Increasing LTV through Membership Upgrades

5
Case study
Americas
Company Size
>3,000
Industry
Fitness
Features
Conversion
Retention
Challenge

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.