March 19, 2020 Danni Poulton
Artificial Intelligence (AI) is transforming the way your gym can get more revenue. AI can now make intelligent predictions about member behaviour that will help you make more money. Let’s take a look at how you can do this.
The fitness industry is growing exponentially. Fitness membership in the UK for example broke the 10 million mark in 2019, with the industry worth in excess of £5bn. Globally there are over 210,000 clubs with 183 million members, according to a report by IHRSA in the UK alone!
Growth isn’t just important for the fitness industry as a whole, it’s vital for the future of your gym. Yes, it’s important that your club is seeing profits in the here and now, but you need to deliver future growth to secure your gym stays in the game for the long term.
Growth is the best way to avoid other gyms eating into your share of the market. As they say, offense is the best form of defense.
Another reason growth is important is because the fitness industry is very susceptible to disruption. From the boom in boutique clubs to the rise of home workouts (Popsugar, we’re looking at you), and a growth in “experiential” exercise moments as offered by a phenomenon like Tough Mudder, how secure is your gym if you are not seeing growth?
It’s all very well talking about the importance of growth for your gym, but how do you execute it? How do you get your membership to grow, your revenue streams to lift… how do you get enough leverage to reinvest in your business in a meaningful way?
One of the reasons it can be hard to deliver growth in the fitness industry is that this is a sector that’s all about human behaviour. Gym membership isn’t just a product that your customers consume like Netflix membership. It’s a service that doesn’t just require your members to hand over money, they also need to invest their own time and energy into the gym to get anything out of it. That’s a long value chain, one that involves more commitment from customers than perhaps any other industry.
Because of this fitness chains often try and make an educated guess as to what will appeal to their members, and this often falls way short of the mark.
If only you could understand what your gym members value, and what changes you can make to boost your revenue and ensure future growth. Well, AI prediction is a really powerful way to do this.
Let’s think through this a bit. If there was a 50% chance that introducing a new fitness class would lead to new members sticking around longer, would you do it? That’s the predictive power of flipping a coin. What if there was a 60% chance this investment would lead to greater revenue? That’s a bit more like it, but you still stand to potentially loose a lot of money.
If the predictability of future success was 70/80%, that would be more like it right? But what if you could make predictions with over 91% chance of success? This may sound like psychic levels of prediction, but it’s actually achievable using sophisticated artificial intelligence and machine learning.
Keepme is a powerful AI tool that helps you harness the power of prediction to take actions that will deliver greater profitability and growth.
By analysing your membership data Keepme projects what your revenue streams are going to look like in the months ahead.
It can work out which members are likely to leave your gym and which ones will be receptive to outreach. And it will tell you which factors influence attrition, so you can find out what members who are at risk of leaving have in common.
It will also tell you how much revenue you stand to lose if you carry on as you are. This helps you to make more decisions that will boost revenue, and less decisions that will hurt revenue. It will even show you potential revenue streams you are not tapping into.
By removing the guesswork from increasing gym revenue you are free to unlock the growth potential of your gym. The predictive power of AI has never been as powerful as it is today. Gyms that take advantage of this are the brands that will see major growth in 2020, and the ones that don’t will always remain on the back foot.
To find out how Keepme can bring in more revenue for your club book a free demo today.
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.