Cash rewards for consumers who exercise and penalties for those who don’t

GymPact is a service that rewards users with money when they meet their exercise goals — but it also extracts a financial penalty if they don't.

There are many ways to motivate consumers but few are more effective than cold, hard cash. Similar in many ways to HealthRally, which we covered earlier this year, GymPact is a service that rewards users with money when they meet their exercise goals — but it also extracts a financial penalty if they don’t. Users of GymPact begin by registering with the service either online or via the free GymPact mobile app and then create an exercise “pact.” Specifically, they indicate how many times per week they plan to visit the gym, and GymPact tells them how much they’ll earn each week if they meet that goal. Rewards are generally between 50 and 75 cents per workout, the company says. Next, GymPact users set the penalty amount they’re willing to pay if they don’t meet their goal, ranging from USD 5 to USD 50 per missed day of exercise. Then, each time they go to the gym, users simply check in with their iPhone. If they meet their weekly goal, they earn cash rewards funded by the members who didn’t meet their own goals; if they don’t, they’re among those contributing funds. Rewards can be paid via PayPal. The video below explains the premise in more detail: Massachusetts-based GymPact claims it achieved a 90 percent success rate at motivating users during a pilot study, and it just recently launched internationally. How can your brand help consumers increase their potential?