In enterprise technology, it is common practice to wait for lengthy ERP (Enterprise Resource Planning) transformations to finish before updating related systems. The reasoning is simple: why add more complexity to an already complicated migration? However, 24 Hour Fitness took a different path—and the results have been remarkable.
Operating 249 clubs in nine states and serving nearly 4 million members, 24 Hour Fitness rejected the usual “wait and see” mindset. Instead, the company implemented Zuora’s monetization platform immediately, without delaying for their ERP upgrade plans. This move gave them flexibility and agility while keeping their ERP strategy open for the future.
Before this change, the company’s billing cycles stretched to six days each month. This was more than just an operational annoyance—it limited their ability to respond quickly to the market and optimize cash flow. Their legacy billing system was deeply tied to older technology, making modernization seem only possible after completing a full ERP overhaul. New product launches were slow and costly, requiring months of development.
Katie Healon, Senior Director of Treasury and Payment Processing at 24 Hour Fitness, initially questioned the need to move away from a “stable” legacy system. But after careful review, she realized that staying with the old system was riskier. It could mean missing market opportunities, falling behind competitors, and restricting cash flow management.
Zuora’s ERP-agnostic integration framework allowed 24 Hour Fitness to modernize billing without disturbing their existing ERP systems. This flexible approach shows that transformation does not have to be all-or-nothing.
The results were immediate. 24 Hour Fitness shortened its billing cycle from six days to daily billing. This improvement unlocked better cash flow and gave the company new ways to manage subscription lifecycles. The company could now launch new membership tiers without the heavy investments and long timelines required before. Zuora’s software supports many pricing models, including recurring, usage-based, one-time, or hybrid plans.
Traditional order-to-cash automation tied to large cloud ERP projects can take over three years to implement. Even then, systems often remain inflexible. By contrast, 24 Hour Fitness gained capabilities that would be difficult to achieve within standard ERP frameworks by adding Zuora’s monetization platform alongside their current systems.
This strategy reduces manual work and cuts down on complex custom development. Instead of waiting for the entire ERP transformation to finish, 24 Hour Fitness achieved operational gains right away while preparing to scale, regardless of how their ERP plans evolve.
In today’s competitive market, speed matters. Healon emphasized that the company continuously experiments with pricing, billing cycles, and payment options. The COVID-19 pandemic made flexible subscription offerings even more critical.
Daily billing proved especially useful during the pandemic recovery. With customer engagement patterns shifting quickly, 24 Hour Fitness could manage memberships more responsively. After all, their goal is to keep members working out regularly.
The company’s experience offers important lessons for enterprise leaders facing ERP migration delays: parallel modernization works; cash flow benefits come fast; innovation barriers fall; and flexible integrations keep future options open.
What This Means for ERP Leaders
Focus on Cash Flow Now, Not Later
The shift from monthly to daily billing at 24 Hour Fitness shows that cash flow improvements cannot wait for ERP projects to end. Companies using Zuora’s order-to-cash solutions often see better Days Sales Outstanding (DSO) and higher customer satisfaction. With Zuora able to handle over 300,000 invoices per hour, organizations should consider subscription billing tools that deliver working capital gains immediately during ERP transitions. This shift can improve cash flow by 15-30 days—translating to millions of dollars for large subscription businesses.
Choose ERP-Agnostic Integration for Flexibility
24 Hour Fitness’s success comes from using technology that works alongside any ERP vendor. Zuora integrates seamlessly with major ERPs like NetSuite, Workday, and SAP. This ensures smooth data flow and audit-ready financial records throughout order-to-cash processes. Tech leaders should build API-driven systems with microservices and REST APIs. This reduces integration risks and keeps billing modernization valuable no matter how ERP strategies change. For example, Sage saw 32% subscription growth after adopting similar integrations.
Remove Innovation Bottlenecks with Flexible Billing
The high cost and time needed to launch new products are common problems in traditional ERP billing systems. Zuora’s Extension Studio and Integration Hub enable quick customizations and support over 50 pricing models out-of-the-box. Companies like NCR shortened implementation times from months to weeks, freed up full-time employees, and gained access to important metrics like Monthly Recurring Revenue (MRR). Tech leaders should deploy billing platforms that enable fast product changes and pricing experiments, especially when ERP migrations limit other tech upgrades.
24 Hour Fitness shows that modernizing billing independently of large ERP projects can unlock agility, speed, and innovation. Their story highlights how parallel modernization strategies can give enterprises a critical edge today — without waiting years for full ERP transformations to complete.
