The businesses betting on new year’s resolutions

Consumers flock to health, finance and learning companies to reach their goals. These firms are well aware – and many are seizing the moment to profit.

Get fit. Improve mental health. Make a budget. Learn a language. 

New year’s resolutions provide an opportunity for brands to pitch consumers on products or services that will help them achieve their goals. Companies know there’s revenue potential, especially in membership-based models; many say the start of the new year is an important time to attract new users whom they hope will convert to long-term active paying customers. 

“There are specific spikes in demand for certain products around new year because of resolutions,” says Neil Saunders, US-based managing director at GlobalData, a consulting firm. 

If these subscription-based companies can manage the careful balancing act between spending on customer acquisition through discounts and promotions, while considering return on investments in the months to come, they can cash in on the people eager to spend on platforms, services and products that can bring them closer to success. The habits of US consumers serve as an example of how resolutions can be major commercial moments.

Analysts say the start of the new year is an important time for health-focused businesses. Nearly half of Americans polled in an October 2023 Forbes Health-OnePoll survey said they were prioritizing fitness in their new year’s goals.

“People have been through the holiday season, they’ve probably been overindulging,” says Saunders. “They’re now focused on new year’s resolutions to do with wellness and losing weight.”

New York Sports Club, which operates chains of gyms and fitness facilities in the US – such as popular brands including its eponymous club, Lucille Roberts and Fhitting Room – says January is a critical time for customer acquisition, with new member sign-ups as high as two-times a typical month.

Kari Saitowitz, chief marketing and creative officer of New York Sports Club, says the club banks on the new year’s period as new business driver: targets for new sign-ups are two-to-three times the goals for most other months. It’s not necessarily a revenue play at first; the company offers discounted memberships for new joiners to get them through the door. Last year, New York Sports Club offered new members a $1 joining fee and complimentary membership for the first month.

The long-term profit lies in continued conversion. With the influx of sign-ups, New York Sports Club – and similar membership-based businesses – are hoping these new faces will go on to become loyal customers who pay the standard, higher monthly membership fee after joining on a discount. 

“The idea is to get people started off with a really compelling offer for January… you’ve got to win them over month after month,” says Saitowitz. At New York Sports Club, https://lokeberhasilan.coma key part of this is ensuring they have free orientation sessions with trainers. They must look at strategy for retention after the new year’s rush, too: for instance, she says, the company is in the process of revamping its referral and incentive-based rewards programmes.

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