The VoicE 2019 Q4 | Page 13

The VoicE Q4 the gym’s doors for several weeks. When an au- tomated SMS campaign auto-recognizes this occurrence and sends a brief SMS to schedule a training session with that member, this opens the doors for communication. Perhaps this new member is intimidated and needs training with equipment. When they send a response agree- ing to book a training session, this enables staff to get on top of the situation before the member becomes increasingly frustrated or discouraged. By automating campaigns to prevent drop off in the critical early stages, successful gyms are able to build relationships and retain more new members. The graphic to the right demonstrates the reduced churn of engaged members, compared to their non-engaged counterparts, showing the value of regularly engaging with members The End Goal is High Lifetime Value What does higher happiness coupled with low- er membership churn result in? Besides more satisfied gym owners, the answer is higher life- time value (or LTV). This metric indicates the rev- enue you can expect per member throughout the length of their tenure with your gym. Mea- sure lifetime value against customer acquisition costs (CAC) to ensure that you are recouping your sales and marketing dollars with members in the long term. On average, it is 5-7 times more expensive to acquire a new customer than it is to keep an existing customer. Knowing your life- time value can drive informed decisions with your customer acquisition budget. Most experts agree that a desirable LTV to CAC ratio is 3:1. Of course, It’s in your best interest to extend each member’s length of stay with you. The automat- ed drop off and feedback campaigns mentioned above are two useful strategies to increase ten- ure. Once you’re averaging high member tenure, lifetime value can be driven even higher by incen- tivizing members to upgrade their membership packages, buy merchandise, or enroll in fitness classes or personal training. Successful gyms automate their campaigns to send special of- fers periodically and upsell to loyal customers throughout the customer journey. According to Marketing Metrics, your chance of successfully selling to an existing customer is 60-70%, com- pared to just 5-20% with a new prospect. Keep this in mind when considering which audience to market new products and services to. Nurturing relationships with customers and making them feel valued throughout the customer journey is powerful for your bottom line, and paying atten- tion to happiness, member churn, and lifetime value while automating engagement enables you to successfully grow your gym business. About the Author Andrea Grbavac is head of Customer Success at Gleantap, an AI-enabled customer engagement platform that dramatically increases member retention for gyms and wellness studios. She works with clients in the fitness and wellness space to craft campaigns that optimize their marketing and engagement strategies. An- drea is passionate about all things health and fitness and is an avid yogi in the beautiful city of Austin, Texas. 13