A global fitness company enhanced their premium membership benefits. However, this did not result in increased premium membership rates, defying their expectations.
Problem
With an improved selection of benefits, what will it take to convert people into premium members?
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.
Ethnography:
• 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 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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