Virtual, Virtual, Virtual.

(VIDEO TRANSCRIPTION):

Hi, Blair here with MXM, we've been talking about what members love since clubs have reopened. We are using our text analytics to dig into those topics. Anytime you start to see "love" come up this much, you really need to understand what the customer or member is saying that they love. A great way to ROI on member experience, or what we call ROS (Return on Experience), is to do more of what customers love and less of what they hate and to innovate around both of those things.

So the first thing we saw that members loved was about fresh air. Second one was all about outdoors. They loved being outdoors. Think about that trend, what do we do when that trend hits. Everybody is out in the back barbecuing, the trend for building outdoor kitchens is also huge right now. Even outdoor TV's. Everyone would rather do things outdoors. Third one is space. People love the additional space, they like the equipment being spaced out as well.

The fourth one is virtual. We've all been talking about virtual so no big surprise there. But it's interesting and there is some nuance there. Some clubs said they shut off their virtual when they reopened so they could get members to come back in but that proved not to be true. I want you to think about how virtual plays into space. Virtual plays into space because now people are going to use that gym differently so as you reopen and look at your percentage of checkins, you should be looking at your percentage of unique visitors as well. You may be at 60% in checkins but only 25% of unique visitors. The virtual piece becomes a critical augment to that member experience or what corporate speak says is "omnichannel", consumption of your product.

Some other nuances in that virtual world is you'll have people say, I'll come in to do my weights and I'll come in to do body pump but I prefer to do yoga and pilates at home on my carpet. So there's that type of voice in there as well so when you think about virtual you also have to think about what kind of equipment they have, where are they most comfortable being on your floor, where are they most comfortable being on their own floor and then how virtual can also possibly play into your outdoor classes as well. So I think that investments in AV setups and higher, more professional hookups are imperative so that wherever you are programming classes, perhaps all of it can be virtual and also I think virtual is a very, very big way to get people to experience the gym before they come in. You've seen this in other industries where virtual experience gets people to go in and experience the real event like casinos, video poker, online gambling etc. This is sort of that as well. Also Peloton, where once a year they review their program and all their riders converge and it's the virtual relationship that gets them in. I think that's key. It's that relationship that says, a lot of you have been taking this virtual class and we'd like to now invite you in to tour the club.

So, fresh air, outdoor, space, and virtual. I'll hit the 5th one in the next video.

Thanks!

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