Use Technology for Good Communication Intelligence
The role of club management software has increased far beyond the name suggests. Though billing, check-in and point-of-sale remain vital components of membership management systems, club operators should look to software vendors to provide them with more features and functions that address operations issues.
As an attendee of the many trade shows and conferences our industry holds each year, I have come to find the recurring topic that most club owners spend hours thinking about: Membership retention and the tools and “solutions” available to address it.
Having been involved with the industry for over 10 years now, both as a member as well as a vendor, I felt I had some insight that might be considered useful. In fact, from a business standpoint, the software industry is remarkably similar in process to the health and fitness industry. In our world it’s all about recurring support revenue and keeping customers from switching to another software platform. Sound familiar?
After many conversations and careful consideration, it seems that though vendors will want you to believe that theirs is the silver bullet, the path to controlling attrition rates begins with knowing who your members are, what they want, and serving them well.
To succeed in the overall retention game, a facilities membership retention plan should be designed and built upon a solid foundation: consistent and accurate financial services; a commitment to member service, and most importantly a reliable, stable information management system.
Make Technology Work for You
The computer that stands at your front desk is the most important piece of retention equipment at your club. Many of you will read this statement and simply assume that I am yet another vendor claiming to have the golden handcuff that works for every member. But, consider this: Where do you capture member interests, visit histories, purchasing patterns, secondary spend and usage? What other tool do you use that can increase your club’s presence in the day-to-day lives of your members? And most importantly, where else can you turn when evaluating membership trends, sales successes and the effectiveness of marketing initiatives?
As software developers in the health and fitness management space, we work to find new and innovative features that answer these questions every day. Features such as gift cards and series management systems create tools whereby members remain committed to facilities, in many cases, beyond the term of their initial membership agreements, and clubs play bigger roles in the day-to-day routine of their members.
Allow Technology to Increase Presence in Your Member’s Day-to-Day Routine There are few things more important to today’s consumers than convenience. Whether buying groceries in the same place as hardware, or joining a club that’s only minutes from one’s home or office, convenience is a critical component in any consumer’s decision making. As such, club operators should consider making themselves as accessible as possible to their audience. There are online services which provide portals where members can meet one another based on their fitness interests and goals. Our company recently deployed a customizable online accounts module which allows members to access information such as: visit history, transactions and series item/PT availability. These tools have one thing in common: They make it more convenient for your members to stay where they are!
Own a Proactive Information Management Plan
Once you have made the decision to implement a retention program and the systems are in place, it becomes time to assign ownership of information management to someone who will use the data generated to address retention initiatives. For years, we have kept sales managers accountable for getting new members to join, A “Retention Manager” can be the person who ensures that your members stay. What would the responsibilities be?
• Reach out to members who have recently joined or are about to expire.
• Proactively monitor available memberships and inform those who can take advantage of a new membership class or type.
• Resolve data entry errors and out-ofdate contact information which hamper the ability to communicate properly.
• View lead sources and tracking information and earmark marketing dollars appropriately.
As an industry, we have come to find that the “build it and they will come” mentality is only half the battle. Your membership management system should be able to help your Retention Manager keep your members engaged with gift card programs, membership referral credits and personal training rewards.
When evaluating your membership system, look beyond the standard functionality of point-of-sale, billing and check-in. Ask how the system can help your club to better manage your existing members and identify the features and functions the application has which directly address retention issues. After all, a membership management system is worthless without members to manage.
Al Noshirvani is the President of K.I. Software, a Division of MotionSoft Inc. He can be contacted at 800.829.4321, or by emailanoshirvani@kiesolutions.com, or visit www.kiesolutions.com.
