How Does ClassPass Work? Business Owners’ Questions Answered

For a lot of business owners, the announcement that Mindbody and ClassPass were joining forces was big news: the leading platform for wellness businesses joining with the leading platform for wellness consumers? Makes sense! For some others, there was another reaction: “Wait, what’s ClassPass?”

Maybe you’re a ClassPass pro. Maybe you’ve heard of it but aren’t quite sure what it does. Maybe you’re only learning about it...now. And that’s OK! Whatever your level of ClassPass comprehension, this info is for you.

ClassPass 101:

What is ClassPass? ClassPass is the leading fitness and wellness membership, connecting subscribers to a wide variety of fitness and wellness experiences like yoga, cycling, Pilates, barre, strength training, massage, acupuncture, facials, and haircuts.

How does ClassPass work? ClassPass users select a membership plan and receive a monthly bank of credits that they can use to book fitness, beauty, and wellness experiences at participating businesses. The number of credits needed to book a class or service varies and is listed next to every class or service listing.

Why do classes and services have different credit values? A number of factors go into determining credit value of a class or appointment, including time, popularity, studio equipment, genre, location, and amenities.

What cities does ClassPass operate in? ClassPass is available in all 50 states and in 30 countries globally. You can search to see how many businesses have already joined ClassPass in your area.

How many businesses work with ClassPass? The ClassPass network includes tens of thousands of studios, gyms, salons, spas, and wellness businesses globally, and more join each day.

How does ClassPass pay studios? ClassPass uses Tipalti, a third party service that directly deposits your ClassPass revenue at no cost to businesses. Tipalti is a secure banking system and is SSAE 16 SOC compliant and ISAE 3402 Type II certified.

What are the demographics of ClassPass users? ClassPass appeals to both men and women with disposable income. A typical ClassPass member is 25-45 years of age and may have tried boutique fitness classes but does not typically have loyalty to a specific brand. Generally, ClassPass users are variety seekers who enjoy trying different workouts and wellness experiences each month.

ClassPass and your business:

How do businesses benefit from using ClassPass? ClassPass helps businesses to fill class spots and book appointment times that would otherwise go unfilled, and to attract new customers—with no extra effort or additional cost.

• ClassPass materially grows the number of people who may try your service: Half of ClassPass users did not attend group fitness classes at all in the year before they joined ClassPass.
• ClassPass brings new people to your business: 95% of ClassPass users were not previously regular visitors to the businesses they attend via ClassPass, and 80% report that they never previously visited these businesses.
• ClassPass builds long term loyalty for your brand: Out of the members who leave ClassPass, 60% reported purchasing a class package directly through a studio they visited—and often discovered—through ClassPass.

How much revenue do most businesses earn through ClassPass? While the revenue potential varies widely by location and type of business, businesses typically increase their revenue by 10-20%. Read case studies about businesses successfully using ClassPass.

How long does it take for a business owner to get set up to offer their services to ClassPass members? The set-up process is easy. It typically takes about 10 minutes for a business owner to get set up with ClassPass.

Do businesses that use ClassPass stay with them? ClassPass has a 95% retention rate with revenue-generating businesses.

How does ClassPass prevent its members from using multiple emails for free trials? ClassPass has a number of blockers in place to prevent users from redeeming multiple free trials. To start a trial, a user must provide an original email address, phone number, and credit card, none of which have been used on the platform before. There is also a process in place to identify and block active trials that are believed to be repeats based on IDFA (device ID), browser cookie, and email loopholes.

My ClassPass business account:

What is included in my ClassPass listing? Can I also promote my memberships or class packs? Your ClassPass listing includes information about your studio or business, detailed class or service descriptions, amenities, and photos of your business. You can also sell your packages or memberships within the ClassPass app.

Can I select the classes or experiences I want to offer ClassPass subscribers? Yes. Business owners have full control over which classes and experiences they sell through ClassPass. To help manage inventory for the services and classes you decide to offer, ClassPass has technology called SmartTools that will analyze historic and real-time data on your fill rate. This technology will offer the spots or appointments that would otherwise go unfilled to ClassPass members at the revenue-maximizing price.

How does ClassPass determine the pricing for my unused spots? ClassPass SmartTools look at historical trends and real-time data to predict how full a class will be and what rates will maximize your revenue on that class. SmartRate looks at demand by class, charging more for your popular classes and less for your less popular classes, and adjusts the price for the class throughout the booking window. ClassPass uses machine learning to determine the optimal price for each spot in a class and maximize your revenue based on the time remaining before a class starts, the probability of selling out, and a host of other demand signals.

How will I know if ClassPass is effective for my business? ClassPass has customized dashboards that allow you to easily view your performance. The dashboard is a powerful tool that provides you with insights on reservation history, ratings, revenue earned, top rated classes, utilization, and more.

How can I get in touch with ClassPass customer support? Visit ClassPass support.

ClassPass & Mindbody:

What is the “why” behind the acquisition? Why now? This announcement of Mindbody acquiring ClassPass comes at a pivotal time as the wellness industry works to rebound and consumers realize that wellness is more important than ever and are actively seeking local and authentic experiences. The wellness industry is poised for a massive recovery—by coming together we can better serve the industry and help wellness businesses get back on their feet.

We see a great opportunity to accelerate each other’s missions, grow faster together and build off the momentum we’ve generated from partnering together this past decade. Together, we'll power a new era of wellness and help make wellness more accessible for more people in more places.

Now that ClassPass is part of the Mindbody family, will Mindbody customers have to use ClassPass? No. As always, business owners can decide whether they want to join the ClassPass platform. Just as businesses using ClassPass have the choice to use Mindbody. Neither decision will impact the way you work with either platform.

What will happen to the Mindbody app? Will you combine the Mindbody app with the ClassPass app? We plan to keep the Mindbody app active and separate from the ClassPass membership. Each app offers distinct experiences and reaches different consumers. ClassPass is a recurring subscription and ideal for the price-conscious, variety-seeking consumer. The Mindbody app is ideal for those looking to explore new options and manage their bookings at their favorite businesses . There is no change to the way you work with either platform.

Will you be integrating ClassPass into the Mindbody platform? What benefits will we see from this acquisition? Mindbody and ClassPass will leverage the best of both companies’ technology and expertise to provide studios with best-in-class tools to help them grow and thrive. We are both dedicated to helping drive consumers to fitness studios, spas, salons and integrative health centers around the globe.

As we bring ClassPass into the Mindbody family, we’ll be building deeper integrations between the platforms—to provide better insights to you, and an improved experience for all people booking classes through either platform. We’ll let you know as those integrations become available in the future.

For businesses using Mindbody, does this mean that ClassPass has access to all our customer data? Will they start marketing to my customer base directly? We remain committed to the agreements you signed with Mindbody, including the data sharing restrictions outlined in those agreements. Neither Mindbody nor ClassPass will be marketing to your customers directly using your data. Our team will be marketing to people who have opted to receive emails directly from Mindbody or ClassPass. So, while there may be some crossover with your customer list, we can assure you that we'll only market to consumers who have opted in directly via the Mindbody or ClassPass app, website, email, etc. to receive marketing from us.

We’re so confident ClassPass will increase your visibility and revenue, we guarantee it. If ClassPass doesn’t increase your revenue in 90 days, we’ll write you a check for 2x the difference. (Terms apply.)