Consumers flock to health, finance and learning companies to reach their goals.

These firms are well

aware – and many are seizing the moment to profit.

Get fit. Improve mental health. Make a budget. Learn a language.

New year's resolutions provide an opportunity for brands to pitch consumers on products or services
that will help them achieve their goals. Companies know there's revenue potential, especially in
membership-based models; many say the start of the new year is an important time to attract new users
whom they hope will convert to long-term active paying customers.

"There are specific spikes in demand for certain products around new year because of resolutions," says
Neil Saunders, US-based managing director at GlobalData, a consulting firm.

If these subscription-based companies can manage the careful balancing act between spending on
customer acquisition through discounts and promotions, while considering return on investments in the
months to come, they can cash in on the people eager to spend on platforms, services and products that
can bring them closer to success. The habits of US consumers serve as an example of how resolutions
can be major commercial moments.

Analysts say the start of the new year is an important time for health-focused businesses. Nearly half of
Americans polled in an October 2023 Forbes Health-OnePoll survey said they were prioritizing fitness in
their new year's goals.

"People have been through the holiday season, they've probably been overindulging," says Saunders.
"They're now focused on new year's resolutions to do with wellness and losing weight."

New York Sports Club, which operates chains of gyms and fitness facilities in the US – such as popular
brands including its eponymous club, Lucille Roberts and Fhitting Room – says January is a critical time
for customer acquisition, with new member sign-ups as high as two-times a typical month.

Kari Saitowitz, chief marketing and creative officer of New York Sports Club, says the club banks on the
new year's period as new business driver: targets for new sign-ups are two-to-three times the goals for
most other months. It's not necessarily a revenue play at first; the company offers discounted
memberships for new joiners to get them through the door. Last year, New York Sports Club offered new
members a $1 joining fee and complimentary membership for the first month.
The long-term profit lies in continued conversion. With the influx of sign-ups, New York Sports Club – and
similar membership-based businesses – are hoping these new faces will go on to become loyal
customers who pay the standard, higher monthly membership fee after joining on a discount.

"The idea is to get people started off with a really compelling offer for January… you've got to win them
over month after month," says Saitowitz. At New York Sports Club, a key part of this is ensuring they
have free orientation sessions with trainers. They must look at strategy for retention after the new year's
rush, too: for instance, she says, the company is in the process of revamping its referral and incentive-
based rewards programmes.

Language-learning platforms, including Duolingo, see a surge of new subscribers in Q1 (Credit: Alamy)

Language-learning platforms, including Duolingo, see a surge of new subscribers in Q1 (Credit: Alamy)

New York-based Talkspace – which works directly with consumers and employers to provide mental-
health counselling – says January is a natural time for people to seek out therapy, especially after
spending time with family or friends during the holidays.

"November and December are often very slow months for therapy. Clients have a lot going on as the
holidays are happening," says Liz Colizza, director of research and programmes at Talkspace. "January
comes, and people start to look at their lives differently. Everyone takes a look at what the next year is
going to hold."

At the kick-off of a new year, the company has invested in resolution-related marketing to bring in users.
Since 2018, Talkspace has organised ongoing brand campaigns with ambassador and American Olympian
Michael Phelps, which help users set new year's intentions and prime them to continue throughout the
year – which the mental-health company, too, hope leads to ongoing business. In January 2023, would-
be users were encouraged to engage with an Instagram post from Phelps as part of a contest to win free
therapy sessions.

"It's pretty common for us to have some sort of [theme] around, setting your intentions … thinking about
your behaviour and what you want to do in the coming year," says Katelyn Watson, chief marketing
officer at Talkspace. In Q1 2023, the platform reported a 34% increase in the number of therapy sessions
covered by insurance, compared to the prior quarter.
January comes, and people start to look at their lives differently. Everyone takes a look at what the next
year is going to hold – Liz Colizza

Personal-finance platforms often experience similar consumer interest during this time, says Jesse
Mecham, founder and CEO of global digital budgeting platform YNAB. "[With] gyms and personal
finance, we share so many relations, where people know that they're not doing it right, and they could
be doing better," he says.

YNAB is a subscription business, billed monthly or annually. The "New Tear's bump", as Mecham calls it,
can result in around a 25-to-50% boost in new member sign-ups in January. The company typically
increases its advertising spend in the lead-up to New Year's Day to capture more interest in the platform.

Similarly, Eric Dunn, CEO of personal-finance platform Quicken, says the company typically gets around
15% of its customers in January. New customer revenue, however, represents, only 10% of the
company's revenue, with 90% coming from renewals. These re-ups can happen throughout the year, but
are weighted more heavily around the