What does your fitness club stand for?


The business
case for building
a powerful
business
b i
purpose
Presented by Ray A...
Themes we will explore




                         2
Understanding how to
reduce the i
  d     h impact of
                  f
competitors




                       3
Creating a strong purpose
versus short term
        h
marketing campaigns




                            4
How a strong business
purpose creates a deep
                  d
and lasting connection
with members




                 ...
Exploring companies
that customers l
 h             love




                      6
Why does your club need
   y      y
a compelling purpose?




                          7
Everywhere,
Everywhere
consumers face
more choice      8
9
10
11
12
13
14
15
Co pet g bus esses
Competing businesses
can now look the same




                        16
UK G
   Gym




Danish
Gym
         17
Consumers begin
C           b i
to select on price
             p
                     18
So companies fight for
the lowest price
                         19
€6.40
€6 40
21
Great
price for
S
Spanish
     i h
members
            22
Time to focus
on
extraordinary
service?

                23
REAL competition
…welcome to New York
    l    t N     Y k




                       24
Club Closures - UK
         140                     132
                                          121      112
         12...
So consumers have choice, but
how good are these clubs?
h       d     h     l b ?




                                26
Let’s go on-line a d
  et s   o     e and
find out




                       27
28
29
30
31
32
Customer      Positive   Negative
Type          opinion    opinion

Current       40%        60%


Past          ?        ...
Positive Negative
                     g
          opinion opinion
Past      5%      95%
members




                     ...
Positive Negative
                         g
              opinion opinion
Prospective   47% 53%
members




             ...
Do clubs care?




                 36
…yes, during the
  y ,      g
tour               37
‘the best salesman
 the
ever’                38
‘I remember how
 I
friendly the sales lady
was in trying to get
me to join up’            39
…but after the
honeymoon period
               40
‘Af
‘After the i i i l session, they
        h initial      i     h
have never checked how I
was over two years of
members...
‘Clubs
‘Cl b are not interested
            ti t     t d
in their members’
                           42
Membership f
   b   hi factors:
87% negative
                     43
‘I was not aware of the 12-
month contract until I tried
to cancel’
                               44
Chandler wants
to l
   leave the gym
          h

                   45
Friends video

                46
47
Would you recommend this
club to your family and
friends?
1 in 10 (10%) promoter rate
for 6 large club chains
22% highest
chain
              50
7% l
 % lowest
chain
            51
Little positive word of mouth
                                52
€17/month
            53
€13/month
Fit for Free €9 90/month
             €9.90/month
56
Outdoor classes




                  58
Outdoor gyms
               59
Home exercise
                60
Video gaming




               61
Online Health
Clubs
                62
Mobile personal
trainers
   i




                  63
Wearable activity
tracking
                    64
65
MiCoach by adidas
                    66
So,
So the choice for clubs is
a remarkable service or
competing on price?
       i        i ?
How fitness clubs
can fight back




                    68
Clubs need a
strong purpose




                 69
A strong purpose helps
your fitness b
     fi      brand to
                 d
become unique




                         ...
When you are unique and
valued, members
will pay more




                          71
Coke & supermarket own
          p
brand - €2.12 v €0.30
590% premium




                         72
Cl b need to create real
Clubs     dt     t     l
value for members
                           73
Th challenge is for members
The h ll       i f        b
to feel a strong sense of
               g
belonging and connectio...
Members need to fall
in love with your club




                         75
Football fans NEVER
switch clubs




                      76
Porsche creates
passionate customers




                       77
78
What is your club’s
purpose?




                      79
What are we as individuals
passionate about?

                             80
What does your club
stand for?




                      81
‘Stand for something, or fall
forstand for change
 I anything’
Malcolm X




                                82
Purpose goes deep
inside the company




                     83
To organise the
world’s information




                      84
‘The Body Shop ceased to be just
another trading b i
    h      di   business. IIt
became a force for social change’
     ...
A strong purpose
provides a compass
for your club




                     86
C
Companies with a
        i   ith
strong purpose
     gp p
                   87
88
Innocent smoothie




                    89
A third space for
  thi d       f
connecting p p
          g people




                     90
91
7,000,000
7 000 000



            92
93
To help protect y our priv acy , PowerPoint prev ented this external picture from being automatically downloaded. To downl...
Brands with a cause
B   d    ith
ou pe o
outperform their rivals
             e      as




                          95
A small company can have
            p y
a big and compelling
purpose




                           96
Here’s two fitness
clubs with a purpose
that members love




                       97
Gainesville Health &
Fitness Center




                       98
Meet Joe Ci lli
         Cirulli

                   99
Joe s
Joe’s purpose




                100
To make Gainesville the
healthiest community in
America




                          101
‘It was a 3 5 year project.
          3.5         j t
We accomplished it in 2003’
           p




                       ...
‘We then changed our
 We
mission to keeping
Gainesville the healthiest
community in America‘
               America




  ...
‘To keep Gainesville healthy
       p                   y
one business, one person,
one child at a time’
               ti...
Club has engaged 60%
of G i
 f Gainesville’s workers
          ill ’     k
                           105
‘The hi d l
‘ h third place i
                in
members lives’
members’ lives




                     106
‘Extraordinary
 Extraordinary
commitment to helping
people - a consistent level
of service that far exceeds
the
th ordinar...
108
‘We define integrity as always
 We
doing the right thing even
when no one is looking’
  h           i l ki ’




         ...
‘Members get results’
 Members     results




                        110
Free eight week cancer
recovery programme




                         111
Free childcare




                 112
Gold
G ld well city
       ll it
award 2003




                 113
IHRSA i d t
       industry
visionary award
        y




                  114
World fitness
centre 2001
                115
Members stay
on average 40
months




                116
Families have grown
up at Joe’s centre
         ’




                      117
3 employees
have worked
with Joe for 31
y
years




                  118
23,000
23 000 members




                 119
Questions




            120
Here s
Here’s another fitness club
with a strong purpose




                              121
Welcome to Eco Fit Brazil: Is
this the most environmentally
friendly fitness centre in
the world?




                    ...
123
R d
Reduce, re-cycle and
              l    d
re-use philosophy
       p      p y




                       124
Save water, materials from
renewable sources




                             125
Solar power




              126
Ozone-treated pool to
reduce chemical use
                        127
Organic philosophy




                     128
More than a fitness club –
an environmental academy
      i          l    d




                             129
2,000 classes for the whole
family each month




                              130
Works with Greenpeace,
Brazilian Institute for the
Defence of Nature & other
environmental charities
                     ...
Ecokids – environmental
awareness courses for
children




                          132
Questions




            133
These clubs have a
clear purpose?




                     134
They will leave a strong
legacy or history




                           135
If these clubs closed today
they would b missed b
 h        ld be i    d by
members?




                              136
These members
will not leave for
another club




                     137
Members LOVE
these clubs




               138
These clubs generate
            g
an external buzz




                       139
Members lives are
being improved
                    140
Staff are passionate and
having fun
                           141
Do not imitate these centres
… find your own purpose




                               142
Get behind a strong
purpose NOT short term
marketing campaigns




                         143
It helps you to become
valued b members
   l d by       b
and unique




                         144
…and makes the
  and
competition irrelevant




                         145
Free chapter download   146
www.oxygen-consulting.co.uk
www oxygen-consulting co uk
                              147
Who is Ray Al
Wh i R     Algar?
                ?
                    148
Questions




            149
What does your fitness club stand for: Ray Algar (MBA) IHRSA European Convention Lisbon Portugal October 2008
Upcoming SlideShare
Loading in …5
×

What does your fitness club stand for: Ray Algar (MBA) IHRSA European Convention Lisbon Portugal October 2008

2,289 views
2,184 views

Published on

Presentation delivered to delegates at the IHRSA European Convention in Lisbon October 2008 by Ray Algar (MBA)

Published in: Business, Health & Medicine
0 Comments
6 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
2,289
On SlideShare
0
From Embeds
0
Number of Embeds
54
Actions
Shares
0
Downloads
0
Comments
0
Likes
6
Embeds 0
No embeds

No notes for slide

What does your fitness club stand for: Ray Algar (MBA) IHRSA European Convention Lisbon Portugal October 2008

  1. 1. What does your fitness club stand for? The business case for building a powerful business b i purpose Presented by Ray Algar MBA, MA Managing Director Oxygen Consulting UK IHRSA European Congress Lisbon October 2008 © Ray Algar – Oxygen Consulting 2008 1
  2. 2. Themes we will explore 2
  3. 3. Understanding how to reduce the i d h impact of f competitors 3
  4. 4. Creating a strong purpose versus short term h marketing campaigns 4
  5. 5. How a strong business purpose creates a deep d and lasting connection with members 5
  6. 6. Exploring companies that customers l h love 6
  7. 7. Why does your club need y y a compelling purpose? 7
  8. 8. Everywhere, Everywhere consumers face more choice 8
  9. 9. 9
  10. 10. 10
  11. 11. 11
  12. 12. 12
  13. 13. 13
  14. 14. 14
  15. 15. 15
  16. 16. Co pet g bus esses Competing businesses can now look the same 16
  17. 17. UK G Gym Danish Gym 17
  18. 18. Consumers begin C b i to select on price p 18
  19. 19. So companies fight for the lowest price 19
  20. 20. €6.40 €6 40
  21. 21. 21
  22. 22. Great price for S Spanish i h members 22
  23. 23. Time to focus on extraordinary service? 23
  24. 24. REAL competition …welcome to New York l t N Y k 24
  25. 25. Club Closures - UK 140 132 121 112 120 100 68 Number 80 6 61 60 N 40 20 0 Year Year Year Year Year ending g ending g g ending ending g ending g 2003 2004 2005 2006 2007 25
  26. 26. So consumers have choice, but how good are these clubs? h d h l b ? 26
  27. 27. Let’s go on-line a d et s o e and find out 27
  28. 28. 28
  29. 29. 29
  30. 30. 30
  31. 31. 31
  32. 32. 32
  33. 33. Customer Positive Negative Type opinion opinion Current 40% 60% Past ? ? Prospective ? ? All types 36% 64% 33
  34. 34. Positive Negative g opinion opinion Past 5% 95% members 34
  35. 35. Positive Negative g opinion opinion Prospective 47% 53% members 35
  36. 36. Do clubs care? 36
  37. 37. …yes, during the y , g tour 37
  38. 38. ‘the best salesman the ever’ 38
  39. 39. ‘I remember how I friendly the sales lady was in trying to get me to join up’ 39
  40. 40. …but after the honeymoon period 40
  41. 41. ‘Af ‘After the i i i l session, they h initial i h have never checked how I was over two years of membership membership’ 41
  42. 42. ‘Clubs ‘Cl b are not interested ti t t d in their members’ 42
  43. 43. Membership f b hi factors: 87% negative 43
  44. 44. ‘I was not aware of the 12- month contract until I tried to cancel’ 44
  45. 45. Chandler wants to l leave the gym h 45
  46. 46. Friends video 46
  47. 47. 47
  48. 48. Would you recommend this club to your family and friends?
  49. 49. 1 in 10 (10%) promoter rate for 6 large club chains
  50. 50. 22% highest chain 50
  51. 51. 7% l % lowest chain 51
  52. 52. Little positive word of mouth 52
  53. 53. €17/month 53
  54. 54. €13/month
  55. 55. Fit for Free €9 90/month €9.90/month
  56. 56. 56
  57. 57. Outdoor classes 58
  58. 58. Outdoor gyms 59
  59. 59. Home exercise 60
  60. 60. Video gaming 61
  61. 61. Online Health Clubs 62
  62. 62. Mobile personal trainers i 63
  63. 63. Wearable activity tracking 64
  64. 64. 65
  65. 65. MiCoach by adidas 66
  66. 66. So, So the choice for clubs is a remarkable service or competing on price? i i ?
  67. 67. How fitness clubs can fight back 68
  68. 68. Clubs need a strong purpose 69
  69. 69. A strong purpose helps your fitness b fi brand to d become unique 70
  70. 70. When you are unique and valued, members will pay more 71
  71. 71. Coke & supermarket own p brand - €2.12 v €0.30 590% premium 72
  72. 72. Cl b need to create real Clubs dt t l value for members 73
  73. 73. Th challenge is for members The h ll i f b to feel a strong sense of g belonging and connection 74
  74. 74. Members need to fall in love with your club 75
  75. 75. Football fans NEVER switch clubs 76
  76. 76. Porsche creates passionate customers 77
  77. 77. 78
  78. 78. What is your club’s purpose? 79
  79. 79. What are we as individuals passionate about? 80
  80. 80. What does your club stand for? 81
  81. 81. ‘Stand for something, or fall forstand for change I anything’ Malcolm X 82
  82. 82. Purpose goes deep inside the company 83
  83. 83. To organise the world’s information 84
  84. 84. ‘The Body Shop ceased to be just another trading b i h di business. IIt became a force for social change’ g 85
  85. 85. A strong purpose provides a compass for your club 86
  86. 86. C Companies with a i ith strong purpose gp p 87
  87. 87. 88
  88. 88. Innocent smoothie 89
  89. 89. A third space for thi d f connecting p p g people 90
  90. 90. 91
  91. 91. 7,000,000 7 000 000 92
  92. 92. 93
  93. 93. To help protect y our priv acy , PowerPoint prev ented this external picture from being automatically downloaded. To download and display this picture, click Options in the Message Bar, and then click Enable external content. 94
  94. 94. Brands with a cause B d ith ou pe o outperform their rivals e as 95
  95. 95. A small company can have p y a big and compelling purpose 96
  96. 96. Here’s two fitness clubs with a purpose that members love 97
  97. 97. Gainesville Health & Fitness Center 98
  98. 98. Meet Joe Ci lli Cirulli 99
  99. 99. Joe s Joe’s purpose 100
  100. 100. To make Gainesville the healthiest community in America 101
  101. 101. ‘It was a 3 5 year project. 3.5 j t We accomplished it in 2003’ p 102
  102. 102. ‘We then changed our We mission to keeping Gainesville the healthiest community in America‘ America 103
  103. 103. ‘To keep Gainesville healthy p y one business, one person, one child at a time’ time 104
  104. 104. Club has engaged 60% of G i f Gainesville’s workers ill ’ k 105
  105. 105. ‘The hi d l ‘ h third place i in members lives’ members’ lives 106
  106. 106. ‘Extraordinary Extraordinary commitment to helping people - a consistent level of service that far exceeds the th ordinary’ di ’ 107
  107. 107. 108
  108. 108. ‘We define integrity as always We doing the right thing even when no one is looking’ h i l ki ’ 109
  109. 109. ‘Members get results’ Members results 110
  110. 110. Free eight week cancer recovery programme 111
  111. 111. Free childcare 112
  112. 112. Gold G ld well city ll it award 2003 113
  113. 113. IHRSA i d t industry visionary award y 114
  114. 114. World fitness centre 2001 115
  115. 115. Members stay on average 40 months 116
  116. 116. Families have grown up at Joe’s centre ’ 117
  117. 117. 3 employees have worked with Joe for 31 y years 118
  118. 118. 23,000 23 000 members 119
  119. 119. Questions 120
  120. 120. Here s Here’s another fitness club with a strong purpose 121
  121. 121. Welcome to Eco Fit Brazil: Is this the most environmentally friendly fitness centre in the world? 122
  122. 122. 123
  123. 123. R d Reduce, re-cycle and l d re-use philosophy p p y 124
  124. 124. Save water, materials from renewable sources 125
  125. 125. Solar power 126
  126. 126. Ozone-treated pool to reduce chemical use 127
  127. 127. Organic philosophy 128
  128. 128. More than a fitness club – an environmental academy i l d 129
  129. 129. 2,000 classes for the whole family each month 130
  130. 130. Works with Greenpeace, Brazilian Institute for the Defence of Nature & other environmental charities 131
  131. 131. Ecokids – environmental awareness courses for children 132
  132. 132. Questions 133
  133. 133. These clubs have a clear purpose? 134
  134. 134. They will leave a strong legacy or history 135
  135. 135. If these clubs closed today they would b missed b h ld be i d by members? 136
  136. 136. These members will not leave for another club 137
  137. 137. Members LOVE these clubs 138
  138. 138. These clubs generate g an external buzz 139
  139. 139. Members lives are being improved 140
  140. 140. Staff are passionate and having fun 141
  141. 141. Do not imitate these centres … find your own purpose 142
  142. 142. Get behind a strong purpose NOT short term marketing campaigns 143
  143. 143. It helps you to become valued b members l d by b and unique 144
  144. 144. …and makes the and competition irrelevant 145
  145. 145. Free chapter download 146
  146. 146. www.oxygen-consulting.co.uk www oxygen-consulting co uk 147
  147. 147. Who is Ray Al Wh i R Algar? ? 148
  148. 148. Questions 149

×