“The Purpose Of Business Is To CreateAnd Keep A Customer” Peter Drucker
Tony Hsieh pronounced“shay” Its All About Customer ExperienceAuthor & CEOFriday March 18 - 8:30 - 9:30Happiness A Path To Proﬁts, Passion & Purpose
"We are massively underestimating this culture shift... We are in the era of the humanization of business. Wereliving by small town rules again." Business Is Changing
CONTEXTCUSTOMERtrendwatching.com is one of theworld’s leading consumer trendsﬁrm, relying on a global networkof hundreds of spotters. Ourtrends, examples and insights aredelivered to 160,000 businessprofessionals in more than 180countries 21
INTERESTING 2011 CONSUMER TRENDS WWW.TRENDWATCHING.COMWhen it comes to the mega trendof GENERATION G (thats G forGenerosity, not Greed), there’s nobetter way for a brand to put itsmoney where its mouth (or heart)is than engaging in Random Actsof Kindness (R.A.K.). Consumerscravings for realness, for thehuman touch, ensure thateverything from brands randomlypicking up the tab to sending asurprise gift will be one of themost effective ways to connectwith (potential) customers in2011. 22
INTERESTING 2011 CONSUMER TRENDS WWW.TRENDWATCHING.COMUrbanization remains one of theabsolute mega trends for thecoming decade. Heres just onetelling stat: “Today, half theworld’s population – 3 billionpeople – lives in urban areas.Close to 180,000 people moveinto cities daily, adding roughly60 million new urban dwellerseach year.” (Source: Intuit,October 2010) 100 cities comprise30% of the global economy. urbanconsumers tend to be more daring,more liberal, more tolerant, moreexperienced, more prone to tryingout new products and services. 23
INTERESTING 2011 CONSUMER TRENDSMore consumers are constantly WWW.TRENDWATCHING.COMconnected, and when they hearabout new deals online canquickly and easily spread themthrough their social networks.Increasingly, consumers will bepart of exclusive networks orgroups to either receive specialdeals or demand them.Mobile devices increasinglyenable consumers to ﬁnd orreceive dynamic deals right at thepoint of sale, or to compare pricesonline. Case in point:Amazon.com just released aniPhone app that allows users tocompare prices by scanning theproducts barcode, photographingit or saying its name. 24
INTERESTING 2011Online culture still is the culture, and CONSUMER TRENDS WWW.TRENDWATCHING.COMthus well see a rise in online statussymbols in the next 12 months (afterall, status symbols reﬂect thezeitgeist like nothing else). Whatstarted with showing off the numberof visitors to ones Flickr pages orblog now also encompasses thenumber of ones Facebook friends(or any other social network),Twitter followers, Foursquare check-ins and a host of other metrics thatindicate ones wiredness. In thenext 12 months, you can’t go wrongsupplying your (online-loving)customers with any kind of symbol,virtual or real world that helps themdisplay to peers their onlinecontributions, interestingness,creations or popularity. 25
INTERESTING 2011 CONSUMER TRENDS WWW.TRENDWATCHING.COM73% of US consumers consider beingphysically ﬁt important to being‘well’(Source: The Hartman Group,August 2010)500 million people worldwide areexpected to be using mobilehealthcare applications by 2015.(Source: Reasearch2Guidance,November 2010)There were nearly 17,000 health appsavailable in major app stores inNovember 2010, with 57% of thembeing aimed at consumers rather thanhealth care professionals. (Source:Reasearch2Guidance, November2010) 26
INTERESTING 2011 CONSUMER TRENDS WWW.TRENDWATCHING.COMExpect a rise in ECO-SUPERIORproducts: products that are notonly eco-friendly, but superior topolluting incumbents in everypossible way. Think acombination of eco-friendly yetsuperior functionality, superiordesign, and/or superior savings. 27
INTERESTING 2011*According to Jeff Jonas at IBM, CONSUMER TRENDSmobile devices in the US are WWW.TRENDWATCHING.COMcreating approximately 600 billiongeo-spatially tagged transactionsa day (thats every call and text,not just web connectedsmartphones!)For consumers, knowing wherethey are and whats / whos aroundthem is the key to PLANNEDSPONTANEITY. Thats about toget a whole lot easier, as geo-location becomes a key feature ofsocial networks and web apps(from existing providers addinglocation information, such asFacebooks Places, Twitterslocator, and Googles Hotpot, todedicated services likeFoursquare, Gowalla andBrightkite) 28
INTERESTING CONSUMER TRENDS WWW.TRENDWATCHING.COMTraditional ownership implies acertain level of responsibility,cost and commitment. Consumerslooking for convenience andcollecting as many experiences aspossible want none of thesethings.Fractional ownership and leasinglifestyle businesses offer thepossibility of perpetual upgradesto the latest and greatest, theability to maximize the numberand variety of experiences, andallow consumers to accessotherwise out-of-reach luxuries.Owning bulky, irregularly useditems is both expensive andunsustainable, 29
“The World Has Changed. Power HasShifted To The Customer. They Don’tTr u s t A d v e r t i s i n g . T h e y Wa n tAuthenticity. They Want Engagement.T h e y Wa n t Va l u e . T h e y Wa n tConnection.” Bryan O’Rourke
3 INTERESTING 2011 TECHNOLOGY TRENDS WWW.BRYANKOROURKE.COMSOCIALIZATION 1) Era of Social Relationships 2) Era of Social Functionality 3) Era of Social ColonizationOF THE WEB 4) Era of Social Context 5) Era of Social Commerce 43
CONTEXT:THE RIGHTNUMBERSBilly Beane, general managerof MLBs Oakland As andprotagonist of MichaelLewiss Moneyball, had aproblem: how to win in theMajor Leagues with abudget thats smaller thanthat of nearly every otherteam. 55
What Do YOU Think Is The#1 Challenge For HealthClubs Today ? THE KPI
THE KPI Attrition & Engagement • Attrition: Nearly 10.5 million people joined a health club in the U.S. in 2009, while 10.7 million dropped their memberships, producing a “churn” or attrition rate of 24%. • Core members: “Core” users remain members of their club for approximately 21.5 months longer than casual users. Assuming average monthly dues of $41.47, converting one member to a “core” user would therefore generate nearly $900 in extra revenues.59
HOW MANY OF US THINK ABOUTATTRITION-RETENTION IS WRONG 1. The attrition percentage is heavily inﬂuenced by the number of membership sales. Between June and July the attrition % fell (from 5.0% to 4.9%), yet the number of cancellations increased (from 126 to 129)! It is clear in this example that the reduction in attrition was caused by a large amount of new joiners in June and not by any improvement in the retention of existing members. 2. The attrition percentage does not take into account HOW LONG A MEMBER HAS BEEN RETAINED. It is possible to see huge variances in the membership duration of each member that cancels. THE KPI 61
HOW MOST OF US THINK ABOUTATTRITION-RETENTION IS WRONG In order to understand how to improve retention operators need to measure: 1. THE RETENTION RATE deﬁned as: The proportion of members who stay for a predeﬁned period of time e.g. 3, 6, 12 months etc. 2. LIFETIME VALUE deﬁned as: The average length of time members stay and therefore how much they pay in membership fees. THE KPI 62
all members are NOT the same Segmentation - changes how we manage market and engage members 63
THE KPIThe Health Club BusinessKnow your customers and analyzethe right numbers.1. Retain Members By Making Them Happy2. Intelligently Manage Costs 64
winning the unfair gamewww.polledemaagt.com 65
winning the unfair game Manage expectationswww.polledemaagt.com 66
What Billy Beane, knew about baseball we know aboutthe health club business. 67 THE KPI
Dr. Paul Bedford Working with the UK YMCA in 2006- 2007 and as part of his PhD. research, Dr. Paul Bedford applied his behavioural change strategies at the Central YMCA . With resulting increases in average membership length from 7 months to 13 months, and reduction in cancellations from an average of 77 per 1,000 members per month to 23 per 1,000 per month. 4:00 pm Wednesday March 16, 2011 Talk’s Cheap - Applying The Psychology Of Persuasion And Inﬂuence In Sales 68
WHAT A SURPRISEEngaging members impacts attrition ! 69
Bryan: We Hear You ButH ow D o We M e a s u reCorrectly, Know OurCustomers Better AndEngage ? THE KPI
3How Can Technology Impact Retention & 3. Current SolutionsMember Sales Today ? www.bryankorourke.com
Strategy & Tactics Ask Yourself These Questions
“What Are Or Is Your Club’sTechnology Platform(s) ?” remember the “cloud”, intelligently managing costs and consumer trends?
“What Are Or Is Your Club’sTechnology Platform(s) ?”can you.....segment member types and behaviors ?engage via email, text and social networks ?engage by member types and behaviors ?deliver customized web content to users ?provide on line bookings and memberships ? you need to ...
Upgrade Your Website - Online Membership Make it social enable on line registration customize user content
Create A Mobile Application Make it social customize user content location services
Mobile And RFID Technologies Emerging better data modeling micro transactions - membership tracking enables unbundling of memberships
Rick Stollymeyer 2:00 pm Wednesday March 16, 2011 The Future Is Technology Get Your Club Connected
“Do You Understand WhyMembers Are Coming AndGoing ?” remember consumer trends and retention challenge?
“Why Are Different MembersComing and Going?”are you.....tracking RELEVANT data around joins and cancels ?looking at the “life cycle” of your membership ?creating a predictor model ?engaging members around the model ? you need to ...
Aspirations Mapping Where Member Segmentation, Programming & Engagement Align
Customizing Member EngagementBridging The Physical & Digital -Outside & Inside The 4 Walls
“How & Where Are YouInvesting Your Marketing?” remember engagement and intelligently managing costs ?
“How And Where Are YouInvesting Your Marketing?”are you.....shifting funds away from traditional media ?trying to make digital engagement work ?tracking ROI of campaigns ?sharing targeted and relevant engaging content ? you need to ...
Mobile Targeted Promotion -THE SINGLE BIGGEST TREND
Mike Bannan 4:00 pm Wednesday March 16, 2011 Growing Membership With Yelp, Google Places & IDEA Fitness Connect Steve Groves 11 am Wednesday March 16, 2011Release Your Inner Geek: Social Media For Fitness Professionals