24 Hour Fitness Case Study: Using Social to Drive Customer Acquisition
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Transcript of 24 Hour Fitness Case Study: Using Social to Drive Customer Acquisition
Putting Social to Work to Win Customers
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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%
22%
1%
Faceboo
k
60%
28%
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.