What does your fitness club stand for? The business case for building a unique business Part 1 © Ray Algar – Oxygen Consulting 2007

Find out more about me here

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I want to talk about creating a unique and different fitness club business

I will talk about computers, Coca-Cola, a chair, an airline and fitness clubs…it will make sense!

PART 1 - today Why clubs need to be unique and different

PART 2 - tomorrow Four fitness clubs that members love

Why does your club need to be unique and different?

Everywhere, we are faced with more and more choice

Let’s look at Sony laptop computers

Welcome to the fitness club market

This is how customers may see you!

So it becomes a fight over price

Fly for free

Are fitness clubs becoming commodities like coffee beans?

Winners and losers

REAL competition …welcome to New York

More competitors will be arriving – just give it time

Great price for Swedish members

Time to focus on extraordinary service?

If you offer no differentiating features with your club, then customers may see you as a commodity

If you offer no differentiating features with your club, then customers may see you as a commodity

So consumers have choice, but how good are these clubs?

Let’s go on-line and find out

The health club experience – the real uncut version

64% 36% All opinions 53% 47% Prospective members 95% 5% Past members 60% 40% Current members Negative opinion Positive opinion

95% 5% Past members Negative opinion Positive opinion

Do clubs care?

… during the tour, yes!

‘ the best salesman ever’

‘ cup of coffee bought for me and all the trimmings’

‘ I remember how friendly the sales lady was in trying to get me to join up’

… but after the honeymoon period

‘ After the initial session, they have never checked my circumstances or how I was doing over my two years of membership’

‘ The clubs are not interested in their members’

‘ Once I had joined, she (sales staff) would blank me when I said hi to her’

Membership factors: 87% negative – cancellation, notice period, debt collectors

Read this before you sign

‘ I was not aware of the 12-month commitment period until I tried to cancel and had not been given a copy of the contract’

‘ Beware smiling salesman offering “great deals” and asking you to sign contracts with very small print’

‘ I visited once before diagnosed with breast cancer. I informed the manager…sent five letters. No response apart from letters from the debt collection agency’

Chandler wants to quit the gym

Friends video

Would they recommend to family, friends and colleagues?

317 reviews 10% promoter rate for 6 chains

22% highest chain 7% lowest chain

… during the tour, yes!

Little positive word of mouth being harnessed

Welcome to low-cost, budget clubs Door left wide-open for budget clubs 183 Kr/€19/month

159 Kr/€17/month

75 Kr/€8/month

“ There will be no UK mid-market clubs in five years” – Budget chain Director

Differentiate or die If you don’t have a differentiating idea to drive your club then offer a great price!

If you don’t have a differentiating idea to drive your club then offer a great price!

So, where do you want to be? Striving to provide a remarkable service or competing on price?

So, we need a strong purpose

‘ Stand for something, or fall for anything’ Malcolm X

The challenge is for members to feel a strong sense of belonging and connection

Members need to fall in love with your club

Porsche creates passionate customers

A strong purpose provides a compass for your club

A strong purpose helps your fitness club and brand to become unique

When you are different and valued, customers will pay more

Coca-Cola 20Kr/€2.12 Supermarket own brand - 3 KR/€0.30 590% premium

Herman Miller - A company with a strong purpose

Is this the most comfortable office chair in the world?

Yours to own and love for 13,500 Kr/€1,440

So, what is your club going to stand for?

‘ Stand for something, or fall for anything’ Malcolm X

A small company can have a very big cause

Market positioning is creating a clear, distinctive and attractive market position in the minds of stakeholders

Market positioning helps your fitness club and brand to become unique

It needs to be exciting, different and valued

Positioning map – car brands Exclusive Affordable Luxurious Fun/Great driving experience Porsche Ferrari Aston Martin Jaguar Massarati BMW Mini Smart Skoda Audi TT Mercedes Bentley ? VW Beetle

Which of these do you want your fitness club to own? Convenient Friendly Exclusive Fun Affordable Relaxing Effective Profess- ional Attributes

Professional

Effective

Relaxing

Affordable

Exclusive

Friendly

Convenient

Fun

Developing your market position. What do members love about your club?

What do members want from your club?

Can new research of members, staff, suppliers create insights for a positioning strategy?

Be clear on the attribute you want to own

Developing a positioning statement: The friendliest fitness club you will ever join

Some other fitness club positioning statements

This should NOT be a superficial slogan. It guides everything you do

Bringing your market positioning to life What the club will measure Brand Value Market position Physical attributes & systems How staff communicate and act

Bringing your market positioning to life 2. Brand value Caring 3. System Member tracking system 4. Staff Actions Work hard to achieve member objectives 1. Positioning The friendliest club you will ever join 5. What the club will measure Members judge staff engagement

What if my fitness club/brand has no distinctive qualities?

Discover one. Make it the best it can be. Make it impossible for a competitor to copy

Key points and actions

Discover the unique market position that you wish to hold

Ensure it is clear, distinctive and profitable

Measure actions against your market position

Ensures the brand lives and breathes your market position

Aim to make your club/brand remarkable

Ensure you have the resources to execute the strategy?

Ensure you have the passion and patience to achieve your unique position?

PART 2 - tomorrow Four fitness clubs that members love

Thank you Read more in Mastering Health Club Management, my new book – 195 Sk/€20 (325 Sk) www.oxygen-consulting.co.uk