Get your loyalty strategy in shape: What gyms can teach us about keeping pace with changing customer needs

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3 min read
Lifting weights

Key Takeaways

Bro, does your program even lift?


A recent Business Insider article talked about a problem many gyms are having: People are using them.

The reason? Gen Zers! Fifty six percent of Gen Z consumers rate fitness as a very high priority in 2024 according to a recent McKinsey survey. That’s a problem for gyms that rely on having people pay for memberships but not use them. While more member engagement usually means more revenue, the reality is that most gyms can only accommodate a fraction of their total membership at any given time. Planet Fitness has an average of 6,500 members per location, but most hold only about 300 people. Crowded gyms have seen a 20% drop in member satisfaction, which could drive higher churn rates as frustrated gym-goers seek alternatives.  

A shift in workout preferences

Not only is Gen Z using gyms more frequently, but they’re also using them differently. According to the article, Gen Z favors weightlifting; and women are more interested in strength training and less “into cardio and being tiny and thin” compared to the previous generation. Younger members also see the gym as a social venue and want space for that, too. Gyms are responding by trading out underused machines and adding hang-out spots, game courts, and even co-working spaces – and in some cases charging extra to access them.

The loyalty take-away: Are you seeing something similar for your loyalty program?

The challenges faced by gyms offer valuable lessons for businesses with loyalty programs. Just as gyms must adapt to the changing needs of their members, companies must also evaluate whether their loyalty programs are aligned with the current preferences and behaviors of their customers.

1. Are your customer profiles different now than when you built your program?

Just as gyms are now focusing on the needs of Gen Z, businesses should assess whether their loyalty programs are attracting and retaining the right customer segments. Has your target audience shifted? Are there emerging demographics you should cater to?

2. Are your benefit usage and costs becoming hard to manage?

Gyms are learning that overcrowding can lead to dissatisfaction, a lesson that can be applied to loyalty programs. If too many customers are using certain benefits, it might become costly or unsustainable. Regularly reviewing the usage patterns of your program's benefits can help you manage costs while maintaining customer satisfaction.

3. Are you offering what today’s customers find valuable?

Customer preferences and expectations are constantly changing, and your loyalty program should evolve accordingly. Just as gyms are rethinking their layouts and services, consider how your program's structure, rewards, and engagement strategies can be updated to meet the needs of a shifting customer base.

Keep your program in shape

As customers change, what they want from you, what you’d like from them, and what that costs change, too. Your program strategy needs to adjust to fit.  

A program needs regular sweating to stay in shape. Give us a call to see if a few tweaks to its form will help yours lift more weight for your business.

About Kognitiv

Kognitiv is redefining loyalty with its AI-native outcome-based technology. Our award-winning loyalty software and a suite of cross-channel intelligence and personalization products enable brands to deliver hyper-personalized experiences, predict and optimize customer engagement in real time, and achieve measurable results.

It’s time to move beyond transactions and earn customers’ lifetime loyalty. Discover how reimagining your loyalty strategy and customer engagement with AI can foster deeper connections and drive long-term success.

Interested in exploring our loyalty, martech, and adtech solutions? Let’s chat!

  • Track, predict, and optimize your customers’ lifecycles with Kognitiv Pulse. Learn more.
  • Enable 1:1 personalization at scale with Kognitiv Ignite. Learn more.
  • Launch and manage a successful loyalty program with Kognitiv Inspire. Learn more.
  • Intelligently acquire and engage customers across paid channels with Kognitiv Amplify. Learn more.

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