Crossfit Connection A Darden experience attempting to revolutionize

Crossfit Connection A Darden experience attempting to revolutionize the way Crossfit is done

Our target objective has transitioned three times over the course of our prototyping process US-wide Crossfit membership network Difficulty scaling the network across the entire United States *Metro area/regional Crossfit membership network* Our primary goal. We have experienced resistance from Crossfit gym owners’ willingness to adopt our program *Metro area/regional specialty workouts Crossfit network* Our secondary goal. This has received support from Crossfit gym owners. This would allow them to generate additional revenue without sacrificing customer CLV. 24 -hour gym access Discovered during conversations that many gyms already provide this service.

The results of our experiments have been encouraging Experiment (n) Perception Results Darden student interviews (3) Positive conversations about improved location and scheduling flexibility Charlottesville Crossfit gym owners (2) Concern regarding how this would affect their class experience and does it address CLV primary need Reddit Crossfit message board survey (21) Mixed results across metro-area sizes, but largest metro area showed willingness to pay and interest Richmond Crossfit gym owners (1) Tyler was ecstatic about the idea, and seemed ready to implement it immediately

The community-based model generatesincremental revenue for Crossfit gyms, and allws Crossfit users tobest incorporate Crossfit into their daily schedule Customer experience Crossfit users sign up for Crossfit Connection Crossfit users can attend other gyms for a much lower drop-in fee Crossfit users are better able to maintain their workout schedule Gym owners receive variable payments for users who drop-in Gyms are able to capture a higher CLV on their members Gym owner experiences Gyms receive incremental revenue for each user who signs up

The specialty workout model generates additional but lower incremental revenue for Crossfit gyms, and Crossfit users have improved breadth of offerings Customer experience Crossfit users sign up for the special event pass Crossfit users can attend special gym events at other gyms Crossfit users have more breadth of offering for special classes Gym owners receive variable payments for users who drop-in Gyms are able to capture a higher CLV on their members Gym owner experiences Gyms receive incremental revenue for each user who signs up

We have instituted an iterative process to develop a solution catered to the Crossfit industry Interview Darden students Communicate with Charlottesville gym owners Survey Crossfit message boards (via Reddit) Communicate with Richmond gym owners, where our product would be launched

We interviewed Darden students (n=3) to determine if our initial perceptions of Crossfit pain points were accurate Primary Crossfit pain points experienced among Darden classmates • Inability to attend classes because of scheduling issues • Inflexibility in classes based on geographic locations within a city • Not being able to practice Crossfit while traveling

We followed these conversations by meeting with Crossfit gym owners in the Charlottesville area to discuss our idea to create a flexible Crossfit membership Gym owners’ responses to our idea • It would be challenging to integrate drop-ins on a consistent basis • Capacity issues may irritate current members Primary business targets Crossfit owners are generally focused on • Improving CLV (primarily through retention) • Improving the user experience • Identifying methods to buttress revenue through additional streams (e. g. gymnastics classes)

Survey results completed by Crossfit users indicate a high willingness to pay for a flexible Crossfit Service for users in large metropolitan areas Other Takeaways • 62% of respondents feel this service would provide value to them • Of those who responded yes to paying, 70% will pay more than $25 and 50% will pay more than $50

We have a number of next steps to accomplish in order to get Crossfit Connection off the ground • Speak with additional Crossfit gym owners in the Richmond area to: • Further customize Crossfit Connection to their needs • Understand point-of-sale billing systems • Determine gyms interested in participating at launch Next steps • Develop a Crossfit Connection prototype: • Select third party software • Build platform and install in pilot gyms • Test the platform, troubleshoot errors • Market Crossfit Connection to gym users • Conduct analysis to determine willingness to pay • Create marketing materials • Train gym owners on positioning and selling

There a number of significant challenges that we need to overcome to experience success • Develop a product that works for the majority of gym owners Potential challenges • Integrated the Crossfit Connection platform across different gym POS and software systems • Address the difference in prices inherent across Crossfit gyms • Achieve a critical mass for Crossfit Connection to offer its promised value

CROSSFIT!