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Emerging technology is becoming the baseline. Dan Maxwell explains why the fitness businesses that thrive will be the ones that sweat every detail  from new member journeys to equipment maintenance.

Artificial intelligence is quickly moving from an emerging technology to everyday business tool. Fitness operators of every size are starting to be able to access platforms that automate marketing, personalize communications, identify members at risk of leaving and streamline operations. As AI becomes more affordable and widely available, the question is no longer whether operators should adopt it.

The more important question is what happens when everyone has access to the same technology.

According to Dan Maxwell, CEO of sweti, a marketing technology and services company specializing in the fitness industry, that’s where the competitive advantage shifts.

“This reminds me of the introduction of the Diners Club card, the first credit card,” he said. “In the beginning, accepting a charge card was a differentiator. It gave customers a new level of convenience and gave participating businesses an advantage. But once card acceptance became widespread, the advantage disappeared. Accepting cards became table stakes, and the businesses that did not accept them were simply no longer competing on a level playing field.”

He believes AI is following the same path.

“Right now, operators can gain an edge by using it to prioritize leads, personalize communication, identify members who may be at risk and maybe remove friction from the business,” he said. “But over time, the tools will become widely available, the models will become more comparable and even sophisticated data capabilities will become commonplace. Having AI will not make an operator special. Not having it can certainly put them behind.”

Dan believes that shift creates a significant opportunity for independent operators and regional chains. The technology itself is becoming democratized. Success will depend less on who has access to AI and more on how effectively operators use it to create better member experiences.

In other words, once technology becomes an expectation instead of a differentiator, operators have to excel at everything surrounding it — from the buying experience and member communication to brand identity, service and retention.

Or, as Dan puts it, “the devil is in the details.” 

Sweti
Dan Maxwell, CEO (credit: sweti)

Where Competitive Advantage Takes Shape

For Dan and sweti, the member journey isn’t a series of transactions, it’s a series of opportunities to build trust. Competitive advantage comes from getting each touchpoint right.

“At sweti, we have conversations every day with our partners about creating custom, low-friction buying experiences,” he said. “You want everything about buying a membership online to feel commonplace, safe and that today the member is getting the best deal on the best fit for them.”

For independent operators and regional chains competing against larger brands, he believes the opportunity isn’t simply offering online membership sales or digital experiences. It’s creating a buying journey that feels intuitive, trustworthy and reflective of the brand from the very first interaction.

He believes smaller operators can compete by combining seamless technology with the authenticity and local identity that larger franchise systems often struggle to replicate.

“Layer in regional branding and a niche experience that a rigid franchise operator can’t compete with,” he said.

That philosophy extends well beyond the point of purchase. Dan argues that every interaction — from joining and upgrading to freezing or canceling a membership — shapes how members perceive a brand, and that operators should approach the exit experience with the same level of care as the join experience.

“The consumer expectation is already clear: don’t make people fight you to leave,” he said. “Clear terms, mobile self-service, immediate confirmation and sensible options to freeze, downgrade or speak with a person. Technology should enforce the membership agreement consistently; it should not create a maze.”

While regulations like click-to-cancel continue to evolve, Dan believes the larger issue is member trust. Someone who has a transparent, respectful experience is far more likely to return or recommend the business to others.

“The cancellation screen is still part of your brand,” he said. “Someone treated fairly may return or refer a friend. Someone who feels trapped becomes a chargeback, a bad review and a detractor.”

That philosophy is reflected in sweti’s platform, which allows clubs to customize member intent paths so individuals can self-service upgrades, freezes, downgrades and cancellations while preserving opportunities for retention and re-engagement.

“I just think this approach combines doing the right thing by your members while improving revenue and operations as a whole,” Dan says.

sweti
The sweti team (credit: sweti)

Designing for Today’s Consumer

For Dan, one of the biggest disconnects he sees is surprisingly simple.

“This feels like I could go on all day trying to answer,” he said. “But let me start with the most consistent miss we see regarding consumer expectations: mobile first, all day every day.”

Too many gyms, studios and recreation centers, he argues, continue to build websites, membership pages and digital experiences that are optimized for desktop users rather than the way most consumers actually shop.

“Killer websites, membership plan pages, group fitness calendars, sweeping video tours that, when viewed on a mobile device, don’t land the way people think.”

His advice is straightforward.

“Take out your phone, pull up your site and hand that to a friend who doesn’t belong to a gym or studio. Ask them to explore the group fitness schedule, pricing, joining and cancellation options. See what they say.”

For him, being mobile-first doesn’t mean building another app.

“You have to be mobile-focused, and that does not mean mobile apps,” he said. “App downloads are friction. Account creation is friction. When I say mobile first, I mean the mobile Chrome or Safari experience is the best experience you offer.”

Like every other touchpoint, the goal isn’t to add more technology. It’s to remove unnecessary obstacles so members can interact with the brand naturally.

Looking ahead, Dan doesn’t believe technology will replace the fundamentals that have always defined successful fitness businesses.

“In the plus-25 years I’ve been in this industry, I think it still starts with sound decision-making at the beginning,” he said. “Great location, solid design, quality equipment and stellar service. If you are short on any of the fundamentals, more marketing, more specials, more Black Fridays won’t save you.”

Instead, Dan sees technology playing a supporting role, allowing operators to spend less time managing processes and more time delivering exceptional experiences.

“Our goal at sweti is to be a partner that ignites the growth technology side of the business so operators can stay locked in on those fundamentals.”

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