Increase Your Health Club’s Retention Rate Through Member Data Mining

Most clubs are barely scratching the surface when it comes to analyzing their membership data. By leveraging this information, facilities can more effectively target their marketing campaigns and retain members

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Tracking Purchases

Although it's important for clubs to track when and how often their members check in, club owners must also keep tabs on what members are buying once they're in the club.

With this data, club managers can keep the most popular items on the shelves and not invest in the products that the members aren't buying, Skeen says.

Since many club members don't walk around with their credit cards while they're working out, club owners are making it easier than ever for members to buy products and services, and owners are tracking these purchases with their software programs. Over the years, the technology for connecting members to their billing accounts has improved to the point where at some clubs, members can buy an item simply by scanning their fingerprint, which is tied to their credit card.

By analyzing members' buying patterns, owners are better able to anticipate future and recurring purchases, which is especially important for services such as personal training. In the past, Energy Fitness lost revenue when trying to track personal training appointments through paper cards and a self-created schedule. Now that the club can track this data electronically, Fox and the other trainers are able to better manage the personal training end of their business.

Service and Support

Club software packages can help club operators manage their retention, marketing, billing and activity levels, but with so many options available on the market, owners must decide whether to go with a comprehensive software program or a stand-alone membership management application.

Regardless of which option they go with, many club owners are looking for software training and support for their front desk staff and members. Although the front desk employees normally check in members and ring up purchases using the software, club managers also use the software to run reports on a daily, weekly or monthly basis.

After a club owner purchases a software program, some vendors offer live one-on-one training, on-site demonstrations and Web-based training courses. Vendor support played a critical role in Havens' decision about which software package to select for Backstreet Fitness.

"I'm not a computer savvy person, and I set it up and went right into it," she says, adding that the vendor's technical support team was easy to work with.

By building a complete database, analyzing the data to uncover trends and leveraging that information, health club owners can uncover a gold mine of information that could help them grow their business and improve retention and revenue during tough economic times.

Skeen, for one, is sold on the technology used in his clubs' membership management system.

"I've been in the business for 18 years, and I haven't experienced anything like this," Skeen says. "I tell my peers that if they have a good management system in place during a down economy, they'll be much stronger when they come out of it."

Connecting with Members Online

Membership management software is helping club owners stay organized and grow their businesses. At the same time, some vendors offer functionalities that allow club members to log on to specialized areas of club Web sites.

These Web sites are often tied closely with clubs' member management software programs. That way, clubs can still keep track of members' usage of services, while allowing them to book an appointment with a trainer or update their membership information online.

Michael Fox of Energy Fitness says he plans to allow his 700 members to view their membership information, book training packages and access video clips on his Web site this year.

"I think it would be a benefit to our members to have that option," he says.

How to Select the Right Membership Management System

Do your research

To find the vendors of membership software programs, visit Club Industry's Fitness Business Pro's Directory and Buyers Guide and click on the software category.

Look for comprehensive reporting

Although any software package can help a club owner collect basic information about a member, try to look for software that allows deeper analysis and thorough reporting.

Consider ease of use

If a software package is impossible to use, you'll find that most of your employees will not use it to its full potential. Instead, try to look for a software package that offers all the necessary features while still being user-friendly.

Get support

Don't just look for technical training sessions or online resources. Instead, try to find a vendor that will share marketing strategies to help you meet your goals and help you devise custom solutions to meet your needs.

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© 2012 Penton Media Inc.

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