Driving Growth and Retention with Group Fitness - IHRSA EUROPE - Dublin 2009
1 DRIVE GROWTH AND RETENTION WITH GROUP FITNESS
DRIVE YOUR GROWTH AND RETENTION WITHGROUP FITNESS 1. The Future of Group Fitness 2. Identify the Group Fitness Opportunity within your Business (BHAG) 3. Build a Scorecard and use the Numbers to drive Decisions 4. Recruit a World Class team and put in place a robust Retention Plan 5. Make Group Fitness a cornerstone of your Marketing Plan
FROM CIRCUS TO CIRQUE DU SOLEIL…FROM AEROBICS TO GROUP FITNESS…
THE WORLD BEFORE HEALTH CLUB GROUP FITNESS…COMMUNITY HALLS, AEROBICS, LYCRA AND AMATEURS
GOING TO THE GYM IS BECOMING THE LARGEST SPORTIN THE WORLD… OVER 100 MILLION MEMBERS 2009 IHRSA Global Report
90% OF ALL EXERCISERS PREFER TO WORKOUT IN A GROUP… 1999 James J. Annesi: Effects of Minimal Group Promotion on Cohesion and Exercise Adherence
GROUP FITNESS IS ONE WAY TO ACHIEVE THIS IN A HEALTHCLUB ENVIRONMENT..
GROUP FITNESS CREATES BETTER MOTIVATION, PHYSICALRESULTS, AND FUN… !
GROUP FITNESS ALSO CREATES BETTER COMMUNITYAMONGST MEMBERS…
GROUP FITNESS PROMOTIONS ARE MORE COMPELLING ANDENGAGING…
11…AND SO THE ENVIRONMENT HAS BECOME MIRROR-LESS,MORE INVITING … 2003 August Issue of Health Psychology. “Gym mirrors a turn-off for Women” Study by McMaster University Hamilton , Canada
…LESS INTIMIDATING AND MUCH MORE ENTERTAINING. !
GROUP FITNESS IS THE #1 CHOICE OF SERVICE ORAMENITY THAT MAJORITY OF MEMBERS ARE INTERESTED INABOVE PERSONAL TRAINING, MASSAGE AND CAFES 2009 IHRSA / HCD & Les Mills Survey N= 6065 respondents
THE 2nd MOST IMPORTANT FACTOR IN MAKING A DECISIONTO JOIN A HEALTH CLUB IS MULTIPLE GROUP EXERCISEROOMS WITH FANTASTIC CLASSES… 2009 IHRSA / HCD & Les Mills Survey N= 6065 respondents
THE #1 FACTOR THAT WOULD ENCOURAGE PEOPLE TO TRYGROUP FITNESS CLASSES IS SCHEDULING MORE CLASSES ONTHE TIMETABLE AT DIFFERENT TIMES 2009 IHRSA / HCD & Les Mills Survey N= 6065 respondents
OVER 6 MILLION PEOPLE EVERY WEEK PARTICIPATE INOUR CLASSES IN 13000 CLUBS IN OVER 80 COUNTRIES North America Europe 1995 6685 Asia 813 South America Australasia 2394 1173
LEAD BY A TRIBE OF 70000 INSTRUCTORS THAT WOULD FILLAN OLYMPIC STADIUM… OR CROKE PARK
OUR GOAL IS TO BE THE NUMBER ONE IN FITNESS EXPERIENCEIN EVERY MARKET WE ARE IN – 100 MILLION PEOPLEAND A TOP 100 GLOBAL BRAND BY 2025
20WE NOW KNOW THAT YOU CAN QUADRUPLE WEEKLY GROUPFITNESS VISITS WITHIN 3–5 YEARS... IMPACTING BOTTOM LINE www.lesmills.com/global/en/clubs/group-fit-p.r.o.f.i.t
21 YOU CAN ALSO SERVICE 25%– 87% OF MEMBERS WITH GROUP FITNESS… THESE MEMBERS STAY LONGER Facility name Number of members % of total visits from GF California WOW, Bangkok, Thailand 15,000 52% Golds, Austin South, Texas, USA 11,300 25% Yuba City Racquet Club, California, USA 5,000 40% Holmes Place, Hamburg, Germany 4,400 31% Fitness First, Adelaide, Australia 4,400 28% Bodyplex Woodstock, Georgia, USA , 2,500 37% Sportschool rsus Leeuwarden, Holland U , 2,350 40% , Fitness Concepts, Massech , USA 2,000 43% Active Health Club, Cairns, Australia 1,980 68% InjoyMed, Lauterbach Germany , 1,950 47% Planet Form, Grigny Paris, France , 1,401 87% Liikuntakeskus a , Oulu, Finland 1,300 27% CorpusNovum Oirschot Holland , , 1,200 60% Cambridge Fitness Center, New Zealand 900 40% GYM -TECH Health and Fitness Club, Ireland 540 51% The House, San Diego, Califronia USA , 500 80% GSS Fitness Center, Sitges Spain , Spain 440 80% www.lesmills.com/global/en/clubs/group-fit-p.r.o.f.i.t Intention to renew membership by Les Mills Members versus Non les Mills Members 72.2% vs. 63.4%)
22 GROUP FITNESS MEMBERS REFER MORE PEOPLE THAN NON GROUP FITNESS MEMBERS… 2009 IHRSA / HCD & Les Mills Survey N= 6065 respondents 74.7% vs. 67.4%
23 GROUP FITNESS IS A KEY WEAPON TO WIN THE RETENTION AND PRICE WAR...
24 FUTURE GROUP FITNESSS SUCCESS REQUIRES INVESTMENT… Increase in weekly visits in 3-5 years 500 visits increases to 2,000 750 visits increases to 3,000 Revenue* from Group Fitness $250,000 $375,000 Costs Increased GFM wages $9,000 $12,500 Increased instructor wages $15,000 $16,000 Studio improvements $7,500 $15,000 Additional marketing costs $8,000 $12,000 License fees (3 & 5 programs) $8,000 $12,000 Increased training costs $2,500 $5,000 Total annual costs $50,000 $72,500 Forecast annual profit $200,000 $302,500 * Revenue calculation (increase in weekly attendances / 3 average visits per week) * $500
25 START BY CREATING A GROUP FITNESS “BHAG” Add up your current weekly class attendances 1000 TOTAL ____________ What could this be in 3-5 years if your instructors were delivering best in city/state/country/world experiences every time? POTENTIAL TOTAL GF ATTENDANCES (BHAG) 3000 _________ Divide the new attendance target by 3 (average Les Mills visits per week per AC Nielsen) 1000 POTENTIAL INCREASE IN NEW MEMBERS ____________ Multiply the number of members by your standard annual membership fee € 500 000 POTENTIAL INCOME GAIN $ ____________
28 THE TEAM CAN’T PLAY TO WIN IF IT DOESN’T KNOW THE SCORE
KNOWLEDGE IS POWER…7 BIG QUESTIONS1. What percentage of total club visits is provided by GF?2. Do you know if your GF attendance is growing? If so, by how much?3. Which of your programs have the most pulling power?4. What programs could take your club to the next level?5. Who your world-class instructors are?6. Which instructors need training to transform weekly attendance figures?7. Who reports to you on GF performance if the GFM’s too busy?
CLUB OWNERS ARE INTERESTED A VARIETY OF REPORTS
INCLUDING ATTENDANCE, CAPACITY, TARGETS ANDINSTRUCTOR RANKINGS
32 4 FOUNDATIONS OF YOUR SCORECARD 1. Count every class 2. Use the best digital technology you can afford or independent third party counts 3. Set class-by-class and weekly targets 4. Create accurate comparative stats and publish them
USE SMART APPLICATIONS TO DRIVE YOUR SCORECARD
CASE STUDY 1 |Bladium Sports and Fitness Club, CAClub overview 2728 Club members Total visits per week ~ 1700-2000 GF visits per week ~ 750-900 % of total visits provided by GF ~45-50% 4 Studios 7 LES MILLS Programs 65-70 classes a week 14-16 instructors Full time GFM
CASE STUDY 1 |Bladium Sports and Fitness Club, CABefore Application Excel based management Unable to bench mark GF performance No instructor rankings No program based analysis
CASE STUDY 1 |Bladium Sports and Fitness Club, CA With Smart Application Highlights Group Fitness visits against targets Identifies underperforming programs, classes or instructors Motivates the team by sharing the numbers and creating healthy competition between instructors Impact of Smart Application GFM saves ‘at least’ 10 hours per month to focus on business strategies Eliminates “Excel” mistakes Easily presents information to the club manager and allows for quick business decisions to be made.
AUTOMATED CLASS COUNTING CAN IMPROVETHE WAY YOU RECORD GROUP FITNESS DATA… Auto Count Camera Application
43 SCORECARD 7 MUST-DO’S 1. Start accurate manual/camera counts immediately 2. Monitor total weekly attendances 3. Set class targets with instructors 4. Enter class counts and targets into your Scorecard spreadsheet 5. Publish results monthly and recognize/reward success 6. Graph target against actual over a sustained period of time €500 000
45 A SINGLE GREAT INSTRUCTOR CAN BRING HUNDREDS OF MEMBERS TO YOUR CLUB
46 A TEAM OF GREAT INSTRUCTORS CAN BRING THOUSANDS OF MEMBERS TO YOUR CLUB!
47 CASTING IS EVERYTHING “Never try to teach a pig how to sing. It wastes your time and annoys the pig”
48 EXAMPLES OF GROUP FORMATS AND ESSENCE The real weights workout where I feel strong and get challenged The Martial Arts workout where I am unleashed The Yoga, Tai Chi, Pilates workout where I feel strong and centered, long and strong The dance workout where I get high on the feeling of dance Ride the rhythm for the athlete within The lively step workout where I get lifted The cardio conditioning workout inspired by sports training The low-impact workout that lets you choose just how hard you work