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IDEA World 2013   Future of Fitness
 

IDEA World 2013 Future of Fitness

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Group fitness is more than a strong retention tool. When fully utilized, it is the most powerful form of assisted exercise to grow attendance and membership. ...

Group fitness is more than a strong retention tool. When fully utilized, it is the most powerful form of assisted exercise to grow attendance and membership.

The growth of budget and micro gyms has changed the industry landscape bringing new opportunities and challenges for full service facilities. Differentiation through execution is the new black. World Class execution of group fitness has the potential to grow and sustain your business through referrals and guest acquisition.

Les Mills share insights and case studies on how to drive millions of member touches per year. The session also includes a panel discussion of other industry players including TRX, ZUMBA

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    IDEA World 2013   Future of Fitness IDEA World 2013 Future of Fitness Presentation Transcript

    • P R E S E N T E D B Y ©2013IDEAHealth&FitnessAssociation.AllRightsReserved. www.ideafit.com THE FUTURE OF FITNESS – GROUP FITNESS UNLEASHED Steven Renata Randy Hetrick Darren Jacobsen
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com SESSION OVERVIEW •  Group fitness is more than a strong retention tool. When fully utilized, it is the most powerful form of assisted exercise to grow attendance and membership. •  The growth of budget and micro gyms has changed the industry landscape bringing new opportunities and challenges for full service facilities. •  Differentiation through execution is the NEW BLACK. World Class execution of group fitness has the potential to grow and sustain your business through referrals and guest acquisition. •  Les Mills share insights and case studies on how to drive millions of member touches per year. The session also includes a panel discussion of other industry players including ZUMBA and TRX
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com SOURCE DATA Supplement to Club Business International 2013 GLOBAL REP RT THE IHRSA ® THE STATE OF THE HEALTH CLUB INDUSTRY
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com INDUSTRY OVERVIEW 1.  US is on the rebound with growth predicted at 3% by 2014 2.  Consumer and Business confidence is up - – “Housing effect” 3.  Club Net Membership and Revenues up by 3.1% and 3.6% respectively after 5 years of tough economic conditions 4.  Consolidation with Chain Acquisitions (LA Fitness, TITAN, GOLDS, UFC) 5.  Continued growth of 24/7 Chains (ANYTIME, SNAP) 6.  Continued growth of HVLP Chains (PLANET FITNESS) 7.  Growth with Micro Gyms (ORANGE THEORY, BLINK, SOUL CYCLE) 8.  Growth of MMA/Boxing Gyms (UFC)
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com US -NUMBER OF CLUBS BY STATE INDUSTRY RESEARCH THE AMERICAS STATISTICS - THE UNITED STATES NUMBER OF CLUBS Total United States 30,500* NORTH EAST New England Connecticut 515 Maine 160 Massachusetts 967 New Hampshire 198 Rhode Island 141 Vermont 114 Middle Atlantic New Jersey 1,090 New York 1,739 Pennsylvania 1,311 SOUTH South Atlantic Delaware 88 Washington, D.C. 78 Maryland 612 Virginia 828 West Virginia 115 Florida 2,040 Georgia 949 North Carolina 938 South Carolina 436 East South Central Alabama 458 Kentucky 341 Mississippi 249 Tennessee 585 West South Central Louisiana 538 Arkansas 251 Oklahoma 374 Texas 2,482 NUMBER OF CLUBS NORTH CENTRAL East North Central Illinois 1,219 Indiana 604 Michigan 1,053 Ohio 1,141 Wisconsin 766 West North Central Iowa 378 Kansas 271 Minnesota 783 Missouri 622 Nebraska 210 North Dakota 85 South Dakota 116 WEST Mountain Arizona 562 Colorado 625 Idaho 179 Montana 144 New Mexico 198 Nevada 266 Utah 259 Wyoming 62 Pacific Alaska 83 California 3,831 Hawaii 107 Oregon 465 Washington 804 *As of January 2013 Total number of clubs by state as of July 2012 Source: Info USA, Inc. (Figures reflect number of businesses listed on Yellow Pages under SIC code 7991.)
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com WHY PEOPLE JOIN HEALTH CLUBTHE AMERICAS - THE UNITED STATES WHY PEOPLE JOIN HEALTH CLUBS Question: Which of the following are personal goals for using the health club you currently belong to? 58.5% 46.4% 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 44.0% 43.8% 41.3% 40.7% 35.3% 34.7% 34.5% 31.9% 19.9% 9.9% 9.3% THE AMERICAS - THE UNITED STATES Source: The IHRSA Trend Report (Multiple answers were permitted.) 1. To stay healthy 2. To feel better about myself 3. To stay in shape 4. To maintain strength 5. To look better 6. To lose weight 7. To get in shape 8. To stay flexible 9. To build muscle 10. To maintain weight 11. For a specific health concern 12. To gain weight 13. To impress others
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com WHY MEMBERS STAY 13. 9.3% 0 1 THE AMERICAS - THE UNITED STATES WHY MEMBERS STAY Question: What keeps you coming back to use the health club you currently belong to? 58.0% 51.1% 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 45.5% 38.0% 36.6% 35.5% 32.7% 22.9% 21.4% 18.0% 17.2% 11.6% Source: The IHRSA Trend Report (Multiple answers were permitted.) Source: The IHRSA Trend Report (Multiple answers were permitted.) 13. To impress others 1. To get in shape/stay in shape/stay healthy 2. For overall health/well-being 3. It’s at a convenient location to me 4. Variety of equipment, strength and cardiovascular equipment 5. To make progress with my personal goals 6. To get my workout in, rather than to socialize 7. To have fun 8. My friends and family work out at the health club 9. Access to group exercise classes 10. Access to fitness professionals 11. I feel obligated to go because of the money I spend on membership 12. The social aspects of the health club
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com WHY PEOPLE LEAVE A HEALTH CLUBTHE AMERICAS - THE UNITED STATES WHY MEMBERS QUIT HEALTH CLUBS Question: Why did you leave/quit your former health club? 45.5% 28.1% 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 27.6% 17.1% 15.4% 12.5% 11.8% 9.0% 8.0% 6.3% 5.3% 5.3% 5.3% 4.4% 4.2% 4.0% Source: The IHRSA Trend Report (Multiple answers were permitted.) 1. It was too expensive/I could not afford it 2. I wasn’t using my membership/ I wasn’t going to the club 3. I could exercise somewhere else for free 4. It was too crowded 5. I moved/the location was no longer convenient 6. I felt out of place 7. I lost my job 8. I developed an injury/surgery/other condition 9. I did not like to exercise 10. Nobody I knew went to my former health club 11. I didn’t reach my fitness goals 12. There was no one there to guide me 13. It was too intimidating 14. I wanted to participate in another type of exercise outside the club 15. I met my fitness goals 16. I didn’t know what to do there
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com WHY PEOPLE DONT JOIN A HEALTH CLUB 15. 16. 4.2% 4.0% 0 10 20 THE AMERICAS - THE UNITED STATES WHY PEOPLE DON’T JOIN HEALTH CLUBS Question: What keeps you from joining a health club now? 50.7% 27.7% 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 21.6% 18.1% 15.0% 11.1% 9.6% 9.6% 9.0% 7.8% 7.6% 7.6% 5.1% 3.2% Source: The IHRSA Trend Report (Multiple answers were permitted.) Source: The IHRSA Trend Report (Multiple answers were permitted.) 1. Too expensive/cannot afford 2. I exercise somewhere else for free 3. No time 4. I do not exercise 5. I would feel out of place 6. I participate in another type of exercise outside the health club 7. Nobody I know goes to a health club 8. There is no health club located close to me 9. It’s too crowded 10. I am too out of shape to even think about it 11. I don’t know what I would do there 12. I have an injury/surgery/other condition 13. I am not sure there is someone there to guide me 14. I might hurt myself © COPYRIGHT 2013 IHRSA | IHRSA GLOBAL REPORT 39IHRSA.ORG
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com THE FUTURE OF FITNESS - WHITE PAPER THETRENDSTHATWILLSHAPEHUMANFITNESSANDACTIVITY
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com Era of New è Age of Now Attention Participation Inform Inspire Interruption Interaction Return on Investment Return on Involvement Pumping Markets Creating Movements TO WIN ACCELERATE INTO THE NOW…
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com 0 10 20 30 40 50 60 1960 1970 1980 1990 2000 2010 2020 2030 2040 US ADULT FITNESS CLUB PARTICIPATION
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com FITNESS CLUBS ARE AT RISK OF STAGNATION We are witnessing segmentation rather than innovation, while competitive industries are evolving e.g. •  Online Exercise •  Fitness Games •  New Sports •  Nutrition And Medicine
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com SEGMENTATION IN THE CLUB WORLD •  Budget Gyms •  Micro Gyms •  24/7 Gyms •  MMA/Boxing Gyms •  Cross Fit Studios
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com BUDGET CLUBS @ $10-$15/month
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com 24/7 CLUBS @ $30 month
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com MICRO-GYMS @ $100-$200 month
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com MMA/BOXING STUDIOS @ $40-80 month
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com CROSS FIT STUDIOS @$100-$150 month
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com •  HEALTH – Make clubs more holistic •  COMMUNITY – Make clubs more social •  EXERTAINMENT – Make exercise more fun THREE AREAS OF OPPORTUNITY
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com When we ask people why they want to join a fitness club they say things like weight loss, toning up, getting fitter, feeling better, improving their health. These all come under the heading of “results”. But people can get these results without joining or coming to the gym THE INTERESTING TRUTH ABOUT RESULTS
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com Because they lack MOTIVATION We are in the motivation business. Whether they know it or not, the world’s best clubs are masters of meeting this need… SO WHY DO THEY JOIN OUR CLUBS?
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com “If you can’t measure something you can’t manage it.” Q1: So how do we measure motivation? Q2: How do we know if we’re doing a great job of motivating people? HOW CAN WE MANAGE MOTIVATION?
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com In simple terms we can assess our performance by member attendance and their frequency Become obsessive around understanding what makes members attend more often and measuring this People who attend the club more often will refer more friends, stay longer and pay more. Attendance is the most important metric in our industry. MANAGE MOTIVATION WITH ATTENDANCE
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com #1 HEALTH MAKE CLUBS MORE HOLISTIC
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com •  CROSSFIT – 5,000 clubs – $200 per month •  ORANGE THEORY – $23 per class/$159 per month •  SOUL CYCLE – $32 per class + $30 to reserve a bike •  PURE YOGA (NYC) – $145-$165 per month •  KOSAMA, OMNI, FITNESS TOGETHER, TITLE BOXING, UFC ETC INSIGHT: PEOPLE ARE PREPARED TO PAY MORE TO ATTEND MICROS THAN TRADITIONAL CLUBS
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com CLUBS WITHIN CLUBS – LES MILLS RIDE LES MILLS RUN, LES MILLS TRI Products created as specific event training programs. Designed around an organised event (eg marathon, cycle challenge, triathlon). Training organised in 8 or 12 week blocks with an emphasis on guidance, support and motivation. Clear sense of purpose culminating in the event itself and the personal satisfaction of completing it. Participants pay the club direct, prices vary. Available to both members and non-members.
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com SOCIAL NUTRITION UNLEASHED
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com SOCIAL MEDIA IS REVOLUTIONIZING OUR ABILITY TO COMMUNICATE But… It’s not as easy as it looks. Engagement, interest and authenticity are key. Otherwise it’s meaningless
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com 3 QUESTIONS OF ANYTHING YOU CREATE
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com DO I WANT TO SEE THIS AGAIN?
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com DO YOU WANT TO SHARE IT?
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com DO YOU WANT TO IMPROVE IT?
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com •  Education = Motivation •  Between 2006-2016 the cost of the American health system will almost double to $4.1 trillion per year*. •  It seems that our health is deteriorating at almost as quickly as these costs are increasing. The current system clearly isn’t working - there’s got to be a better way! *2006 US Treasury Report THE HEALTH OPPORTUNITY
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com EDUCATION - BECOME TRUE ‘HEALTH CLUBS’ Health clubs need to become more than just places where people go to use exercise machines! We need to become true providers of holistic health. Education changes lives and your members will love you for it. A few places to start: • Mercola.com • Younger Next Year – Crowley/Lodges • The Omnivore’s Dilemma – Michael Pollan • You: The Owner’s Manual – Roizen/Oz
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com START A CONVERSATION WITH MEMBERS Create a personal relationship with Your members Choose the right medium for them: One way communication? Two way? Social media?
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com “Create a cause, not a business” - Tom Peters STAND FOR SOMETHING People don’t come to work to increase shareholder value, they want to make a difference!
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com The most successful businesses in the world care about more than just making money… STAND FOR SOMETHING
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com We are the exact opposite of the cigarette and junk food companies and we have an intimate relationship with a large percentage of the world’s wealthiest people. LET’S CREATE A FITTER PLANET The world is facing a great holistic health challenge and our industry is perfectly positioned to play a big part in the solution.
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com CASE STUDY - THE LITTLE GREEN BOOK
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com 1.  Reduce facility costs 2.  Attract more members 3.  Improve member health 4.  Increase staff engagement 5.  Improve environment 6.  Mitigate global risk REASONS TO BECOME A GREEN FACILITY
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com CASE STUDY – LES MILLS NZ
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com CASE STUDY – LES MILLS NZ
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com FITTER FOOD We can change our health and that of the planet by one simple means: What we put in our mouths…
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com Individuals and businesses cannot be allowed to destroy our greatest communal assets. Our leaders need to lead on these initiatives : • Physical education back in schools, junk food out • Better urban design • Tax incentives to be slim and fit • Encourage healthy eating (tax junk food!) • Healthier environment FITTER FACILITIES GOVERNMENT
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com There are hundreds of great ideas, from low energy lighting and appliances, to low- flow shower heads and toilets, to signing with a renewable energy provider or even installing solar energy. Have a professional green audit done on your business. There are incredible savings to be made in resource use and your own money. FITTER FACILITIES
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com #2 EXERTAINMENT MORE MOTIVATING EXERCISE ENVIRONMENTS
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com
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    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com GROUP FITNESS SPACES CHECK OUT LES MILLS WORLD CLASS STUDIO SEARCH AT WWW.LESMILLS.COM
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com
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    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com SMALL GROUP/ TEAM TRAINING SPACES
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com
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    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com #3 COMMUNITY MAKE CLUBS MORE SOCIAL The most powerful way to create social connections is to offer assisted exercise: 1.  Personal Training 2.  Small Group Team Training 3.  Group Exercise “Most of us aren’t really health clubs, we’re not even clubs. We’re just places where people come to lift weights and run on a treadmill” – Michael Scott Scudder
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com Personal Training 10% Small Group Training 4% Unassisted Exercise Group Exercise 36% 50% BENCHMARKS FOR HIGH PERFORMING FACILITIES Research indicates that group exercise is the most effective way of creating motivation for the average fitness member and for the vast majority of fitness facilities Group exercise attracts and motivates the masses. Some of the world’s most successful facilities have over 50% of their attendances in group exercise. “Group Exercise members attend more regularly, remain members for longer, make more referrals, perceive greater value in their memberships (i.e. will pay more) and do not leave when a budget gym opens nearby!”1 MOTIVATION MASTERY DRIVES ATTENDANCE
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com Top performing Les Mills licensed clubs remain strong: have many more members, offer more classes per week, and attract twice as many participantsper class than at the global level 1 3 Key Metrics For Top Clubs Based On Total Group Fitness Attendance(1)(2) Notes: 1. Out of 1,011 Les Mills licensedclubs surveyed; 2. GlobalAverage is based onweighted survey responses, data for top clubs is based on unweightedsurvey responses GLOBAL AVERAGE TOP 20 AVERAGE TOP 50 AVERAGE TOP 100 AVERAGE TOP 250 AVERAGE TOP 500 AVERAGE TOTAL MEMBERS 1,454 10,579 7,940 6,446 5,128 4,050 TOTAL WEEKLY ATTENDANCES 1,505 10,589 8,782 7,431 5,859 4,614 GROUP EXERCISE WEEKLY ATTENDANCE 559 3,615 2,773 2,238 1,677 1,284 LES MILLS WEEKLY ATTENDANCE 209 2,196 1,578 1,225 856 629 GROUP EXERCISE WEEKLY CLASSES 35 120 105 91 73 60 LES MILLS WEEKLY CLASSES 13 61 52 44 34 27 AVERAGE WEEKLY CLASS ATTENDANCE 16 30 26 25 23 22 AVERAGE LES MILLS WEEKLY CLASS ATTENDANCE 15.5 35.8 30.5 28.1 25.3 23.1 WEEKLY ATTENDANCE PER MEMBER 1.0 1.0 1.1 1.2 1.1 1.1 LESSONS FROM TOP 500 GX OPERATORS
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com Les Millslicensed clubs that achievethe highest number of GF attendancesper week are typicallylarge clubs or those clubswith a large share of Les Millsprograms in the timetable 17 Top Twenty Clubs Based On Total Group Fitness Attendance(1)(2) Notes: 1. Out of 1,011 Les Mills clubs surveyed; (2) NA=data not available; (3) Small: Club <1,800m2/19,375ft2; Medium: Club up to 3,150m2/33,900ft2; Large: Club over > 3,150m2/33,900ft2 Ranking Club Name Weekly Group Fitness Attendances GF Share of Total Attendances Country Club Size(3) 1 LES MILLS AUCKLAND CITY 10,279 66% NewZealand Large 2 LES MILLS EXTREME 5,015 51% NewZealand Small 3 LAS VEGAS ATHLETIC CLUB-- GREEN VALLEY 4,672 20% USA Large 4 LAS VEGAS ATHLETIC CLUBS-- RAINBOW 4,347 17% USA Large 5 LES MILLS NEW LYNN 3,524 54% NewZealand Medium 6 LAS VEGAS ATHLETIC CLUBS- WEST FLAMINGO 3,428 11% USA Large 7 LIIKUNTAKESKUS HUKKA 3,345 50% Finland Large 8 LES MILLS CHRISTCHURCH 3,269 61% NewZealand Large 9 ACCROSPORT LE HAVRE 3,121 66% France Large 10 スポーツクラブOSSO南砂 3,051 71% Japan Large LEARNINGS FROM THE TOP 10
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com 18 Top Twenty Clubs Based On Total Group Fitness Attendance(1)(2) Notes: 1. Out of 1,011 Les Mills clubs surveyed; (2) NA=data not available; (3) Small: Club <1,800m2/19,375ft2; Medium: Club up to 3,150m2/33,900ft2; Large: Club over > 3,150m2/33,900ft2 Ranking Club Name Weekly Group Fitness Attendances GF Share of Total Attendances Country Club Size(3) 11 BURLINGTON MALL 3,021 39% Canada Large 12 LES MILLS BRITOMART 2,892 40% NewZealand Medium 13 DOWNTOWN ORLANDO YMCA 2,850 35% USA Large 14 ANON_01346 2,824 NA USA NA 15 LES MILLS HUTT CITY 2,818 52% NewZealand Medium 16 BLACKWOOD FITNESS 2,817 43% Australia Large 16 ANON_01639 2,817 98% USA Large 18 WATERLOO WEBER STREET 2,775 34% Canada Large 19 24H FITNESS_00496 2,726 NA USA NA 20 24H FITNESS_00892 2,702 NA USA NA Les Millslicensed clubs that achieve the highest number of GF attendancesper week are typicallylarge clubs or those clubswith a large share of Les Millsprograms in the timetable LEARNINGS FROM THE TOP 20
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com GROWING BIGGER GROUP FITNESS COMMUNITIES Set your Weekly Group Fitness attendance BHAG 1.  What is your current group fitness weekly attendance? 2.  How many weekly visits do you think you could achieve in 3 to 5 years if your instructors were delivering the best experience in every class in your facility? Twice bigger? Three times bigger? Big Hairy Audacious Goal? 3.  What is this as a 12 month goal? __?___ __?___ BHAG ?
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com Set your Weekly Group Fitness attendance BHAG 1.  What is your current group fitness weekly attendance? 2.  How many weekly visits do you think you could achieve in 3 to 5 years if your instructors were delivering the best experience in every class in your facility? Twice bigger? Three times bigger? Big Hairy Audacious Goal? 3.  What is this as a 12 month goal? 1500 1000 2000 GROWING BIGGER GROUP FITNESS COMMUNITIES
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com 9 LES MILLS INTERNATIONAL © 2011 WHAT S THE SIZE OF THE GROUP FITNESS PRIZE? BHAG - Group Fitness Weekly Attendance = Divide the result by 3* (1000/3) Multiply it by your average yearly membership** (333 x 600) $___________ *Average number of GF visits per week per person in LES MILLS™ facilities ** $600 2000 -1000 200,000
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com 9 LES MILLS INTERNATIONAL © 2011 8 KEY ELEMENTS OF GROUP EXCELLENCE
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com 9 LES MILLS INTERNATIONAL © 2011 IMPLEMENT A SCORECARD
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com 94 TOTAL GROUP ATTENDANCE KEY GROUP PERFORMANCE BENCHMARK CURRENT PERFORMANCE KPI’s GROWTH POTENTIAL Benchmarks GOALS Long and short/medium terms § Weekly GF Attendance § % Attendance to GF vs Weekly Club Visits § Total Club Members and % Members “active” § Current TT Max Capacity § Max Studio Capacity Maximum number of classes you can offer on your timetable per week x maximum number of people you can fit in each class Choose your numbers of classes: Example: Week days = 8-12 per day Weekend = 6-8 per day 50-75+ classes per studio each week § BHAG: GF weekly attendance at 3 to 5 years: § Potential annual profit increase: § 12-month goal: LES MILLS INTERNATIONAL © 2011
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com 9 LES MILLS INTERNATIONAL © 2011 1.  Set goals for growth •  Weekly Group Fitness attendance and Individual class targets for instructors •  Learn what really motivates people to achieve numbers… 2.  Count numbers in every class 3.  Analyze the data: measure performance versus targets •  Weekly Group Fitness attendance, % facility visits delivered by Group Fitness •  Average attendance per class, Individual class performance versus target: class ranking and/or cost per head •  Program performance (program rankings) 4.  Publish the results to your instructors 5.  Set a plan for growth 95 KEY ACTIONS
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com 9 LES MILLS INTERNATIONAL © 2011 MAXIMIZE YOUR SCHEDULE
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com 9 LES MILLS INTERNATIONAL © 2011 THE FASTEST, SIMPLEST WAY TO INCREASE WEEKLY ATTENDANCE IS TO GIVE PEOPLE MORE OF WHAT THEY WANT LET YOUR MEMBERS VOTE WITH THEIR FEET. GIVE MORE CLASSES TO YOUR MOST POPULAR PROGRAMS AND INSTRUCTORS, LESS TO THE LESS POPULAR 97
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com 9 LES MILLS INTERNATIONAL © 2011 TOP ATTENDANCE DRIVERS
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com The research on top operators with high weekly attendance highlights that five categories drive three quarters of all weekly group exercise attendance. Offering at least one “best in category” format is critical to driving high weekly group exercise attendance . Many operators make the strategic mistake of either offering mediocre quality in the five key categories and or offering too many formats in the other category BUCKETOLOGY OF GROUP EXERCISE
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com 1 LES MILLS INTERNATIONAL © 2011 1.  Give people more of what they want (5 actions) •  Get your program offer right using Needscope Model •  Offer programs matching the commercial formula •  Identify your top performing programs and offer them more frequently •  Offer the right program mix: •  70% Core, 20% Specialty, 0 -10% Service •  Identify top instructors and schedule them more often SCHEDULE DESIGN: 5 STRATEGIES TO DRIVE GROWTH
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com 1 LES MILLS INTERNATIONAL © 2011 2.  Simplify your offerings: •  8 to 12 great programs versus 45+ activities 3.  Think horizontally, not vertically. •  In each 2-hour time slot, offer: •  At least one opportunity per week to do a cardio, strength/toning, mind body/stretching workout •  Your ‘core’ programs at least twice a week 4.  Give instructors class ownership •  Subject to a review of performance vs. targets 5.  Consider scheduling express classes •  30 or 45 mins 101 SCHEDULE DESIGN: 5 STRATEGIES TO DRIVE GROWTH
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com SIMPLIFY YOUR OFFERINGS ANALYZE AND ACTION PLAN YOUR CURRENT TIMETABLE ANALYZE •  How many different programs do you currently offer? ACTION PLAN •  Condense class offerings •  Group similar programs and streamline in-class experiences •  Remove low-attended programs offered 1-2x/week 1 LES MILLS INTERNATIONAL © 2011
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com Source:    AC  Nielsen  Research         SMART PROGRAMMING – BASED ON CONSUMER NEEDS LES MILLS INTERNATIONAL © 2011 1
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com THINK HORIZONTALLY, NOT VERTICALLY KEY PRINCIPLES Schedule: •  Core programs at least twice weekly within a 2-hour timeframe •  Cross-training variety within a 2- hour timeframe across the week LES MILLS INTERNATIONAL © 2011 1
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com 1 LES MILLS INTERNATIONAL © 2011 ONGOING SCHEDULE MANAGEMENT TO GROW NUMBERS TRAFFIC LIGHTING TECHNIQUE 3 ACTIONS 1. Identify underperforming classes – Red lights 2. Pinpoint the cause(s) of underperformance •  Program, Instructor •  Time slot/Schedule, Marketing •  Politics 3. Set an action plan 105
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com MANAGEMENT TO PINPOINT THE CAUSE OF UNDERPERFORMING TIME SLOTS 1 5 POSSIBLE AREAS OF UNDERPERFORMANCE POTENTIAL CAUSE OF THE PROBLEM PROGRAM Poor quality, poor fit for club, wrong program for time-slot INSTRUCTOR Poor instructing skill-set, instructor doesn’t fit essence of program; instructor doesn’t teach appropriately for audience (i.e. necessary options) TIME-SLOT Tough time-slot to fill (warning: don’t jump to conclusions too soon!) MARKETING Program isn’t being effectively marketing internally or externally INTERNAL COMMUNICATION/ POLITICS Group of members or staff undermining program success or ‘boycotting’ classes LES MILLS INTERNATIONAL © 2011
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com WHAT ABOUT YOUR SCHEDULE? RATE YOUR CURRENT DESIGN ON A SCALE OF 1-5 ON ITS EFFECTIVENESS TO SELL YOUR GF PROGRAM RATE WITH 1 BEING LOWEST, 5 BEING HIGHEST •  Even our staff has trouble figuring it out •  Everything’s there, but it’s somewhat confusing or boring •  It looks OK. •  It’s organized and easy to read, but could use some improvement •  It’s simple, inspiring, professional, members can read it and staff can easily recommend classes LES MILLS INTERNATIONAL © 2011 1
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com 1 LES MILLS INTERNATIONAL © 2011 GOOD SCHEDULE - BAD SCHEDULE http://to.ly/mCKC http://to.ly/mCKB http://to.ly/mCKz http://to.ly/mCKw http://tiny.cc/jdn40w
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com 1 LES MILLS INTERNATIONAL © 2011
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com 1 LES MILLS INTERNATIONAL © 2011 BUILDING UP A GREAT TEAM OF INSTRUCTORS IS THE BEST THING YOU CAN DO FOR YOUR BUSINESS NO MATTER WHAT YOUR VISION, MISSION OR BHAG, YOU ARE GOING TO NEED GREAT PEOPLE TO GET YOU THERE 110
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com 1 LES MILLS INTERNATIONAL © 2011 A SINGLE GREAT INSTRUCTOR CAN BRING HUNDREDS OF MEMBERS AND $$ TO YOUR FACILITY
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com 1 LES MILLS INTERNATIONAL © 2011 A TEAM OF GREAT INSTRUCTOR CAN BRING THOUSANDS OF MEMBERS AND $$ TO YOUR FACILITY
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com 1 LES MILLS INTERNATIONAL © 2011 CASTING IS EVERYTHING INVEST TIME AND RESOURCES TO SEEK OUT THE INSTRUCTORS & TALENT FOR TOMORROW, WHO VE THE POTENTIAL TO PACK THE ROOM 113
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com 1 LES MILLS INTERNATIONAL © 2011 INCREASE THE COMMITMENT AND LOYALTY OF YOUR INSTRUCTORS. INCENTIVIZE AND RETAIN TOP PERFORMANCE INSTRUCTORS. CREATE A SYSTEM THAT COMBINES FINANCIAL AND NON-FINANCIAL REWARDS.
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com 1 LES MILLS INTERNATIONAL © 2011 ORGANIZE A GREAT TRAINING PROGRAM FOR YOUR TEAM
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com 1 LES MILLS INTERNATIONAL © 2011 CONSTANTLY DEVELOP YOUR TEAM TOWARDS MASTERY IN THE 5 KEY ELEMENTS OF TEACHING
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com 1 Training Actions LES MILLS™ Driven Club Driven Selection of candidates & preparation before Initial Module ✓ Instructor Initial Training– 2 days ✓ Clearance to teach at end of training – grading system ✓ Team-training before Launch ✓ Prepare instructors for certification and submit videos (8 weeks after initial training) ✓ Instructor International Certification ✓ Ongoing training - Quarterly Workshops/Continuing Education ✓ In-house Quality Control and Instructor Development ✓ Team-training before Quarterly Launch ✓ Advanced Instructor Module training – AIM Modules 1 & 2 ✓ Advanced and Elite Certifications ✓ IMPLEMENT A TRAINING PROCESS THAT BUILDS ROCK STARS IN A SHORT TIME LES MILLS INTERNATIONAL © 2011
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com 1 LES MILLS INTERNATIONAL © 2011 DEVELOP THE BEST STUDIO YOU CAN AFFORD
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com 1 LES MILLS INTERNATIONAL © 2011 CREATE A WORLD-CLASS DESTINATION 5 TOP EXPERIENTIAL DESIGN PRIORITIES TO ENHANCE PARTICIPANTS EXPERIENCE 1.  Sound and microphone: The best you can afford – think concert; if unbalanced, it makes a difference to attendee experience 2.  Stage: Design and position – big enough to fit 2 or 3 instructors. Think theater and minimizing side views if possible. Use side screens and backdrop – project mood-enhancing images 3.  Lighting: Theatrical stage lighting to enhance dramatic impact 4.  Mirrors: Have none if possible or have them at the side – never behind the stage, as they distract and detract from the experience 5.  Décor: Colors and branding can be very powerful to enhance mood – it should feel like a strong, athletic, fun zone 119
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com 1 LES MILLS INTERNATIONAL © 2011 CREATE A GROUP FITNESS MARKETING PLAN
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com 1 LES MILLS INTERNATIONAL © 2011 THE POWER OF BRANDS TO GROW NUMBERS - WHICH ONE DO THE CONSUMERS WANT? OR OR BODY SCULPTING DANCE OR OR SUSPENSION TRAINING
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com 1 LES MILLS INTERNATIONAL © 2011 KEY ACTIONS 1.  Develop an annual group fitness marketing plan to grow membership and profit. 2.  Launching Program/s 3.  Group X Re-launch Events 4.  Ongoing promotion on the benefits of Group X 122
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com 1 LES MILLS INTERNATIONAL © 2011 THE SALES / EVENT EXPERIENCE EFFECT Experience When you host GF events, you are selling non-members an experience, not a membership – this makes selling so much easier Sales
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com 1 LES MILLS INTERNATIONAL © 2011 PLAN FOR SUCCESS
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com 1 LES MILLS INTERNATIONAL © 2011 KEY ACTIONS •  Create a budget to cost, prioritize and document your plan to achieve your GF BHAG •  Give ownership of it to your Group Fitness Leader •  Report on performance against targets to both management and your team, monthly and quarterly •  Work with your team to win the next plays
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com 1 LES MILLS INTERNATIONAL © 2011 APPOINT OR BE A WORLD CLASS GROUP LEADER
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com 1 LES MILLS INTERNATIONAL © 2011 A GREAT GROUP FITNESS MANAGER CAN CHANGE THE FUTURE OF YOUR FACILITY •  A single great instructor can bring in hundreds of members over time - a great Group Fitness Manager will build a team that will bring thousands. •  Recruit a Group Fitness manager with the passion, experience and drive to build ENTHUSIASM and SUCCESS at your club •  The Group Fitness Manager is a strategic hire 127
    • © 2013 IDEA Health & Fitness Association. All Rights Reserved. www.ideafit.com Health club attendance has become the biggest adult “sport” in the Western World. Bigger than football, tennis and golf combined. But we have traditionally lacked the excitement and social engagement of sports, and behaved more as gyms than as true health clubs. The faster we can change that, the bigger our future THE BIG OPPORTUNITY