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Retry questionGym Membership Drop
Case Interview Practice >
Synthesis
You have presented the membership analysis and a menu of retention tactics. The CEO now wants an integrated, prioritized recommendation for restoring revenue momentum.
Case Exhibit
Your Response
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Sample answer from an expert consultant
FlexFit should focus recovery efforts on re-engaging and retaining Premium members, while testing tactical improvements to reduce churn and build perceived value.
Key Rationale
- The Premium tier is the primary source of lost revenue
- The Basic and Family plans are relatively stable — no urgent issues there
- Many churn drivers (value perception, benefit awareness) can be addressed without structural pricing changes
Risks & Mitigations
- Retention efforts may not scale
Mitigation: Pilot initiatives at select locations and iterate quickly - Premium upgrades may cannibalize Family or Basic
Mitigation: Monitor member movement across tiers and price sensitivity - Operational inconsistencies across gyms
Mitigation: Roll out standardized training and QA checks for Premium benefits
Next Steps
- Survey former Premium members for root cause of churn
- Pilot 2–3 retention initiatives (e.g., exclusive classes, early booking) in high-churn gyms
- Build tracking dashboard for Premium retention KPIs
- Reassess within 60 days and adjust rollout strategy
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