Direct Marketing | Door Drop Fitness & Leisure Case Study - Fitness First

The Challenge

Fitness First is Europe's largest Fitness Club network and the 2nd largest in the

world. The challenge was using door drops and direct mail

Customer Acquisition: reduce door drop costs from £40 to £36 per member

(10%) whilst increasing the new member recruitment from 20,000 per month to

22,000 per month (10%)

Customer Retention: reduce customer churn from 27% per annum to

65% per annum (10% reduction in churn)

The Scope

• The brief was initially defined as:
• Door drop creative and media planning
• Win-back and previous customer mailings

The Solution

• Customer Acquisition:
• We recommended a new creative approach that included a stronger proposition, localised maps and a 10 day money back guarantee.

• Customer Retention:
• We recommended a "down-grade" win-back mailer to encourage weekend only membership instead of total lapses.

The Results

• Customer Acquisition:
• Cost per member was £40, target set at £36. Actual achieved was £30 (a massive 25% reduction)
• New member recruitment was 20,000 per month, target set at 22,000. Actual achieved 25,000 (a massive 25% increase)

• Customer Retention:
• Customer churn was 72%, target set at 65%. This was also achieved!

The outcome helped increase the market capital from £150m to £200m in one year.