Industry: fitness studios
Objective: leverage profitability
A B2C subscription based company in the fitness industry was aiming for the next level of growth.
Thorough market analysis revealed a limitation of growth opportunities through acquisition, as well as a constraint for eligible locations for new outlets, hence, organic growth.
Data Science was applied to the membership data base, in order to identify characteristics of churn. Clustering the subscribers in accordance to their churn probability, allowed to address customers with targeted communication, providing incentives for retention. Whereas incentives were paid for in the beginning, soon, these were acquired from partners and ultimately, partners were made paying for the opportunity, to offer own services to the customers as part of the incentive program.
Within specific target groups, the average customer lifetime cycle was extended for three month within a project scope of only six month, delivering an overall EBITDA increase just above 10% for the companies P/L.