Deep Dive into Customer Data
Following on from my blog on big data, which if you haven’t read, I would recommend you do so, you can check it out here, we are going to do a deep dive into customer data.
Customer data is an asset for any business. It provides a
way for business owners to make more informed decisions and provide greater customer
experiences. Businesses in the fitness industry are subject to cyclical consumer
patterns. Every January there is an influx of new joiners who are ready to begin
their health and fitness journey, but as the year progresses, membership can plateau
. The good news is gym owners can learn to avoid the churn and utilise customer
data to their advantage and here is how: -
Gym goers are all about the gains, but your business can
gain a lot more through understanding your members, what their preferences are,
fitness goals and related technology they have invested in. By paying attention to
your customers and their requirements you can make informed business decisions such
as the introduction of new classes or investing in new equipment. Understanding
your customer’s experience will lower the rate of churn and create customer loyalty.
Customer information such as age, gender, membership package,
profession, fitness goals on joining, attendance patterns are some of the data that
can be collected. Data such as how frequently your members attend, can be segmented
into different groups to identify potential members who may eventually stop
attending. This will aid your marketing campaigns to target these individuals
for customer retention. You can also examine connections between attendance
behaviours and gender or age demographics.
Like anything worth doing there can be challenges and obstacles
– customer data is no different.
Managing customer data can be a challenge, even for the
smaller gyms. You need to be able to sieve through large volumes of data to find
the critical information. Here, tools such as Google Analytics and CRM software’s
such as HubSpot or Zen Planner can be really effective and time saving.
Data Protection is a big one, with GDPR you definitely need
to stay on top of what data you are holding and for what purpose. Data breaches
can mean legal implications and that is not good for business.
Poor customer data can also be an issue, especially now in
2022 when the past two years gyms and fitness related businesses have been closed
on and off due to the Covid -19 pandemic, there will be gaps in customer data.
Don’t let the challenges turn you off, because there is more
to be gained than lost with customer data.
By Kelsey S
An interesting read, Kelsey. I agree that customer information is definitely important to gather and create effective marketing campaigns. With this information customer persona's can be created which then also helps further tailor and personalise the products and services a company has, but also as you mention, poor quality of customer data can be detrimental too because then all marketing efforts are for nothing. Therefore, it is important to invest available resources into ensuring data is collected correctly and stored safely, otherwise, GDPR becomes a major factor here which could have seriously hefty fines or even worse, legal issues could arise from this.
ReplyDeleteKelsey, this is a great overview of the benefits that businesses can obtain when they use customer data right. It should guide operational business decisions which will in turn guide marketing decisions. Knowing your customers well will lead to more satisfied customers. As you pointed out there can be such a lapse of people interested in their new years gym resolution goals, if you have paid attention to their behaviour you can send offers to attract them back and keep them as a member. I like how you phrased it at the end ‘There is more to be gained than lost with customer data’.
ReplyDeleteAs I saw the direct debit coming out of my bank account for the second month in a row without actually attending the gym, I wondered how my gym is interpreting that data!
ReplyDeletePersonal failings aside, great post, Kelsey.
If businesses pay attention to customers and their requirements then they can make informed business decisions which will surely help everyone concerned as you've rightly pointed out.
Very interesting that you highlight the gap in data following the pandemic, something I'm sure gyms are now trying to work hard on to address. And with the pandemic I'm sure there's been many behavioural changes within people's fitness routines that can change a gym's operation - working from home changing the time people attend, etc.
Great overview on the pros and cons of customer data in marketing, Kelsey! This is such a great resource for small businesses looking into using customer data in their own marketing for the first time. You're absolutely right that businesses can gain so much from understanding their customers and in turn, the customer also benefits as well. You've covered some great points on the cons of customer data like GDPR compliance, the large volume of data and the effects of poor customer data. While it's all well and good to think about the pros of a certain part of your marketing strategy, it's just as, or even more, important to prepare for the disadvantages too so as not be caught of guard.
ReplyDeletegreat post
ReplyDeletegreat tips and some excellent takeaways and food for thought.
Caitriona