Smart Fit
From Online Ads to Smart Fit Fitness Centers with TikTok Offline Conversions
The objective
Does TikTok drive in-store sales ?
It's well known that TikTok and Smart Fit are long-time partners for branding campaigns. We have even shared a success story about it. Did you know that TikTok is also a strong channel to drive online sales results for Smart Fit ? With a strong always-on TikTok campaign strategy, the company has been able to drive lots of users to their website, where they can sign for a new gym membership plan.
But even though those online conversions have their share of importance for Smart Fit, lots of potential new members will only close the deal for a new membership when visiting one of their gym locations. Smart Fit knew that TikTok had influence on its brick and mortar sales, but the company didn't have the data to support it. Until they decided to embark on the TikTok Offline Conversions Journey.
The Solution
Offline Conversions in action
As Smart Fit has a large share of their new members enrolling in their gym membership plans by visiting their fitness centers, we invited them to be one of the first brands to implement our Offline Conversions Measurement product. This new implementation, that's current on the open beta stage, helps advertisers measure if Tiktok ads are able to drive offline actions, such as in-store sales or, in this case, new gym membership plans signed in person at a Smart Fit gym.
Offline Conversion measurement and attribution at TikTok are made using events shared through our Offline Conversion API or using our Offline Conversions .csv file upload. Using the API, Smart Fit choice for implementation, it's possible to stabilish direct communication between the brand and TikTok, where Smart Fit sends daily new in-store membership conversion data. With this data, we are able to match it to users that viewed or clicked on ads during the past days (defined by a conversion window).
Within the first three months of testing the implementation, the brand promoted multiple creative assets using TopView, to takeover the top of the For You page, while also running multiple In-Feed Ads to sustain its brand presence and message, as part of their always-on campaign strategy. The media strategy was developed by Smart Fit in-house media team, while the operation was handled by Tiktok and Apis3 marketing agency.
The Results
From TikTok to the gym front desk
The first months of Offline Conversion Integration showed amazing results for Smart Fit. The Offline Conversions integration helped the brand to identify more than 15k in-store conversions that were impacted by TikTok ads, meaning that more than 15,000 people saw some kind of promoted content by the brand on Tiktok and later went to a Smart Fit unit and enrolled in a gym membership program.
These new customers also had a very competitive cost of acquisition: during the first month of tests, the Offline Conversion CPA was 7.7% lower than the average CPA of other online media, achieving a result that was almost 26% lower than their target CPA goal. With this information, Smart Fit was able to prove that TikTok works to drive business results – even on in-store sales results.
One of Smart Fit's biggest challenges was understanding the role of online media in the offline purchase decision process, since more than half of our sales take place at the counter. We are not only managing to overcome this challenge, but also using this information to generate more results for the brand.
With most of our sales being completed offline, optimizing campaigns looking for this type of conversion is critical. TikTok was a partner from the beginning of the project, understanding Smart Fit's needs.
Having TikTok as a business partner was fundamental to the success of the strategy covering everything from online to offline.