What’s in it for me? An overview of Daxko Payment Services.

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When we launched Daxko Payment Services it was with the knowledge that we could provide better payment services options for our customers and the results we’ve seen thus far have proven that out. So, what are the advantages that Daxko provides?

An Integrated Model of Payment: By creating a service with an integrated gateway and processor, Daxko Payment Services allows the Daxko Payment Services team to have visibility, access and control to allow seamless and efficient service throughout the payments process for our customers and their members.

Creating Daxko Payment Services for our customers also offers customers these benefits:

  • Single Point of Service – Questions about a card decline? Or, wondering why a deposit didn’t hit the bank when expected? Daxko Payment Services offers our customers one point of contact (the Daxko Team) for all questions about payments. Be integrating our payments, we now can provide our customers the award-winning customer service they’ve come to expect when dealing with all types of payment processing questions or needs.
  • Transaction and Batch Visibility – Daxko Payment Services offers an online portal with payment history and visibility to allow customers to troubleshoot with their members. For example, the online portal allows Daxko Payment Services customers to search by last 4 digits on a card to find a member that was double-billed quickly.
  • Next Day Deposits – We know that any transaction closed in Daxko Operations or in Daxko Spectrum by 5pm CST will be deposited the next day.
  • Integrated EMV Compliant Terminals – Daxko Payment Services provides our customers true point of sale capability integrated with the software application.
  • Proactive and Automatic Account Updater – This card account updater service avoids CC declines for invalid expiry dates or invalid account numbers. Daxko Operations or Daxko Spectrum customers will sometimes see a monthly draft fail due to an invalid expiration date. Staff is then required to call the member and explain that they were unable to run the card because it expired. Then one of two things occurs, staff time is spent getting updated card information and getting it into the system or the member will realize that they aren’t using their gym membership as much as the used to and they will terminate their membership.

The numbers prove how valuable this service has already proven to be:

CURRENT STATE:
Across Daxko in 2016, we saw 379,246 preventable declines due to invalid expiry dates or invalid account numbers. Those declines were worth $29 million (not including future revenue lost on long-term membership value).

Based on Daxko Operations and Daxko Spectrum data, we know that 1 in 3 members that have a card decline based on one of the reasons mentioned here will terminate their membership within 30 days.

So, across our products, that equals 113,172 terminations. Just a single month of that revenue loss of $8.7 million.

Imagine taking those numbers for members stayed one, two, six months or even longer at your health club, YMCA, JCC or fitness center.

REVENUE PROTECTED:

So, what happens when we add Daxko Payment Services Proactive Account Updater? Our data show that it updates around 40% of card data. Across Daxko with card account updater we could see 35,268 declines prevented, worth 3.48 million for one month and $41.76 million annually

The difference between Daxko Payment Services card account updater is that it is “proactive” and “automatic.” because it automatically checks the card numbers prior to draft day. It is automatic, secure, and most importantly is proactive. No manual intervention required. It runs automatically every month in the background. In addition, there is robust reporting in both Daxko Operations and Daxko Spectrum.

Since we launched Daxko Payment Services Proactive Account Updater, we’ve proactively updated more than 100,000 cards. If we use the same math as we did previously, we’ve prevented more than 40,000 declines, more than 12,000 terminations and retained more than 6 million in revenue.

A Customer-Centric Approach to Club Management with Daxko CTO, Bjørn Bjerkøe

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When I joined Daxko earlier this year, I knew it was the right decision for many reasons. The most important? Daxko closely aligns with my overarching philosophy of a customer-centric approach to design, develop, deploy and support a club management platform. Now that I am fully onboard and working with my teams on Daxko Operations and Daxko Spectrum software, I am putting even more of a focus on our customers and I know this is the path to take to achieve long term and sustainable growth both for our customers, but also for our company.

Our vision is to become the most loved and largest software provider focused on member-based organizations. How do we do that? By being the best-in-class member-management solutions, pushing the envelope and understanding where the market is heading. I believe that successful software technology companies either succeed or fail based on how consistently they deliver quality software. There are two key words in that statement, consistency and quality.

Daxko CEO Dave Gray interviews Daxko CTO Bjørn Bjerkøe at 2017 Virtual Reach Event

I believe a critical element of software development, and a necessary step in delivering on both the consistency and the quality promises mentioned above is involving our customers in the process. When we bring our customers into the conversation, we have a built-in engine for continuous feedback. This customer-focused approach leads to more regular iterations and incremental development to lower our overall risk and results in higher quality and more rapid software releases.

Becoming the Best-in-Class Software Provider
At Daxko, language is very important. We regard our customers as partner organizations. We partner with them to deliver not only an industry-leading club management platform and the exceptional customer experiences that have won our services team numerous awards. Part of providing exceptional experiences is knowing when to build and when to partner with other software and integrate our systems to best serve a customer need. And, by involving our customers first, we have the opportunity to understand their needs and where they see themselves in five to ten years. Our products serve over 9,000 facilities and 20 million plus members. This gives us a wealth of industry knowledge and data to tap into to enhance the products and services we offer.

Having an Innovative Mindset
We are in the software technology space. We must innovate. I need my team attending industry conferences, meeting with customers to dig deeper in discovering the next big thing, and keeping their finger on the pulse on where technology trends are heading, whether that’s mobility, artificial intelligence or API integrations. My teams (along with our product strategy teams) are also tasked with keeping an eye on market needs and trends. Right now, one of the biggest market needs is data – exchanging data, analytics, dashboards – everyone wants to be able to consume data in a digestible manner. We have 20+ years of data in the member-based health and wellness market. Customers have data from other technologies they want to see integrate with our products and that’s where our vision for a partnership ecosystem and our Daxko Spectrum REST API comes in, so that all parties involved can leverage what each of us do well and enhance our services and offerings. Having my team focused on these things opens us up to become the best-in-class health and wellness facility solution our customers are looking for.

Delivering Exceptional Experiences
We are dedicated to providing exceptional experiences to our customers and that starts with our products. I love that we have great relationships with our customers, and I love hearing that someone chose Daxko because of what our product does, how it functions, how it makes their life easier or how it solved a problem. Our products need to be solving customer problems and making their lives easier while driving growth.

I believe that we have to listen to our customers, identify the key differentiators to meet market needs and follow through in terms of delivering those items to our customers. Mobility, data and having a great user experience are those key differentiators that will allow us to deliver those exceptional experiences that are vital to sustainability and growth.

Assess & Align Your Brand Part II: Define and Evolve

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In the first segment of our 3-part program on aligning your brand for growth, we outlined the process we used to understand market perceptions about the Daxko brand.

You now have clear understanding of your current brand perception post-evaluation. And you’re pleased with what you found (yay!). What’s next?

(Disappointed by what you learned? We’ll cover some ideas for shifting perceptions in another post.)

Build a brand toolkit. Let’s look inside at the different tools that will enable you and your team to articulate, reinforce, and amplify your brand.

  1. Your differentiator. You’re competing in a crowded market. Why do customers choose—and stay with you—instead of the club down the street? Is it your friendly and knowledgeable staff? The innovative programming you offer? State of the art equipment? A combination?
  2. Your key message(s). Using your differentiator above, what are the key messages that articulate who you uniquely are? At Daxko, we call these our core truths. For example, one of our four core truths is that we are the member-based health & wellness leader. No other company is able to provide a wider variety of technology solutions to more types of organizations than Daxko. What simple messages reinforce your clubs brand? Typically these relate to what you provide, how you provide it, and to whom.
  3. Personality. Your brand has its own personality which is expressed linguistically, visually, and experientially.
    • Language & tone: What words, phrases, and tone express your brand? Are you friendly or authoritative? What do you call your customers? Are they clients, customers, or partners? What about your team? Are they staff, associates, team members?
    • Visual: Your brand expression transcends more than simply your logo or mark. What colors and fonts are part of your branding toolkit. When choosing photos and images, do you rely on stock photography or images of actual members in your facility?
    • Experiences: Your club likely has an online and a physical presence. Does the experience you provide across the board reflect who you are or work against you? For instance, is your brand welcoming yet front-desk staff don’t greet members with a smile as they check in? Or are online interactions with your club frustrating and confusing? Those are experiences you’ll want to realign with your brand.

After you’ve stocked your toolkit, document it all for your team. This toolkit will help each person to understand what types of words and interactions reinforce your brand, and also what detracts from it.

Join me next week for Part III in this program where I’ll share how to evangelize your brand, starting with the most important stakeholders—your team.

Your Club’s Brand: An Asset or Liability for 2018

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In just two short months, individuals in your community will once again recommit to the pursuit of health. Your preparations are probably already underway to ensure that people choose your club vs. a nearby competitor.

State of the art equipment? Check.
Well-trained, friendly staff? Check.
Enticing programs? Check.
Powerful, relevant brand? Hmmm…

While not always top of the checklist, your brand can play a powerful role in enticing new members to join AND keeping them committed even as their new year’s wellness enthusiasm fizzles. On the flip side, your brand can work just as hard against your success.

In this 3-part series, I’ll share insights gained from Daxko’s own recent brand strategy initiative. My hope is that you’ll come away inspired and armed with a framework to evaluate—and if needed—evolve your club’s brand for a more prosperous future.

PART I: Evaluate

At Daxko, we intentionally took stock of our brand earlier this year. With our acquisition of CSI Software in late 2015, we had expanded to serve many more member-based health & wellness organizations. Daxko’s software now powers health clubs, medical wellness, and campus recreation facilities in addition to our long-time YMCA and JCC customers.

We set out to understand current perceptions of Daxko. What did customers think about us? The market? Our own team members? And how did the perception of our brand compare to other providers in the space?

Here’s how we approached understanding Daxko’s brand equity, guided by the experts at our brand strategy firm, R2i.

  1. Identify a cross-section stakeholders to interview. Prospective members. Current members. Terminated members. Boomers. Millenials. Engaged staff. Disgruntled staff. Pro-tip: Avoid the temptation to only talk to people who love your club. While the picture they paint will be rosy, it won’t be the whole picture.
  2. Draft a brand perception interview guide. Build an interview guide of questions that you’ll ask to each stakeholder. A few to get you started:
    • How do you initially hear about our club?
    • Has your experience with us compared to what you expected when you joined?
    • If you had to describe our club in one word, what would it be?

Pro tip: Keep questions as open-ended as possible to get as much information. Asking around 15 questions or less will keep the interview to a manageable length of 45 minutes.

  1. Invite them to share their perceptions. Listen, listen, and listen some more to what they have to say about you. Pro tip: Guarantee their anonymity when sharing results of the interviews to ensure there are no barriers to sharing. Having a neutral third-party conducting the interview makes this even easier.
  2. Compile and look for commonalities. After you’ve finished all of the interviews, what seems to be repeated over and over again? Is it that your staff are friendly and knowledgeable and make starting a routine less intimidating? Or perhaps that your group exercise programs are cutting edge? Pro tip: Compare how those common perceptions compare to what your competitors say to position themselves. Where do you stand out?