Case Study  

Better Member Retention and Loyalty

EXECUTIVE SUMMARY

Cincofit is a full functioning boutique gym located in Katy, Texas. The gym is open twenty four hours every day, does not require a signed contract for membership, and contains a vast array of machines and equipment. Cincofit strives to create a welcoming and intimidation-free atmosphere for its members. 

 

Challenges

In recent years, the culture has shifted to one that is more impersonal and less familiar. From earlier times when gyms were a place of social activity, modern day gym goers are now plugged into their phones, iPods, or watching the ubiquitous televisions. And Cincofit being a boutique gym, has always competed for members with larger gyms like 24 hour fitness, Anytime Fitness, and the YMCA. Cincofit needed a way to stand out amongst the crowd. They wanted to improve member retention and loyalty, as well as gain new members.

 

Analysis of Alternatives

After conducting member surveys and holding informal discussions among managers and members, Cincofit determined that they needed to approach their membership retention challenge based on three key findings:

  1. Gym members are more motivated when working out with a partner and are more likely to retain memberships when they feel comfortable in their surroundings.
  2. While Social Media can be a powerful marketing tool, it does not engage members in a meaningful way that stimulates increased attendance or gym efficiency. It is also difficult to manage or control private interactions between trainers and gym members on public social networks.
  3. Wearable devices and fitness apps are omnipresent.  Cincofit needed to find a way to connect and become relevant amidst this new and thriving trend.

 

Solution

The Solution to retaining members and increasing gym revenue was to have a club branded mobile app that provided a private social network and communication platform for personal trainers and members. GymGroups allowed members to connect with other members, finding like-minded workout partners, and forming new relationships that extended outside gym walls. iBeacons placed on machines, seamlessly integrated with wearable devices and provided another method for gym goers to track their workout goals, calories burned, and effort expended. A new feature never before available to gym management, was the collection of data through the GymGroups platform, which was visible on an administrative dashboard. Inactive gym members were automatically identified, and push notifications along with emails were sent to engage these fragile members who may have been likely to cancel their memberships. 

 

Implementation

GymGroups was introduced into Cincofit in May of 2015. To make the implementation run smoothly, GymGroups’ Account Manager, Benny Molini visited Cincofit to help with the on-boarding process. Molini secured iBeacons on the machines and monitored member engagement/activity, sending emails and notifications frequently. 

Beacon on Gym Equipment 3.JPG

 

Results

Cincofit started with a little over 300 members in February of 2015. Within 24 hours of introducing GymGroups to its members, 27% of the members had created an account. Within 2 weeks, 30% of members had created an account, and after 1 month, the number increased to 37% engagement. 80% of members had completed their profiles within 3 months with a focus on the gym environment. 95% of users checked other member profiles, a potent example of the power of private social networking, and 40% of users created original content. While difficult to measure with traditional metrics, gym managers noticed a subtle shift in culture with members appearing more familiar with each other and with a sense of community restored. Cincofit began to see member retention increase immediately, as well as new memberships. After a short 3 month period, Cincofit’s membership increased from 300 to around 550 members. Cincofit members continue to use the GymGroups solution for their private social networking needs.