January 16, 2020 Beth Cadman
January can be the busiest time for gyms as new members flock to join. By preparing for this influx of new customers and adapting your retention strategy to care for both them and your existing members, you can hope to prosper in the new year!
The new year brings with it many things. It is a time for fresh starts, a time to reassess, and a time to set new goals. This is true not just for individuals but for businesses as well. The beginning of 2020 is the perfect time for gym operators to evaluate their performance over the past twelve months and consider how they can celebrate highs, learn from the lows, and move forward with a smart, effective retention strategy for the new year that will see their facility prosper.
As we’ve mentioned, the new year is all about fresh starts. It’s about taking stock and then creating a better, brighter, more brilliant version of yourself in the year to come. Getting fit and healthy and losing excess weight is a massive motivator, especially after the indulgences that tend to go hand in hand with the festive season.
In a survey conducted by NPR and The Marist Poll , 44 percent of the 1,075 American adults asked said they were likely to make a New Year’s resolution, and the most common resolutions are around getting healthier and losing weight. However, despite the high number of people making resolutions, about 80% will fail within the first 30 days – which is why people joining and then quickly leaving the gym around this time of year is so common.
In the UK, the weather during January is usually pretty abysmal. If we’re lucky, we might get a flurry of pretty winter snow, that has everyone giddy on mulled wine and building snowmen for 24 hours. Still, the reality is we can probably hope for nothing better than freezing temperatures and grey skies. This has both advantages and disadvantages for gym owners. Bad weather means that people are on the lookout for indoor activities, and working out is one of them. However, bad weather can also mean that people don’t much like leaving their houses at all, so your new gym members must feel motivated enough to head out in the dark and the cold before they lose motivation and have the potential to churn. On the other side of the world, of course, the opposite is true. Places such as Australia are scorching at this time of year, and the desire to get beach body ready could see members flocking to the gym. On the flip side, however, many may ditch their memberships in favour of outdoor pursuits. Changing the seasons can affect member retention and is something that operators need to factor into their marketing efforts.
Another important consideration is how the festive period could affect the perceived value of a gym membership at this time of year. For existing members, they may have resolutions to cut back, to save for a particular event, or to be more frugal with their money this year. If they are not fully engaged with the gym and do not perceive the value of their membership to be worth the spend, this could be one of the first things to make the cut.
Conversely, those who are feeling more abundant in the New Year because of financial gifts might decide to splurge on a gym membership. Then, later in the year, they could start to feel the tug of their purse strings once more and decide that they can no longer justify paying for their membership.
Understandably, gym operators and their teams may find most of their manpower is reserved for new gym members who rush to join the gym during January. However, it is essential to remember that this can have a knock-on effect when it comes to those existing members who may start to feel neglected at this time. If, for example, you roll out special offers and discounted rates to new members to entice them to join, loyal members could feel disgruntled, and this could motivate them to start searching for a better deal elsewhere.
According to the IHRSA, 12% of all new gym memberships occur in January. This signifies the immense potential for gym operators to expand their businesses. However, without considering the reasons why a member might leave or join the gym during this time, this potential can quickly become an opportunity wasted.
December is the time to put effective strategies in place to ensure that you are fully prepared for the January rush. By implementing fresh retention efforts now you can go into the New year feeling confident that your existing members aren’t going anywhere, then refine your focus to ensure that the new members you achieve in January also turn into loyal, spending, brand-loving members who never become at-risk.
By investing in a smart retention tool, such as KeepMe, you have the immediate ability to identify members who are at risk of leaving your gym. After the dust has settled from the January stampede, you can isolate those members who aren’t committed to the gym, who look as though their motivation is waning before they even know it themselves. This gives you tremendous insight and the ability to communicate effectively by delivering personalised and meaningful engagement at precisely the right time.
Staff should be prepared to help members meet their goals, offering a welcoming space, excellent facilities, opportunities for feedback, and focus on making every member feel valued. When it comes to making a purchase, 64% of people find customer experience more important than price. Focus your retention efforts on providing fantastic customer experience and building robust relationships, and members will be less likely to feel as though parting with their hard-earned cash to pay for a gym membership isn’t worth it.
The new year can be a prosperous time for gym owners. However, it is important not to get a false sense of security. For it is only if the large cohort of members who decide to sign up for the gym in the post-Christmas and New Year rush turn into loyal members, that your recruiting and retention efforts have really paid off.
It is through a combination of smart, effective marketing to your new members, while also continuing to nurture and value your existing ones that gym operators can hope to get this balance right. Teams must be able to send out successful communication that will engage members, motivate them, and ensure their continued membership. Tools like KeepMe are designed to support this work, and by keeping on top of your member data, being alerted to at-risk members, and having the ability to send out automated communications, this process can be streamlined, robust and genuinely useful.
January 9, 2020 Danni Poulton
Ten years ago, if you wanted to measure the retention risks of each of your gym members you would have to employ an entire team of data scientists and analysts. Well you can now do it with one piece of AI membership retention software like KeepMe.
You probably already know that AI stands for Artificial Intelligence. But what is that exactly, and how does it work?
Let’s start with the second part first… “intelligence”. This basically refers to the ability to assess information and make informed decisions based on that assessment. It’s what we humans refer to as “thinking”.
For the longest times mathematicians and scientists have thought hard about the idea that computers can make the kind of smart decisions people make… that’s the “artificial” part of the equation.
Artificial Intelligence was a big topic in the 1950s, but it’s only with relatively recent developments in computing, helped along by the development of the internet and cloud based technology, that big strides have been made in developing AI and making it accessible to all. So much so that AI has become a bit of a catch-all buzzword that’s used so much it loses all meaning.
So let’s break down the key components of AI, and how it can help with gym retention.
There’s no AI without data. Lots of data. Technological advancements in data collection and handling, alongside a growing expectations from consumers for personalised customer service has put a ton of data at our fingertips. That’s one of the reasons it’s so puzzling when companies don’t make the most of the data by using AI software that’s even better at rapidly analyzing data than humans. And much cheaper too.
Humans are pretty good at generalised thinking, but AI needs to be set predefined goals for it to work. It’s when you tell it to look for patterns in data and take action based on that AI is in its element. AI finds patterns in data and applies a bunch of criteria to solve problems set by the software designer.
AI is always working behind the scenes which makes it easy to gain an overview of your retention levels without missing key insights because of inconsistencies in data processing that can arise when you employ humans to crunch your data for you.
KeepMe takes individual gym member data and applies an algorithm to determine their retention level, generating a number called a “KeepMe score”. This shows if a member is likely to leave, could go either way, or is especially loyal and viable to join a member referral scheme.
AI provides crucial insights into which members might leave in a timeframe for you to take effective steps to win those members back. This requires complex data crunching that AI is especially well placed to solve. Then it’s up to your team to put those insights to work.
That said, working out who is at risk of leaving is only one part of what the KeepMe AI does.
You can also plug in a set of conditions that can trigger member outreach tasks such as sending emails, triggering a callback from a member of staff or a number of other actions.
There are various different types of AI, but KeepMe uses a subset of AI called “machine learning”, a term that is becoming increasingly popularised these days.
Put simply, machine learning is a computer program that can improve itself over time. This means the kind of predictions the KeepMe AI software become smarter as the system has exposure to member data over a period of time.
KeepMe takes your member data, applies Machine Learning models to it, and assigns a retention score to each member, as well as an overall member retention score for each gym location.
You can then drill down into this data to get much more specific insights. For example, you can break down your member retention levels by factors such as age, gender, location, pricing plans and more.
This means you can then take actions that are appropriate for each member or group of members.
For example, if you discover that women have lower retention scores you can reach out to them about group activities that are women-friendly. If you are struggling to retain millennial gym members you can make sure you talk up the experiential aspects of your gym offering and encourage them to get involved with your gym community.
You can find out more about how KeepMe uses AI to help improve gym retention levels by booking a free tour of the software today. It will be tailored to your own fitness facility so you can see exactly how it can help you build member retention strategies that will reduce acquisition costs and transform the retention health of your gym.