Project snapshot
We combined the analytical capabilities of artificial intelligence with the supreme reporting functionality of Microsoft Power BI, creating an integrated solution that provides intelligent insights into the trends and patterns in the behavior of fitness club members and opens churn prevention opportunities.
This project focused on the importance of effective reporting and leveraging data gathered and processed by modern analytical tools to improve visibility of customer preferences and expectations and design finely targeted loyalty-boosting campaigns.
Our client provides technological solutions to fitness operations worldwide, assisting the sports and fitness industry with finding innovative marketing strategies. Using best-in-class technologies, the company creates software products that support business growth by increasing agility, building authentic and engaging customer experiences, and enabling proactive service.
Business challenge
Our partnership began as research of AI-assisted opportunities for improving the quality of insights into customer behavior and visibility into interactions between fitness clubs and their members. The ultimate goal was to find a solution that could suggest effective ways to detect and prevent customer churn.
The client’s solution included a reporting component based on Microsoft Power BI. We analyzed the possibility of enhancing it with artificial intelligence (AI) and machine learning (ML) to improve the quality of insights, more efficiently identify reasons for churn, and suggest retention measures. The existing data analytics system implemented in a Microsoft Azure environment also stood to benefit from improvements in performance and the user experience.
Solution
Having analyzed the client’s existing analytical solution, our team enhanced it with AI and ML technologies. Implementing a special ML model allowed fitness clubs to avoid losing revenue by improving the accuracy of member data analysis, identifying members at risk of churning, and isolating churn-inducing factors.
At the same time, we integrated a ChatGPT-based reporting assistant that provides explanations of various reports generated by Microsoft Power BI. The tool uses LLM technology to ensure an interactive presentation of reporting data. This significantly improved the experience of stakeholders and decision-makers by representing reporting results in an easily comprehensible, conversational format.
Business outcome
Based on testing performed in the course of the project, the designed solution shows high churn prediction accuracy. This allows fitness clubs and studios to identify and resolve causes of member churn. Empowered with rich reporting data, fitness businesses can make informed decisions to minimize churn and improve retention.
Detailed member data analysis allows fitness clubs to plan highly personalized interactions aimed at engaging customers and promoting loyalty. Meanwhile, an intelligent reporting assistant seamlessly integrated with Microsoft Power BI improves the experience of fitness club analysts and marketing managers by enhancing the clarity of reports. Such clearer reports increase the value of data gathered by reporting tools and allow stakeholders to make data-driven decisions.
For our client, this solution has significant potential to be offered to other companies within health, fitness, and other industries. The AI-powered churn prediction solution was presented at the IHRSA 2024 Convention in Los Angeles held by the Health & Fitness Association, where it received lots of attention and positive feedback.