Website Closers® presents a Health & Wellness company that offers quality fitness accessories, an online fitness club (subscription-based) with diet and workout plans, and more. Consumers are more and more searching for alternatives to expensive, time consuming gym memberships. This company’s mission is to help consumers achieve their fitness goals without going to the gym or hiring personal trainers by pursuing a self-guided, balanced lifestyle supported by the products and services offered by the business. The company offers a fitness tracker smartwatch as well as subscriptions to their digital membership portal that provides content on fitness, workouts, diets, and related health content. Their subscription service has turned out to be enormously profitable, generating 82% of sales, while 7.5% comes from product sales. In the past few years, the public’s interest in healthy lifestyle changes has soared, making this a highly profitable field that has left manufacturers scrambling to meet public demand for new products and services.
Wearable Technology has become a top selling product category in the fitness market over the past decade. Fitness trackers, smartwatches, heart rate monitors and GPS trackers used when charting a cycling/running/walking route are rising in demand, since these devices provide insight into daily activities and fitness routines, offering AI solutions to fitness goals and challenges. Sourcing from their trusted manufacturing partner has allowed for the creation of a customized product unique to this company. While their fitness tracker and smartwatch were the initial offerings, the subscriptions offer the real value in this business. Portal access is available for $47+ per month. To expand their appeal, the company launched a second membership option for just under $10 per month along with a 14-day health plan for under $5 … all of which have a higher retention rate and proven mass appeal.
These digital memberships are particularly popular with consumers who enjoy doing their fitness and exercise routines at home. Their typical customer is a health-conscious man or woman (women make up 70% of their customer base and men are 30%), age 35 and older, with a desire to get support and an educational lift on their health and fitness journey. To date, thousands have opted to maintain a monthly membership with this brand, so the annual value of their customer in the membership funnel is $97. Fitness tracker sales have been impressive as well, prompting the company to launch a sub-brand offering a fitness tracker and smartwatch at a higher price point and without a membership offering. All sales are conducted on the brand’s two Shopify websites, offering 12 SKUs which include several digital products. For their physical products, the company tends to stock up to 1,200 units in their warehouse, with new orders placed every 4 weeks. 13 shipments are made per day per day on average, and there are no seasonal factors to this business as consumers stay interested in fitness and improving their health year-round.
To expand their customer base, this brand has relied solidly on a strong affiliate marketing campaign which has helped drive 90% of sales. The brand has arrangements with more than a dozen affiliate agencies and individuals who send traffic to their offers based on recommendations. PPC ads on Facebook and Google have also been effective in driving sales, along with their email marketing campaign, which benefits from a database of 7,400+ customer subscribers and a whopping 20,980+ total subscribers. The company has email affiliates who serve those campaigns as well. These marketing campaigns are working to drive traffic to their website: At its height, their website has seen more than 18,000+ visitors per month with a phenomenal repeat customer rate of 65%.
Having established a solid foundation for a buyer with high recurring revenues and products/services with demonstrated appeal to the health-conscious consumer, there are some excellent scale options available to this company. For instance, now that there’s a captive audience of past customers as well as current subscribers, adding new products and services to an existing sales funnel becomes very simple. Additionally, incorporating paid ads on the company’s membership content site or email newsletters could open up a new source of revenue, plugging in offerings for everything from meal delivery services to workout wear. This is a terrific option for expanding sales – and considering how many businesses are eager to reach health-conscious consumers – this would be a surefire way to grow through display ads, etc. Another major opportunity exists in listing their SKUs on an eCommerce giant such as Amazon, which would open the company up to that site’s millions of customers. Amazon would be the ideal site to relaunch their higher priced fitness trackers. The company could expand its existing affiliate base with new affiliate networks and expand PPC ads on popular social media sites to further drive sales. Incorporating influencer marketing in this program could tap into the massive network of YouTubers making a living off of home-health videos.
Highly automated, this is a hands-off business that doesn’t require more than 5 hours per week to operate. Owners spends time with affiliate partners to find ways to increase volume. Additional tasks, such as fulfillment, customer support, and managing the website are handled through software or an outsourced team. 3rd party contractors are used to manage many tasks, and the team is in place to oversee daily operations.
For any buyer interested in getting into subscription-based eCommerce, this is a healthy opportunity to take control of this revenue generator and start scaling it upwards.
