Closing the distance between what we know and

Closing the Distance Between What We Know, and What We Do! Grant Gamble

Reduce the gap between what you know and what you do . . .

. . . and help reduce the gap between what the average Australian knows and does!

Most people’s view of life . . . HEALTHY DEAD 45 76

. . but for 95% of us it can look like this 45 90 HEALTHY DEAD

Interesting Fact:
Australians are better educated on the benefits of fitness and wellness today than at any point in history . . .

Interesting Fact:
Yet 83% of the Australian population are not doing enough exercise to significantly improve their health

Question: Why is the gap so great between what the average Australian knows and does?

. . . when
Exercise options abound
Our climate makes outdoor activities ‘easy’
People are exposed to the benefits of exercise at bus stops, on billboards, on TV, in the tabloids and beyond . . .

AND, closer to home . . .
Prices for ‘fitness’ continue to drop or remain frozen in many cases*
Personal Trainers are proliferating
Studios are popping up on every street corner
Express Clubs are springing up everywhere
*On average 70% of clubs polled in the AFIS2010 intend to freeze or reduce rates in the coming 12 months – courtesy of EzyPay

So with all these things in our collective favour why are we fighting harder today than ever for a slice of the seemingly ‘fixed’ active exercisers discretionary spend?

Perceived Costs versus Benefits of Pursuing a Healthy Lifestyle PERCEIVED COSTS PERCEIVED BENEFITS NOT PERCEIVED TO BE THE SOCIAL NORM IT’S HARD TO KEEP TRACK LONG TERM HEALTH BENEFITS LOOK & FEEL BETTER SHORT TERM IT’S A LOW PERSONAL PRIORITY I’M NOT AT RISK IT’S TOO MUCH EFFORT REQUIRES TOO MUCH DEPRIVATION PURSUING A HEALTHY LIFESTYLE

Perceived Fears of Clubs versus Benefits of Joining PERCEIVED RISKS PERCEIVED BENEFITS THERE WON’T BE ANYBODY IN MY SITUATION IF I DON’T ATTEND THEY DON’T CARE LONG TERM HEALTH BENEFITS LOOK & FEEL BETTER SHORT TERM I’LL BE SURROUNDED BY BEAUTIFUL PEOPLE I’M JUST A NUMBER AT THE GYM I’M NOT GOOD AT EXERCISE I’LL BE LOCKED INTO AN ONEROUS CONTRACT JOINING A CLUB WHAT IF I SIGN UP AND THE CLUB CLOSES? I DON’T WANT TO DEAL WITH THE ‘ HARD SELL’

DOWNSIDE UPSIDE THERE WON’T BE ANYBODY IN MY SITUATION IF I DON’T ATTEND THEY DON’T CARE LONG TERM HEALTH BENEFITS LOOK & FEEL BETTER SHORT TERM I’LL BE SURROUNDED BY BEAUTIFUL PEOPLE I’M JUST A NUMBER AT THE GYM I’M NOT GOOD AT EXERCISE I’LL BE LOCKED INTO AN ONEROUS CONTRACT GETTING ACTIVE WHAT IF I SIGN UP AND THE CLUB CLOSES? I DON’T WANT TO DEAL WITH THE ‘ HARD SELL’ NOT PERCEIVED TO BE THE SOCIAL NORM IT’S HARD TO KEEP TRACK IT’S A LOW PERSONAL PRIORITY I’M NOT AT RISK IT’S TOO MUCH EFFORT REQUIRES TOO MUCH DEPRIVATION

Progression of attitudes, and the ‘Stages of Change’

And because we do not effectively help people move through these stages we end up ‘fighting’ over a very finite number of participants each year!

Add to this the fact that . . .
Today we are competing with . . .
Narrow margins
Discounting driven by major players, growing competition, and market demand
Diversifying populations
More marketing mediums than we ever imagined
Increasing resistance from consumers*
* 64% of expired members said they would never rejoin – AFIS2010 Courtesy of EzyPay

Compounded by . . .
Spiraling costs
Ever increasing options for discretionary spending
Poor overall industry image
And ‘the great outdoors’

How has this paradox occurred?
Gym closures
Inflexible contracts
Overstated care
Under performance
Hard sell
The ‘projected image’ of the gym user
Lack of ‘entry type programs’
Lack of industry cohesion

Commoditization! And possibly the most problematic of all . . .

So what is the answer . . . ?

. . . there is no ‘Magic Pill’, but there are a myriad of ways for us to shift our thinking, and ultimately our outcomes.

‘ SIMPLE’ SOLUTIONS (raise your hand if one peeks your interest)
Raise prices
Form a co-operative
Niche your club
Outperform consumer expectations
Reduce costs
Diversify offerings
Create ‘clubs’ within the club
Clubs without walls

INCREASE THE # OF POTENTIAL PARTICIPANTS (raise your hand if one peeks your interest)
Decrease the intimidation factor at your club
Make it ‘easy’ for beginners
No contract options
Offer ‘low usage’ memberships
Enlist partners, e.g. physicians
Support a national marketing campaign

JOIN THE ‘REALITY BUZZ’ (raise your hand if one peeks your interest)
Get on the social media bandwagon*
Have live video of elements of the club
Have live video of elements of the club
Stream PT sessions to the web
Create vignettes for the web
Stream group exercise classes
Send video messages to clients
* 3.5% of Clubs reported success through Social Media in 2009 – AFIS2010 – Courtesy of EzyPay

INCREASE YOUR ‘FLEX-ABILITY’ (raise your hand if one peeks your interest)
Provide custom memberships, e.g.
‘ No frills’ through to
All the ‘bells and whistles
Time ‘loaded’ memberships
Enhance your online presence
Allow account access online
Encourage bookings online
Sign-ups online
Use email to enhance your communications*
*58.3% of members prefer email communications – AFIS2010 Courtesy of EzyPay

BROADEN YOUR OFFERINGS (raise your hand if one peeks your interest)
Introduce ‘Discover Programs’
Add ‘retreats’ to your offerings
Partner for ‘Exercise Holidays’
Make ‘Short Term Programs’ a LT strategy
‘ Senior Centric’ classes
‘ Kid Centric’ programs

BROADEN YOUR OFFERINGS (raise your hand if one peeks your interest)
Go ‘Low Tech’ (Outdoor and Urban training)*
Go 24 . . .**
Leverage the Group Training ‘opportunity’***
No contract terms****
* 39.4% Club Owners AND Members saw this as a major growth area – AFIS2010 – Courtesy of EzyPay
** 31.4% of Club Owners and Members saw 24hr Club as a significant growth area – AFIS2010 - Courtesy of EzyPay
*** 40.8% of Club Owners and Members saw Group Training as a significant growth area – AFIS2010 - Courtesy of EzyPay
**** 46.3% of Club Owners and Members saw No Contract Terms as a significant growth area – AFIS2010 - Courtesy of EzyPay

SHAPE YOUR STRATEGIES (raise your hand if one peeks your interest)
Rejoin on a NO Contract Membership*
Cross-train your Fitness Team to do tours/sales**
Utilise your space more effectively
* 51.5% of Ex-Members said they would rejoin on a No Contract Terms basis as opposed to 7.6% on basis of rejoining at the same rate as they left – AFIS2010 - Courtesy of EzyPay
** 49.5% of members/ex-members would prefer a Trainer to tour them over 2.2% by a Sales Consultant – AFIS2010 – Courtesy of EzyPay

Is there a solution amongst those very simple ideas?

What are you going to do to differentiate yourself?

To stand out from the crowd?

Or create a new market outside of the ‘Red Ocean’ we compete in today?

Bibliography
The 10 Top Consumer Trends Impacting the Fitness Industry in 2010 – Celeste Kirby-Brown & Simon Hall
Australian Fitness Industry Survey – EzyPay Celeste Kirby-Brown & Simon Hall
ABHI Segmentation Report - GfK Blue Moon
Australian Better Health Initiative - GfK Blue Moon
ABHI – Phase I Campaign Evaluation - GfK Blue Moon

Closing the distance between what we know and

by Grant Gamble on May 02, 2010

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Closing the distance between what we know and — Presentation Transcript