PYMNTS — the Boston source of analysis on how people and businesses monetize interactions — reports an emerging trend from the world of fitness. Its researchers have found that 25 percent of the current Planet Fitness client base consists of the Gen Z demographic.
In fact, the brand is now actively courting high-school students, according to an earnings call earlier this year.
Planet Fitness Targets Gen Z with Tailored Marketing Approach
Interim CEO Craig Benson indicated a willingness to cultivate this market slice. “We aim to be the brand that Gen Z thinks of when they’re ready to join a gym,” he says, noting that the targeted marketing program “… further strengthens our appeal.” He identifies the shift as a strategic move in a retail sector where gym memberships are typically not frequent purchases.
Financial Implications of Gen Z: A Look Beyond Membership Fees
Analysts, curious about the financial implications, questioned whether the influx of younger members would affect the company’s bottom line. Joe Altobello of Raymond James inquired about the average lifetime value of these younger members, especially since they’re less likely to sign up for the chain’s premium Black Card.
Planet Fitness CFO Tom Fitzgerald acknowledged the lower Black Card mix among younger users but remained optimistic, saying, “As we look at the different ages within Gen Z, there are step function changes in their Black Card penetration as they age in. And once they get to their 20s, they look much more like the average of roughly 60 percent of them being Black Card members.”
Affordability and Quality: The Winning Formula for Attracting Gen Z
Notable among the findings is evidence showing Gen Z consumers as discerning spenders. They often seek discounts and value affordability alongside quality. Their financial situations and incomes have seen improvement over the past year, making them an attractive demographic for businesses like Planet Fitness.
For more details on Planet Fitness and its Gen Z demographic, read the original article at PYMNTS.com
