03 Transforming Fitness Rewards into Financial Wellness
PRODUCT STRATEGY
THE COMPANY
Paceline - A Series A company at the intersection of health and finance.
THE CHALLENGE
Paceline, a rapidly growing startup in the health and finance intersection, faced the challenge of transforming its free fitness app user base into loyal customers for its revenue-generating product, the Paceline Credit Card. The key questions revolved around identifying the target customer, crafting a compelling value proposition, and formulating an effective go-to-market (GTM) strategy.
THE PROJECT
As the Head of Go-to-Market and Commercial Strategy at Paceline, my role was pivotal in navigating this challenge and shaping the success of the Paceline Card launch. The context was Paceline's rapid growth, initially driven by a free fitness app that rewarded users for exercising. The journey began with a series of questions. Who was our target customer? What value proposition would convincingly prompt their adoption of the Paceline Card? What should be our GTM strategy?
Our research revealed foundational insights. We found that while people were interested in the Paceline "game," they needed to feel assured of their ability to succeed. The perception of hidden catches and fine print posed a significant barrier to adoption.
A complex challenge emerged in balancing rapid adoption with customer quality. Striking the right equilibrium between achieving a low Customer Acquisition Cost (CAC) and attracting suitable customer prospects became paramount.
In response, we crafted a compelling value proposition. The Paceline Card was introduced with the tagline, "the credit card powered by movement." It provided double cashback rewards when users achieved 150 minutes per week of physical activity, along with additional rewards for fitness-related purchases.
This journey was a collective effort, involving cross-functional collaboration with fellow leaders from various teams including Product, Revenue, Credit Card, Marketing, Growth, and Partnerships.
My approach involved multiple phases of consumer insights and value proposition development. With these insights in hand, we formulated the go-to-market strategy and creative campaign. The strategy was centered on focusing on runners as a beachhead customer segment. Prioritizing this niche audience and delivering rich, contextually relevant content and ads proved significantly more effective than generic marketing aimed at all fitness enthusiasts.
The results were impressive. The Paceline Card experienced rapid growth, acquiring 10,000 customers within its first six months. Notably, Paceline earned recognition from FastCo as both one of the "Most Innovative" companies in the health sector and a "World-Changing Idea."