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.