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24 Hour Fitness Case Study: Using Social to Drive Customer Acquisition


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Learn how 24 Hour Fitness was Able to Generate More Than $600k in Customer LTV in Just One Month

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24 Hour Fitness Case Study: Using Social to Drive Customer Acquisition

  1. 1. Putting Social to Work to Win Customers
  2. 2. Gigya, Inc | | 2 Case Study Highlights o Over 8,400 new direct referrals via its online social sharing referral program in January 2014, driving new member units and LTV revenue of more than $600,000 o Over 331,500 direct contact referrals in the first three months of launching the online social sharing referral program, equating to over $3 million in online media “street value” o Relatively evenly distributed share rate through its online social sharing referral program, with Facebook taking 58.9% of the shares, Twitter at 26.8%, and Pinterest driving a surprising 11.2% of shares 24 Hour Fitness Case Study Background With more than 3 million members across more than 400 clubs, 24 Hour Fitness continues to expand its fitness centers and nurture its member base, and sought to facilitate member loyalty while increasing its fitness club sign-ups via social referrals. | 2
  3. 3. Gigya, Inc | | 3 Challenge Nurture Member Loyalty While Acquiring New Customers As the fitness club chain continues its US expansion, 24 Hour Fitness needed to keep up with its increasingly social member base while finding an efficient, seamless way to leverage social to increase its new member units and retain its existing customer base. The company used Gigya’s technology to develop a full- fledged in-club and online social sharing referral program that draws upon members’ social networks to easily find new referrals and urge prospective customers to complete the path to purchase. Key Challenges Addressed: Leverage social to increase new member units while retaining existing customer base Allow customers to easily find and refer their friends and family Reduce costs of a traditional brick-and- mortar referral program by leveraging the convenience and power of social platforms to generate more referrals and reach | 3
  4. 4. Solution Social Referral Program to Grow Customer Loyalty and New Member Base 24 Hour Fitness worked with Gigya to build an online and in-club social referral system that easily pulls members’ social graphs to share free guest passes to their networks. To facilitate an easy, seamless referral process, 24 Hour Fitness uses social sharing to access members’ social networks and enable them to send unique guest passes to their friends. Customers can choose from a selection of relevant social networks or pull from their email contacts to send personal email messages. | 4
  5. 5. Solution (Cont’d.) After referees receive their free guest pass emails, 24 Hour Fitness can bounce these emails against their member database to pinpoint how many referees ended up redeeming their passes. Gigya’s integration streamlines this segmentation process and enables 24 Hour Fitness to easily send pricing information, special promotions, and more to referees that are farther along in the purchasing funnel. | 5
  6. 6. Solution (Cont’d.) In addition to seeing a significant rise in the volume of new membership referrals through its social referral program, 24 Hour Fitness also noticed a shift in the social networks its members were choosing to share to. In just nine months, the fitness provider saw a lift in Pinterest share volume, as Facebook sharing dipped from 77.4% to 58.9% and Pinterest shares rose to 11.2%. This intelligence enables 24 Hour Fitness to refine its social strategy and digital media spend to better reach its Pinterest-using audience base. Faceboo k 77% Twitter 22% Linkedin 1% Faceboo k 60% Twitter 28% Linkedin 1% Pinterest 11% 24 Hour Fitness Shares by Provider – 9 Month Change | 6
  7. 7. Solution (Cont’d.) As customers continue to refer their friends socially, 24 Hour Fitness uses Gigya’s influencer reporting capabilities to easily rank its top referrers by number of friends, number of shares, volume of referral traffic, and activity frequency and timing. After discovering its top influencers, 24 Hour Fitness rewards these high-value customers with a tailored package that includes a branded workout bag, t-shirt, water bottle, blanket, thank you letter, and more. | 7
  8. 8. “Gigya has equipped us to more effectively and efficiently acquire new members in a seamless, social, and secure way. The results of our social referral program are significant, and we plan to append our existing member database with the social insights derived from Gigya’s technology to help us reach our members in smarter, more relevant ways.” Joe Beruta, Head of Marketing & Communications at 24 Hour Fitness, Inc | 8
  9. 9. | 9 Sharing: valuable interaction with users’ social communities develops credibility via referrals. NEXUS: direct integration with 3rd party marketing applications enables easy appendation of social and membership data for audience segmentation and automated marketing. iRank: visual dashboard scores and ranks members by referral volume and frequency and social network size. Results $600,000 In Lifetime Member Value 24 Hour Fitness saw over 8,400 new direct referrals via its online social sharing referral program in the month of January 2014, driving new member units and lifetime value (LTV) revenue of more than $600,000. Over $3 Million In Online Media Value After three months, 24 Hour Fitness had over 331,500 direct contact referrals after launching their online social sharing referral program, equating to over $3 million in online media “street value.” Key Implementations | 9
  10. 10. About Gigya Gigya helps clients build better customer relationships by turning unknown visitors into known, loyal and engaged customers. With Gigya’s technology, businesses increase registrations and identify customers across devices, consolidate data into rich customer profiles, and provide better products and experiences through integrations with leading marketing and service applications. More than 700 of the world’s leading brands rely on Gigya to build identity-driven relationships and to provide scalable, secure Customer Identity Management. For more information on how to drive customer referrals, acquisition and lifetime value using social sharing and identity data, request a demo by calling 888.660.1469 or visiting: