Americas
Company Size
>3,000
Industry
Fitness
Features
Churn
Retention
Challenge
A fitness organization wanted to increase customer loyalty, satisfaction, and ultimately spend, through premium membership benefits that the customers had been seeking. Namely more equipment to address physical therapy and mental wellness. But, once the benefits were in place, very few members were converted and they couldn’t understand why.
Process
- Survey Validation: We conducted a survey to find how many members were truly likely to convert to the premium memberships and the strength of their propensity for conversion.
- Ethnographic Research: Among the 30% who were truly likely to convert, we identified 10% who had an extremely high probability to convert. We conducted interviews and ethnographic research to understand their reasons for wanting premium memberships and the barriers preventing their conversion.
- Strategy Design and Testing: Using these insights, we helped design strategies to reduce conversion barriers. We then tested these strategies to optimize their effectiveness.
Results
Within six months, our research led to a 3% increase in premium membership conversions, with a steady upward trend. Every 1% increase in conversions adds $500K to the company's bottom line and significantly reduces churn.
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