The Businesses Betting on New Year’s Resolutions
Health, finance, and learning companies capitalize on consumers’ goals for the new year
As the new year begins, consumers around the world set resolutions to improve their lives. This annual tradition presents a unique opportunity for businesses to market products and services that align with these goals. Companies in industries such as fitness, mental health, personal finance, and language learning are well-aware of the revenue potential that comes with the new year’s resolution season. By strategically targeting consumers with discounted memberships, promotional campaigns, and incentives, these businesses aim to attract new customers who will continue to engage with their offerings long-term.
Health-focused businesses seize the new year’s resolution wave
Health and fitness are common resolutions for many individuals. After indulging during the holiday season, people are motivated to prioritize their wellness and lose weight. Health-focused businesses, such as gyms and fitness facilities, experience a surge in new member sign-ups in January. For example, New York Sports Club, which operates various gym chains, sees a two-fold increase in new member registrations during this period. The company offers discounted memberships to entice new customers, with the hope that they will become long-term paying members. Free orientation sessions and revamped retention strategies also play a crucial role in retaining these new members.
Mental health companies tap into the resolution mindset
The start of a new year often prompts individuals to reflect on their lives and seek ways to improve their mental well-being. Mental health counseling platforms, like Talkspace, witness an uptick in users during January. Talkspace has partnered with American Olympian Michael Phelps to promote its services and encourage users to set intentions for the year ahead. By investing in resolution-related marketing, Talkspace aims to attract new users who will continue to engage in therapy sessions throughout the year. Insurance coverage for therapy sessions also increases during this period, indicating a heightened interest in mental health support.
Personal finance platforms benefit from resolution-driven interest
Similar to fitness goals, personal finance resolutions are common among individuals seeking to improve their financial well-being. Subscription-based budgeting platforms, such as YNAB and Quicken, experience a surge in new member sign-ups in January. YNAB increases its advertising spend to capture the interest of individuals looking to improve their financial habits. Quicken, on the other hand, sees around 15% of its customers join in January. While new customer revenue represents a smaller portion of the company’s overall revenue, renewal rates are high, particularly in the first two quarters of the year.
Language-learning platforms cater to self-improvement resolutions
Language learning is a popular resolution for individuals looking to enrich themselves personally. Language app companies like Babbel and Duolingo offer price promotions and discounts around the new year to attract new subscribers. January is the peak month for revenue and sales for these platforms. Babbel reports a significant boost in the first quarter, while Duolingo experiences one of its biggest customer growth periods of the year. By capitalizing on the resolution-driven interest, these companies aim to engage users and encourage them to continue their language-learning journey throughout the year.
Equinox takes a different approach to resolutions
While many businesses use resolutions as a marketing tool, global fitness and health company Equinox has adopted an anti-new year’s resolution campaign called “We Don’t Speak January.” Instead of promoting resolutions, Equinox focuses on the commitment of its members to prioritize their wellness year-round. Despite this unconventional approach, Equinox still sees a significant uptick in new member sign-ups throughout January. The company’s membership model, consisting of year-long contracts, ensures a boost in revenue for the entire year.
Conclusion: The new year’s resolution season presents a lucrative opportunity for businesses across various industries. By aligning their offerings with consumers’ goals, companies can attract new customers and increase revenue. However, the challenge lies in retaining these customers beyond the initial resolution-driven motivation. Businesses must implement effective retention strategies to ensure sustained engagement and long-term success. As individuals strive to achieve their resolutions, these businesses play a vital role in supporting and guiding them on their journey to self-improvement.