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Fitbit Prides Itself on Driving Behavioral Change, Brand Loyalty

Fitbit CEO James Park is very proud of his company’s ability to drive customer behavioral change that, ultimately, can lead to brand loyalty.

“At Fitbit, we understand that health and fitness is incredibly personal and there is no one size fits all,” Park said during the company’s recent second-quarter earnings call. “Before you can help people reach their health and fitness goals, you have to provide a device that people want to wear, that seamlessly fits into their lives, and that offers the motivation and guidance to help them reach their goals. We are focused on selling cross-platform devices across the pricing and feature spectrum to provide the broadest consumer appeal and offering motivation and guidance through a software and app experience. It’s less about smartwatch versus tracker and more about what works best for the individual to drive behavioral change and influence positive health outcomes.”

Fitbit sold 3.4 million devices in the second quarter.

Demand for connected health and fitness trackers was better than anticipated, with sell-in unit growth up 14 percent sequentially.

Fitbit Charge 2 remains the No. 1 selling connected health and fitness tracker in the U.S. Fitbit Blaze was voted the No. 1 tracker by enterprise customers. And the company’s newest product, Fitbit Alta HR, has received rave reviews.

“As existing consumers choose to upgrade the new form factor to stimulate dormant users, we believe our franchise becomes more durable and self-sustaining,” Park said. “As some consumers lean toward more sophisticated devices, we also see traditional trackers gaining traction on the healthcare side, where lower selling prices are required and scaled. In the first half of the year, we signed or renewed our work with nearly 700 organizations, including prominent research institutions like Northwestern University and enterprise customers like Sallie Mae, Trilogy Health Services, and Alignment Healthcare.”

Health and fitness are the primary reason why consumers approach trackers, Park noted, “and it is no surprise that health and fitness have emerged as the killer application for smart watches. This plays directly to our strength. Health and fitness are what we stand for and is in our core DNA. From Day 1, our mission been to help people lead healthier, more active lives, and this mission continues to resonate with customers today.”

Park pointed to Blaze as a powerful example.

“While it received skepticism at launch because it had fewer features than the smartwatch, consumers loved it and continue to buy it because of the feature set and design,” he said. “Our Blaze device outsold all Android-based smart watches in the U.S. in the second quarter and it is the best-selling device in the smartwatch category at Amazon. I’ve great confidence in our ability to understand consumer needs and deliver health and fitness experiences that consumers love, and believe that when we do enter the $10 billion-plus smartwatch market this holiday season, we can successfully drive incremental growth.”

What’s more, Park said the company’s upcoming smartwatch device will deliver a combination of features that consumers have not yet seen in a smartwatch, including a health and fitness first focus, cross-platform compatibility, water resistance to 50 meters, industry-leading GPS tracking, and an easy-to-use software developer kit that will enable innovation and deeper connections to the healthcare system.

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