Function:

Identify customers most likely to churn

Products:

BULLSEYE

Challenge



A national fitness chain of franchised locations faces the same challenges its competitors in the health club industry face: a 25–30% annual customer churn rate and fierce competition from “classic” health clubs and gyms as well as from boutique fitness studios capturing a larger share of the elusive Millennial market. On top of that, according to the IHRSA, large markets in the U.S. are maturing, leading to fewer members per club.

Many health clubs find it costs nearly 9x more to acquire a new member than to retain an existing member and that increasing member retention rates by just 5% increases profits by 25–95%. For fitness chains, an ounce of prevention is worth, well, a great deal more than a pound of cure.

Solution



Fitness chains can use BULLSEYE to predict which members are likely to churn in the next 30, 60, and 90 days in order to roll out specific retention-focused sales and marketing programs to them.

BULLSEYE works with data from four areas: customer lists, lists of products (in this case, the different types of memberships, extra-fee classes and services, personal training, and more), the list of customers’ purchases, and marketing events. It can work with the specific data from each location and encompass invoice records, order histories, product catalogs with pricing information and hierarchies, CRM events and interactions, emails opened, ads clicked, data from CXA and Omniture and more.

Since BULLSEYE is cloud-based, all this data is easily integrated, with new data flowing into BULLSEYE on a daily or weekly basis, depending on specific needs. BULLSEYE analyzes this data and easily generates a list for each location of members most likely to end their memberships in the next 30, 60 and 90 days.

BULLSEYE does not require months of designing and developing a custom application. Instead, this cloud-based application simply needed to access the company’s existing data and analyzes it. BULLSEYE also continuously learns from the data.

 

Results



Senior executives from national headquarters can analyze churn trends across their owned locations, as well as across those franchised locations subscribing to BULLSEYE. Corporate marketing can work directly with the managers of corporately owned locations and franchise owners to roll out marketing campaigns, promotions and even employee SPIFFs to proactively reduce churn on a member-by-member basis.  

As the statistics from IHRSA show, retaining even one member can increase revenue by a minimum of 25%. Imagine the revenue growth when multiplying that across retaining multiple members, per month, per location.