65% of new customers don't come back after their first month at a fitness studio, which puts a strain on customer acquisition.
Most existing pricing structures are fixed and pretty inflexible. In order to improve retention, studio owners must cobble together a growing number of options, ranging from various packages, to third party discounters and blanket sales.
That got us thinking- maybe the answer isn't another third-party platform, or more membership and package types. Studio owners need a simple yet complete pricing strategy that is built for the way modern customers like to book.
In order to make more customers more engaged, we flipped the traditional pricing model on its head, making it easier for customers to spend more money at your studio and then rewarding them for doing so.
How Dibs Helps:
Step 1: Restore trust in your pricing
Problem: Even if you rarely offer sales, your customers receive constant discount notices from other competitors. This erodes their trust in the value of each class they take. Customers find themselves in a wild-goose chase, mostly paralyzed by the prospect of ever-better deals.
Fix: Pricing based on demand provides clarity that cuts through this noise- it feels more "real." Customers understand why a peak class with a popular instructor may cost less than an off-peak class with a newbie.
Step 2: Take away the moment of hesitation
Problem: Customers may fall in love with your brand after a single class, but they still tend to pause when deciding between pre-paying for a package or purchasing full price drop-ins.
Fix: Help more customers cross this bridge by removing the moment of hesitation. If customers are able to choose from a range of prices and purchase one class at a time, they're more likely to form a long-term habit.
Step 3: Keep a good thing going
Problem: Not seeing the conversion you want from "We Miss You" emails? We didn't either. We believe in rewarding customers who are on track to be really valuable to your studio, rather than trying to drag back customers who are gone for good.
Fix: We send small incentives to customers based on their individual behavior. No more blanket sales that can devalue your brand or encourage people to wait for the next discount.
Step 4: Enhance packages for those ready to buy
Problem: The way packages are structured today leads customers to want to stretch them out, and make them last. And when customers come to the end of a package, there's not much incentive to buy another.
Fix: We give package-holders access to the same value as customers who are paying on the go; they still get rewarded for booking early and off-peak. These rewards go towards their next purchase after completing the package, improving retention in the process.
What We Believe:
You are hard at work cultivating a community of engaged clients who are frequent visitors and advocates for your studio.
Inconsistent pricing strategies, where prices seem artificially high and discounts are only made available through third parties, drag the industry into a race to the bottom. Pricing is a key piece of this relationship- and bringing transparency to the interaction will serve to strengthen your relationships and improve retention.
The Nitty Gritty:
Dibs integrates with MindBody, zingFit and Pike13.
Dibs' pricing engine can be plugged in directly to your site. The platform includes dynamic drop-in pricing, enhanced packages and memberships, and a data-driven incentive strategy to reward your engaged customers.
Dibs charges a monthly licensing fee.
Want to learn more? Here are 5 reasons dynamic pricing is a great option for fitness studios.