Data-backed schedule optimization for driving profit increase

Problem

Pilates Tempe is a fitness studio that offers workout classes via an online schedule. In this project, we used user research and data analysis to determine the most profitable schedule and create a revenue model that could be reused on a regular basis.

The studio was experiencing low profitability during the slow summer months and the owner needed to increase profits. Our team discussed high-level profit goals and schedule requirements through stakeholder interviews. We conducted research to determine the profitability of each class time, type, and teacher, and gathered information through surveys and user interviews to ensure the schedule would meet client needs. The optimized schedule was presented to stakeholders and implemented in the upcoming schedule. A revenue model was established in order to continue profit optimization.

Goals

• Create immediate profitability through the class schedule
• Create an easy and efficient way of optimizing future schedules
• Communicate importance of utilizing data to determine profitability

Challenges

There was initially some discussion as to whether the data would show a lack of profitability and some questions as to whether future optimizations would be able to be conducted easily by the business. Along with accurate data, we knew we needed to have an effective presentation in order to convince stakeholders of the importance of this research and the resulting model. By creating a visual representation of the data and a step by step user flow for the business, we were able to provide a simple process for the business to follow in the future. We had a 2-week timeline to build the model, optimize the current schedule, and present our findings to stakeholders.

Target Audience:

Our target audience are clients of Pilates Tempe who have taken a class in the last 3 months and are between the ages of 22 and 65.

My Role

I was the UX Researcher on a team consisting of my role, a business analyst, and the owner of the business. I was responsible for conducting stakeholder interviews, user research, establishing information architecture, and creating a reusable profitability model as well as working with the business analyst to determine that the final product met business and revenue goals.

Solution

Data analysis of revenue reports allowed us to determine that the current schedule included classes that lost the business money to conduct. Using data from class attendance, package profitability, teacher demand, and time profitability, we created a model to determine the profitability of an existing schedule. We presented the model along with a color-coded optimized schedule indicating classes with profit loss, cutting even, and profitability, to stakeholders, along with our recommended schedule that was optimized for profit. After using the model and implementing the optimized schedule, we were able to increase profit by 18%. The model was able to be used on a quarterly basis to optimize for profitability which improved efficiency.

Takeaways

Presenting our findings in a visually-descriptive way in a professional presentation was a crucial part of stakeholder buy-in to utilizing the system we had created. We also learned just how valuable creating a system was for the business. By documenting the steps to analyze the data and creating a simple user flow to determine profitability saved the business both time and money by preventing them from having to repeat the data analysis each time.