![\"Screen](\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/Screen-Shot-2015-12-09-at-6.47.25-PM-300x164.png\")
<\/a><\/p>\n <\/p>\n
For the fitness boutique studio partners, ClassPass provides paying customers to fill excess class inventory (at a discounted rate pre-negotiated between CP and the studio), as well as emerging \u201cthought leadership\u201d in boutique fitness studio management. Specifically, ClassPass pays each studio a fee for each class taken by the CP customers. The fee is a percentage of each class\u2019s retail (\u2018a la carte\u2019) price. Fee percentages are scaled (as opposed to being a flat fee or cost-plus or a flat percentage) based on demand for the specific class, using time of day as proxy for convenience and demand (i.e. a 6PM class on Thursday has a higher fee than a 5:30AM class on a Saturday). In all cases, the price that CP pays the studio per class is significantly lower than the studio\u2019s \u2018drop-in\u2019 rate. CP mitigates the \u201csticker shock\u201d of the steep discount based on both a volume purchase discount and the company\u2019s value-add to the studios, which they define as helping studios maximize their business through webinars and other knowledge transfer and serving as a marketing engine for their business.<\/p>\n
Operating Model & Alignment with Business Model<\/u><\/p>\n
Just as the<\/em> success of its business model is predicated on satisfying both sides of the marketplaces, ClassPass\u2019s operating model is similarly focused on servicing and delivering value to both customers and studio partners<\/em>. <\/strong>By aligning the two models around the same goal, they are able to create and sustain a competitive advantage on both sides.<\/p>\nOperationally, the company is comprised of 180 people across Account Management and Customer Service, Sales, Operations, Finance\/Legal\/HR, Marketing, and cross functional squads comprised of Product, Engineering, and Design.<\/p>\n
The Account Management and Customer Service team services a studio network of over 7,000\u00a0studio partners. Similar to how other companies have the account\u00a0management function, this team serves the same function at\u00a0ClassPass, answering studios\u2019 questions about people coming in, technical issues, questions\u00a0about money, policies, and operational management questions such as \u201chow do I grow my business\u201d.<\/p>\n
The squads are\u00a0an example of the business model leveraging unique capabilities of its operating model. The teams created studio-facing tech tools to automate selling, studio on-boarding, and setting up accounts. The tools co-exist with existing class booking APIs (MindBody, zingFit, Front Desk) used by larger studios. For smaller studios who don\u2019t use reservation software, ClassPass built a venue portal that allows studios to check on reservations. The success of these tools is seen in the fact that today, ClassPass launches 100 studio partners a week across 36 cities internationally without increasing headcount.<\/p>\n
ClassPass also reinforces their positioning as a partner to the studios by dedicating resources to address studios\u2019 customer cannibalization concerns. This includes analyzing customer usage pre\/post CP to prove that CP provides net positive users to each studio and improves customer retention.<\/p>\n
Culturally, the employee experience reflects the company mission to help people live active lives and get the most out of life. Employees enjoy schedule flexibility at work with the understanding that they will be efficient. Similar to the value provides to customers of experiencing the mental and emotional benefits of living an active life, employees embody an ethos of\u00a0\u201cbeing\u00a0positive and grateful. [Not just] smiley, but also having positive intent \u2013 help people [at the company] do their best and be the best version of themselves,\u201d as described by Rachel, ClassPass employee.<\/p>\n
All of the above features and company operational structure scales studio partners, which in turn provides a better service and experience to its subscribers. In doing so, ClassPass creates and sustains a competitive advantage in line with its business model.<\/p>\n
<\/p>\n
References:<\/u><\/p>\n
https:\/\/help.classpass.com\/hc\/en-us\/articles\/204335629-What-is-ClassPass-<\/a><\/p>\nInterview with Rachel M., former Director of Strategy & Operations at ClassPass<\/p>\n","protected":false},"excerpt":{"rendered":"
ClassPass (\u2018CP\u2019) is a two-sided marketplace that connects the end consumer, a fitness class attendee, with classes at boutique fitness studios. <\/p>\n","protected":false},"author":736,"featured_media":0,"comment_status":"open","ping_status":"closed","template":"","categories":[964,209,565,1017,210,46,1016,1018],"class_list":["post-6476","hck-submission","type-hck-submission","status-publish","hentry","category-classpass","category-fitness","category-health-and-wellness","category-lifestyle","category-start-up","category-subscription-model","category-wellness","category-women"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/the-tom-challenge-tom-winners-and-losers-assignment\/","yoast_head":"\n
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<\/a><\/p>\n