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

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Putting Social to Work to Win Customers

description

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

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

Page 1: 24 Hour Fitness Case Study: Using Social to Drive Customer Acquisition

Putting Social to Work to Win Customers

Page 2: 24 Hour Fitness Case Study: Using Social to Drive Customer Acquisition

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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.

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ChallengeNurture 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

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SolutionSocial 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.

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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.

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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

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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.

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“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

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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

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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: info.gigya.com/request-demo.