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Once the top studios are up to speed, it is often much simpler to encourage tier 2 and tier 3 studios to follow and join Classpass too. If way too many tier 1 studios drop out or a keep a limited amount of classes on Classpass, regular monthly subscribers feel the pain and the regular Classpass regular membership can lose its charm. It is very likely that Classpass users naturally tend to pick tier 1 classes first (best location, best instructors, best amenities) before picking classes at tier 2 and tier 3 studios.
With the per-location limit already set up with regular subscriptions, Classpass users need enough tier 1 studios on the platform to allow them to distribute their usage amongst enough studios they like, while still sense they are getting a good deal. Classpass users will fail to find classes that match their needs when they open the Classpass application because the best inventory is retracted or is no more there.
It is not simply about level of studios and classes, quality is key too. There is no doubt that during the “Unlimited membership” phase, Classpass had an army of loyal subscribers which were taking to social media and blogs to preach its greatness and their love for the business, helping fuel its growth. These advocates were typically super-active fitness lovers that noticed in Classpass the perfect solution they never wished for.
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They can work out every time they wished, wherever they desired, at the best fitness studios in town for less than the price of access to just one single facility. This audience enjoyed it a lot that they took full advantage of it by attending classes many times weekly and even every day.
Classpass, they recommended the membership to their friends, they convinced almost all their friends to join up and tag along to the next class… and…. Classpass pay them back for their loyalty and advocacy efforts? They significantly increased the price tag on the unlimited monthly membership they loved a lot before completely taking it away. When Classpass announced the price hike, they lost 10% of their consumer base.
They did not only lose a large number of subscribers, they lost their most loyal enthusiasts, they lost one of the main fuels of the Classpass growth engine. Classpass needs to replace these devoted fans with new ones and the key to making that happen is delighting customers with their product and service.