How to Increase Subscription Upgrades by 23% – Club Pilates Case Study

By adding small, immediate, non-discount incentives at three pivotal moments of their sales funnel — $10 to book an intro class, $30 to join, and $30 to upgrade — Club Pilates lifted intro-class attendance by 36%, new-member conversions by 43%, and plan upgrades by 23%. The reasons for this are grounded in behavioral science (present bias, loss aversion, and reward salience) and supported by meta-analyses.

That might all sound technical (and we’ll dig into the technical below), but, essentially, what that means is that gift card rewards can drive desirable actions from prospects and customers without eroding your brand or its price integrity.

TLDR — How to increase subscription upgrades and conversions

• Club Pilates’ Play: Three one-time, action-contingent rewards — $10 to attend intro, $30 to join, $30 to upgrade.
• Club Pilates’ Results: +36% intro attendance, +43% new members, +23% plan upgrades.
• Why it works: Present bias + reward visibility + choice; non-price rewards protect brand’s price integrity better than discounts.
• How to run it: Find key action points (intro→join→upgrade), make rewards immediate & certain, use pre/at/post-action comms.
• Portability: Adapt the same ladder to SaaS, media, learning, boxes, and any other subscription services.
• Tooling: Promotion Vault issues rewards instantly; your ESP/SMS sends messages; fast to launch, brand-safe, and measurable.

Chapters

• Who can benefit from this case study?
• Club Pilates, their problem, solution, and results
• Why their growth plan worked
• The Club Pilates funnel you can replicate
• The numbers and calculating ROI
• A practical playbook with 30-day deployment
• Adapting this growth playbook beyond fitness
• How Promotion Vault can help
• Frequently asked questions

Who can benefit from this subscription upgrade case study?

If you run a subscription business (fitness, SaaS, media, membership programs, learning platforms, subscription boxes), you likely face three evergreen questions:

1. How do we convert more trial/intro users into paying subscribers?
2. How do we raise plan adoption (e.g., from limited to unlimited tiers)?
3. How do we grow conversions without discounting our way into lower margins or weaker brand positioning?

This case study shows how one brand solved all three — with numbers, mechanics, and a repeatable playbook.

Club Pilates’ problem, solution, and results increasing subscription upgrades

Club Pilates set three concrete goals: (1) increase the number of prospects taking an intro class, (2) convert those trialists into new members, and (3) incentivize upgrades to unlimited classes. They ran three coordinated promotions totaling $70 in rewards across the journey: $10 to take the intro class, $30 to join, and $30 to upgrade. Results: +36% intro classes, +43% new members, +23% upgrades.

Key takeaway: Different moments in the funnel require different nudges. A small “yes-trigger” at the trial stage, a larger one at the paywall, and another at the upgrade gate compound into outsized gains.

Why this works to increase subscription upgrades, conversions

Now to the technical stuff! Ultimately, there are three things that drive people to action: immediacy, impact, and choice. Together, these explain why well-timed incentives lift bookings, sign-ups, and upgrades.

Present bias & the power of immediate rewards

Humans overweight immediate outcomes relative to future ones. A small, instant reward can tip action now — even when the long-term benefit is much larger but feels distant. Authoritative overviews of present bias in policy design and behavior change emphasize this exact lever: making benefits immediate and visible increases uptake.

Incentives increase health/fitness goal achievement

A 2022 systematic review and network meta-analysis of 35 randomized controlled trials compared incentive designs for diet/weight control and physical activity. It found that financial incentives increased goal achievement vs. no incentive — and behaviorally-informed designs often performed best. This might sound unrelated, but it actually shows that modest, well-timed rewards are a proven accelerator for behavior adoption in health/fitness contexts — exactly the scenario of “book the intro class” and “join/upgrade” in this case.

Non-price rewards preserve brand equity vs. discounts

Multiple studies and reviews indicate that monetary discounts can shift reference prices and sometimes erode brand image over time, whereas non-monetary promotions (e.g., value-add rewards, gifts, experiences, choice of gift cards) tend to sustain or strengthen brand associations/quality perceptions. Representative findings:

• Meta- and longitudinal analyses report that frequent price promotions can reduce brand value perceptions; non-monetary promotions are less damaging and can be favorable.
• Work specifically comparing monetary vs. non-monetary promotions shows non-monetary options better align with brand-building and perceived quality outcomes.

The takeaway here is clear: Using gift cards/choice-based rewards (instead of cutting core price) helps you move the conversion needle while protecting price integrity and positioning — which is vital for premium subscriptions and tiered plans.

Choice and tangibility increase motivational “feel”

A growing stream of research suggests that tangible rewards and choice of reward (e.g., “pick the brand you want”) can feel more motivating than undifferentiated cash, especially for participation and completion in wellness/activity programs. Meaning: Offering choice among popular gift cards raises perceived personal relevance and enjoyment, increasing claim and completion rates — without touching your brand or price integrity.

The Club Pilates funnel to increase subscription upgrades

Three moments that matter each got a tailored incentive:

1. Trial activation – “Take the intro class”

• Incentive: $10 reward upon attending the intro class.
• Result: +36% intro-class attendance.
• Mechanism: Immediate, low-stakes win validates the first step.

2. Core conversion – “Join as a new member”

• Incentive: $30 reward upon joining.
• Result: +43% new-member conversions.
• Mechanism: Nudging at the right moment leverages present bias and reward salience, reinforcing action.

3. Value expansion – “Upgrade to unlimited”

• Incentive: $30 reward to upgrade plan.
• Result: +23% upgrades.
• Mechanism: Converts “maybe later” to “now,” capturing more lifetime value without blanket discounts.

Note: The three incentives total $70 across the journey, but each is contingent on a completed step. With Promotion Vault’s zero-waste rewards, you only pay when a reward is activated — meaning your spend is inherently performance-aligned.

The numbers that matter (how to model ROI)

You don’t need complicated econometrics to sanity-check whether a reward budget pays back. Use a simple unit-economics model:

• Incremental Conversion (IC): relative lift from the incentive (e.g., +43%).
• Baseline Conversion (BC): your pre-incentive rate.
• Reward Cost per Claimed (RC): your average dollar cost per claimed reward (e.g., a $30 card that costs you $28).
• Claim Rate (CR): % of eligible users who actually claim the reward.
• Gross Margin (GM): contribution per converted subscriber over the target payback window.
• Incremental Conversions per 100 Prospects: (BC × 100) × IC.
• Net Value: (Incremental Conversions × GM) − (Eligible Actions × CR × RC).
  Note: IC is a relative (%) lift, not percentage points.

Example (using Club Pilates “core conversion” step):

• BC = 20%; IC = +43% ⇒ New conv. rate = 28.6%.
• For 1,000 qualified trialists: +86 incremental joins (286 − 200).
• GM per new member (first 90 days) = $120.
• Reward: $30 face value, RC = $28; CR = 85%.
• Eligible actions (joins) = 286; expected reward cost = 286 × 0.85 × $28 = $6,806.80 (≈ $6,807).
• Incremental GM = 86 × $120 = $10,320.
• Net ≈ $3,513 per 1,000 trialists (excluding longer-term LTV).
• Cost per incremental conversion (iCPI) = $6,806.80 / 86 ≈ $79.15.

Break-even GM per incremental join ≈ $79.15. With $120 GM, the program is comfortably positive. Additionally, because reward costs are contingent on being claimed, you avoid paying for non-performers. And because the incentive is non-price and one-time, you avoid training customers to expect a lower price (a common side-effect of discounts).

Practical subscription upgrade playbook: Deploy in 30–45 days

Ready to turn more trials into paying, higher-tier subscribers — without discounting your brand? This 30–45 day playbook gives you a fast, measurable path: instrument the funnel, add small but meaningful non-price rewards where they matter, make them instant and certain, place them right at the decision point, and test your way to scale. Follow these steps to unlock quick wins at intro → join → upgrade, keep spend tied to incremental margin, and build a repeatable engine for conversion and LTV.

1. Instrument your funnel

Track three conversion points: trial/intro, join, upgrade. Ensure you can trigger events and fire rewards only on completion (attendance recorded, subscription created, plan upgraded).

2. Calibrate incentive sizes

Start small at the top (e.g., $5–$10), meaningful at the paywall (e.g., $20–$40), and matched to the monetization delta at upgrades (e.g., $20–$40). Keep total budget aligned to a fraction of your incremental margin (not gross revenue).

3. Use non-price, choice-based rewards

Offer a catalog of popular gift cards (retail, dining, digital). Choice increases personal relevance; non-price value avoids brand devaluation seen with frequent discounts.

4. Make rewards immediate and certain

Present bias means immediacy matters. Communicate “instant” or “same-day” delivery upon action completion.

5. Highlight the reward at the decision screen

Surface the reward right where the action happens (e.g., booking page, checkout modal, upgrade page) and in reminder nudges (email/SMS/in-app) within 24–72 hours of intent signals.

6. Test, then scale

A/B test reward size, copy, placement, and timing. Use sequential rollout: intro → join → upgrade. Expect the largest ROI around the join step, with meaningful additive LTV from upgrades.

Messaging examples you can adapt (tested patterns)

Ready to start building out your drips and automated messages? Here are some examples you can use for inspiration!

• Intro/Trial:
  “Level up your fitness! Lock in your spot for Saturday’s Intro Class and get a $10 thank-you when you attend.”
  (Immediate, certain, and contextual.)
• Join:
  “Keep making progress toward your health goals! Join today and choose a $30 gift card on us!!”
  (Choice + value framed as a welcome.)
• Upgrade:
  “Get ALL the classes, anytime you want them! Upgrade to Unlimited and pick a $30 gift card!”
  (Reinforces the benefit and avoids price cuts.)

Make sure to lead with the outcome (“Unlimited progress”), and make the reward feel like a celebration of the step they’ve already decided to take — rather than a bribe.

Addressing common objections (with evidence)

Skepticism is healthy. And objections should always be tackled with evidence and reason. Below are some common concerns that you might hear from coworkers, colleagues, or bosses – and the answers to their questions.

“Won’t rewards create dependency or crowd out intrinsic motivation?”

It depends on how you use them. Meta-analyses in psychology show rewards can undermine intrinsic motivation when they’re ongoing, expected, and tied to simply engaging rather than to meaningful performance — but one-time, task-completion, or performance-contingent rewards used to overcome initial friction are far less risky. What does this mean? Use small, action-contingent rewards to trigger initiation.

“Why not just discount?”

Because repeated price cuts can reset reference prices and tarnish brand image over time; non-monetary promotions are documented to be less damaging and can even support equity.

“Do incentives really work beyond surveys?”

In health/fitness contexts similar to this case, incentives reliably increase goal achievement (attendance, activity, weight-related goals).

Implementation notes for operational excellence

• Eligibility & fraud control: pay only on verified events (attended class, subscription creation, upgrade effective date).
• Fulfillment: deliver rewards instantly via email/SMS with a frictionless claim flow.
• Catalog: include widely loved brands and digital cards; choice increases perceived value.
• Comms cadence: Promote the reward before action, remind them of the reward during action, and send an easy claim link after action.
• Measurement: track claim rates, conversion lifts, CAC/LTV shift, breakage (if any), and payback by cohort.
• Governance: cap total rewards as a % of incremental gross margin; review quarterly.

Caveats and good-practice guardrails

• Don’t over-extend: keep rewards modest and tied to single actions.
• Don’t make them perpetual: front-load to catalyze behavior. The intrinsic value of your product should do the rest.
• Don’t swap price for prizes: don’t use rewards to prop up weak product-market fit. Rewards remove friction, not replace value. Fix the product.

The results revisited — subscription upgrades & conversions

• Top-of-funnel: A small incentive converts intent to action (showing up to the intro class).
• Paywall: A larger, one-time incentive converts trial to paid.
• Monetization: A targeted incentive converts paid to higher-tier.

Each step is individually ROI-positive and collectively compounding. In Club Pilates’ case, this produced +36% intro classes, +43% new members, +23% upgrades — with non-price value that protects long-term pricing power.

Adapting this subscription upgrade playbook beyond fitness

• SaaS: Reward trial setup completion (data import, first project), plan activation, and annual prepay upgrades.
• Media: Reward account creation, first paid month, bundle upgrades (e.g., add audio or family sharing).
• Memberships/education: Reward orientation attendance, first month paid, curriculum tier upgrade.
• Subscription e-commerce: Reward subscription start, multi-month commitment, higher-value box upgrades.

The underlying psychology is the same: use small, immediate, non-price, action-contingent rewards at the fewest, most pivotal steps.

Increasing subscription upgrades in a smart, reliable way

For high-intent teams trying to increase subscription conversions now — without racing to the bottom on price — this case shows a practical, evidence-based route. Club Pilates’ structured use of small, immediate, non-price rewards at three critical steps is both simple and scalable, with peer-reviewed research explaining why it works and how to tune it for your own funnel.

• Brand: conversions without discounting risk.
• Outcomes: +36% intro class, +43% new members, +23% upgrades.
• Mechanism: present bias, reward visibility, non-price value, and choice.
• Evidence base: incentives reliably increase activity/health goal achievement.

Why Promotion Vault is the best way to streamline and maximize subscription upgrades

Promotion Vault makes reward-driven conversions fast to launch, easy to manage, and simple to measure — without discounting your price.

What you get (and why it matters):

• Brand-safe, non-discount rewards. White-label experiences and a broad choice of popular gift cards help you nudge action without training customers to expect lower prices.
• Instant, certain fulfillment. Digital rewards are delivered as soon as the action is verified (attended class, joined, upgraded), tapping present bias and keeping motivation high.
• Works with your stack. Connect via webhooks/APIs and Zapier to your billing (e.g., Stripe/Recurly/Chargebee), CRM, and email/SMS tools. Promotion Vault issues the reward; your ESP/SMS handles the messages — no need to rip and replace.
• “Only pay for outcomes.” Rewards trigger only on completed actions, keeping spend tightly aligned to performance. No paying for rewards that don’t get claimed.
• Clear, conversion-level ROI. Track claim rates, incremental conversions, cost per incremental conversion, and payback by cohort — so you can prove the program pays its way (and turn the dial up or down with confidence).

How to start (low lift, high signal):

Launch a 2–4 week pilot on your highest-leverage step (usually join). Use a moderate, choice-based reward, set clear eligibility, wire it to your existing email/SMS nudges, and measure iCPI vs. GM. If it beats baseline, extend to intro and upgrade for compounding gains.

If you want the conversion lift of incentives without the brand drag of discounts — and you need it operationally clean, measurable, and fast—Promotion Vault is the practical choice.

FAQ: Increasing subscription upgrades with rewards

What problem does this solve?

Moving satisfied customers into higher-value tiers (e.g., Basic → Unlimited) without eroding price integrity through constant discounts.

What were the Club Pilates results?

A three-step incentive ladder ($10 intro, $30 join, $30 upgrade) lifted intro attendance +36%, new members +43%, and plan upgrades +23%.

Why use rewards instead of discounts?

Discounts reset reference prices and can train deal-seeking. One-time, action-contingent rewards nudge behavior while keeping your core price intact.

Will rewards undermine intrinsic motivation?

Risk is highest with ongoing, expected, engagement-only rewards. Use one-time, task-completion incentives at clear milestones only.

Where in the funnel should I place incentives?

At the fewest, most pivotal steps: trial activation (intro/book/attend), core conversion (join/subscribe), and value expansion (upgrade).

How big should rewards be?

Small but salient (often $10–$30). Cap spend to ≤10–20% of one period’s GM or ≤15–25% of incremental GM created by the upgrade — whichever is stricter.

What claim rate should I expect?

It varies by friction and channel. Improve it with instant delivery, clear “how to claim,” short deadlines, and choice of reward.

How do I avoid training customers to “wait for the deal”?

Keep incentives episodic, time-boxed (48–72h), and action-contingent. Enforce cooldowns and don’t run blanket, always-on offers.

What messages work best?

Progress framing (“You’re one step from Unlimited”), immediacy (“claim today”), and choice (“pick your gift”) at the decision screen plus pre/at/post-action reminders.

What should I track?

Eligibility, offer exposure, claim rate, action completion, upgrade rate, ARPU and churn deltas, and 4- & 12-week holdouts to separate true lift from pull-forward.

How fast can I launch?

Most teams can ship a 2–4 week pilot on the highest-leverage step (often join), then expand to trial and upgrade once economics are proven.

How do I prevent fraud or abuse?

Issue rewards only on verified events (attended class, subscription created, plan upgraded), limit one reward per step per member, set cooldowns, and audit anomalies.

Do I need to change my pricing?

No. Keep pricing stable; use small, non-price rewards to move behavior. This protects brand positioning and long-term margin.

Does this work beyond fitness?

Yes.

• SaaS: reward setup completion, plan activation, annual prepay upgrades.
• Media: reward bundle upgrades/add-ons.
• Learning/Memberships: reward orientation completion, tier upgrades.
• Subcom/boxes: reward multi-month commitment, higher-value box upgrades.

How do I pick the reward catalog?

Offer popular, digital, choice-based gift cards. Choice increases personal relevance and claim rates; digital delivery enables instant gratification.

How should I handle communications?

Your ESP/SMS/in-app handles messages; trigger them from your billing/CRM events. Keep the cadence: pre-action → at-action → post-action (claim link + deadline).

Does Promotion Vault send messages or just the rewards?

Promotion Vault issues/fulfills rewards on verified events. You typically send the emails/SMS via your existing tools (ESP/SMS/CRM) connected by API/webhooks/Zapier.

What if upgrades don’t “stick”?

Add a post-upgrade checkpoint (e.g., reward after one full cycle retained); iterate targeting and messaging.

What if we already rely on discounts?

Taper discounts while introducing non-price rewards for specific actions. Re-anchor value with benefits-first messaging; shorten promotional windows.

What’s the simplest starting template?

• Intro: Attend → $10 reward.
• Join: Subscribe → $20–$30 reward.
• Upgrade: Move to top tier → $20–$30 reward.