The Evolution of Member Billing

Member management software has changed a great deal during the past decade, as platforms have grown into multi-faceted ecosystems, and data outputs have become increasingly granular, and now, with the advent of AI, more predictive and helpful.

Within that framework is member billing. From the first overdrafts to credit cards and EFTs, that aspect of member management has had its own evolution. Today, in an increasingly complex financial landscape, these systems must account for more than just payment.

"Over the past decade, member billing services have undergone a significant transformation, primarily propelled by technological advancements and changing expectations around communication and convenience," says Eleanore Gracia, director of payments at Jonas Fitness. "In the past, payment reminders and past-due notices were often confined to paper statements or phone calls, which could be costly and time-consuming. However, digital communication channels, such as SMS, email, and automated calls directing members to the IVR which prompts balances and options to pay and or update billing on file, have revolutionized this process. These channels have significantly improved payment response rates, ensuring that messages are more likely to reach members and reassuring operators about the effectiveness of these tools."

In addition to great progress in communication capabilities, the standardization of online account management has empowered members to independently update their preferred payment methods, saving time and reducing administrative workload. Interactive Voice Response (IVR) systems have further streamlined billing operations by allowing credit card and ACH updates over the phone without human interaction. These advancements have made billing processes faster, more secure, and more convenient for both operators and members, enabling clubs to remain agile and responsive in a competitive marketplace.

Answering Operator Needs

Many of the technology shifts Gracia addresses are geared to the member’s side of the equation, but as the fitness industry has evolved, so have operators' billing needs.

“There’s been a strong push for immediate fund availability and tailored billing solutions. Unlike in the past, where processors typically remitted funds just once or twice monthly, today’s operators have the flexibility to incorporate past due billings on days we find most effective,” she explains. “This shift enables clubs meet the demands of their own business cycles along with maximizing revenue. Additionally, operators are now utilizing statistical insights to refine billing practices. This trend keeps operators informed about the latest industry trends and allows them to maximize successful collections. By analyzing optimal draft dates and re-submission times, operators can ensure that their billing practices align with the latest industry trends, thereby maximizing successful collections.”

As the industry has become more diversified, she says, there's been a commensurate need for customization. Not all clubs thrive under a one-size-fits-all billing approach, which has led to increased demand for adaptable solutions that can align with the unique operational rhythms and member demographics of different facilities. This trend toward customized billing has proven essential, giving operators the flexibility to enhance revenue retention and member satisfaction in a way that supports their specific business models.

The Jonas Fitness Member Billing Model

When onboarding clients in their Member Billing Services (MBS), Jonas Fitness first reviews their current data and billing practices in detail.

“That, in turn, results in an alignment with top-tiered billing methods that ensure accuracy and streamlined processes—it sets a baseline for our work together and helps us spot potential issues before they can become truly problematic,” Gracia says. “On many occasions, for example, through our data analysis, we've found clients with high decline rates. We work closely with these clients, implementing industry-standard best practices, key insights based on our collection of data, and proven methodologies. We've been able to significantly reduce these client's overall decline rates, resulting in increased collected revenue and fewer members declining, which makes for happier client owners and members as well.”

Gracia references customization as among the key benefits of its MBS program, which is broken into three core components: Billing, Delinquency, and Communications.

“The makeup of MBS gives our clients the flexibility they often want,” she says. “Some businesses want us to control all aspects of their billing, while others only need help with one component of their billing. Every business is different, and by separating our MBS service into these three components, it offers flexibility within our services, while improving your club’s financial stability and growth.”

“If, at first, you only need help with the administrative aspects of your billing, we can do that,” she continues. “However, if you decide to add IVR and a call center to your approach or SMS and email notifications, our clients are welcome to do that anytime. Our approach of working hand-in-hand with operators allows us to truly understand their business, identify potential areas for ongoing improvement, increase revenue streams, and stay ahead of any issues.”

The Ultimate Advantages

Finally, by using a program like MBS, club operators can cut the cost of hiring their own staff to handle billing-related needs and member management.

"They're able to put that extra cost savings back toward their revenue,” asserts Gracia. “This operational headroom also gives their team the freedom to focus on their daily sales goals to grow their new member base, which in turn also brings in more revenue. We're also able to help clients improve their collectability rates by up to 13%, increasing monthly net revenue. And, since we are running your billing process for you, all funds are settled directly into your account—not ours—providing quicker access to your money. If cash flow is king, this might just be one of the greatest benefits of MBS."

To learn more, visit Jonas Fitness’s website.