re signing the right members – the ones our product is increasingly designed around.”

And those members, of course, also happen to be the ones who stay longest and spend the most.

It’s why we believe harnessing member insight to drive average yield has to sit at the heart of any strategy to increase gym revenue.

Keepme can help you increase gym revenue in all these ways, and more besides. Book a free demo today.

how to increase gym revenue

How to increase gym revenue: Dive in to your data!
August 12, 2021 •

If you’re looking at how to increase gym revenue, look no further than the mass of data that already exists in your business.

Even now, this combined data is the lifeblood of your company, flowing through tools and people to produce insights, engagements and value. Within it is the history of every decision, every outcome and volumes of behavioural information. As such, your data holds intricate lessons for improvement, as well as detailed forecasts of your future. 

Quite simply, data is business gold, and the insights and opportunities that can already be gleaned from unlocking it are exceptional. 

For proof, look no further than Willows Health & Lifestyle in Australia. In the space of just 18 months (an 18-month period that notably included COVID-19 lockdown), AI helped Willows add a year to its average length of membership – and that’s just the headline, with other impressive results being reported all the time. The case study makes for fascinating reading and can be downloaded here.

Your gym software: Join the dots

To get to this point, however, we first need a mind-shift in how we view our data. 

If we only view our different data sources as separate entities, separate ‘islands’ of data, we will dramatically limit the value we can extract from it. We can of course understand the data sources’ independent values to the business, which are embedded in the reasons why the data was collected in the first place. But that’s where the story will end.

If, on the other hand, we can expand our thinking beyond this – joining the dots between our data sources, connecting the islands of our various gym software solutions – we can maximise the value we’re extracting from our data.

When this happens – when one set of data is connected with other data sets or tools (combining the member list from your gym CRM software with your customer surveys, for example) – the value of the data multiplies. It may have been collected for one purpose, but when combined, it can be used for other purposes and its enhanced value leveraged. The insights that can be extracted from it then multiply and the opportunities to increase gym revenue grow.

Fill the gaps, tell a consistent story

It’s also the case that bringing sources together can make each data set more complete; there may be holes in the data from one application, but those same holes can be filled using the data that already exists in another system. 

One interesting example would be missing class attendance data from the CMS. Armed with the CMS data, plus the site attendance data from the entry system, in most cases it can be determined whether or not the member attended a class based on time of entry, time of exit and any other ‘evidence’ within the data. 

When all data sources come together, then, it can create transparency, eliminate doubt, increase confidence and understanding, and provide better foundations for business decisions. 

Bottom line, it is this powerful bringing together of data – in new combinations that unlock new insights – that will show you how to increase gym revenue.

Know your toolkit

But to extract this value from your data, it needs to flow through the right tools; in fact, the application or tool is where the value actually lies. That’s because, while the data powers the tool, without the right tools in the first place you simply can’t turn your data into knowledge and insight.

The number of tools available to your business is growing rapidly, along with the volume of available data. Already well established in the fitness sector are tools that bring together the collection and usage of data, so one system performs multiple tasks: CMS setting up a member record, charging information and sending out newsletters based on communication preferences, for example. 

Other common scenarios you’ll see involve operators extracting data from one tool to use in another – a task that’s become infinitely easier thanks to data exchange standards (think .CSV files). An example of this would be the extraction of data from a CMS system for use in Mailchimp. 

Tools that set data free

But even when extracted from one application via .CSV and placed into another – out of CMS and into Mailchimp, for example – your islands of data are still like separate nations. The ability to understand each other through common language is sufficient, but there’s no collaboration across national borders. 

The good news is, this collaboration – this joining together of separate nations into a single country with a common language – is now possible thanks to the latest generation of tools. 

At the top of that list is AI, which sets our data free to move beyond the boundaries of where it was formed. In doing so, it is capable of combining and evolving data to deliver a new level of value.

In fact, as a fitness operator, we have the opportunity to revolutionise our business approach (this use of ‘revolutionise’ no hyberbole). More specifically, the operators that capture value in their data, deploying it through AI, will be the ones with the highest retention rates, lowest acquisition costs and happiest customers. They will be the ones with the strongest insights into how to increase gym revenue. 

How so? Because the understanding they have derived from the data – courtesy of their AI – will allow them to speak to their customers in an increasingly personal way, and each engagement will be more meaningful. 

A new super-highway   

But to maximise the impact of AI – or any application, for that matter – what you need is a structured, efficient method to get the data you require in the correct format, and at the right frequency. Generally, that’s far more frequently than is possible using a .CSV, for example.

This is where an API (Application Programming Interface) comes in – a term that’s used with such frequency these days that you no doubt already have a fair understanding of what it’s all about. For the sake of being thorough, though, we’ll offer a quick overview here.

Before APIs were invented, we were all limited in terms of the data we could extract from an application. We’d have to download all the data in a .CSV or use a report writer to export it (always assuming the data was even available, which all too often it was not). The process was very labour intensive and the data extracted would be out-of-date within minutes. 

Custom interfaces could alternatively be built, but these were clunky, not to mention expensive and time-consuming to build. 

The advent of the API solved all of this. 

Picture an API as a doorway into an application – one that’s been created specifically to allow you access to the data within that application. When provided with an API key, you can open this door and be presented with a map (aka the API Documentation) that will show you where in the application you need to go to retrieve the information you require. 

Armed with this knowledge, you can build a direct integration (picture it as connecting your ‘pipe’ to the correct parts of the third-party application) to ensure a timely, consistent delivery of the data you require directly into your own application – all without the need for further human intervention. 

Let’s say you had an application that needed attendance data to do its magic. Without an API, this would require a staff member to run a report and then upload that report (assuming this was possible) to get the attendance data into your application. The next challenge: you would then be working with data that represented a snapshot from the moment in time when the report was run. Meanwhile, the live data would be changing every hour of every day; you would never be working off the most accurate, up-to-date data. 

With an API integration, on the other hand, your new application is able to call for the attendance data automatically, at whatever frequency it needs to achieve its task. All without human involvement.

And that’s not all. Thanks to API technology, which makes data totally free to move, it’s now also possible to seamlessly send results back to the original application. 

Just as one example, let’s say we use a CMS API to extract member data into an application like Keepme. Keepme then uses this member data to provide a score on the likelihood of a member staying or leaving; when calculated, this information is sent back to the CMS so it’s visible on the member record. 

This is a huge value-add of the API: a two-way flow that allows all sources of data to be kept up-to-date – with all connected apps continually updating each other – and, indeed, enhanced as each new combination of data sources drives new insights.

To visualise how all this works, think of the API as a beautifully engineered, wide, two-way bridge that joins data and applications together. Then compare this to the rickety, one-way rope bridges we’ve had to deal with in the past (and often the present), whereby getting data out was enough of an effort that the idea of sending data back was never even considered.

Insist on an API  

Ideally, then, every one of the applications you use within your business should have an API, so a quick audit of your current tools’ data capabilities is a useful undertaking. 

List your core business tools, such as your gym CRM software, club management and entry systems. Do they have APIs available for them? If so, request a link to the API Developers’ Documentation, which you will be able to review/share when discussing new tools/AI projects in the future. This documentation should include a list of endpoints that indicate what parts of the application are accessible. A limited set of endpoints will limit use.

No API? Ask the provider when this will be available. (And don’t be fobbed off by proprietary data extraction/integration tools. These may be a possible stopgap until an API is available, but they’re very old-school, far from optimal, and most definitely still a short-term solution.)

Believe it or not, there are industry tools out there that have neither an API nor the ability to export your data via a .CSV. We’re not talking fringe providers, either; some of the biggest providers have tools that lack this capability. They may suggest they are legacy platforms, but if you find yourself owning one of these, it’s time to move on. Do not let your data be held prisoner, as the value lost could become significantly limiting over time.

Certainly, for future application purchases, we cannot recommend strongly enough that you insist on there being an API. If the answer is “it’s in the pipeline”, it’s a red flag. Push for more certainty, as without an API, you could find yourself severely limited in the new data age.

AI can tell you what to do. But you need to do it.

We’ve covered a lot of ground already, so let’s recap where we’ve got to so far.

  • You’re looking at how to increase gym revenue, and we’ve established that the answer lies in your data.
  • That data is, however, only valuable if you can get it out of wherever it’s stored.
  • An API is the perfect answer: a structured, efficient method to get the data you require in the correct format, and at the right frequency.
  • Once you have the data flowing, it’s time to unleash its power, bringing it together in new combinations that unlock new insights.
  • AI is the tool that makes this possible, combining and evolving data sets to deliver new levels of value.
  • Arguably, it is in the tool – the AI – that the real value lies. Your data powers the tool, but without the right tools in the first place, you simply can’t turn your data into knowledge and insight.

However, simply having AI in place isn’t, on its own, going to increase gym revenue for you. To extract that – or indeed any other – value, there must be a willingness on your part not only to dedicate the time to implement the platform, but to then engage with it. That includes potentially changing many of your workflows once armed with the new insights. 

Do so and the results can be exceptional. However, only by acting on the insights your AI presents to you – whether they’re insights that could shape a new strategy to increase gym membership sales, that could help you design a new gym referral program, that throw a spotlight on how you might refine your fitness marketing strategies – will you move forward.

Put another way, the value is never in the insight itself. The value lies in the action that’s taken as a result of the insight. 

You will need to play your part in achieving your business goals.

Read more about how to increase gym revenue using AI

Find out more about the power of data to increase gym revenue at your club: download our new white paper – Everything You Need to Know About Data & AI – for free.

personalisation

Every gym can personalise the member experience. Here’s how.
February 18, 2021 •

Personalisation challenges

In a world where personalisation is a key agenda point for every consumer-facing business, gyms have a problem: when it comes to their product, they are currently capable of little customisation, instead relying on brand messaging and aspirational imagery to differentiate and connect to people’s goals. 

This in the face of myriad digital solutions that deliver against the wellness agenda in a specific, measurable, personalised way. 

Even where operators are capturing data – including insight into customers’ goals and requirements – it tends to be limited in scope and rarely used for the purpose of product personalisation. Rather, it is predominantly focused on gyms’ own operational needs, with little consideration for the other variables that encompass fitness and wellness. 

Personal interaction in a gym environment is, currently, mostly found in the delivery of additional services such as personal training – and even here, it all too often falls short. 

Impersonal training

Let’s paint a realistic picture of the typical personal training experience right now. 

Every week, I attend to be guided and motivated towards the achievement of my goals. The expectation is that my trainer is aware of these goals, and that (s)he tailors sessions appropriately. But even if we suggest that is the case – and ask yourself honestly how often the intensity of each session actually varies – it only represents a small part of the overall story.

I attend these weekly sessions in a variety of conditions: I may arrive on a Monday following a very physical weekend, or I may arrive on a Friday having had a stressful week of work, with limited sleep. 

To benefit my body and mind and move me towards my outcomes, the session needs to account for this. Not doing so will be detrimental and most likely move me away from my goal. 

Conversely, imagine the positive impact on trust and credibility if, on my arrival, my trainer were to congratulate me on an active week and outline a session for that day that focused on recovery. Even better if that were all followed, at the end, by some guidance on what to do away from the gym before our next appointment, as well as encouraging me to get some sleep.

A digital ‘day in the life’

It certainly won’t be long before the current (im)personal training scenario is ousted by consumers and replaced with a digital alternative. Consider this (very feasible) day in the life of a digital wellness consumer, which illustrates the power of personalisation.

On waking, my app congratulates me on meeting my sleep requirements following an active previous day. It prompts me to hydrate and suggests I start my meditation routine by selecting which programme I wish to use from its library.

My recovery score lets me know what level of exertion I should attempt today, including my non-gym activity. It is noted that I’m on a 16:8 intermittent fasting protocol and, through its integration with my Lumen tool, my app suggests optimal nutritional macros for the day, at the same time setting a notification to alert me when my intermittent fast is completed. 

With access to my schedule and a knowledge of my optimal workout requirements today, I’m given a recommendation to train between 2.30pm and 4.30pm. My location suggests I’m currently on a business trip, so options are presented to me using my ClassPass membership. Three providers are identified within 400m of my expected location at that time, with the selected sessions appropriate for my target exertion level. One click and I’m booked in. 

On completion of my workout, I’m prompted to take on appropriate hydration and a suggested post-workout snack, all in line with the knowledge that I will be having my evening meal at 7.00pm to meet my fasting deadline. It is also suggested that I be in bed by 10.00pm, to meet my recovery requirements from today. 

I’m presented with an overview of my activity for the day, my behaviours, and how all of this has combined to impact my progress. A summary of tomorrow’s plan is presented, along with a progress update on my month to date. As bedtime approaches, I’m presented with a suitable soundtrack to assist my sleep.

Draw the spokes together

As a gym operator, you may be daunted by the prospect of creating and delivering such a 360°, 24/7, 365 journey. But in fact, you don’t have to. Rather, you should determine and zero in on the part(s) of the journey you can and should control – read more here

Importantly, though, this should not hold you back from acting as a ‘hub’ to add value across the full ecosystem: educating members on the importance and impact of other spokes in the wellness wheel, analysing and interpreting data from across the ecosystem, offering tailored advice and content, supplementing with trainer-led reviews and progress benchmarking… 

All of a sudden, you own the ability to influence someone’s (ecosystem-wide) outcomes through the delivery of comprehensive guidance and measurement, with a high degree of personalisation. All of a sudden, your gym becomes a critical part of that person’s life. 

Wheels, and whether to reinvent them

One key consideration in establishing this ‘hub’ status is to determine where you stand alone and where dovetailing and integrating with others’ content will allow you to better play your part in the overall ecosystem.

When building a technology proposition for delivery through somebody else’s ecosystem – such as Apple’s – you must do so with the intention firstly to leverage their infrastructure to reduce customer friction, and secondly to take advantage of the expectation an Apple product brings. Take the time to understand what that means to design and delivery.

When designing your own parts of the ecosystem, do so with the customer experience at the centre of your thinking. What is the overall experience you’re looking to deliver to the member? What part of their life are you looking to improve, and how will their experience of interacting with your product – whether bricks and mortar or digital – deliver that? 

In doing so, you will increase the depth of relationship and be able to expand it, whether in the shape of extended services or simply longer-term relationships.

Learn more about personalisation in our white paper

For more insight into how gyms can survive and thrive in the fitness future, download our FREE white paper: The Fitness Future: Rules of Engagement.

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