Revolutionizing Operations in Fitness Businesses with LLMs and AI
In the rapidly evolving technological landscape, artificial intelligence (AI) has become an integral part of our personal and professional lives. Google uses AI to provide better search results. Websites feature AI-powered chatbots to navigate users through problems efficiently.
In some organizations, AI triages all incoming communications so staff only see what’s relevant to them. Invoices are automatically redirected to AI-enhanced accounting software and, providing it can reconcile the invoice it automatically arranges payment.
AI has the potential to change our lives. The concept isn’t new. It’s been the purview of science fiction writers for decades. The artificial intelligence of the future frees us of the mundane to allow us to put our energies into where we can do the most good.
While we’re not there yet, the foundations are being laid. AI offers groundbreaking solutions to streamline operations and enhance efficiency.
One development in AI is the emergence of large language models, such as Chat GPT. These tools have garnered significant attention and praise for their potential to revolutionize numerous sectors.
The challenge lies less in the technology, rather in how it can be applied effectively in your organization. This is as much about recognising the limitations of the technology as well as its strength and, therefore, where it can do the most good.
Revolutionizing Operations with AI
With an increasing number of organizations leveraging AI technologies, it has become a driving force behind innovation and value delivery.
The impact of AI on the world has been compared to the invention of the World Wide Web and the adoption of personal computers before it. The US Department of Economic Research determined the personal computer generated point 0.06 per cent improvement in gross domestic product.
Goldman Sachs is saying that the generative AI alone will generate a 1.5 to 2.9% improvement in GDP. That represents around 7 trillion dollars, doubling the US GDP growth rate and a thousand X on the introduction of the personal computer.
AI has followed a similar trajectory to the internet. In the early days technical expertise was required to use the World Wide Web before any individual or business could extract any value. However, with user-friendly web browsers like Netscape Navigator, everyone gained access to the web's potential. It’s now an essential and integrated part of our lives.
Similarly, early AI was complicated to implement and difficult to use, while delivering limited value to the end user. However, large language models like Chat GPT act as intelligent tools that empower individuals across various domains.
They allow businesses of any size to harness the power of AI without specialized technical knowledge. Much in the same way that browsers and latterly content management systems helped businesses get online.
LLM AI, utilized in the right way can transform the way businesses work, freeing your team from repetitive tasks, admin and other duties that aren’t worth their time. Instead, you can put them to work doing the things that drive the business and add the greatest value to the customer.
Understanding Large Language Models
Large language models, including Chat GPT, possess an ability to engage in conversations, write essays, tell jokes, and write poetry.
These models have been trained on vast amounts of textual data from articles, web pages, and books. This breadth of knowledge enables them to provide insight and information on a great many topics.
However, it is crucial to note that, like parrots mimicking human speech, these models lack true understanding and beliefs. They produce results based on patterns observed in their training data without comprehending the context or meaning behind their responses.
That significantly limits how these tools can be used in their raw form. The absence of context or an understanding of the audience inevitably leads to a generic that sometimes says very little.
Applications in Operations
The potential applications of large language models in operational processes are vast. Within the fitness industry, there is significant opportunity around membership sales and retention. As well as reporting.
By leveraging the capabilities of large language models, organizations can harness their predictive abilities, providing accurate forecasts.
Metrics such as retention rates, sales, revenue, and customer lifetime value can all be analyzed, predicted and communicated using artificial intelligence.
The accuracy of machine learning techniques, particularly tools like Random Forest, which powers Keepme. It can achieve prediction accuracies ranging from 91% to 95% and have real-world applications. Such high accuracy enables fitness organizations to identify members likely to continue their engagement and make informed decisions accordingly.
The ability of gyms or health centers to accurately identify which leads are likely to convert or which members are at risk of churn is significant.
Supported by consolidated member profiles, team members can have context-driven conversations with members. The more information gyms have at their disposal, the easier those conversations become.
Even down to identifying potential conflicts between members and staff. As a result, conversations with members at risk of churn can be outcome focused. Rather than trying to sell them on the idea of attending the gym in broad terms.
By using AI to identify these risk factors staff can easily handle objections and address specific concerns and put solutions in place. This makes the member feel heard, and valued and significantly deepens the relationship.
Expanding Insights and Analytics
In addition to accurate predictions, large language models offer a multi-dimensional perspective to analytics. Traditional dashboards present static and one-dimensional information, limiting the depth of understanding.
However, by employing large language models to analyze and interpret data, fitness organizations can extract detailed insights and narratives that enhance decision-making.
These models can identify patterns, variables, and outliers within datasets, providing a comprehensive overview of performance and highlighting areas of improvement. The natural language narratives generated by these models bring the data to life, making it more accessible and actionable.
Most importantly it allows sales managers and their teams to respond faster to enquiries or changes in membership behaviors.
Moreover, businesses will be able to see with both clarity and context how multi-site operations are performing. And, if they’re underperforming by how much and why.
Again, the emphasis here is on actionable insight. It’s not enough to know that your downtown gym is underperforming against target and the same quarter last year.
You need to know why.
Using LLMs you can ask the questions that you need the answers to. Everything from the breakdown of membership sign-ups, cancellations, on-site purchases, and average purchase value, can be requested.
You can even factor in the marketing budget and marketing spend for the quarter against last year.
By overlaying each of these data sets you can quickly identify where the problem areas are and take action.
Large language models offer an alternative approach to traditional dashboards by enabling users to engage in conversations with the data. Integrated automatic speech recognition (ASR) tools, like Whisper, make it possible to verbalize your queries for enhanced results.
This interactive experience allows individuals to specify their queries and receive responses in natural language. This fundamentally changes the relationship between the user and the data.
Historically, users navigate a reporting tool to pull the different data sets together. And then manually analyze those reports to gain some form of insight.
But by using LLMs to ask the relevant questions, reporting tools can provide a deeper understanding of key metrics. It then delivers the results at a pace previously unheard of.
Users can have the power to investigate specific areas of the business by requesting specific sets of data over six months. Using that data, the AI can then predict future trends, including graphical representations, projections, and insights into the factors driving performance.
What this means for fitness operators, is the ability to act on opportunities or issues before it's too late. The potential to reduce operational costs lowers the cost of acquisition while increasing productivity and profitability.
And fundamentally, by using AI to identify the membership leads most likely to sign up for premium packages or those members most at risk of churn, you can shorten the sales cycle, increase up-sell and reduce churn.
Enhancing Member Communications
Insight, however, is only part of the process. Once you have the actionable data you have to take action.
Because LLM AI can produce reports on everything from membership leads to club retention, you’re able to build out personalized flows to engage with those prospects and members.
Moreover, you can use the same technologies to create those interactions. By providing a brief, you can create an email or an SMS tailored to that individual’s interests or requirements.
Assuming your member database is segmented then you can quickly and easily create automated flows that target specific member cohorts with relevant messaging.
Whether that’s to drive signups to specific classes, increase members' average spend on-site, or re-engage with them if they’re showing signs of churn. That includes recognising and taking action on dormancy.
Needless to say, you need robust data to drive this level of engagement. So a reliable and well-maintained member database is key. You also need to invest time in segmenting that database so you have the flexibility in the data to personalize those messages.
But once the hard work has been done you’re in a strong position to engage with your club’s members like never before.
Using LLM-powered technology you can build an email campaign in minutes, rather than hours, freeing up the time of your sales teams to pursue hot leads.
Keepme - Powered by AI
As AI continues to evolve and transform industries, large language models have emerged as game-changers. They can empower individuals across various domains to leverage the power of AI in their operations.
With their predictive capabilities, multi-dimensional insights, and natural language interactions, these models offer immense potential for revolutionizing fitness business operational processes.
Keepme’s customer engagement and CRM platform is designed specifically for the fitness industry and powered by AI to deliver the deepest insight possible. So you can make better decisions faster.
To check out our new Keepme Creator functionality (and get a sneak peak of the Keepme Genius tool we have in development), check out the presentation delivered by Keepme's CEO, Ian Mullane, click here.
Or, to learn more about how Keepme can help your fitness businesses, get in touch today, to request a demo.