PLANET FITNESS INC CLASS A

Customer Loyalty and Retention Strategies

• Membership Options:

  • The Black Card and Classic Card have similar attrition rates, indicating value perception remains strong even with price increases.
  • The Classic Card price recently increased from $10 to $15, yet retention remains stable, showing effective customer loyalty strategies are in place.

• Returning Members:

  • Approximately 38% of new memberships were from returning members this past quarter, highlighting successful retention initiatives targeting former gym-goers.

• Marketing Strategies:

  • Consumer Testing: Identifies opportunities to attract first-time gym-goers while appealing to returning members.
  • Marketing messaging focuses on inclusivity for various fitness levels, creating a welcoming environment labeled as “no gymtimidation.”

• Perks Program:

  • The PF Perks program has led to members saving around $7 million, emphasizing the added value of membership beyond just gym access.

• Member Engagement and Feedback:

  • Implementation of a standardized feedback system across franchises aims to enhance member experiences and address concerns swiftly.

• Technological Enhancements:

  • The most downloaded fitness app provides opportunities for members to interact and avail benefits outside the gym, boosting engagement levels.

• Focus on Value Proposition:

  • Emphasis on the value of membership versus solely low pricing, with a social media campaign enhancing the perception of the gym’s offering.

Summary of Strategies Impacting Customer Loyalty:

• Equivalent attrition rates between membership types suggest effective retention methods.
• Focus on returning members and inclusivity aims to broaden the customer base.
• Ongoing enhancements in the customer experience through technology and member feedback systems indicate a strong commitment to customer satisfaction.

By concentrating on these initiatives, Planet Fitness seeks to establish stronger loyalty and retention among its membership base, fostering a sense of community and belonging.