growing membership and profit by les mills
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Latest in Research and Best Practice from the World Leaders in Group FitnessTRANSCRIPT
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Health & Fitness facility attendance has
become the biggest adult ‘sport’ in the
Western world.
Bigger than football, tennis and golf
combined …
We thought all stars we aligned for further
growth…
US Adult Fitness Club Participation
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• Membership retention is the largest problem facing our industry today
• Based on commodities and lacking the excitement and social
engagement of sports - We behaved more as gyms than as true health
clubs.
• Competitive industries are evolving faster than us, eg:
• Virtual exercise
• New sports
• Nutritional science
• Medicine
• Stagnating industry - Segmentation rather than innovations – The
industry has started to turn into itself – we are fighting for the same
customers instead of innovating to attract new ones (Budget clubs;
micro Gyms)
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Many facilities worldwide are being hurt
by low-budget competitors.
At the same time, there are successful
new fitness models emerging (micro
gyms) eg:
• Cross Fit Studios
• Orange Theory - $23 per class
• Kosama, Omni, Fitness Together, Title Boxing
• Soul Cycle and Flywheel (US) – $32 per class
• Pure Yoga (Asia and US) –
$145 to $165 per month
• Exhale Spa (US) – $195 pm for classes-only
membership
• People are willing to pay for value…
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Many operators focus solely on sales and profit. Sophisticated clubs and recreation
centers add membership numbers and retention statistics. These are valid but BUT
can not guide management decisions –We need to manage using leading
measures which predict what the outcomes will be.
There is one number that has a more powerful effect on success than any of the
others, that influences everything else: Member attendance.
Regular attendees renew their memberships, refer their friends and promote their
clubs at staggering rates when compared to members who pay but seldom use their
gyms.
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For all the good efforts of the equipment
companies, it’s not about the machines.
It’s about becoming more than just a place
where people come to pump iron and run on a
treadmill.
Leave that to the budget gyms that charge
$10 a month.
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Design a high-energy workout environment
Create a relationship selling and new
member induction system
Recruit a team of great personal and small
group trainers
Build a ‘club within a club’ system for
sports and other activities
Develop a member education and social
network communication system
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78% say room to exercise is extremely/very important!
60% say the ambience of the room is extremely/very important
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From Hard/Transactional selling to Relationship Selling to Educative
Selling:
Shifting the MCs’ focus on providing relevant ‘solutions’ for a healthier
and happier lifestyle – not selling a gym membership
People join to get results and motivation but they stay because they
make friends - The Membership Consultant (MC) can be the first
powerful relationship…
People research and buy online more and more
We need to be more than the low-budget club – MCs need to bring
additional value to online buying
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MCs to become Membership Coaches responsible for setting up the new
member for success
– 24 Hour Fitness
–80% of prospects have been member of a gym before…
–No sales commission since last year
–They have cut from 12 sales consultant to 5 membership coaches
per centre
–Prices has increased and January 2012 has seen the highest
number of sales ever
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MCs to become Membership Coaches responsible for setting up the new
member for success
– LMNZ
–Shifted from hard selling to relationship selling in 2005
–MCs prescribe a training plan before the membership solutions: – It increases the perceived value and allows for an educated decision to be made
– It creates ‘buy-in’ and commitment from prospect… It paves the road for new
members to become ‘addicted’ to exercise at your facility… and it creates a bond
with the MC.
–They are responsible and accountable for new member attendance
in first 3 months (21 visits)
Recruiting and training MCs properly so they can deliver educative sales
pitch and prescribe holistic fitness prescription and relevant exercise
recommendations based on the customers’ needs
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Going the extra mile…
LMNZ – If a prospect doesn’t join, they leave with a 30-day exercise plan
to do at home – My Exercise Calendar
Behaviors must align with Vision…
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LMNZ - Improve the lives of New Zealanders
Our goal is to get people to exercise, if possible in a gym and if possible, in Les Mills
gym. If they don’t join today, we still want them to start exercising. At some point, we
are confident they will join because they need MORE, they need motivation and we are
the coolest gym in town. Reece Zondag, CEO, LMNZ
This approach allows us to:
– Come across as true fitness experts vs salespeople
– Preserve the relationship
– Give MCs a good reason to follow up and a real purpose behind each
follow-up call
– Focus no the talk being always about exercising, their goals, where
they are at with it, inviting them to an event vs latest greatest deal
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Implement a simple but thorough member on-boarding process
facilitating consistent attendance and focusing on usage during first
12 weeks. It will set the foundation for long-term engagement.
“Every year, the industry sells millions of memberships to men and women who, though
they earnestly wish that they could become regular exercisers, have not yet developed
the discipline or habit of regular exercise.” IHRSA Guide to Retention 2007
“12% of all cancellations would be avoided if all new members visited the facility at
least once per week during the first calendar month after joining.”
FIA Top Ten Strategies for Winning the Retention Battle
STATS ON LENGTH OF MEMBERSHIP WHEN USAGE IS HIGHER THAN TWICE WEEKLY IN FIRST FEW MONTHS
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LMNZ - Goal: 21 visits in 3 months
• Induction process with regular and specific
points of contact
• MCs are responsible for it (about 30% of their
commission)
• they sell the dream; they make sure the dream
happens!
• Tracks every new member over 84 days and
visits at 14, 42 and 84 days
21 visits
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LMNZ: 21 visits in 84 days
Result: 50% of members achieving the 21 in 3 months (Goal is: 65%)
Give MCs a clear and genuine reason to call – Red status: Rescue call
– Orange: What more can we do to get you here more often?
– Green: High-five call!
Proven to be very successful in increasing new member usage,
maintaining member motivation by discussing exercise progression and
driving referrals earlier and more often
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• Create a personal
relationship with
your members
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Social media is revolutionizing
our ability to communicate!
But… it’s not as easy as it looks.
Engagement, interest and
authenticity are key.
Otherwise it’s meaningless…
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Health clubs need to become
more than just places where
people go to use exercise
machines!
We need to become true providers
of holistic health. Education
changes lives and your members
will love you for it.
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Lifestyle Family Fitness (Florida)
teen fitness initiative
– FREE 2-Month Summer
Membership
– Teens can utilize all equipment
and participate in Group
Exercise classes
– Hourly restrictions in place
(ie non-prime time)
– Remember… teens have parents
and they grow up to become
paying adults
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Freelance
Programmes
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A great way to increase the quality of
on-boarding, results and connection
(member to staff)
Can be a good source of revenue
Increase income opportunities and career
opportunities for GX instructors
However: – Even the best facilities in the world have less than
10% of members using PT on a regular basis vs
50%+ in GX
– Connection is with a single staff member: if the
member is unhappy with the PT or if the PT leaves,
you could lose the member
– No prescription of other form of exercise such as
GX (which is more social and more holistic)
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Currently the holy grail of the
industry
Everybody wants successful SGT
programs – Allows more people access to PT
– Increases $ per hour for PTs
– Builds relationships between members…
They make good friends.
– Brings back the spirit of sports teams
Challenges: – Best facilities only have 3 or 4% of
their members doing SGT
– As yet, no one has really made it
successful
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• 90% of all exercisers report that they would prefer to work out in a group.1
• Members who attend Group Exercise (GX) use their facility 3 times per week compared to
IHRSA's figure of 1.9 member visits a week, on average.
• GX is cited as the biggest influence (40%) on how long people remain a member of a
fitness facility.
• GX member retention rates are higher than other member retention rates, on average.
• 60% of people rate GX as the #1 service they specifically look at when choosing a gym.2
• Satisfied GX members refer people 3 times more than other members.
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Group Exercise attracts and motivates the
masses.
Some of the world’s most successful facilities
have over 50% of their attendances in GX.
“Group Exercise members attend more
regularly, remain members for longer, make
more referrals, perceive greater value in their
memberships (ie will pay more) and do not
leave when a budget gym opens nearby!”1
1. Will Phillips, The Retention Breakthrough
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Many facilities worldwide are
being hurt by low-budget
competitors.
At the same time, there are
successful new fitness models
emerging (micro gyms) eg:
• Orange Theory - $23 per class
• Kosama, Omni, Fitness Together,
Title Boxing
• Soul Cycle and Flywheel (US) –
$32 per class
• Pure Yoga (Asia and US) –
$145 to $165 per month
• Exhale Spa (US) – $195 pm for
classes-only membership
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• Independent research shows that LES MILLS™ licensed facilities have
500 more members per facility than the global average.1
• Average Group Exercise attendance at LES MILLS™ licensed facilities
is 33%, with top performers above 50%.1
• LES MILLS™ class participants visit their facility at least twice as
often as the average member: 3.1 to 3.7 times per week vs 1.2 to
1.9 visits per week.2
• 71.8% of LES MILLS™ participants say they intend to still be a
member of their fitness facility in 12 months’ time.3
• 95% of LES MILLS™ participants would recommend
LES MILLS™ programs to their friends and family.3
1. Scoreboard global survey 2011 2. Nielsen (2010); IHRSA (2011) 3. IHRSA (2009)
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Nielsen Consumer Survey
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Prospects and members usually
need three types of training to cover
their basic needs
Make sure you have at least one
great program you can recommend
BLINDLY in terms of quality,
experience and consistency in each
of these categories: – STRENGTH TONING
– CARDIO
– MIND-BODY STRETCH
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5 program genres comprise 75% of GX attendance every week
In order of market share, these are:
21% Strength and Weights
19% Cycling
14% Mind and Body
12% Dance
9% Martial Arts
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Do you have best-in-category
programs for the activities
members and prospects are
more interested in?
While each club community has
a variety of programs, research
shows there are five basic
genres driving 75% of global
Group Exercise attendance:
• Strength and Weights (21%)
• Cycling (19%)
• Mind-body (14%)
• Dance (12%)
• Martial arts (9%)
Are you interested in launching new
program(s) to primarily increase
retention and strengthen your current
positioning, or to differentiate your offer
and attract new types of members?
• Retention and positioning
strengthening: go with program(s)
naturally matching your club positioning
and main target markets
• To differentiate your offer and target
new types of members: go with
program(s) off your natural positioning
• Whatever your primary goal, Les Mills
can help you achieve it with our
scientifically-based programs and
proven Group Fitness Management
System
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Les Mills’ BODYPUMP® is the original barbell
class, designed and scientifically proven to
strengthen the entire body. This 60-minute workout
challenges all major muscle groups by using the
best weight-room exercises, including squats,
presses, lifts and curls. Great music, awesome
instructors and individual choice of weights inspire
participants to perform 800 reps per class and to
get the results they came for - and fast!
Due to its broad appeal, BODYPUMP® attracts
big numbers across all time-slots. Best practice
suggests scheduling it a minimum of 7 to 12
times across the week to maximize attendance.
Most clubs offer at least 2 classes per day.
BODYPUMP® participants visit 4.3 times
per week on average versus the industry
average of less than twice a week for non-
Group Exercise club visits.
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Les Mills is committed to building our brand and
growing demand for your classes. That’s why
we’ve teamed up with Beachbody, the best-
known provider of home workouts, to create
LES MILLSTM PUMP, a set of home-workout
DVDs. We’ve seen the power of other brands
using infomercials to drive consumer awareness.
Partnering with Beachbody will introduce a
national audience of millions to the Les Mills
brand. The exposure will help to drive more
people into your facility and classes, and make it
that much easier for you to sign up new members.
Les Mills’ BODYPUMP® is the original barbell class, designed and scientifically proven to strengthen the entire body. This 60-minute workout challenges all major muscle groups by using the best weight-room exercises, including squats, presses, lifts and curls. Great music, awesome instructors and individual choice of weights inspire participants to perform 800 reps per class and to get the results they came for – and fast!
Due to its broad appeal,
BODYPUMP® attracts big
numbers across all time
slots. Best practice
suggests scheduling it a
minimum of 7 to 12 times
across the week to
maximize attendance.
Most clubs offer at least 2
classes per day.
BODYPUMP®
PARTICIPANTS VISIT 4.3
TIMES PER WEEK ON
AVERAGE VERSUS THE
INDUSTRY AVERAGE
OF LESS THAN TWICE A
WEEK FOR NON-GROUP
EXERCISE CLUB VISITS.
A short, sharp workout, backed by core conditioning research from Penn State University, that strengthens and tones the body. It hones in on the torso and sling muscles that connect the upper and lower body. It’s ideal for tightening tummy and butt, improving functional strength and assisting in injury prevention. CXWORX™ bands are available from lesmills.com/equipment.
Due to its broad appeal
CXWORXTM attracts big
numbers across all time-
slots.
Best practice suggests
scheduling it at peak or
shoulder times once or
twice a day. Given the 30-
minute format, lunchtime
classes are ideal.
DID YOU KNOW?
CXWORX™ CAN BE
USED AS A FEE-BASED,
SMALL-GROUP
TRAINING PROGRAM.
MANY FACILITIES ARE
HAVING SUCCESS WITH
THIS BOTH IN AND OUT
OF THE GROUP
EXERCISE ROOM.
An indoor-cycling workout
where participants ride to
the rhythm of powerful
music. The inspiring team
coach leads the pack
through hills, flats,
mountain peaks, time
trials and interval training.
Participants sweat and
burn to reach the
endorphin high!
Due to its broad appeal
RPMTM attracts big
numbers across all time-
slots.
Best practice suggests
scheduling it 9 to 14 times
through the week to
maximize attendance.
Most clubs that have
dedicated cycling studios
offer 3 to 7 classes a day.
DID YOU KNOW?
IT’S POSSIBLE TO
CHARGE A BOOKING
FEE FOR RPMTM TO
BRING IN ANCILLARY
REVENUE IN THE
THOUSANDS PER
WEEK.
BODYBALANCETM/
BODYFLOW® is a Yoga,
Tai Chi and Pilates
workout that builds
flexibility and strength.
Controlled breathing,
concentration, stretches,
moves and poses to
music create an holistic
workout that balances and
harmonizes the body,
leaving participants
centered and calm.
Due to its broad appeal
BODYBALANCETM/
BODYFLOW® attracts big
numbers across all time-
slots.
Best practice suggests
scheduling
BODYBALANCE™ a
minimum of 5 to 7 times
through the week.
It’s very popular in the
morning, shoulder times
and during weekends.
Les Mills’
BODYCOMBATTM is a
fiercely energetic cardio
workout inspired by
martial arts such as
Karate, Boxing, Tae Kwon
Do, Tai Chi and Muay
Thai. Supported by driving
music and energizing
instructors, participants
strike, punch, kick and
KATA their way through
calories to superior cardio
fitness.
Attracts maximum
numbers during peak and
shoulder times, weekdays
and weekends. While it
also works very well at off-
peak times, performance
is dependent on
marketing and the
convenience of timing.
Best practice suggests
scheduling
BODYCOMBATTM at least
5 to 7 times a week.
Simple dance moves with
chart-topping popular hits
enable participants to
shape up and let out their
inner star – even if they’re
dance-challenged! The
45-minute SH’BAM™
classes provide the
ultimate fun and sociable
way to exercise.
Attracts maximum
numbers during peak and
shoulder times, weekdays
and weekends. Best
practice suggests
scheduling SH’BAM™ 5 to 7 times a week.
A fun, low-impact, whole-
body workout that
improves fitness and core
strength, using body
weight, VIVETM tubes and
balls for extra resistance.
Great music, group
interaction and a skilled
instructor inspire
participants to get fit for
life.
Attracts maximum
numbers during peak and
shoulder times, weekdays
and weekends. While it
also works very well at off-
peak times, performance
is dependent on
marketing and the
convenience of timing.
Best practice suggests
scheduling BODYVIVETM
at least 3 to 5 times a
week.
VIVE™ tubes and balls
are available at
lesmills.com/equipment
A cardio workout offering
an addictive fusion of the
latest dance moves and
hottest new sounds puts
the emphasis as much on
having fun as breaking a
sweat. Funky instructors
teach participants how to
move with attitude through
this 55-minute class.
Attracts maximum
numbers during peak and
shoulder times, weekdays
and weekends. Can
perform strongly off peak
with a charismatic
instructor and strong
marketing. Best practice
suggests scheduling
BODYJAMTM at least 3 to
7 times a week.
Using simple movements
on, over and around a
height-adjustable step,
participants get huge
motivation from popular
music and uplifting
instructors. Cardio blocks
push fat-burning systems
into high gear, followed by
muscle-conditioning tracks
that shape and tone the
body.
Attracts maximum
numbers during peak and
shoulder times, weekdays
and weekends,
particularly mornings. Best
practice suggests
scheduling at least 3 to 5
times a week.
A sports-inspired cardio
workout for building
strength and stamina.
High-energy interval
training classes combine
athletic aerobic
movements with strength
and stabilization
exercises. Dynamic
instructors and powerful
music motivate
participants toward their
fitness goals.
Attracts maximum
numbers during peak and
shoulder times, weekdays
and weekends. Can
perform strongly off peak
with a charismatic
instructor and strong
marketing. Best practice
suggests scheduling
BODYATTACKTM at least
3 to 7 times a week.
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Whatever your goal and/or
vision - you need a great
team to help you get there.
A crucial factor in the
success of your programs is
the quality of the instructors
who teach them.
Great instructors drive
thousands of attendances
each year.
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Partnering with Les Mills can help you
to:
• Build a brand that attracts new talent
• Develop the skills and better motivate
your team
• Ensure training and ongoing staff
education is relevant and up-to-date
• Guarantee quality and consistency to
your members and guests
• Keep your team engaged and inspired
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Massive BUZZ and interest in club during the 2 weeks building up to event
Full focus from club team on common goals and interaction between sales,
customer experience and product departments – ‘Breaking down silos’
Sold-out events and massive energy in clubs – all classes at 80 to 100% capacity
Attendance: 5 to 10% membership
20% guests per class
50 to 70% conversion rate of guests
Massive buzz post-event
An increase of attendance in 2 to 3 weeks post-event of 10 to 20%
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The LES MILLS™ Group Fitness
solution gives you free access to a
huge collection of valuable
marketing and promotional
resources. We are continually
working on new ways to help you
inspire your members and
prospects. Currently we’re
developing online tools, which will
allow you to customize material with
your own club logos and messages.
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WHY should your staff care about your
business and challenge themselves
every day?
People need to be engaged in an
inspiring and meaningful purpose…
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“We are warriors in the battle against
inactivity and over-consumption.” LMI Instructor Creed, 1998
“Creating life-changing experiences every
time, everywhere. One class at a time,
one participant at a time.” AIM manual
“You have to find a way to make people
fall in love with fitness.” Les Mills, 1968
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Health and Fitness facility attendance has become the
biggest adult ‘sport’ in the Western world. Bigger than
football, tennis and golf combined.
But we have traditionally lacked the excitement and social
engagement of sports, and behaved more as gyms than as
true health ‘clubs’.
The faster we can change that, the bigger our future!
LES MILLS INTERNATIONAL © 2011