Untap a Resource-Free Revenue Stream & Enhance Member Experience & Retention
Partnership
Sponsored By Digital Revenue Systems
Learn how Digital Revenue Systems (DRS) empowers clubs to create engaging, high-energy environments through innovative digital signage that drives both retention and revenue
Imagine if you could modernize communication in your facility to keep members fully engaged and informed, level up the overall experience by boosting the “vibe,” and generate a new revenue stream that requires minimal effort or resources, creating a win-win-win.
That’s what Lisa Maguire and Taylor Watkins help gyms and clubs across the country achieve every day.
Long-time industry veterans, the duo worked together for more than a decade at one of the largest and most prestigious health clubs in the country – Hockessin Athletic Club. (HAC).
Opened in 2007, the facility had 24 strategically placed televisions that were used for music videos and internal promotions. A few years in, the team flipped the script and reimagined their use, turning15 of them into prime advertising spots for local businesses and organizations.
With Maguire steering the marketing and Watkins taking over sales and management, this straightforward yet powerful concept not only helped support the community but also generated a revenue stream of over a quarter of a million dollars annually for the club.
“The revenue was a nice boost for the HAC and it was clutch during COVID, so we were propelled to do it for other clubs,” said Maguire.
So, in 2021, Digital Revenue Systems (DRS) was founded with a vision to empower club owners nationwide to develop profitable and efficiently managed digital signage systems.
Today, the company works with 50 clubs, is currently onboarding 13 more and is growing fast.
One example is Rochester Athletic Club (RAC) in Rochester, Minnesota — the second client they onboarded after connecting at IHRSA and building a strong relationship.
“At 260,000 square feet, RAC hosts over 2,500 people daily and getting their marketing and communication out to members was a pain point for them,” Maguire explains. “We worked as an extension of their team, consulting on all aspects of the signage – and ultimately through 17 TVs and roughly 18 advertisers the program has far exceeded our initial revenue goal.”
“The new revenue stream is a huge bonus, and the modernized member communication has been a significant benefit,” says Brent Frueh, the club’s general manager.
A Turnkey Approach
When it comes to implementation and execution, clubs can expect a very light lift, with DRS shouldering installation, tech support, scheduling, strategy, advertising sales, billing and creative – if needed.
“We have a very close relationship with our clients and work with them extensively up front to develop the logistics, the strategy and the sign network,” said Watkins. “We then take on the full program, manage it and once a quarter the client receives a check.”
Frueh weighs in.
“DRS has been a great company to partner with. Taylor and Lisa have visited our club multiple times and are always there for consultation or questions.”
Watkins and Maguire leverage their years of experience running the signage network for HAC, along with their growing roster of new clients, to share best practices in sign usage, placement, programming and visual appeal.
“DRS collaborated on strategic placement of the digital displays around the club,” said Frueh. “From there, they set up, installed and coordinated everything and got us running. They are an excellent team to work with.”
RAC uses the digital displays to promote internal events, club policies, and special holiday hours, as well as advertising for outside companies.
“There is no real limitation as to what we can put on the digital displays, Frueh explains. “One year one of our junior players won the high school state tennis tournament and we displayed the match point with a big congratulations.”
The financial arrangement is simple as well, with DRS taking a percentage of the advertising revenue and the remainder going directly to the club.
Regarding advertising success, Maguire says the approach works for single clubs or franchise brands and clubs with multi locations.
“The concept applies to any health club or studio as long as the traffic is there,” she says.
Enhancing the Vibe
Clubs working with Watkins and Maguire benefit from the enhanced aesthetics and welcoming environment that their signage networks help create.
“If clubs don’t have TVs, they typically rely on paper signage for promotions, marketing and announcements,” explained Maguire. “This often leads to walls that are cluttered with paper or a messy front desk. When updates are needed, creating new signage and taking down the old becomes time-consuming and costly. In contrast, digital signs can be updated instantly with just a few clicks.”
Watkins adds: “Digital signage is a game changer for clubs like RAC. From the music to the lighting to the branding on the equipment to the way it’s laid out in the club, the digital signage helps create a high-energy, clean, sharp, welcoming vibe. It sets the tone from the time a member walks in the door.”
And it simply looks better.
“Once we had our digital displays up, it quickly became apparent that it modernized the look and feel of the club,” says Frueh.
Maguire emphasizes the importance of both placement and usage strategy when it comes to maximizing the impact of digital signage.
“The goal is to make the screens feel like part of the club,” she explains. They should be fully branded and showcase the club, with advertising sprinkled in.”
She adds that the facility has complete control of the sign settings.
When developing digital signage, “playlists” are created to organize and streamline the content. DRS partners strategically with each facility to determine the best approach here.
“In some clubs, we use a single playlist for all screens, while in others, we design multiple playlists to tailor content to specific areas,” Maguire explains. “At RAC, for example, we have different programming in the cardio area than in the massage area.”
Boosting Retention
In addition to generating a new revenue stream, digital signage can also indirectly boost revenue by enhancing member retention.
“The way you deliver messaging in your club is crucial to the member experience and directly impacts retention,” says Watkins. “First, updating members on club events, schedule changes, and other important information is key to keeping them informed and satisfied. Second, a well-thought-out marketing strategy behind the signage can lead to upsells and other opportunities. Digital signage is more than just software — it’s a powerful marketing tool.”
In the end, Frueh says he’s very satisfied with the outcomes to date, and with the DRS team.
“The team at DRS has been great to work with. They held our hand in the beginning and made sure that everything met our expectations. They have integrity and their experience in the health club business can’t be beat.”