New Technology for the Customer Experience Can Increase Engagement, Client Retention

New Technology for the Customer Experience Can Increase Engagement, Client Retention

February 22, 2018

You’ve gotten your customer to download your app or sign up at your website, but now what? How can you use the power of that technology to keep your customers engaged and, ultimately, retain them as customers for the long term? As the fitness chain Equinox has discovered, the key is leveraging technology to ensure your customers are motivated to utilize your services.

What is the key to Client Retention?

In the fitness industry, making sure your members are using your facility is the key to client retention—and profits. According to the International Health, Racquet and Sportsclub Association (IHRSA) Industry Data Survey, club operators spend a median of $118.65 in sales and marketing costs for each new membership account. Existing members, on the other hand, generate a median of $793.40 in annual revenue each. The key to retaining these profitable existing customers in fitness—as it is in all businesses—is engagement.

Marketers need to ask themselves, “What features, services, and technologies are my customers underutilizing?” They then need to consider what innovative technological solutions they could deploy to improve engagement and create a better customer experience.

Equinox and other fitness chains use technology and data to take advantage of a natural sense of competition in a social media-like atmosphere. Flywheelers, for example, can “follow” each other’s performance as they would on Twitter. Systems are used to track statistics like heart rate and calories burned to get people hooked on the results they’re achieving, and keep them coming back for more. In addition, Equinox saw users of its “digital coach” check in 40% more than nonusers during a six-month pilot program. Finally, armed with the data from geolocation, Equinox knows what kind of exercises you are naturally attracted to and can nudge you toward activities you will enjoy. It’s all about using technology to keep people engaged and accountable, and ultimately, retaining them as customers.

A fitness facility is something we can all relate to. But these insights are applicable to businesses in every B2B market as well. So, what about your business? Do you have a social element where you can communicate with your existing customers to build a community? How can you use analytics to leverage data to gain insights about yourself and your customers to add value? How can you apply those insights to keep customers loyal and engaged?

Client retention is the key to maintaining a profitable business. For your next marketing campaign, consider how you can communicate directly with customers to increase their participation and deliver more value. It will keep them coming back!

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