Whether you own a fitness center, gym, health club, or another kind of subscription-based business, you know just how important it is to ensure memberships are converted into revenue.
A combination of strategic procedures, technological innovations, and skilled individuals are necessary to make this happen. As a whole system, this process is known as revenue-cycle management (RCM).
Understanding Revenue-Cycle Management
Revenue-cycle management is most often associated with accounting and reporting. But at a fundamental level, it also comprises the various technologies and interactions needed for businesses to handle billing issues, deal with delinquent payments, and maximize revenue from deposits.
What is often overlooked is that an effective revenue-cycle management system can, in addition to keeping your business organized and transparent, also bring about significant revenue increases.
While a billing company can send out invoices or statements, it won’t analyze holes in accounts receivable procedures, answer customer inquiries, or seek out opportunities to retain customers. In order to ensure these bases are covered, a comprehensive approach to optimizing revenue through membership management is essential.
Club owners and managers have enough on their plate as it is. To take on all of these tasks while juggling other responsibilities is almost impossible. However, improper member management can lead to fees going uncollected. Failure to maintain an active revenue-cycle management system puts businesses at risk and also limits the experience they’re able to offer their customers.
That’s why many club operators turn to organizations skilled at integrating and automating these processes. Clubs can not only expect to boost customer retention rates and avoid late or missed payments when they invest in an effective revenue-cycle management solution. They can also provide their members with more fluid interactions and an enhanced overall customer experience.
The Three Components of Revenue-Cycle Management
Revenue-cycle management requires three crucial components for efficient operations: innovative technologies, strategic processes, and skilled individuals. Below is a detailed look at how these three elements work together to create an optimized system.
Without software, the potential of revenue-cycle management simply can’t be fulfilled. It’s important to choose a service provider that will be vigilant about conducting required updates and adapting to changing regulations.
Cybersecurity concerns and the fast-paced nature of the digital environment are just a few of the long-term issues any revenue-cycle management provider must address head-on. When this is done properly, innovative technology can be leveraged to collect more revenue quickly and effectively.
Designing an optimal revenue-cycle management process is not a straightforward task. In fact, only an expert can create a system that works without a hitch.
The creation of such a process should consider a wide range of contingencies and include plans for regular optimization. From re-attempting charges to negotiating failed payments, there are a number of issues that must be strategically navigated in order to avoid missing out on revenue opportunities.
Without skilled individuals ready to handle all aspects of the revenue-cycle management system, even the most strategic processes and innovative technologies will be ineffective. Building, training, and maintaining a team in-house is not only expensive but also time consuming.
This leads many clubs choosing to partner with a trusted service provider. In this way, they can ensure the staff handling their crucial business processes have the specialized skills required to produce the best results.
Member management is so much more than billing. When you have a capable organization, like ASF Payment Solutions, overseeing your club’s revenue-cycle management, you can focus on tending to your members while maintaining confidence your business is collecting all the revenue it’s owed. In addition, you’ll benefit from having some of the very best systems, technologies, and experts at your disposal to enhance the growth and profitability of your club.