Industry Buzz: Increase Your Customer Lifetime Value
I bet that title got your attention, right? It was meant to. And it’s not a marketing ploy. According to Emmett Williams, the co-founder and president of MYZONE, increasing your customer lifetime value can be done, through wearable tech.
Williams presented this hypothesis in last week’s webinar hosted by Club Solutions. To start, he shared the following statistic: the growth rate of wearable tech matches that of the tablet market, which achieved 44 percent penetration of North America after only 4 years.
And, wearable market penetration has doubled every year since 2012. Of the wearables out there, 61 percent are for personal fitness, and 60 percent of those who use them feel more in control of their health. Essentially, your members are buying and using them, presenting you with an opportunity to capitalize on the growing trend.
How do you apply wearable tech to get ROI? Williams shared multiple ways you can increase LTV through wearable tech, detailed below.
Williams explained that first, you can sell wearable devices for a retail margin. But, he said that if you’re going to take that route, putting wearables on a shelf to sit and collect dust will not work. Instead, make use of social media to push the product.
Unique Selling Proposition
Simply put, said Williams, selling wearables and incorporating them into your gym’s product creates a unique selling proposition.
Personal Training Up-Sell
As Williams explained, building wearables into the price of personal training can be extremely beneficial, as it creates a more intimate relationship between trainer and client. Through wearables, a trainer knows roughly how much activity a client is doing when they’re not together. This increases the chances of a trainer being able to make adjustments sooner, rather than later, improving results.
Williams shared a study done at Newtown Athletic Club, which found that members who used MYZONE, as an example, visited the club many more times over the first 90 days, compared to those who didn’t use the MYZONE product. This is significant, as the more a member uses a club over the first 90 days, the more likely they are to stay a member.
This is just a brief summary of the webinar — Williams shared many more examples of how wearables can increase the LTV of your customers. To access a full recording of the webinar, click here.