£2m additional monthly revenue
The new membership structure generated a significant uplift in recurring membership income.
Our work
Optimising a membership portfolio for sustainable growth
The Gym Group partnered with 2CV to rethink its membership and pricing strategy in response to increasing competition within the low-cost fitness market.
As promotional activity intensified and joining fees became easier for consumers to avoid, the business needed a new approach that could protect revenue, strengthen perceived value and encourage long-term member commitment.
Sector:
Fitness & Leisure
Market:
UK
Expertise:
Pricing Strategy, Proposition Development, Customer Insight
The Challenge
The Gym Group’s revenue model relied on monthly membership fees alongside a one-off joining fee.
However, growing competition and widespread promotional activity had begun to erode the value of this fee. Increasingly, consumers were delaying sign-up until “no joining fee” offers became available or switching between gyms to take advantage of short-term deals.
The business needed to rethink its pricing architecture to protect revenue while maintaining member acquisition and retention.
Our approach
We developed a multi-stage programme combining qualitative and quantitative research to understand customer perceptions of pricing and membership value.
Our work included:
- In-gym intercepts and vox pops exploring attitudes towards joining fees and membership benefits
- Stakeholder co-creation workshops to develop new pricing and proposition concepts
- Large-scale quantitative testing with current and lapsed members
- Conjoint analysis to identify the most commercially effective combinations of pricing and benefits
- Focus groups to refine and optimise shortlisted propositions
This approach ensured that customer appeal and commercial performance were considered together throughout the development process.
The Results
Optimised pricing architecture
A clearer portfolio structure improved the balance between customer value and commercial performance.
Stronger long-term member value
Enhanced benefits and targeted promotions created a more compelling proposition for acquisition and retention.
The bold decision
Rather than continuing to rely on joining fees as a core revenue driver, we helped redesign the membership portfolio around clearer value differentiation.
The new structure introduced revised membership tiers and a more compelling benefits package within the always-on proposition, supported by targeted promotional mechanics during key seasonal periods.
This shifted the focus from discount-led acquisition towards a stronger long-term value exchange for members.