driving growth and retention with group fitness - ihrsa europe - dublin 2009

DRIVE GROWTH AND RETENTION WITH GROUP

1

RETENTION WITH GROUP FITNESS

1. The Future of Group Fitness 2. Identify the Group Fitness Opportunity within your Business (BHAG)

DRIVE YOUR GROWTH AND RETENTION WITH GROUP FITNESS

2. Identify the Group Fitness Opportunity within your Business (BHAG)3. Build a Scorecard and use the Numbers to drive Decisions 4. Recruit a World Class team and put in place a robust Retention Plan 5. Make Group Fitness a cornerstone of your Marketing Plan

FROM CIRCUS TO CIRQUE DU SOLEIL… FROM AEROBICS TO GROUP FITNESS…

THE WORLD BEFORE HEALTH CLUB GROUP FITNESS…COMMUNITY HALLS, AEROBICS, LYCRA AND AMATEURS

GOING TO THE GYM IS BECOMING THE LARGEST SPORT IN THE WORLD… OVER 100 MILLION MEMBERS

2009 IHRSA Global Report

90% OF ALL EXERCISERS PREFER TO WORKOUT IN A GROUP…

1999 James J. Annesi: Effects of Minimal Group Promotion on Cohesion and Exercise Adherence

GROUP FITNESS IS ONE WAY TO ACHIEVE THIS IN A HEALTH CLUB ENVIRONMENT..

GROUP FITNESS CREATES BETTER MOTIVATION, PHYSICAL RESULTS, AND FUN…

!

GROUP FITNESS ALSO CREATES BETTER COMMUNITY AMONGST MEMBERS…

GROUP FITNESS PROMOTIONS ARE MORE COMPELLING AND ENGAGING…

11

…AND SO THE ENVIRONMENT HAS BECOME MIRROR-LESS, MORE INVITING …

2003 August Issue of Health Psychology. “Gym mirrors a turn-off for Women” Study by McMaster University Hamilton , Canada

…LESS INTIMIDATING AND MUCH MORE ENTERTAINING.

!

GROUP FITNESS IS THE #1 CHOICE OF SERVICE OR AMENITY THAT MAJORITY OF MEMBERS ARE INTERESTED IN ABOVE PERSONAL TRAINING, MASSAGE AND CAFES

2009 IHRSA / HCD & Les Mills Survey N= 6065 respondents

THE 2nd MOST IMPORTANT FACTOR IN MAKING A DECISION TO JOIN A HEALTH CLUB IS MULTIPLE GROUP EXERCISE ROOMS WITH FANTASTIC CLASSES…

2009 IHRSA / HCD & Les Mills Survey N= 6065 respondents

THE #1 FACTOR THAT WOULD ENCOURAGE PEOPLE TO TRY GROUP FITNESS CLASSES IS SCHEDULING MORE CLASSES ON THE TIMETABLE AT DIFFERENT TIMES

2009 IHRSA / HCD & Les Mills Survey N= 6065 respondents

SO WHATS REALLY POSSIBLE…IN 2010 AND BEYOND?

OVER 6 MILLION PEOPLE EVERY WEEK PARTICIPATE IN OUR CLASSES IN 13000 CLUBS IN OVER 80 COUNTRIES

North America Europe North America 1995

Europe 6685

South America 2394

Australasia1173

Asia 813

LEAD BY A TRIBE OF 70000 INSTRUCTORS THAT WOULD FILL AN OLYMPIC STADIUM… OR CROKE PARK

OUR GOAL IS TO BE THE NUMBER ONE IN FITNESS EXPERIENCE IN EVERY MARKET WE ARE IN – 100 MILLION PEOPLEAND A TOP 100 GLOBAL BRAND BY 2025

WE NOW KNOW THAT YOU CAN QUADRUPLE WEEKLY GROUP FITNESS VISITS WITHIN 3–5 YEARS... IMPACTING BOTTOM LINE

20

www.lesmills.com/global/en/clubs/group-fit-p.r.o.f.i.t

YOU CAN ALSO SERVICE 25%– 87% OF MEMBERS WITH GROUP FITNESS… THESE MEMBERS STAY LONGER

37%2,500Bodyplex, Woodstock, Georgia, USA

28%4,400Fitness First, Adelaide, Australia

31%4,400Holmes Place, Hamburg, Germany

40%5,000Yuba City Racquet Club, California, USA

25%11,300Golds, Austin South, Texas, USA

52%15,000California WOW, Bangkok, Thailand

% of total visits from GFNumber of membersFacility name

37%2,500Bodyplex,

28%4,400Fitness First, Adelaide, Australia

31%4,400Holmes Place, Hamburg, Germany

40%5,000

25%11,300Golds, Austin South, Texas, USA

52%15,000

% of total visits from GFNumber of membersFacility name

21

80%440GSS Fitness Center, Sitges, Spain

80%500The House, San Diego, Califronia, USA

51%540GYM-TECH Health and Fitness Club, Ireland

40%900Cambridge Fitness Center, New Zealand

60%1,200Corpus Novum, Oirschot, Holland

27%1,300Liikuntakeskus , Oulu, Finland

87%1,401Planet Form, Grigny, Paris, France

47%1,950InjoyMed, Lauterbach, Germany

68%1,980Active Health Club, Cairns, Australia

43%2,000Fitness Concepts, , USA

40%2,350SportschoolUrsus, Leeuwarden, Holland

37%2,500Bodyplex, Woodstock, Georgia, USA

80%440GSS Fitness Center, Sitges, Spain

80%500The House, San Diego, Califronia, USA

51%540GYM-TECH Health and Fitness Club, Ireland

40%900Cambridge Fitness Center, New Zealand

60%1,200Corpus Novum, Oirschot, Holland

27%1,300a , Oulu, Finland

87%1,401Planet Form, Grigny, Paris, France

47%1,950InjoyMed, Lauterbach, Germany

68%1,980

43%2,000, Massech

40%2,350SportschoolUrsus, Leeuwarden, Holland

37%2,500Bodyplex,

www.lesmills.com/global/en/clubs/group-fit-p.r.o.f.i.tIntention to renew membership by Les Mills Members versus Non les Mills Members 72.2% vs. 63.4%)

GROUP FITNESS MEMBERS REFER MORE PEOPLE THAN NON GROUP FITNESS MEMBERS…

22

2009 IHRSA / HCD & Les Mills Survey N= 6065 respondents

74.7% vs. 67.4%

GROUP FITNESS IS A KEY WEAPON TO WIN THE RETENTION AND PRICE WAR...

23

FUTURE GROUP FITNESSS SUCCESS REQUIRES INVESTMENT…

24

Increase in weekly visits in 3-5 years 500 visits increases to 2,000 750 visits increases to 3,000

Revenue* from Group Fitness $250,000 $375,000

Costs

Increased GFM wages $9,000 $12,500

Increased instructor wages $15,000 $16,000

* Revenue calculation (increase in weekly attendances / 3 average visits per week) * $500

Studio improvements $7,500 $15,000

Additional marketing costs $8,000 $12,000

License fees (3 & 5 programs) $8,000 $12,000

Increased training costs $2,500 $5,000

Total annual costs $50,000 $72,500

Forecast annual profit $200,000 $302,500

START BY CREATING A GROUP FITNESS “BHAG”

� Add up your current weekly class attendances

TOTAL ____________

� What could this be in 3-5 years if your instructors were delivering best in city/state/country/world experiences every time?

POTENTIAL TOTAL GF ATTENDANCES (BHAG) _________

25

1000

3000

� Divide the new attendance target by 3 (average Les Mills visits per week per AC Nielsen)

POTENTIAL INCREASE IN NEW MEMBERS ____________

� Multiply the number of members by your standard annual membership fee

POTENTIAL INCOME GAIN $ ____________

1000

500 000€

GET A PROVEN PLAN TO ACHIEVE YOUR GOAL…

26

27

THE TEAM CAN’T PLAY TO WIN IF IT DOESN’T KNOW THE SCORE

28

KNOWLEDGE IS POWER…7 BIG QUESTIONS

1. What percentage of total club visits is provided by GF?

2. Do you know if your GF attendance is growing? If so, by how

much?

3. Which of your programs have the most pulling power?

4. What programs could take your club to the next level?4. What programs could take your club to the next level?

5. Who your world-class instructors are?

6. Which instructors need training to transform weekly attendance

figures?

7. Who reports to you on GF performance if the GFM’s too busy?

CLUB OWNERS ARE INTERESTED A VARIETY OF REPORTS

INCLUDING ATTENDANCE, CAPACITY, TARGETS AND INSTRUCTOR RANKINGS

4 FOUNDATIONS OF YOUR SCORECARD

1. Count every class

2. Use the best digital technology you can afford or independent

third party counts

3. Set class-by-class and weekly targets

4. Create accurate comparative stats and publish them

32

4. Create accurate comparative stats and publish them

USE SMART APPLICATIONS TO DRIVE YOUR SCORECARD

APPLICATIONS THAT CREATE TIMETABLES

APPLICATIONS THAT ALLOWS YOU TO CREATE WEB BASED TIMETABLES

AND HIGH QUALITY HARD COPIES THAT REFLECT THE QUALITY OF YOUR OFFERING

USE APPLICATIONS THAT MAKES ATTENDANCE RECORDING EASY

…AND OFFERS DETAILED REPORTING

Club overview

� 2728 Club members

� Total visits per week ~ 1700-2000

� GF visits per week ~ 750-900

� % of total visits provided by GF ~45-50%

CASE STUDY 1 |Bladium Sports and Fitness Club, CA

� % of total visits provided by GF ~45-50%

� 4 Studios

� 7 LES MILLS Programs

� 65-70 classes a week

� 14-16 instructors

� Full time GFM

CASE STUDY 1 |Bladium Sports and Fitness Club, CA

Before Application

� Excel based management

� Unable to bench mark GF performance

� No instructor rankings� No instructor rankings

� No program based analysis

CASE STUDY 1 |Bladium Sports and Fitness Club, CA

With Smart Application

� Highlights Group Fitness visits against targets

� Identifies underperforming programs, classes or instructors

� Motivates the team by sharing the numbers and creating healthy

competition between instructorscompetition between instructors

Impact of Smart Application

� GFM saves ‘at least’ 10 hours per month to focus on business

strategies

� Eliminates “Excel” mistakes

� Easily presents information to the club manager and allows for quick

business decisions to be made.

AUTOMATED CLASS COUNTING CAN IMPROVE THE WAY YOU RECORD GROUP FITNESS DATA…

Auto Count Camera

Application

SCORECARD 7 MUST-DO’S

1. Start accurate manual/camera counts immediately

2. Monitor total weekly attendances

3. Set class targets with instructors

4. Enter class counts and targets into your Scorecard spreadsheet

43

4. Enter class counts and targets into your Scorecard spreadsheet

5. Publish results monthly and recognize/reward success

6. Graph target against actual over a sustained period of time

€500 000

GET A PROVEN PLAN TO ACHIEVE YOUR GOAL…

44

A SINGLE GREAT INSTRUCTOR CAN BRING HUNDREDS OF MEMBERS TO YOUR CLUB

45

A TEAM OF GREAT INSTRUCTORS CAN BRING THOUSANDS OF MEMBERS TO YOUR CLUB!

46

“Never try to teach a pig how to sing.

CASTING IS EVERYTHING

47

It wastes your time and annoys the pig”

EXAMPLES OF GROUP FORMATS AND ESSENCE

The real weights workout where I feel strong and get challenged

The Martial Arts workout where I am unleashed

The Yoga, Tai Chi, Pilates workout where I feel strong and centered,

long and strong

The dance workout where I get high on the feeling of dance

48

The dance workout where I get high on the feeling of dance

Ride the rhythm for the athlete within

The lively step workout where I get lifted

The cardio conditioning workout inspired by sports training

The low-impact workout that lets you choose just how hard you work

ERROR: undefined

OFFENDING COMMAND: f‘~

STACK: