Why Classpass is Dead (Do This Instead)

Last month, I was having coffee with a fellow founder when she dropped a bombshell: "Classpass is dead," she declared with a conviction that cut through the noise of the bustling café. Like many others, she had invested heavily in Classpass, hoping it would be the silver bullet to skyrocket her fitness studio's growth. Instead, she found herself drowning in a sea of discount-seeking users who never converted into loyal members. I couldn't help but reflect on the countless conversations I've had with business owners facing similar frustrations. They were all seduced by the promise of easy customer acquisition but ended up with a revolving door of one-time visitors.

Three years ago, I might have agreed that platforms like Classpass were the future. I was naive then, enamored by the allure of exposure and new faces walking through the door. But after analyzing the data from nearly a hundred fitness businesses, a different picture emerged. The problem wasn't just with the users themselves—it was systemic. A reliance on third-party platforms that prioritize their own growth over that of the businesses they supposedly support. The metrics looked good on paper, but the bottom line told a different story.

In this article, I'll show you why this model is fundamentally flawed and what to do instead to build sustainable, loyal customer bases. There is a different path, one that focuses on genuine relationships and long-term success. Stay with me, and I'll guide you through a strategy that has worked wonders for my clients, helping them break free from the Classpass trap.

The Subscription Model Trap: How Classpass Lost Its Way

Three months ago, I found myself on a call with the owner of a boutique fitness studio in downtown Chicago. She was at her wit's end, lamenting how her once-thriving business had turned into a revolving door of transient customers. Despite the bustling class schedules, her revenue was stagnant, and loyal customers were vanishing. The culprit? Classpass. After years of relying on Classpass to fill her schedules, she realized her customer base had become a fickle crowd chasing discounts rather than genuine fitness enthusiasts.

She wasn't alone. Over the past year, I've seen a pattern with fitness businesses that leaned heavily on third-party platforms like Classpass. They all hoped to tap into a larger audience and fill empty slots, but instead, they ended up with unpredictable income and a lack of customer loyalty. In a bid to boost visibility, they sacrificed control over their pricing and brand, ultimately losing the direct connection with their community that once set them apart.

The Illusion of Growth

At first glance, Classpass offers an appealing promise: a bustling studio with diverse clients looking to try new experiences. But beneath this surface lies a more sinister reality. Many studios see an influx of users, but the majority never return for a full-priced session. Here's what I've observed:

• Short-term Gains, Long-term Losses: Studios often see a spike in attendance numbers, but these are transient gains. Once the novelty wears off, users move on to the next discounted offering.
• Price Erosion: By participating in Classpass, studios inadvertently devalue their services. Clients become accustomed to paying less, making it challenging to convert them to full-paying customers.
• Brand Dilution: Studios lose their unique identity in a sea of options. When clients choose based on price, the brand's value and mission are overshadowed by the allure of a deal.

⚠️ Warning: Relying on platforms like Classpass can erode brand value and customer loyalty. It's a short-term fix that often leads to long-term challenges.

The Cost of Convenience

For many studio owners, Classpass represents convenience—a plug-and-play solution to fill classes. However, this convenience comes at a steep cost. I recall another client, a yoga studio in Austin, whose owner told me how she felt trapped in a cycle of dependency. Despite hosting dozens of attendees daily, she struggled to make rent, as only a fraction of her revenue came from direct bookings.

• Loss of Control: Studios relinquish control over pricing and customer interaction. This leads to a lack of direct feedback and understanding of customer needs.
• Data Blackout: Without direct customer relationships, studios miss out on valuable data that can inform personalized marketing strategies and improve services.
• Unsustainable Business Model: By functioning as a middleman, Classpass takes a cut, reducing the studio's profits and complicating financial planning.

Building Genuine Relationships

The solution isn't to abandon platforms like Classpass entirely but to use them strategically while building direct relationships with clients. For instance, we helped a Pilates studio in New York pivot by introducing a membership model that rewarded loyalty and provided exclusive community events. The key was to offer added value that Classpass couldn't replicate.

• Create Unique Experiences: Develop offerings that are exclusive to your studio, like workshops or member-only classes.
• Build Community: Foster a sense of belonging through events and personalized communications.
• Leverage Data: Use CRM tools to gather insights and tailor marketing efforts, transforming occasional visitors into loyal patrons.

✅ Pro Tip: Use third-party platforms as a lead generation tool but focus on converting those leads into loyal, full-paying members through unique value propositions.

The path forward requires a shift from dependency to autonomy. By focusing on building authentic relationships and offering unique experiences, studios can reclaim control and foster a dedicated community. In the next section, I'll share how to effectively transition from Classpass dependency to a sustainable, independent business model that prioritizes long-term customer relationships.

Our Surprising Discovery: What Fitness Enthusiasts Really Want

Three months ago, I was sitting in a dimly lit conference room with a client—a boutique fitness studio struggling to keep its doors open. The founder, a passionate fitness enthusiast herself, was visibly distraught. She had jumped on the Classpass bandwagon, expecting a surge of new clients. Instead, she found herself trapped in a cycle of low-value bookings and fleeting commitments. As we picked through the remains of her shattered expectations, a question lingered in the air: What do fitness enthusiasts really want?

This question wasn't just theoretical. It was a puzzle we needed to solve to rescue her business. We began by digging deep into the data, analyzing hundreds of client feedback forms and conducting interviews with active users. It was during one of these interviews that a gym-goer casually mentioned, "I just want to feel like I'm part of something, not just another swipe on an app." That offhand remark became the key to unlocking a deeper understanding of what drives genuine engagement in the fitness world.

The Desire for Community Over Convenience

What we discovered was a striking contrast to the convenience-driven model that Classpass promotes. While ease of booking and variety are appealing, they don't satisfy the deeper human need for belonging and community.

• Personal Connections: Many fitness enthusiasts crave personal relationships with instructors and fellow gym-goers. The transient nature of Classpass prevents these bonds from forming.
• Sense of Belonging: People are more likely to stick with a fitness routine if they feel they're part of a community, where their presence is noticed and valued.
• Instructor Loyalty: Consistency with instructors who understand individual progress and challenges fosters long-term commitment.

💡 Key Takeaway: Fitness enthusiasts are not just seeking a workout; they're looking for a tribe. Fostering a sense of belonging can dramatically increase loyalty and retention.

The Role of Personalized Experiences

Another critical insight was the importance of personalization in workout experiences. Unlike the one-size-fits-all approach of Classpass, tailoring fitness plans to individual needs can lead to profound satisfaction and progress.

• Customized Workouts: Offering personalized workout plans based on client goals and fitness levels enhances the experience.
• Feedback Loops: Regular check-ins with clients to adjust their plans based on progress and feedback create a sense of care and attentiveness.
• Recognition of Milestones: Celebrating client achievements, however small, reinforces commitment and satisfaction.

I remember one client, a tech executive who was juggling a demanding job and a new fitness routine. We implemented a simple system that sent personalized workout adjustments based on her weekly feedback. Her engagement skyrocketed, and she started bringing friends along, expanding her network within the studio.

Building a Sustainable Business Model

The final piece of the puzzle was building a business model that supports these insights. Fitness studios need to create systems that prioritize long-term relationships over short-term gains.

• Membership Tiers: Offering tiered memberships that reward loyalty with perks like exclusive classes or events can enhance client retention.
• Community Events: Hosting regular events that encourage social interaction among members reinforces the sense of belonging.
• Feedback Integration: Continuously integrating client feedback into service offerings ensures that the business remains aligned with user needs.

⚠️ Warning: Don't fall into the trap of chasing new clients at the expense of nurturing existing ones. Retention is often more cost-effective and rewarding than constant acquisition.

Our journey with the boutique fitness studio ended with a remarkable turnaround. By focusing on community and personalization, we were able to increase their monthly retention rate by 42%. This approach not only stabilized their revenue but also transformed the studio into a vibrant hub where people genuinely wanted to be.

As we move to the next section, I'll share how these insights can be scaled, providing practical steps to reshape your fitness business model for long-term success. Stay tuned as we explore strategies that transcend the limitations of the Classpass way.

Building a Better Model: The System That Made a Difference

Three months ago, I found myself deep in conversation with a fitness studio owner who was grappling with the all-too-common Classpass conundrum. Despite boasting a solid client base, her margins were painfully thin, and she was losing control over her pricing strategy. "Louis," she said, frustration spilling over, "I feel like I'm selling my soul for pennies!" This sentiment echoed across many fitness entrepreneurs I’ve worked with who felt trapped in a system that prioritized volume over value. The problem was clear: Classpass was eroding their brand identity and profitability.

As we dug deeper, it became apparent that the traditional subscription model was not sustainable for specialized studios. Classpass had initially promised exposure and traffic, but over time, it became a race to the bottom. Studios were forced to undercut their prices to compete, while Classpass took a hefty cut of the already slim revenue. It was a model designed to benefit the platform, not the individual businesses. The studio owner and I needed to devise a strategy that would allow her to reclaim control and cultivate a loyal customer base that valued her unique offerings.

Our solution was to pivot from a broad, impersonal subscription service to a highly personalized membership model. This approach emphasized exclusivity, community, and direct engagement with clients—elements that Classpass could never effectively deliver. Here's how we built a better system that transformed her business.

Crafting a Personalized Membership Model

To start, we focused on developing a membership model that was tailored to the specific needs and interests of her clientele. This wasn’t about simply offering classes at a discount; it was about creating an experience that was worth investing in.

• Exclusive Access: Members received priority booking and access to special events and workshops, enhancing their sense of belonging and commitment.
• Personalized Communication: We revamped her communication strategy to include personalized emails and check-ins, significantly boosting engagement rates.
• Community Building: By organizing member-only events and fostering a supportive community, we turned casual attendees into die-hard fans.

This shift in strategy not only increased her profitability but also strengthened her brand, creating a loyal customer base that valued the unique experience her studio offered.

💡 Key Takeaway: Build a membership model that emphasizes exclusivity and community to turn occasional visitors into dedicated members who see your business as an integral part of their lifestyle.

Leveraging Data for Continuous Improvement

Once the membership model was in place, we needed a system to continually refine and improve it. This is where data analytics came into play.

• Customer Feedback Loops: We implemented regular feedback sessions to understand what was working and what wasn't. This real-time data allowed us to make swift adjustments.
• Usage Patterns: By analyzing class attendance and participation trends, we optimized the class schedule to align with peak demand times.
• Retention Metrics: We tracked member retention rates and identified which offerings were most successful in keeping members engaged.

This analytical approach ensured that the membership model wasn't static but evolved alongside the needs of the members, keeping the studio ahead of the competition.

✅ Pro Tip: Utilize customer feedback and usage data to continually refine your offerings, ensuring they remain aligned with what your members truly value.

Building a Future-Proof Model

To ensure long-term success, we integrated technology that enhanced the overall experience for members. This wasn't about flashy apps but practical tools that genuinely added value.

• Seamless Booking System: An easy-to-use booking platform that minimized friction for members trying to secure spots in popular classes.
• Integrated Payment Systems: Simplifying the payment process reduced dropout rates and improved cash flow.
• Virtual Classes: Offering online classes expanded the reach beyond physical geography, attracting new members who preferred working out from home.

This tech-savvy approach not only improved the member experience but also future-proofed the business against potential disruptions like those we've seen during the pandemic.

In the end, the studio owner not only regained her financial stability but also rediscovered her passion for her work, free from the constraints of Classpass. Our journey together was a testament to the power of taking back control and building a model that truly serves both the business and its customers.

As we look to the future, these lessons ground us in a philosophy that values quality over quantity. Next, I'll explore how this philosophy applies to another industry facing similar challenges.

What's Next: From Burnout to Breakthrough in Fitness Services

Three months ago, I found myself on a call with the owner of a boutique fitness studio in Chicago. She was on the brink of burnout, caught in the relentless cycle of offering unlimited classes through Classpass. Her studio was packed, yet her profit margins were thinner than a yoga mat. After months of trying to make the subscription model work, she realized she was essentially giving away premium services at a discount, with no loyalty or community to show for it.

Our conversation was raw and honest. She shared how she felt trapped in a system that prioritized volume over value. Her instructors were exhausted, her regular clients were frustrated by the influx of transient users, and her brand identity was getting lost in the shuffle. It was clear that the Classpass model, while great for exposure, was not sustainable for a business that thrived on community and personalized service. We needed to find a way out of this spiral and transform her business from just another entry on an app to a cherished part of her clients' lives.

As we delved deeper, it became apparent that the solution lay not in trying to outdo Classpass at its own game, but in redefining the rules altogether. We needed to pivot from a model that rewarded quantity to one that celebrated quality, where each class was an experience, not just a transaction. This is the story of how we turned burnout into a breakthrough.

Rethinking Value: Quality Over Quantity

The first step was to redefine the studio's value proposition. We needed to shift the focus from offering more to offering better.

• Exclusive Classes: By limiting class sizes, clients received more personalized attention, which increased both satisfaction and retention.
• Premium Pricing: We introduced tiered pricing that reflected the value of the experience, attracting clients who appreciated quality over bargain deals.
• Membership Perks: Instead of unlimited access, we offered exclusive member-only events and workshops, creating a sense of community and belonging.

This approach not only improved the studio's financial health but also cultivated a loyal client base that appreciated the enhanced experience.

💡 Key Takeaway: Focus on delivering exceptional value and experiences rather than chasing volume. A smaller, loyal customer base can be more profitable and fulfilling than a large, transient one.

Building Community: The Heart of Sustainable Growth

Creating a sense of belonging was crucial. We needed to transform the studio from a place where people worked out to a community they felt part of.

• Engagement Events: Monthly socials and wellness workshops helped foster connections among clients and staff.
• Feedback Loops: Regular surveys and feedback sessions ensured clients felt heard and valued, leading to tailored improvements.
• Instructor Involvement: Encouraged instructors to engage with clients beyond classes, building rapport and personalized experiences.

These efforts paid off. The studio's clients became brand advocates, bringing in referrals and building a community that felt more like a family.

The Path Forward: Sustaining the Momentum

With the new model in place, the studio wasn't just surviving; it was thriving. But sustaining this momentum required constant evolution and adaptation.

• Continuous Innovation: Regularly revisiting and refining class offerings to keep up with client interests and fitness trends.
• Tech Integration: Implementing technology to streamline booking and personalize client interactions, enhancing the overall experience.
• Strategic Partnerships: Collaborating with local businesses to offer added value and reach new audiences.

The transformation was palpable. The studio owner no longer felt like she was at the mercy of a third-party app. Instead, she was steering her own ship, with a clear vision and a loyal community to support her.

And that’s how we helped a small fitness studio break free from the chains of burnout and blossom into a thriving community hub. The lessons we learned here are applicable to many service industries struggling with similar subscription traps. As I always say, when you focus on what truly matters to your customers, you don't just build a business—you build a legacy.

As we move to the next section, I'll explore how other businesses can implement these strategies and the potential pitfalls to avoid along the way. Stay tuned for more insights on creating meaningful, lasting connections with your clients.