ClassPass – A Fitness Workout App: “Heterogeneous Evolution between Offline and Digital experiences in the Fitness Industry”

The spread of coronavirus had forced gyms and fitness institutes across the globe to shut down. This is when ClassPass, a fitness workout app made headlines, as the company shifted its services to virtual classes. Amid the pandemic, ClassPass decided to put into use whatever content they had digital and offered it for free. The fitness workout app is presently offering about 50,000 classes per week worldwide. To top that, they created a system where each partner can live stream any workout on any platform they want. Customers of the app were also given freedom in terms of structure and payments.

ClassPass has managed to survive and thrive the local gyms and fitness studios in these unprecedented times by following a very distinct plan while evolving their business structure. In fact, other companies within the fitness industries can learn a lot from them.

Founded in 2013 by Payal Kadakia and Mary Biggins, ClassPass is a fitness workout app. The core idea of the app is to allow its customers to take exercise classes. Customers can do this on a monthly subscription basis at various boutique wellness studios. ClassPass delivers its services to its customers and charges them a monthly fee for connecting workout and fitness enthusiasts with a wide range of exercise classes at a discounted rate. Between the year 2018-19, ClassPass grew its partner network from 9,000 to 22,000 creating the largest network of its kind. The app has raised $84 million from investors like Google Ventures and Thrive Capital. The fitness workout app has been successful in raising a total of $239 million over seven rounds of funding for its exceptional idea and services. Most recently, ClassPass estimated value was said to be $610 million.

ClassPass’s Revenue Generation Model as a Fitness Workout App

ClassPass makes money on the margin between the price per session that they negotiated with the fitness studio and the subscription the users pay. Before reaching the right product-market fit, ClassPass has supposedly gone through many changes in its tariffs over the period. The app offers its services on three levels of monthly subscriptions. The lowest level varies between $39 and $49 based on the city location of the user. It bought a customer around 21 or 27 credits points respectively. The credits can be spent on the desired fitness classes, which costs up to six credits each on average.

On an estimate this means, the lowest-level ClassPass almost converts into either two to five or three to six classes per month. One of the major factors that it depends on is the location. Similarly, for higher-level subscriptions, that cost $49 to $79 and $119 to $159 per month as per the user’s location. Prices in international cities tend to vary slightly due to exchange rates. ClassPass has managed to create one of the most prominent subscription plans in the fitness industry.

ClassPass has successfully managed to negotiate lower tariffs with fitness studios. This has been done by strategically planning their fees to their boutique wellness studios. To an average less populated studio ClassPass refrains from paying anything extra for any additional clients. For fitness studios, ClassPass tends to become a new sales channel for it attracts customers with specific preferences. In terms of experience on the customer’s end, they tend to enjoy the experience and benefit of trying out a variety of fitness studios at a cheaper price.

Introduction to Corporate Wellness

Whenever a company happens to partner with the ClassPass service, they tend to agree to offer its employees ClassPass credits just like an individual membership. The major idea behind the ClassPass’s corporate programs is to motivate its employees to exercise more. Employers don’t buy these credits upfront and are only charged when they use them. The more credits an employee uses per month, the more they receive.

ClassPass Live and ClassPass Go

Often fitness studios and Gyms lose money when memberships are canceled and classes are not filled. To solve this problem ClassPass has introduced subscription-based products gyms and consumers. These products tend to include monthly memberships for consumers, corporate wellness programs, and two virtual services called ClassPass Live and ClassPass Go.

Launched in 2018, ClassPass Live service permits members to opt-in for an added monthly fee between $10 and $19 to provide live-streamed and on-demand fitness classes that members can take at home. This service is accompanied by a proprietary heart rate monitor that tracks a user’s fitness progress.

In 2018, ClassPass launched a mobile app called ClassPass Go, which is free to members and costs $7.99 for non-members. It is majorly a platform for audio-based fitness classes.

A Fitness Workout App is one of the top picks in the list of new app ideas of 2020

Why is ClassPass’s Business Model Skyrocketing so Quickly?

ClassPass has proved itself as an example of the most accomplishing marketing strategy to Think Local, and Act Global. Through strategic partnerships, product integrations, and promotions ClassPass has managed to convert its business ideas into the best partnerships. This has aligned values and helps both sides of the table achieve their goals. The fitness inclined app has brought about positive changes for consumers and service provider in the industry for such as:

Additional Participants

ClassPass is a marketplace for fitness classes but they bring value to the fitness studios by sending demand and filling up empty class spots, but for a much cheaper price than the regular ones.

Variety

ClassPass users enjoy a variety of classes for a much lower rate per session. It’s more interesting for them than subscribing to one or several single fitness studios. Members through ClassPass have access to the largest inventory of studio fitness classes in the world.

Engagement

It’s a widely observed fact that most of the time people tend to back out on their plan and efforts to involve in regular workout sessions at gym or classes but stop so when the initial motivation melts away. On the other hand, fitness junkies, many times prefer to attend and switch classes to stay motivated. ClassPass tends to provide services that benefit both kinds of users hence increasing the engagement.

Flexibility 

Unlike other fitness places and gyms, ClassPass users are free of contracts or commitments. ClassPass works as per the user’s schedule. “Flex” feature of ClassPass allows users to simply change their location to find and visit the best studios in the area easily. Free with subscription, on-demand videos, and the new ClassPass Live service is also available to give you the most comprehensive suite of workout options in one app.

Value

One-time attendance fees for any regular fitness classes are often too high sometimes costing up to $30. ClassPass apps new dynamic based on credit-based pricing allows you to find classes at lower prices and also carry over up to ten credits per cycle.

On-Demand Fitness Workout App

ClassPass is one of its kind On-demand apps in the fitness industry. On-demand apps have proved to be extremely popular in the changing world and are a medium bringing significant relief for people who are always on the go.

ClassPass has proved to benefit the local gym and trainers in empowering their business by driving incremental revenue and increasing their exposure and reach. The Fitness Workout app has helped fitness gyms and studios in accessing a large network of enthusiastic audience. As per the statistics, more than 50% of ClassPass customers are new to studio fitness. About 94% of customers find new studios or classes after they join. ClassPass gives its associated fitness studio opportunity to amplify its brand by showing off your workouts, instructors, and space via our platform and apps. Usage of marketing resources and enhanced tools like SEO, social media, direct mail, and media advertising helps businesses in connecting to new customers. Advanced technology provided by such developed apps helps in maximising both time and revenue. The spot allocation technology has led studios to now spend less time doing manual administration work. 

ClassPass has managed to maintain a 95% retention rate amongst its fitness partners, and work with 30,000+ partners across the globe. Thus defining it’s sucess.

Fitness Workout App Trends

• 18% of professionals worked out in a city other than their hometown during 2019. This is up from 14% of professionals in 2018.
• 58% of professionals revealed they would be more likely to accept a job that offered a fitness and wellness package. (data from an Oct 2019 OnePoll study)
• 38% of people report they work out more after joining digital fitness apps, illustrating that group classes are motivating.
• 80% of ClassPass users have coordinated a workout with a friend or colleague this year.
• Megaformer Pilates classes are a quickly growing trend in the United States.

How much does it cost to Develop a Fitness Workout Trainer App like ClassPass?

To develop a similar app as ClassPass, the cost of developing fitness workout apps will depend on the business model for its customer-centric service providing app. However, the 4 major factors that usually influence the cost structure are the fitness app development company, the complexity, and availability of features, time duration, and the cross-platform feature.

To estimate on an average, one can assume the average service rates regarding the cost while developing a basic fitness app. The  Specifications and Design prototypes on an average would entail 80 hours. The Front-end and Back-end development on an estimate takes about 450 hours. The hourly price range $30/hour. The basic estimate for an ideal fitness app with some cool features will be around $15,000 to $20,000 for both the platforms (i.e. Android & iOS).

Before investing in the business model for the app, the client needs to look for the right set of teams. This team is supposed to provide technical solutions to their vision, voice, and vantage ideas. It is extremely important to build a high standard application for the business idea and objective to have a smooth execution. It is extremely important to hire a dedicated team of experienced and skilled developers, as the app is the most valuable part of the application based business model.

At Yati Labs we provide with the appropriate customised team of Business Analyst, UX/UI Design, Mobile App Developer, Back-End Developer, Tester, and Support & Maintenance for individual projects to deliver a smooth experience and a user-friendly product, for the upcoming brands. Contact us for a free consultation on how we could help you develop a customised fitness app.