The Benefits and Importance of Gym Management Software:

Strategies to Get the Most Out of this Essential Technology

by Dr. Ed Slover

In a world where advances in technology change so rapidly it can be difficult to keep up. There is little doubt that, throughout human history, technological advances have brought innumerable benefits to our lives. From the invention of the wheel to the advent of smartphones, disruptive inventions and innovations have, most assuredly, allowed society to gain countless efficiencies, thus making our lives easier (or, at least, that is the idea). In addition to improving individual lives, business and industry have experienced numerous benefits in the attempt to increase the quality of products and services it delivers to its customers. Across all industries, technological advances have transformed the way in which business is conducted and the modern gym is no different.

The modern health and fitness movement did not occur until the first gym opened in 1931 and the industry has grown exponentially ever since. As of January 2020, the International Health, Racquet & Sportsclub Association (IHRSA) reported that there are 41,370 health clubs in the United States, with 64.2 million members¹. This type of growth has given rise to numerous advances in technology. From selectorized resistance training equipment to functional training protocols to exciting group fitness experiences, the health and fitness industry has embraced the inclusion and use of technology and disruptive innovations. It is, however, one thing to embrace technology, but it is quite a different endeavor to use it to its fullest potential.

One of the primary ways contemporary gyms can achieve success and maximize business potential is through the effective use of gym management software. This technology has evolved far beyond simply checking members into the gym and processing membership dues. Now, it serves as an essential tool general managers use to manage all facets of the business. The capabilities of contemporary gym management software will, very likely, far exceed what you will need, but knowing how to use them effectively brings your business significant benefit. The following strategies are not all-encompassing, but each addresses ways in which you can get the most out of the technology in critical areas of your business. 

Strategy #1: Membership Management

Anyone who has spent time working in the health and fitness industry knows that the life-blood of the business is building and sustaining membership. Using gym management software effectively allows you to market your business to not only maximize new member acquisition, but also retaining members you worked so hard to attract.

Member Acquisition

Attracting prospective members to your gym is simple in theory, but not easy in practice. Constructing state-of-the-art facilities and assuming that people will automatically flock to it is a recipe for disaster. Your gym does not function like a vending machine into which people will poor money. Attracting and acquiring new members takes purposeful planning and exemplary execution.

One of the key ways to acquire new members is to use your gym management software in a manner to capitalize on generated leads and prospects. While placing phone calls to prospective members serves as a way to connect with them, it has lost its effectiveness over the last few decades. Using your gym software to send automated communications, such as emails, SMS, or push notifications allows for maximal efficiency. Further, your gym software can allow you to “drill-down” even further to communicate directly with your target market or ideal market segment. This type of communication allows you to market free trial memberships, reduced or zero enrollment fees, and/or special pricing when a “call-to-action” is taken.

Another effective way to acquire new members is to reduce the “barrier-to-entry” by having either an online enrollment option or an in-club, self-serve kiosk. Working with your gym management software provider, you can embed their software platform in your website, thus allowing you to conveniently sell to prospects without them having to visit your facility. In effect, this digital service provides prospective members a quick and easy way to enroll. Further, an in-club, self-serve kiosk would perform a similar function by allows prospective members to complete liability waivers, enrolling in a free trial membership, or enrolling as a full-fledged member. Using your gym management software in this way allows you to capture new members without the expense of dedicated membership counselors or advisors.

Member Retention

While acquiring new member proves essential, member retention is even more important. The reality is that acquiring new members is significantly more expensive than retaining existing members. Far too often, however, general managers lose sight of engaging existing members in the pursuit of acquiring new ones. Great care must be taken to cultivate relationships with each and every member to ensure they are actively using the gym and participating in club events. Enrolling new members and hoping they do not use the facility could not be more short-sighted. Members that fail to use the gym quit their membership long before they cancel their membership.

An effective way to effectively manage and engage with existing members is provide frequent, but not obtrusive, communication about club goings-on while putting your members in control of their gym experience. Your gym management software allows you to interact with your members by keeping them apprised of club events, such as fitness challenges, member appreciation parties, and member referral programs. Additionally, giving your members access to their account through a software portal or dedicated app gives them the ability to manage their membership and payment details, schedule personal training sessions, and set reminders for group fitness classes and appointments.

It should be noted that, while the benefits of this technology are manifold to (re)engage your members, nothing beats good old fashion interpersonal connection. Remember that your gym management software augments the building of long-lasting relationships and should never replace efforts to make loyal customers through high-quality member service.

Strategy #2: Operations Management

In addition to building and sustaining membership, general managers are charged with effectively managing expenses to ensure more top-line revenue flows through to bottom-line profit. Using gym management software effectively allows you to stay on top of significant cost centers, such as employee staffing and inventory management, while streamlining payment processing, scheduling, and payroll.

Staffing and Scheduling

Beyond rent and utilities, labor costs are one of the largest expenses general managers must manage effectively. Gym management software takes the guesswork out of the process by providing robust dashboards that display an hour-by-hour visual snapshot for each area of the business. From this, you know exactly how to deploy your workforce (i.e., front desk representatives, membership counselors/advisors, personal trainers, etc.) in order to maximize efficiency and minimize waste while giving you the ability to address your member’s needs.

Inventory Management

Effectively managing in-club inventory, such as protein powders, ready-to-eat treats, and/or sports drinks, takes precision. Like other profit centers within your gym, the goal here is to maximize sales and minimize shrink or theft. Your gym management software allows you to create unique product identifiers (SKUs) and customize product categories as part of the point-of-sale system. Within the system you can establish “minimum thresholds” for each product that keep product displays full while minimizing back stock. It also gives you the opportunity to generate and download detailed reports, thus allowing you to make precise, data-driven decisions on reordering high-velocity, quick-selling products or closing out slow-moving items.

Payment Processing

General Managers tend to express concern for how payments will be processed and collected. Using gym management software allows the gym to bill members on a recurring basis (one-time payments are also an option), such as membership dues, personal training, childcare, etc., at various intervals throughout the month. In many cases, the gym management software provider facilitates this process using a SSL-secure platform and the gym pays a percentage or royalty for this service. This saves the general manager considerable time, which can be devoted to managing gym operations in lieu of performing administrative duties. Further, the gym management software provides robust reporting that allows the general manager to assess trends on the financial side of the business.

Payroll

Another function gym management software provides you is the ability to process payroll timely and accurately without having the additional expense of hiring an external payroll processing service. Once you set up compensation for salaried (exempt) employees, direct deposit for each employee, state and federal tax rates, FICA contributions, and benefit deductions (i.e., health insurance, 401k, etc.), processing payroll is as simple as entering hours worked for hourly (non-exempt) employees. In many cases, no manual entry is needed for hourly employees, as the software pulls data from digital timecards. This is a significant benefit, as it makes the payroll process easy and seamless. 

Conclusion

It is amazing to recognize that there are some, albeit a select few, gyms throughout the United States that do not use gym management software. Given the competitive landscape of the gym industry, it would seem that having access to and using all available tools and resources serves as a way to be successful and gain competitive advantage. Gym management software is one of those tools and using the capabilities it provides can help you differentiate your business from the competition. There are many options when selecting the most appropriate software, so do you research, be deliberate, and good luck!