Research by: Sandeep Puri, Shaphali Gupta, & Shweta Pandey
Abstract
In April 2024, Anna Lim, the President of Pulse Fitness (Pulse), Philippines, considered the company’s vision of reaching ₱ 2 billion in sales by 2026, up from ₱ 700 million in 2023. As she did so, she wondered if Pulse could use her partner’s suggestion to map different customer personas and identify and capture the most profitable customers. The case discusses customer personas and customer lifetime value (CLV) and recommends segmenting the market based on these insights before targeting specific groups. This involved calculating the customer acquisition cost to identify the most effective marketing investments, determining the break-even time, and assessing CLV to ensure long-term profitability. These measures were crucial for informed decision-making and sustainable growth, aligning with their goal of increasing Pulse Fitness’s revenue by 2026.
Learning objectives
The case discussions will help to achieve the following learning objectives:
- Determine the cost of acquiring customers.
- Calculate the time it takes for a customer to reach break-even.
- Calculate and understand customer lifetime value.
To cite this case: Puri, S., Gupta, S., & Pandey, S. (2024). Pulse Fitness: Targeting the strongest segment. Harvard Business Publishing, Product #: 8461-HTM-ENG
To access this case: https://hbsp.harvard.edu/product/8461-HTM-ENG?Ntt=Pulse%20Fitness%3A%20Targeting%20the%20Strongest%20Segment
