How AI Can Transform Your Business

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I (artificial intelligence) is everywhere; from suggesting what we might listen to (Spotify) and watch (Netflix), to providing navigation guidance (Waze) and diagnosing medical problems (Health Tensor). Effectively, it is a prediction machine, taking what we have (data) and filling the gaps we don’t (knowledge).

Based on what they’ve listened to, I predict they will like…

Based on my understanding of the road system and reported traffic conditions, I predict an ETA of…

So, where could AI add value to your gym business? At the risk of sounding simplistic, the answer is ‘everywhere’.

Look at all the business metrics you work with, most of which report on the past. Now ask yourself: “What could I do with this insight if it were predicting forward?”

How valuable would it be if, for example, you knew which members would leave you in six months? What changes might you implement in your retention strategies?

If you could send a commercial offer to a member, knowing it was highly likely to be of interest, how might that impact your bottom line?

What about if you could predict (with 90 per cent accuracy) your sales figures for the next six months; if you knew which lead would convert and which would not; or if you knew which sales channels would decrease in performance next quarter?

By asking yourself these questions, and others like them, you’ll immediately appreciate how the transparency AI provides allows you to take consistent, positive action.

Let’s bring this to life with some examples.

One UK operator – aware their ability to predict long-term retention was no better than a coin-toss – provided data for the previous two years and held back the current year. The challenge was to identify which members would still be with them in six months’ time, which we predicted with 82 per cent accuracy, straight out of the gate (with even higher accuracy later, as AI continued to learn).

What a tremendous platform to confidently target those at risk – including those who didn’t know they were yet! – in a timeframe where the outcome could still be changed! And how about class scheduling? AI can take all the variables, work through millions of scenarios and create an optimised timetable for maximum member satisfaction – even telling you the expected retention improvement for each variation, and which members may be unhappy so you can pre-empt.

One more example: non-dues spend. Say you offer PT as individual sessions, or in packs of five or 10. Your AI first identifies those who will purchase, then segments further – around your specific packs – to ensure no revenue is left on the table. Andrew would buy a five-pack, but he’s just as likely to purchase a 10-pack, so serve him that offer. Cathy is highly unlikely to want anything but a single session, so don’t scare her off with a five-pack offer. Bank the one-session sale.

The potential is massive: one customer grew non-dues revenue by 43 per cent in six months. Other AI-driven achievements include:

• A one-year average increase in length of membership in just 18 months.

• 8 per cent increase in lead conversion in three weeks.

• 35 per cent increase in non-dues spend.

• 21 per cent rise in referrals.

As Troy Morgan, Managing Director of Willows Health & Lifestyle Centre in Queensland, says: “Quite simply, AI is the future. We have high expectations for everything we do now.”