Fitbit Premium Digital Health Tracking Subscription Service
1. TM
Premium Subscription Service
Greg, Nathan, Paul, Savio
Software Market Dynamics: Foundations for Successful Products
Dec. 5 2012
2. Background
“In order to grow revenue,
Fitbit needs to develop
subscription-based software
and services in a way that
engages existing
customers, and attracts new
ones.”
3. Target Segment & Target Customer
Target Segment:
• Sports & Fitness Apps: $400 million by 2016
• Wearable connected fitness devices: 80 million by 2016
Target Customer - All Fitbit offerings:
• Mid-Thirties
• Professional, Sedentary lifestyle
• Looking to maximize time efficiency
• Wants to regain, or improve overall health
4. Target Segment & Target Customer
Target Customer – Premium Subscription offering:
• Current Fitbit hardware tracker owner/user
• Wants to leverage data to achieve greater health & fitness results
• Active in online communities and social networks
• Places a premium on healthy living
5. Problem Statement – Fitbit (Free)
“I’m a busy, working parent. Between work and family commitments it
is difficult to focus on leading a healthy lifestyle,
let alone find the time to exercise.
All this makes me feel worn down and overwhelmed. Solving these
problems would help me feel more organized, energetic and healthy.”
6. Problem Statement – Fitbit Premium
“I'm a daily Fitbit tracker user. I love seeing my daily steps count, and I'm
faithfully logging my meals and weight, but I'm starting to get bored. I'm
seeing progress, but I'm not sure where I'm going.
Solving these problems would help me renew my dedication to health
and fitness, and hopefully make the journey more enjoyable.”
Brand Promise:
“Your data belongs to you.
Fitbit will always offer a free account.”
8. Value Proposition and Positioning
Interoperability w/
other platforms
New!
Across All
major OS’s
9. Value Proposition and Positioning
Open, End-to-end Health Tracking System
Comprehensive, Easy, Personalized and Fun!
• Fitbit PremiumTM “gamified” UI reinforces behavior change
• Measurable impact on overall well-being
• Syncs/shares data across ALL platforms
12. Actual Sleep Time
Release Theme/Driver
Strategy Elements
Ease of Use Account setup and login within 7 days
Dietary info logged within 7 days
Number of failed syncs = less than 1%
Motivation Average login frequency = > once per day
Average Reward badges = 5
Overall weight reduction over duration of use
Data Tracking and Analytics User lifestyle adjustment
Accuracy – Minimal tech support issues
13. Vision Molecule .
Actionable Metrics*
1. “Take” Rate
New Premium Members /
# New Device Sales (units)
2. Device Soc. Media ROI
Device Sales (units) / # FB Likes
3. Premium Members
Social Media ROI
Premium Sales (units) /
# FB Likes
4. Premium Marketplace
Conversion Rate
# Devices Sold via Premium
Marketplace Sales Channel
(* Analyzed monthly AND by device)
15. TM
Fitbit Premium Marketplace
Features
Exclusive coupons, promotions and deals for subscribers
Targeted ad opportunities for health & wellness businesses
Grow Ad Revenue model?
Earn Marketplace discounts and credits for reaching usage milestones
Recommendation Engine
Offers and deals will be targeted based upon usage patterns and preferences
Increased Offline Engagement
Attendance at Premium-only meet-ups
16. Business Value / The Ask
Sales Channel Revenue Forecast
$60 / month Penetration pricing strategy: Top-Down: $40M by 2016
• Gain share : post-purchase revenue streams /
network affects associated with market share Bottom-up in 2013:
• B2C Direct Sales Channel: entice device Users to $1.2M
buy Premium Memberships memberships + Ad Rev-Marketplace
Direct Marketing via O&O / Indirect Channels
A. Fitbit.com “Free” Community / Facebook
The Ask: Drag Race to Market Leader
Greenlight to enter Requirement
B. Fitbit.com Premium Service:
Gathering / Product Development phase
1. Online Community / Facebook for Fitbit Premium Marketplace
2. Marketplace: Cross-sell via Ad partners
18. Device
Comparison
Price $99.95 $59.95 $129.95
Steps, distance, calories burned NA
Floors climbed NA
Sleep (hrs, # times woken, sleep efficiency) NA
Silent Wake Alarm (vibrates on your wrist) NA
Syncs wirelessly to Macs and PCs
Syncs to select Bluetooth Smart/ Bluetooth 4.0
devices (iPhone 4s/5, iPod touch 5th & iPad 3rd gen.)
Sweat, rain, splash-proof
Battery type Rechargeable Replaceable watch battery Replaceable 9 volt
Free online and mobile tools
(set goals, track trends, log food and more)
24. Appendix cont. - Customer Persona
Name: Marcy | Job: Office worker | Age: 35 | Sex: F | Married: yes | Children: 1-2
Background:
- works in a 9-5 job, possible overtime.
- most of her time at work is spent stationary at a desk or in meetings
- Has a history of exercising. Owns a gym membership that she rarely uses now
- Values spending time with her kids and enriching their lives with extracurricular activities (music
lessons, soccer practice)
- She finds it difficult to spend time going to the gym
Goal:
- She would like a way to maximize her fitness but be able to balance her work/family priorities by
seeking opportunities that don't require her to go out of her way to excercise. (parking father from
work, walking up the stairs instead of taking the elevator)
- She wants to set a good example for her kids/husband to lead a healthy lifestyle
25. Appendix cont. - Desired Benefits
Benefit Feature
Knowledge/ability to take Sleep Monitoring
action, correct sleep issues
Accountability Community & Social Sharing
Self-Awareness on Health Premium Online Tracking
(tool for behavior change) System
Illustrates opportunities for Analytics and Reporting
improvement
Notas del editor
For hard-working moms & dads who “don’t have time” to take care of their health…Unlike complicated and limited Striiv, Nike, BodyBugg devices…*These devices: Only track physical activity (NOT eating or sleep diets)Locked into 1 or 2 platforms,
For hard-working moms & dads who “don’t have time” to take care of their health…Unlike complicated and limited Striiv, Nike, BodyBugg devices…*These devices: Only track physical activity (NOT eating or sleep diets)Locked into 1 or 2 platforms,
For hard-working moms & dads who “don’t have time” to take care of their health…Unlike complicated and limited Striiv, Nike, BodyBugg devices…*These devices: Only track physical activity (NOT eating or sleep diets)Locked into 1 or 2 platforms,