CASE STUDY

The case study below describes how Equinox Fitness selected HEAT Software to implement a web-based member self-service process that integrates with its back-end membership database and has automated processes and trackability features.

Industry:  Fitness Centers

Objective:  Customer Service

Founded in 1991, Equinox Fitness has grown from its New York City roots into a national phenomenon.  The company owns and operates 23 clubs around the country and serves more than 70,000 members, maintaining one of the industry’s highest member retention rates by delivering excellence in all aspects of the Equinox experience – including member services.  Equinox generously allows members to freeze their membership once a year (for up to three months) for general purposes, such as vacation, and as many times as necessary when medical issues prevent a member from working out. 

Unfortunately, because the membership freeze process was executed manually, and relied largely on busy front desk personnel, formal policies were not always applied in a consistent manner.  This resulted in lost revenues when members were accidentally granted freezes they were not entitled to.  FrontRange Solutions’ HEAT software proved to be the ideal solution – it provides an easy, Web-based way for customers to request freezes, applies policies consistently, integrates the request with a backend membership services database system, and automatically tracks the process from start to finish.

SMA Management Systems unites people and processes with HEAT software

FrontRange Solutions’ top HEAT software partner, SMA Management Systems, worked closely with Equinox Fitness to develop and deploy the membership freeze solution; one of SMA’s implementation experts worked on-site as a member of Equinox Chief Information Officer Jeff Grayson’s team.  Together, the team created a comprehensive membership freeze system that streamlines the membership freeze process by enabling members to initiate their own requests via the Web, and automating key processes.  The system’s highlights include:

1.  Equinox’s Member Services Department collects appropriate information via the
     Web and/or requests additional information.

a.  The member submits a freeze request via the Equinox Web site’s easy-to-use wizard.  This triggers an instant lookup in the member database to determine eligibility.  If the member is allowed to request a freeze, a new screen appears which allows him/her to provide more details to request the freeze.  Upon submitting the request, an email to HEAT software's automatic ticket generator (ATG) automatically creates a HEAT ticket for review, and sends an email confirmation to the member.

b.  If a freeze payment fee is required, the member can enter credit card information over the Web for payment.  When the system is ready to process the credit card information, an AutoTask is run that updates the HEAT ticket status.

c.  If eligibility requirements are met and/or once credit cards are processed, BPAM closes the HEAT ticket and sends an email notifying the member that the freeze has been approved.

d.  If the credit card information is denied, BPAM generates an email to the member. 

e.  For open medical request tickets, BPAM automatically generates emails (or second notifications) to members with deadline dates; if the ticket is still open after the deadline, BPAM automatically closes out the ticket and the customer receives automatic email notification, with instructions for resubmitting a new medical membership freeze request. 

2.  Updates are processed through Equinox’s member services database application.

3.  Crystal reports are generated daily by the Member Services Department using
     call logs to note any fees and status changes.

4.  Member Services managers have access to a manager’s field which allows them
     to override the system, bypassing the business rules.

HEAT software increases revenues and reduces illegitimate freeze requests

Since going live with its HEAT software system in May 2004, Equinox Fitness quickly realized an increase in revenue – from capturing monthly payments for non-medical freezes – and significant cost savings, as consistent policy enforcement cut down on the number of illegitimate medical freezes granted.  In addition, Equinox made important customer satisfaction gains by empowering customers to manage the freeze process via the Web, and by allowing front desk personnel to focus on serving members instead of tending to administrative tasks. Furthermore, centralized control and management reporting give Equinox managers an up-to-the-minute picture of membership freeze activity levels.

“We solved many customer service and management challenging issues with one HEAT application,” says Grayson.  “The Equinox experience touches all aspects of a member’s involvement with our clubs; it’s an integral part of our brand. The HEAT membership freeze system extends the positive feeling our members get from working out at Equinox, beyond the time they spend at our facilities.” 

“The membership freeze system is an ideal example of HEAT software's versatility,” said Steve Dreyer of SMA Management Systems.  “We were able to rapidly implement a solution tailored to meet Equinox’s specific needs, and have it deliver a strong return on investment, fast.”

Next steps: Leveraging HEAT software functionality across the enterprise

Having deployed sophisticated HEAT applications, originally at its IT help desk and now the membership freeze system, Equinox Fitness plans to leverage its investment by applying HEAT to tasks as diverse as facilities management and human resources processing. Grayson explains, “We hire many people in our clubs, which is a very distributed process.  So our next development project will be to leverage the functionality we built for the membership freeze application, porting it to HR activities.  Furthermore, facilities management is very similar to the IT help desk – issues crop up, they need to have tickets opened and prioritized – so we see HEAT helping us automate this area, too.”

All of which underscores the fact that Equinox’s HEAT strategy is as fit and disciplined as its 70,000 energetic, toned members.

About Equinox

Equinox operates upscale, full-service fitness clubs, catering to the middle- to upper-end market segment. The company offers an integrated selection of Equinox-branded programs, services and products, including strength and cardio training, group fitness classes, personal training, spa services and products, apparel and food/juice bars.

Since its inception in 1991, Equinox has developed a lifestyle brand that represents service, value, quality, expertise, innovation, attention to detail, market leadership and results. As of December 31, 2004, the company operated 23 Equinox fitness clubs. More information can be found at www.equinoxfitness.com.