Mindbody looks to use artificial intelligence to drive growth

Fitness experience platform Mindbody is looking to use the data it gathers from exercisers to drive both its and the industry’s growth while also announcing a series of significant product improvements.

Having developed a massive dataset from its 2.4 million fitness enthusiasts that use its site and the thousands of fitness, beauty and wellness businesses that it serves, Mindbody Chief Executive, Fritz Lanman explains "the name of the game of AI is, who has the most data to train AI.”

Speaking to technology news website AxiosPro, Lanman stated that in the post-Covid environment “we've seen more fitness consumers go through a churn pattern, so we can teach an AI algorithm how to predict for businesses, who's going to churn better than anybody.

"You kind of want to bet on the players who have the most datasets to teach the AI how to be effective.”

Mindbody is training its AI models to help with recommendations, helping businesses grow because its app can better match consumers with businesses and has also added a dynamic pricing tool.”

In addition, Mindbody's AI booking chatbot supplements front desk functions, such as fielding inquiries, answering questions and facilitating bookings and payment.

Mindbody has a churn prediction tool it calls ‘clients at risk’,’ which examines consumer patterns and trains the AI to predict when a customer is likely to leave.

Lanman notes that this helps businesses "make sure they do whatever they need to do to get those people to stay.”

Product improvements and ‘Zero-Cost Software’ potential with Mindbody Marketplace
Improvements announced this week by Mindbody include advice that the company aims to offer "zero-cost software" for all customers by driving revenue to its customers through the Mindbody Marketplace - with the potential to offset the cost of its product completely.

Explaining this, Lanman stated “this past year, we've taken the time to listen closely to our customers' needs and heard their rallying cries for improved reliability, customer service, and tools for revenue growth.

"We've made substantial investments to enhance our product in these areas - and are committed to helping our customers tap into the Mindbody Marketplace to gain new customers and more revenue."

The Mindbody Marketplace, with more than two million active consumers, offers Mindbody customers the unique ability to reach the largest global pool of wellness shoppers. Enhancements in Marketplace tools such as ‘Promoted Intro Offers’ and ‘Price Drop’ dynamic pricing give businesses a low-cost and low-risk way to convert consumers into direct clients.

The company explains that its average new customer is generating 36% more revenue within their first six months on the platform, and many Mindbody customers are completely offsetting their software costs with recurring revenue from clients who discovered them on the Marketplace.

Lanman comments “many of our customers who are using Mindbody to the full potential are already offsetting their software costs with revenue, but we want Mindbody to be a "zero-cost" software, or better, for all our customers.

"The potential of the marketplace is in the data - and as a key differentiator that is exclusive to our customers, we will continue to put resources into its growth."

Lanman, having just passed a year in his role as Mindbody's Chief Executive, has brought leadership that has refined and enhanced the backend of the core Mindbody product - ultimately reducing system interruptions by 80% and increasing global uptime to 99.9%.

Investments in staffing, improved training and systems, and new AI tools, have led to customer service phone response time reduction by 70% and email responses by 50%.

AI and ML (machine learning), together with Mindbody's scale of booking data (more than 500 million transactions per year), power sophisticated new tools that help Mindbody customers identify their clients who are most likely to churn or prospects who have the highest potential to spend. These insights allow businesses to make informed marketing decisions - reaching their customers and prospects at the right time, with the right message.

Lanman concluded “we're focused on raising the bar for ourselves, and these improvements are just the beginning of what we have in store for our valued customers."

Lower image: Fritz Lanman. Credit: Mindbody.