Industry data indicates that the average member who pays $60 a month in dues, will also spend an additional 15% on non-dues services and products, for an annual value of $828. If the member stays for 4 years, the lifetime value of that membership is $3312.
Clubs that have paid attention to the specific needs and wants of their members often see non dues revenue in the area of 35%, and the retention of those members becomes 7 years.
This would produce a lifetime value of $6804. The key to DOUBLING the membership value is in understanding how to manage the market segmentation of your members.
Let our deep member analysis provide you with the information to:
We can uncover data to provide insight to:
Improve facility utilization
As with most service -based enterprises, a core part of profitability is learning how to engage new members and retain existing members. As the industry develops software and technology to serve members, it is learning more about its members than ever before, and this membership data is critical to understanding how to best retain, serve and deepen your relationship with your membership base.
Whether you are using simple excel files or sophisticated PushPress software, we provide custom consultation in leveraging this data asset to strengthen your membership base and improve your bottom line.
Data Driven Member Segmentation and Target Marketing Campaigns
We group members into segments corresponding to their usage patterns by facility and services (types of activities, visit frequency, use of personal training, etc.), general demographic and fitness profile, and calculate the customer lifetime value and risk of cancellation for each member.
For segmentation, we will use widely accepted statistical methodologies in customer analytics such as CHAID (Computer Automated Interaction Detection), Cluster Analysis (such as K-means) or Neural Networks. These are used to break members into statistically meaningful segments and to isolate the key correlations between their behaviors (e.g. frequency of visits, use of Personal training, etc.) and their profitability.
Enriched Membership Data
To the extent that other data sets are available, we combine these with your core membership data to improve segmentation and enrich membership data for deeper insights.
Examples of other data sets to merge include:
- Member Social Data (Twitter, Facebook)
- GIS based demographic data for trade area analysis
- Marketing Campaign data from email or direct mail outreach to members
The very process of asking your members about their perceptions and preferences shows that you are interested in improving their experience. If this information is used effectively it can help identify hidden risks and opportunities in growing the size and profitability of your membership base.