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Case Study

Leading Fitness App

Despite Fitness App’s status as a global leader in fitness tracking, the business faced challenges after years of impressive growth. Plateauing user acquisition, escalating customer acquisition costs (CAC), and low customer lifetime value (LTV) prompted the brand to seek the expertise of Power Digital. Through a comprehensive re-evaluation of their audience strategy, the implementation of incrementality testing across channels, and an optimized investment in top-of-funnel (TOF) marketing, Power Digital executed a data-backed transformation. The result was a substantial reduction in CAC, a surge in paid memberships, and a new trajectory for growth and profitability.

Leading Fitness App Consumer Service

Consulting

Organic Social

Paid Social

PPC

Programmatic

-70%

Customer Acquisition Cost

2X

Sign Ups

Customer Insights

Strategic Audience Pivot and Creative Alignment

Power Digital identified a significant misalignment between the brand’s ad creative and the small but highly valuable segment of users who were converting to paid memberships. By pivoting away from the existing broad app-based ads and refocusing on a new, more targeted audience, Power Digital was able to better connect with the high-value 5% of paying users. This shift in creative alignment enabled more resonant messaging and significantly improved conversion rates by engaging a more relevant customer base.

Data Intelligence

Incrementality Testing and Funnel Inversion

Recognizing the inefficiencies in the fitness app’s marketing spend, Power Digital employed rigorous incrementality testing across all channels to understand the true contribution of each to user acquisition. This data revealed the need to invert the existing funnel strategy—investing more heavily in top-of-funnel (TOF) channels that demonstrated higher incremental value and pulling back on non-incremental bottom-of-funnel (BOF) spend. 

By doing so, Power Digital amplified brand reach and captured higher-value users earlier in the customer journey, contributing to significant reductions in CAC and increases in overall spend efficiency.

This approach not only reversed declining user growth but also provided a sustainable path forward, with a focus on long-term profitability and customer lifetime value growth.