What the Running Industry Can Learn From ClassPass

(Hint: it’s not about sitting back and blaming those darned millennials.)

Raise your hand if you saw the recent article in the Wall Street Journal entitled “How Millennials Ended the Running Boom.” It notes that 2013’s all-time high of 19 million footrace finishers had dropped to 17 million in 2015, with millennials’ share of that pie shrinking. The number of millennials who run frequently (50 times per year or more) also dropped significantly in that two-year period. The author largely cites the proliferation of ClassPass and more experiential fitness options as driving that change.

As a millennial and someone who works in the running space, my reaction to this article was mixed. I was surprised, because millennials are the fastest growing segment for new users in Runkeeper. I was annoyed at yet another thing the media was blaming on my “entitled” generation.* At the same time, I get it: while millennials are signing up for our app in droves, they can be the hardest to keep engaged and running frequently.

I also felt motivated.

Because, while it’s really fun to blame millennials for everything going wrong in the world (cough, sarcasm, cough), it’s on us running industry folk to self examine. What is it that makes ClassPass so appealing? And how can we start to replicate it? It’s a big but exciting challenge. I haven’t signed up for ClassPass (yet), but here’s what I’ve observed about their winning mix.

1. Variety

It’s the spice of life, right? While repetition is great in terms of finding a routine and working it into a schedule, it gets really, really, really boring. I love running but there are days when the idea of running that same 5K loop around my house again makes staying on the couch a hell of a lot more appealing. Perhaps ClassPass’ biggest draw is the sheer volume of options. Their website touts this level of variety and customizability with the description: “Your monthly membership lets you create workout routines that work for you, whether thatʼs Bikram and barre or cycling and circuit training.”

2. Guidance

With running, any number of self doubts can creep into one’s head: Am I doing it right? Am I going to get better? Have I fallen into a rut? Will I hurt myself? Group fitness instructors are there to provide an effective workout but also ease this self doubt and anxiety in the process. They’ll tell you if your form is wrong. There’s always a modification for more advanced people to go harder and for newbies to ease in. Better yet, the burden of figuring out your workout for the day is gone, as it’s all there waiting for you. Perfect playlist included!

3. Community

Pushing yourselves with people on your left and right makes you a lot less likely to quit. Everyone looks forward to that moment at the end of the class when your instructor congratulates you on a job well done. And that ensuing clap sounds a lot better in a chorus. This community aspect, with people cheering you across the finish line, has always been the big appeal of road races, but it’s more available than ever, every single day of the week and hour of the day.

3. Accountability

With ClassPass late cancellation fees at $15 and no-show fees ranging from $5 to $20, that end-of-the-day “I can’t leave in time for my workout” or morning “I don’t want to wake up” voice becomes a lot harder to listen to. Psychology shows the effects of punishment are more pronounced than those of rewards, so that $20 fee sure keeps you accountable.

I felt this after signing up online for a class at my (more traditional) gym and getting an email confirmation that mentioned a $5 no-show fee. I’m not sure it’s actually enforced, but the threat of it made me tell every coworker in sight that I had to leave work in time for a 6pm class.

It also shows that you really will prioritize the things you care about (even if you mostly just care about keeping your money) and that you really do have the time. “Having too much work” can just be a really handy excuse.

This is the double-edged sword of running: you can do it anytime anywhere and it doesn’t cost you, but all that makes the temptation to skip or defer a run a lot stronger.

5. Fun

All of these ingredients add up to a fitness routine that’s anything but boring. For those of us who love running and the benefits it brings, it can still be really boring. Meanwhile, I hear my coworkers talk about their new ClassPass routine like someone would a new hobby or hip restaurant scene: “Thursday is Hip Hop yoga, and Saturday I wake up early to do a boot camp, and Christina and I are trying out this new studio across town tonight!”

One of the most commonly discussed attributes of millennials is that they’re chasing fulfillment. There are some downsides to this, but it means that millennials want to buy from brands whose values they agree with and find jobs where they feel like the work they’re doing matters. And they’re willing to take a financial hit to do so (more on that below).

So it makes sense that they want working out to be exciting and not a chore. Don’t we all want those things, though? Are we just mad that millennials are brave enough to chase them and not settle? Shouldn’t we all want to bring the fun back to fitness, especially because it’s something we do with our recreational time? Do you really need another dreaded calendar item?

One more thing: money’s not the issue.

Perhaps the best news in all of this — from a business perspective — is that millennials are willing to pay when the recipe is right.

A source in the WSJ article guessed that as these millennials age and their spending power increases, they’ll flock back to running races. I’m going to go out on a limb and say money is actually not the issue here. A ClassPass membership costs about double my traditional gym membership. That’s contributed to ClassPass’ $60 million revenue run rate and $400 million valuation. And if millennials aren’t valuable currently, then why are so many brands bending over backwards to appeal to them?

I don’t think time will heal this one.

But again, running industry, this should excite you, not scare you.

This magic recipe is something that ClassPass has perfected but not monopolized. The point of this post is that we can all learn from them. Digital brands, I’m especially talking to you!

Running clubs and upstart fitness organizations like November Project have already caught on to the benefits of social accountability (with NPers shaming no shows over social media). It’s not an easy thing to figure out how to take the coaching of a group fitness instructor and package that for every runner on the go, but I do think it’s worthwhile. If Facebook is working on AI and Uber self-driving cars, this one is not insurmountable for us.

For example, just imagine the customizability that’s possible when you combine in-run audio entertainment (playlist? podcast? your friend taunting you?) with new routes (scenic? uninterrupted? hilly?), community (like-minded running buddies from across the globe), and a really smart scheduling system (hello calendar integration). I don’t know exactly what the solution looks like, yet, but I’m excited to see it come to life :).

As choice abounds, there’s more pressure on the incumbents to do better and keep up. This is a good thing and this is why we like free markets. It’s not about a blame game or a waiting game, it’s about pushing ourselves to be better. Isn’t that the whole point of running, after all?

*Side note: I think some millennials are entitled and not willing to put in the grunt work. I think plenty are really hard working and talented. I don’t think all Baby Boomers and Gen Xers are curmudgeons who like to stereotype us. I think every single group that we like to bucket and plaster a label on has its share of nice people and mean people, lazy people and diligent people, narcissistic people and self-effacing people. We’re all going to be OK. Let’s shift the conversation from broad strokes and complaining to appreciating the nuances and coming up with solutions.