Increasing LTV through Membership Upgrades

Case study

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.

Showing changes in the marketplace

Allows companies to see where they need to head. Great illumination research provides an end-destination: Here's where you are going. Here's why we are going there. Here's the map to get there.

Solve business anomalies

Show what’s causing deviations from expected sales and customer acquisition. For example, why are we seeing significantly lower revenue and sales among a target customer than predicted? Great insights exploring sales deviations, not only allow companies to adopt new solutions, but they also create a space for innovation and creative thinking that wasn’t possible before.

Research for business strategy validation

Test ideas, assumptions about customers, and business strategies to ensure strategies are successful when implemented. Validation and hypothesis testing research will not only increase the chances of success, but also ensure that a company is not working off of false assumptions and perceptions about current market needs.

Thought Leadership

Allows companies and organizations to leverage their research to establish themselves as a leader in a particular industry, and to build credibility and trust with one’s target audience. Thought leadership is an effective tool for driving new innovation, inspiring new ideas, and fostering collaboration and partnerships.