On-Demand Digital Fitness Has Taken The Air Bike
Is nothing sacred anymore?
This is very uncharacteristic of me.
I have yet to create any monologue content that goes into the behind-the-scenes of my retirement and how I got here...not just a breakdown of the numbers, but the situational variables, which IMO are far more interesting.
Don't worry, I'll create something eventually, but I purposely haven't yet because I thought it would be best to leave the initial dissection to my very skilled colleagues who have dope podcasts to ask the hard questions.
Thanks to Andrew Frezza (7 Figure Box Podcast), who recently had me on, Sean Pastuch, our conversation drops today, and Jason Khalipa, dropping soon.
Each of these interviews took a different angle on the questions, and I greatly appreciate the opportunity to share my story.
- Stu
Today’s Rundown
✔️ Digital air bike classes are now marketing to microgym clients
✔️ 23&Me and CrossFit make big bets on telehealth
✔️ Two retention metrics you’re not focusing on (but should be)
The Devil's Tricycle a la Peloton
Riding a stationary bike without moving handles is so lame…
It was only a matter of time before the air bike got some mainstream public love.
The air bike is a superior full-body workout compared to a stationary bike, allowing you to throw a metabolic tantrum with your whole body... although I'm very partial to the C2 Bike Erg.
The air bike's role in functional fitness has been a staple for years and now is garnering new public awareness with the "Devil's Tricycle," the nickname given for Fiit's brand new air bike + interactive classes, which boasts a partnership with Assault's Airbike.
Fiit, the UK subscription-based fitness tech company, has partnered with Comcast, telecommunications titan, to launch one of the world's first interactive air bike workouts and expand its presence in the US.
Essentially, Fiit has taken one of the most beloved (and hated) pieces of conditioning equipment found inside microgyms and is now chasing a Peloton-adjacent experience.
MY TAKE
A quick look at Fiit's website might not blow you away. It doesn't feel like a tech company and doesn't scream prideful branding like their close competitor Peloton, but if you dig into their offerings, you might have a change of heart - like me.
Fiit's portfolio includes Fiit Tracker, their personalized tracker that allows users to follow their progress, compete on the live leaderboard and unlock Fiit's algorithm.
The Fiit Tracker also differentiates from other trackers by claiming rep counting capabilities - something I personally am very curious about.
Fiit also plays nicely with a tracker you may already own.
Unlike the OTF model, which requires members to purchase and wear the OTF exclusive heart rate monitor in class to access the on-screen splat points and post-workout stats, Fiit allows fitness goers the option of wearing the Fiit Tracker or accessing the same powerful data by wearing a tracker of their choice - pairing with 27+ other HR trackers from Apple watch to Whoop.
Then incorporate their new interactive air bike class, and you've got yourself a unique player in the market.
Now, I am not sure if this is the right jockey, but this horse can win.
Streaming live classes utilizing the more hardcore cardio equipment, like an air bike which you would typically find in functional fitness facilities, can do well. I do believe that.
It will be interesting to see how the more functional cardio brands, like C2, Assault, etc., get their equipment into more homes and facilities and adopt the subscription-based class service that we've seen have had runaway success since 2020.
You have the equipment. You have the audience. Test the value.
We all know that spin classes are popular, right?
And unless you've been in a coma for the last year+, we also all know that Peloton and single modality cardio pieces of equipment being paid for and delivered to our doorsteps is wildly popular too.
But if you own a microgym, chances are you already have this equipment, and you already have the audience.
So now is an ideal time to test your market and see if there is any value to adding a conditioning-specific class to your lineup.
Pulse your members. "Would you be interested in a single modality air bike class or a rowing class or a ski-erg class (🤮), where you can get in some not-so-mindless cardio"?
This type of class offering may be attractive to someone who wants to knock out 30+ minutes of cardio but wants the accountability of a coach and the energy of a class, so, unlike when they tackle cardio at home, they don't get halfway through and quit.
That is essentially all these classes like Fiit are doing. They are taking something super dull (like cardio) and making it exciting and interactive.
So maybe there's an opportunity for you to R&D some variation of this type of class inside of your microgym and see if it pops.
If it does, fantastic! You might have found a new way to differentiate your classes.
If not, no harm, no foul. You tested it out, decided it didn't work out, and ended it.
Now, I know everybody wants to keep denying it, but digital fitness is slowly eating up more of the prime real estate microgym owners have coveted for so long.
Previously, microgym owners didn't break a sweat if one of their many members wanted to ride on a stationary bike.
But, what are you going to do now?
What happens if air bikes and rowers and skiers become the norm and slowly take pieces of equipment you thought they'd never touch.
So, while Fiit's version of air bike classes may not prevail, someone will come along and turn this into a true competitor.
I fully expect to see more thought leaders in the fitness space recognize the appeal of "hardcore cardio" options and start creating Peloton-like services geared towards individuals who want to grind out cardio at home but just can't muster up the discipline and accountability to get into the garage and make it hurt.
23andMe and CrossFit Go Medical
Telemedicine is all the rage, and these two are betting on its wide adoption…
Going to the doctor's office sucks.
Beyond the commute, parking, waiting room experience, and the ensuing 30 minutes of waiting in an adult gown, it's a shit experience, and it's way too expensive.
IMO, telehealth or telemedicine is a far more practical solution that I have personally used for years. I can't see myself reverting to in-person unless something horrible happens.
So, when companies like 23andMe and CrossFit invest resources to establish themselves as early adopters in the virtual health world to bridge their core service with a future mainstream service, it is simply smart AF.
Here is the highlight reel:
CrossFit and 23andMe are at the forefront of virtual primary care services.
23andMe signed a $400 million deal with Lemonaid Health to provide "genetically informed primary care" for customers.
CrossFit recently announced their virtual primary care service platform called CrossFit Precision Care
CrossFit Precision aims to craft the best healthcare for users with the guidance of CrossFit-trained doctors, health coaches, and data.
23andMe aims to help change the way personalized healthcare is gained with recommendations and plans specific to you and your genetics.
Both companies are hedging big bets that telemedicine is the way of the near future.
MY TAKE
If you own a microgym, my guess is your main focus is fitness. You may dabble in nutrition, mobility, lifestyle, or mindset, but those offerings probably make up a tiny percentage of your membership.
And one thing we definitely don't touch within a microgym is anything fucking medical.
For years as a coach, when somebody would bring up something to me that was beyond my scope, my response was always, "Hey, listen; I'm not your doctor. If this is something you want to discuss with them, or you want to see a physical therapist, let's go ahead and do that. And then once you have the advice from your medical professional, I can adjust movements, intensity, etc."
However, more and more thought leaders in the health and wellness space advocate bridging the gap between healthcare and fitness. Active Life is an excellent example of this mindset that comes to mind.
In the case of 23andMe and CrossFit, I view their progression into telehealth as an easy natural evolution.
Both companies have the resources, the money, and the horsepower to lead the charge in the effort to bridge the healthcare and fitness divide.
Focusing on CrossFit's Precision Care for a moment- an obvious extension for CrossFit, who the medical community has long criticized for their damaging WODs, which IMO is simply because very few doctors have a proper understanding of functional exercise.
Do some people get injured doing CrossFit - you bet. But when those individuals visit their doctor and explain their pain, they are met with a considerable understanding gap, making it difficult for the medical provider to adequately prescribe solutions and causing frustration for the functional fitness junkie who just wants to feel well enough to crush the next day's WOD.
This new offering can alleviate both doctor and patient frustrations, so nice move, CrossFit.
Now, 23andMe is equally bright.
They are already the kingpin of collecting genetic data from paying customers who voluntarily give it, so why not partner with the docs to prescribe specific medical treatments that align with their genetic data?
These moves by CrossFit and 23andMe are not only sensible, but they should also be very encouraging to those in the fitness industry because your pie is about to get much larger if fitness and healthcare can learn to play nicely in this new sandbox.
Listen and Learn.
The fitness forward telehealth offerings are still in infancy, so this is the time to listen and learn.
Start discovering what healthcare/tech options your members are using beyond their wearables.
For example, are they submitting genetic data to 23andMe or a similar service?
Are they using telehealth in any way? If so, why? If not, why?
I don't recommend that microgyms take quick action to offer services that complement these early telemedicine efforts. Still, it would help if you start familiarizing yourself with them, understand your customers' propensity towards them and perhaps even try out some of these services yourself so you're educated in the opinions you form.
Like digital's entry into fitness, we will see healthcare doing the same, on a slower timeline than D2C businesses, but I have no doubt the integration is coming.
So next time you've got a simple symptom or routine check-up that doesn't require lab work, call your provider and see if you can engage in their telehealth service.
You might start seeing the future role this service can play once you've experienced it for yourself.
Length of Membership + Lifetime Client Value
The two metrics your retention efforts need to report, analyze, and execute on…
If you're a consistent fan of my content, you know that I believe client acquisition, NOT retention, is the biggest issue that the average microgym faces.
But today, I want to focus on retention because while it may not be your Achilles heel, there are two metrics most don't track but should be.
I recently touched on these two metrics in-depth on the podcast and created a new course on MGU on this exact topic, but for those who just want the skinny, here you go:
The Average Length of Membership (LOM)
Average Lifetime Client Value (LCV)
The terms are pretty straightforward. The first measures the average length of time (in months) that a member pays you money. The latter is the average amount of money paid until their lifetime with you ends, aka cancellation.
Beyond the obvious reasons for wanting to know this data, the main interest I have always had with this information revolves around completing your client avatar.
"But Stu, I thought client avatars were more about marketing and branding...not retention!"
And you'd be right...when you're just getting started.
When you start the business, you only can characterize who you ASPIRE to attract- and hopefully, you're successful.
However, sophisticated microgyms know that to finish your avatar customer, you need to be able to spit out more than just demographics and lifestyle.
You also need to know how long your avatar will stay with you (on average) and how much money they will likely spend during their lifetime with your service.
Immature Avatar:
25-40 years old male and female
Young professionals living within 3 miles of our gym
Loves the social element of working out more than the actual health benefit
Mature Avatar:
25-40 years old male and female
Young professionals living within 3 miles of our gym
Loves the social element of working out more than the actual health benefit
LOM 26 months
LCV $5,692
See the difference? Can you now understand why microgym owners who truly understand the value of these metrics can better market and brand to a specific group of people?
Knowing how long someone will stay and what they're likely to spend will also motivate you and your staff to not get lazy on your lead nurture and sales workflow - because that lead you let slip through the cracks is actually worth a ton of fucking money!
So to start tracking this information, record the following data every time a cancellation occurs:
Name
Why They Cancelled
There are only five reasons for the cancellation of a microgym
1. Money
2. Schedule
3. Move
4. Injury
5. Change Interest
LOM
LCV
Average it up every six months. Then analyze the data to learn and improve upon your business.
BTW I am severely glossing over this part for brevity, but I go balls deep into it inside the new MGU course I uploaded this week.
So start putting a microscope over this data, take the time to record, analyze, and execute strategies that will improve your LOM + LCV.
Because I promise you this, the financial freedom you seek is buried within the truth of your current numbers. Stop being scared of them, hating them, and resenting them. Because my friends, the numbers are the only thing that will truly set you free.
