Classpass changes business model; with credit rollover, filtering, removes studio limits

ClassPass has gone through a makeover in the last few months. Just in the last six months, they’ve shifted their currency from straight “classes” to a credit-based system that aims to more accurately assign credits to the value of the actual class itself. Now that credits are their official currency, that credit-cased system has inspired several changes to their business model. At first blush, the new features and options seem like a big win for users and the start-up based in New York City.

That’s because many of the new updates originated from user feedback. As of yesterday, the company is removing studio limits. That means ClassPass users can go to their favorite studio as often as they can in a month.

ClassPass’s original business plan was based the assumption that ClassPass members would try new classes in and around their area, and ultimately purchasing extra classes at the studios and classes they liked the most. However, that proved to be not what was happening: “What we saw is that our customers don’t want to do that,” Fritz Lanman, the CEO of ClassPass told Refinery29 “there’s too much friction, so they’ll just go to a different studio inside ClassPass.” Under the old approach, many of the participating studios wouldn’t see those members again, thus losing out on potential customers, and users would feel restricted by ClassPass, instead of the freedom the company often trumps.

With that data in tow, they took the credit-based system and restructured it in a way that removed those limitations. That includes rolling over up to 10 unused credits, buying credits so you can take the class you want to take, filtering by credits, taking away studio limits, and implementing a dynamically-changing credit system that ups or lowers the credits based on high or low-usage. We understand the need for dynamic “pricing” but that one could the one update that proves to be problematic for those that work a normal 9-5 schedule, as most will want to book studio visits right after work from 5PM to 7PM. On the other side, if you work from home and have flexibility to when you can take classes, then this dynamic pricing will benefit you.

With this many changes, ClassPass can’t win them all, but considering the company’s recent history of user-first philosophy and a being more of a well-rounded wellness solution, if any of the recent updates becomes a problem, they’ll tackle it in a few months. A great sign of a great company.

One thought on “Classpass changes business model; with credit rollover, filtering, removes studio limits

Leave a Reply

Your email address will not be published. Required fields are marked *