Good to Great GOLD - 2011 Global Group Fitness Research  - steven renata 2011
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Good to Great GOLD - 2011 Global Group Fitness Research - steven renata 2011

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Latest Research on Group Fitness....

Latest Research on Group Fitness.
Benchmark examples of how the best GOLDS GYMS perform against the best on the Planet. Highlights of the Les Mills Ultimate Group Fitness Studio Competition
Presented by Steven Renata CEO Les Mills West Coast

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  • Do we have to change the numbers? Do we even want to communicate on 1200 clubs? Last sentence doesn’t make sense to clubs
  • Do we have to change the numbers? Do we even want to communicate on 1200 clubs? Last sentence doesn’t make sense to clubs
  • Note that the participant visit to club is member traffic and a Nielsen vs IHRSA stat (not a attendance proportion of club membership as in Scoreboard)
  • 2 MINUTESWhat’s your message:How can you get your program offer right? First, you need to better understand your club’s positioning and main target market so you can match your GX offer to your target market.Presenters: use that slide to explain the 6 types of emotional benefits people look (in orange) and how they want to ‘feel’ or what they want to experience (in grey). Don’t talk about the Les Mills programs’ positioning yet.Enhance slide with:This psychographic research model – or “Needscope Model” is one accepted way of summarizing customer attitudes and beliefs about products and services.It illustrates emotional needs consumers hope to have fulfilled with their choice of club and workout experience (Explain the 6 types of needs; don’t talk about Les Mills programs for now)As an example, Les Mills Auckland (urban club with a huge majority of young active) is positioned on the right of the model, in high energy/power/perfection
  • Fitness-Studio ONE in Dornstetten, Germany State-of-the-art club operating in a former car dealership!GX studio has breath-taking views of the Black Forest, with glass walls creating a unique experienceOwner Frank Schmid set out for every participant to have a very special fitness adventureJudges were particularly taken with Fitness-Studio ONE's use of natural light and the ability to see both in and out of the studio. Really innovative to share the experience with people outside
  • Another photo from Fitness Studio One.It’s a far cry from the business Frank Schmid bought 14 years ago; a space that could only fit 12 class members at a time.  In a town of just 10,000, the club was also under threat from new gyms nearby.Frank’s first goal was just to survive, but he systematized the studio side of his business by introducing the Les Mills Group Fitness Management approach as he introduced the Les Mills BODYPUMP® barbell class. Soon, so many crammed into his tiny gym that he needed a bigger venue. Fitness-Studio ONE reinforces Phillip Mills' belief that group fitness can transform a gym financially. Frank has succeeded in a hugely competitive market, based on group X. He invested and made a commitment to give his members an outstanding environment for their workouts, and they've responded to that.
  • Half a world away in St Johns, Florida, First Coast Fitness was our other winner.A group X only club featuring a 2000-sq-ft Zenterra Bamboo fitness floor, designed specifically for yoga and group exercise. A high stage adds to the theatre effect, and a sophisticated lighting system creates a range of spectacular effects.
  • Another shot of First Coast Fitness.Lighting has really enhanced participants' experience, and people feel really comfortable to explore their own fitness levels – lots of classes feel just like a party!The judges were impressed with the personal feel in the group x room – creating a dynamic environment that's exciting, and most importantly, enticing.
  • Circles outline spacing for people doing group x classes – really innovative, fits a lot of people in, people know how much space they need.
  • Deliberately packed close together for that real ‘pack ride’ feel.You can feel and smell mood in the room!
  • Riders are deliberately close to the instructors – for intensity

Good to Great GOLD - 2011 Global Group Fitness Research  - steven renata 2011 Good to Great GOLD - 2011 Global Group Fitness Research - steven renata 2011 Presentation Transcript

  • GOOD TO GREATWHAT MAKES THE TOP CLUBS GREAT AND GOLD 2 LES MILLS INTERNATIONAL © 2011
  • RESEARCH METHODOLOGY OVERVIEW An online survey was undertaken during February/March 2011. Clubs were asked to record and report back full details of member attendance of both GF and non-GF for a specific week . A total of 1,187 clubs recorded and entered data. The survey data was then post-weighted to be representative of the Les Mills licensed club population. Distribution of Clubs With At Least One Les Mills Program(1) Region Number of Les Mills Programs <=3 >3 Europe 32% 18% North America 14% 6% South America 9% 6% Asia-Pacific 6% 8%Notes: 1. Source: Data provided by Les Mills
  • RESEARCH METHODOLOGY OVERVIEW Proportion of Clubs That Have Les Mills Programs Survey data 90% 89% Les Mills Internal Data Distribution of Clubs that license specific Les Mills program in the survey data is in line with Les Mills internal data 58% 57% 54% 52% 34% 33% 32% 32% 31% 31% 3.46 27% 3.42 21% 17% 16% 4% 2% Average Number of Les Mills P EP M AM T VE M E CK M BA RP NC JA ST PU VI B TA Programs per Club M DY LA DY SH DY DY CO AT BA BO BO BO BO DY DY DY BO BONotes: 1. Source: Data provided by Les Mills BO View slide
  • GLOBAL GX METRICS SURVEYOBJECTIVES1. Provide club decision makers with better insight into trends2. Provide accurate measure of group fitness attendance data3. Provide benchmarks on a global scale, and what is possible as ‘stretch’ goals4. Provide a comparison with other clubs of a similar membership size View slide
  • GLOBAL GX METRICS SURVEYIMPORTANCE OF ATTENDANCE AS A KEY METRIC Attendance is the key metric in the wider club and fitness industry but one of the least measured with many club owners tending to concentrate on profit and membership. “Those measures remain important, but attendance is ultimately the biggest driver of membership, customer engagement and profit, and as such, it’s our biggest indicator and risk to financial success. It’s a critical measure that we are currently lacking awareness of as an industry, yet it’s vital to have data if we want to learn and grow.” Phillip Mills, CEO, Les Mills International
  • KEY FINDINGS FROM THE RESEARCH• The average club attracts 676 weekly GX attendances • The Top 100 clubs attract an average of 2525 • The Top 20 clubs attract an average of 3880 • The Top 10 clubs attract an average of 4656• LES MILLS Classes amongst top performers attract higher total class attendances on average • Average of 37 participants vs. 29 for other classes (on average)
  • KEY FINDINGS FROM THE RESEARCH• Average GX attendance is 33% of club attendance• Top performing club has 57% of club attendance• Industry average is 10 -20% range.• LM GX participant visit a club on average 3.4 times per week• In the US the average participant visit to a club is 1.92
  • KEY FINDINGS FROM THE RESEARCHGLOBAL RESULTS: TOP 10 PERFORMERS Weekly Group GF Share of Fitness Total Ranking Club Name Attendances Attendances Region Club Size 1 LES MILLS AUCKLAND CITY 9658 57% New Zealand Large 2 IKSU SPORT 8358 36% Sweden Large 3 THE EDGE 4134 30% USA Large 4 ANONYMOUS 4048 48% Spain Medium 5 ESPACE VITAL 3927 NA Belgium NA 6 SPORTIUM COYOACAN 3624 65% Mexico Large 7 THE PEAK 3376 33% UK Large 8 LES MILLS WELLINGTON 3316 34% New Zealand Large 9 LES MILLS NEW LYNN 3302 50% New Zealand Large 10 24h FITNESS_00955 3260 NA USA NA
  • KEY FINDINGS FROM THE RESEARCHGOLDS RESULTS: TOP 10 PERFORMERS Global Weekly Group Fitness Attendance Ranking Weekly Group Total Weekly GF Share of Total Club Total Weekly GFGOLDs Global Fitness Club Total Membershi Vis per Attendances Les Total WeeklyRanking Ranking Club Name Attendance Attendance Attendances p mem Mills Only GF Classes GOLDS GYM 1 22 STERLING 2872 9179 31.3 5695 1.6 1494 95 GOLDS GYM 2 69 NORTHWEST 2052 9959 20.6 11000 0.9 1406 91 Golds Gym - 3 125 Brownsville 1748 1085 67 Golds Gym - 4 145 Poughkeepsie 1688 1364 55 Golds Gym - Corpus Christi - 5 168 South Staples 1600 1044 72 Golds Gym - 6 178 Fairfax Station 1574 1019 65 Golds Gym - 7 203 Austin - South 1491 951 63 Golds Gym - Austin - Hesters 8 230 Crossing 1419 1017 63 Golds Gym - Austin - Bee 9 271 Caves 1296 893 52 Golds Gym - San Antonio - Bandera 10 317 Trails 1198 788 68
  • KEY FINDINGS FROM THE RESEARCHGOLDS RESULTS: BENCHMARKING AGAINST THE BESTBenchmarks: • Best GOLDS was GX attendance per week: 2872 • Top 10 Average GX attendance per week: 4656 • Best GOLDS Average GX attendance as% of total club visits: 31.3% • Top 10 Average GX attendance as % of total club visits: 50% • Best GOLDS total average member visits per week 1.6 • Top 10 total average member visits per week 1.58Best KPIs to use for Ranking • % GX visits as a proportion of total club visits • Average number of club visits per member Low Sample Size from GOLDS CLUBS in 1st Global Survey
  • We believe the real value of thedata comes from looking at the opportunity it presents…
  • There is absolutely a commercial connection between group fitness attendance andlong-term profitable clubs
  • IMPORTANCE OF GX TO YOUR BUSINESSLes Mills Scoreboard survey follows other industry research aboutthe impact of GX on club growth and profitability:•Nearly 40% of people cite GX as the biggest influence on how long theystay a member of a club•60% of people rate GX classes as the most important factor forchoosing to join a health club•One extra visit per week from each member can increase retention byaround 3%•GX member retention rates are higher than other member retentionrates, on average•Satisfied GX members refer people 3 times more than other clubmembers
  • IMPORTANCE OF LES MILLS GX TO BUSINESS BENCHMARKING AGAINST THE AVERAGE AND THE BEST• The average Les Mills licensed club has ±500 more members per club than the global average• 14,000 Les Mills licensees have an average of 1433 members per club • Globally clubs have 930 members on average • North American clubs have 1515 members on average• Clubs offering Les Mills GX can charge higher membership fees on average
  • #1 PERFORMER – LES MILLS AUCKLAND (NZ)MEMBERSHIP AND GX NON MEMBERSHIP DUES • Les Mills Auckland, New Zealand • Average of 10,000 group exercise attendances each week • Comparatively high membership fees of $100USD p/month • Charges additional fees for specialised programs • Example: 1900 members each week (19% of attendances) pay to attend RPM™ (cycling) classes, which generates USD$6000 in weekly revenue on top of membership dues • More than 55% of visits are to do a group class, despite charging some of the highest monthly membership prices in the city
  • Increasing sales will increase profit in theshort-term, but more people in the door isthe key to a sustainable and successfulbusiness.
  • A new business model is needed whichfocuses on getting more people through theclub door, more often.
  • FROM GOOD TO GREAT
  • ACTION #1SET YOURSELF AND YOUR TEAM INSPIRINGAND CHALLENGING GOALSWHAT’S THE DREAM? 21 LES MILLS INTERNATIONAL © 2011
  • EXAMPLE OF CHALLENGING LONG TERMS GOALSSTRETCH YOURSELF Club membership capacity target – Les Mills New Zealand clubs target 2.2 members p/ 10.5 sq. ft., versus industry average of 1.0 Average number of visits to club per week per member – Top 5 Big Clubs: Virgin Active Spain (1,5), IKSY sport (1.5), Les Mills Auckland (1.4), The Edge Vermont (1), Virgin Active Spain (1,5) – Top performers small club category: Arena Trek 2,5; Maggia Fitness 1,8 % of club visits attending GX – Top performers are between 55% and 70% when the average in Les Mills clubs is 33% and rest of industry average is 10 to 20% – There is a link in the survey between top performers with KPIs above 22 LES MILLS INTERNATIONAL © 2011
  • EXAMPLE OF CHALLENGING LONG TERMS GOALSSTRETCH YOURSELF GX average weekly attendance – Top 10 : 4656 – Top 20 : 3880 – Industry average 676 – Go for maximum timetable capacity or even bigger - the maximum studio capacity Average class attendance – The highest average class attendance achieved for any program is 27 – Les Mills clubs average class attendance is 16, but the top 20 Les Mills performers average Les Mills class attendance is 37 23 LES MILLS INTERNATIONAL © 2011
  • TRACK YOUR PERFORMANCE AGAINST TARGETSIF YOU CAN’T MEASURE IT, YOU CAN’T MANAGE IT 24 LES MILLS INTERNATIONAL © 2011
  • ACHIEVING TOP GX PERFORMANCE AND NUMBERSIDENTIFY WHAT YOUR STRENGTHS ARE, AND WHERE YOU CAN GROWTOP PERFORMERS MASTER SEVERAL OF THE 8 KEYS OF GX MANAGEMENT 25 LES MILLS INTERNATIONAL © 2011
  • LES MILLS SCOREBOARD #2 PERFORMER:IKSU SPORT, SWEDENFROM GOOD TO GREAT• Not for Profit association• Total membership of 15,000• 8358 group fitness attendances a week• 36.3% of weekly visits to club• 229 group fitness classes offered weekly• 125 instructors• 1.5 visits per member weekly 26 LES MILLS INTERNATIONAL © 2011
  • LES MILLS SCOREBOARD #3 PERFORMER:THE EDGE, VERMONT, USAFROM GOOD TO GREAT• 4134 weekly group fitness attendances• 30.5% of weekly visits are for group fitness• Total membership of 12,000• 239 group fitness classes offered weekly• Average of 1.1 visits per member weekly• 424 staff with 110 (26%) involved in group fitness 27 LES MILLS INTERNATIONAL © 2011
  • LES MILLS SCOREBOARD, GOLD’S #1 PERFORMER:FROM GOOD TO GREAT: GOLD’S STERLING 28 LES MILLS INTERNATIONAL © 2011
  • LES MILLS SCOREBOARD: GOLD’S #2 PERFORMERFROM GOOD TO GREAT: GOLD’S NORTHWEST 29 LES MILLS INTERNATIONAL © 2011
  • LES MILLS SCOREBOARD: GOLD’S #3 PERFORMERFROM GOOD TO GREAT: GOLD’S BROWNSVILLE http://www.youtube.com/watch?v=asuSqDBNOEk&feature=youtu.be 30 LES MILLS INTERNATIONAL © 2011
  • THE POWER OF GREATPROGRAMINGFROM GOOD TO GREAT…
  • 32#1 DRIVER FOR ATTENDANCE IS THE PROGRAMGET YOUR PROGRAM OFFER RIGHTSource:Nielsen Consumer Survey Les Mills International © 2010
  • GIVE MEMBERS MORE OF WHAT THEY WANTGET YOUR PROGRAM OFFER RIGHT- UNDERSTAND YOUR MEMBERS AND THEIR NEEDS MAXIMIZE YOUR TIMETABLE Les Mills International ©© 2011 Les Mills International © 2010 Les Mills International 20101
  • KEY FINDINGS FROM THE RESEARCHPROGRAM GENRES – WHAT’S HOT, WHAT’S NOT?Just five program genres comprise 75% of group exercise attendance every week. In order of market share, these are: 21% Strength And Weights 19% Cycling 14% Mind And Body 12% Dance 9% Martial Arts GOLDS LORTON – BODYFLOWGOLDS LAKE RIDGE - 5:15 am 34
  • 35FROM GOOD TO GREATGREAT PROGRAMMING: STRENGTH CATEGORYBODYPUMP® & CXWORX™ PROGRAMS THAT DRAW Les Mills International © 2011
  • 36FROM GOOD TO GREATGREAT NEW PROGRAMMING: DANCE CATEGORYSH’BAM BRINGS THE GIRLS OUT IN CROWDS Les Mills International © 2011
  • Jv3 37 FROM GOOD TO GREAT GREAT PROGRAMMING: CYCLE CATEGORY RPM CONVERTS THE NEW USER TO AN ADDICT Share of Les Mills Ranking Program Attendances 2 RPM 16.0% RPM awareness converts well into trial and loyalty Participate 58% last 2 wks 26 Ever 45 90% Attend Aware 50 Source: Les Mills Scoreboard Source: Nielsen Consumer Survey Les Mills International © 2011
  • Slide 37Jv3 The Scoreboard chart has Clubname instead of program name. Also not 100% sure you want to be showing the relative weakness of the lower programs when they are having problems with Vive etc? JODAR vanessa, 7/8/2011
  • THE POWER OF WOWSTUDIOSLES MILLS ULTIMATE STUDIO SEARCH
  • 39 STUDIO AMBIENCE DRIVES ATTENDANCESource:Nielsen Consumer Survey
  • #1 EQUAL: FITNESS STUDIO ONE DORNSETTEN, GERMANY
  • #1 EQUAL: FIRST COAST FITNESSST JOHNS, FLORIDA
  • OTHER GREAT STUDIOS
  • LES MILLS BRITOMART
  • LES MILLS BRITOMART
  • LES MILLS AUCKLAND
  • H3 SHANGHAI
  • H3 SHANGHAI
  • RE-CREATION CARNEGIE, MELBOURNE
  • THE HOUSTONIAN
  • ACTION PLANWHAT THREE ACTIONS WILL YOU TAKE TOMAXIMIZE GROUP X AND GROW YOUR PROFITAND PERFORMANCE?www.lesmills.comsteven@lesmills.com