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Gym Membership Drop

Case Interview Practice > 
Brainstorming

Your analysis confirmed that the Premium tier lost 5,000 members (-25 percent) while Basic and Family were relatively stable. The COO believes Premium members no longer see enough added value versus the cheaper Basic plan. What tactical actions could FlexFit take to increase retention specifically in the Premium tier?

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Sample answer from an expert consultant

To improve Premium retention, FlexFit could consider the following tactical actions:

I. Enhance Perceived Value

  • Add Premium-only perks: early class bookings, towel service, locker reservations
  • Introduce exclusive classes (e.g., Pilates reformer, HIIT, or spin)
  • Access to personal training consults or nutrition planning sessions

II. Pricing Adjustments

  • Offer limited-time retention discounts for at-risk Premium members
  • Create a loyalty tier (e.g., 6+ months = discounted renewal)

III. Communication & Engagement

  • Survey recently canceled Premium members for specific feedback
  • Re-engage with targeted emails or in-app nudges highlighting benefits
  • Show usage stats (e.g., “You used 8 classes this month — that’s a $100+ value!”)

IV. Service Consistency

  • Ensure Premium benefits are delivered reliably across all locations
  • Train staff to upsell and reinforce value at point of interaction

The goal is to either increase perceived differentiation from Basic or reduce churn pain points in the Premium segment.

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