Bannatyne is the largest independent chain of health clubs in the UK, operating 72 sites and providing a premium offer to 215,000 members. The company has expanded through organic growth and acquisition and has created an enhanced member experience driven by software, as CEO, Justin Musgrove, explains

Back in 2014, a period which saw the health club market polarise and many mid-market operators suffer, we recognised we needed to drive an upmarket offering at mid-market prices, through a strategy focused on being at the forefront of technology.

We were looking for advances that would allow customers to join online. Although commonplace now, this was cutting edge then – it’s easy to forget how rapidly the market has evolved.

For the first 15 years, we’d used membership software that had been developed as a single site product, but we recognised we needed enterprise-level software suited for a multi-site brand.

In addition, we wanted a cloud-based solution and for the software to integrate with third party applications, including our Bannatyne App, which enables members to book classes on the go, monitor biometrics, track exercise routines and view personal records. Fundamentally, the software needed to help us evolve our business and drive greater sales, efficiency and member engagement.

Following a market review and tender process, we selected BrightLime, the web-based solution from Legend Club Management. First and foremost, it had the functionality we were looking for, was competitively priced, offered scalability and reliability, and, critically, strong data security.

A strong partnership
We continue to be impressed with BrightLime’s partnership approach to our relationship. In the last five years, we’ve not only developed online joining, but also have wristbands with RFID chips to allow members to access clubs via turnstiles, use lockers and make in-club payments to create a cashless environment. BrightLime underpins all this functionality.

We’ve also evolved our customer engagement model through third party integrations, including with Technogym’s mywellness cloud, MYZONE and our Netsuite ERP back-of-house reporting. This has created an enhanced member experience driven by software, allowing members to benefit from integrations, while allowing us to be more efficient in our back-of-house analysis and management.

Results have been impressive. Since the beginning of 2015, we’ve seen membership grow from 163,000 to 215,000, half of which can be attributed to online joining. In addition we’ve moved from 100 per cent of bookings being taken front-of-house or over the phone, to 98 per cent being made online.

Reducing attrition
We’re streamlining all aspects of member engagement. Our focus is on reducing attrition through a better understanding of members. Again, BrightLime is helping.

The team had previously developed an algorithm that gave gym floor staff an evaluation of when a customer’s usage pattern was changing – an early warning they might be thinking of leaving.

This provided us with an opportunity to intervene when they were in the club, with anything from showing them new equipment, to offering a new training programme. However, we found that highlighting members declining attendance often led to a cancellation.

As a result, we learned that the focus has to be on the first year of engagement – in particular the first 16 weeks – and we’re launching a ‘Smart Start’ programme to support this.

BrightLime will provide us with data on usage and integrate with our programmes and personal training. The intention is to give a fantastic start, so members reward us with long-term engagement.

In addition, we’re in the process of exploring integrations between BrightLime and our spa offering, as well as with third party corporate partners.

The future lies in analysis and data mining, allowing us to provide a better fit of product for our members, so they’re less likely to leave. We want to make sure they’re achieving their desired results and their user experience is as good as it can be. We want their interface with our team to be one you’d expect from a top hotel.

Machine learning and AI
Software is key to this: there’s the opportunity within the next five years to use BrightLime to develop our AI and machine learning capabilities and to employ specialists to evaluate our data, so we can re-sculpt both our products and services to maximise on-selling and customer retention.

We’re a demanding, disruptive organisation. We want the best for our members and for ourselves and we want to be market leaders in our industry. This aspiration needs a technology partner who has the same ethos and the same aspirations. Fortunately, we have found this partner in BrightLime.