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Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
Membership Unleashed by Les Mills April 2012
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Membership Unleashed by Les Mills April 2012

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Latest Trends and Best Practice for driving Membership to Health, Fitness and Wellness Facilities …

Latest Trends and Best Practice for driving Membership to Health, Fitness and Wellness Facilities

The health and fitness market is tougher and more crowded than ever before. But it’s not all gloom and doom. A growing number of facilities have found the secret.

Innovative facilities from around the world are blazing a new trail to success in this cut-throat industry.These facilities boast above-average membership numbers, as well as steady growth in the face of competition. And they do it without cutting services or discounting prices – and without introducing fundamentally new products or services. This presentation outlines the WHY and HOW of unleashing your membership potential.

Facilitated by Industry Leader's Les Mills viewers are guided through a simple and compelling presentation of industry trends, challenge and opportunities.

This is a must see session for operators looking for the next step in growth, sustainability or survival.

Published in: Education, Health & Medicine
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  • 1. MEMBERSHIP UNLEASHEDFUTURE OF FITNESS 1 LES MILLS INTERNATIONAL © 2011
  • 2. THE FUTURE OF FITNESS Health & FitnessCHALLENGES facility attendance has§ LES MILLS white paper highlights become the biggest big challenges we face if we are to adult “sport” in the survive Western world. Bigger 1.  Aging obese markets than football, tennis 2.  Fitness Seekers want other options and golf combined 3.  Play drives activity 4.  Activity must offer something more 2 LES MILLS INTERNATIONAL © 2011
  • 3. FUTURE CHALLENGESAND OPPORTUNITIES1.  The number of people who fit our current offerings is reducing reflected in a population that is aging and suffering from obesity2.  Fitness seekers want better quality products, more control and mobility, and ultimately more choice in how they exercise 3 LES MILLS INTERNATIONAL © 2011
  • 4. FUTURE CHALLENGES AND OPPORTUNITIES3.  “Play drives activity” with growth in two distinct areas: §  Blends of game, sport and dance will offer fitness and activity that are driven by fun, pleasure and sociability §  ‘Exergaming’ consumers will seek fitness and activity as a game driven by enjoyment. §  Technology will evolve this segment into ‘exertainment’ with rich sensory experiences, and eventually virtual realities that involve movement, social networks, escapism and new experiences. 4 LES MILLS INTERNATIONAL © 2011
  • 5. FUTURE CHALLENGESAND OPPORTUNITIES4.  Activity offers ‘more’… §  ‘Relationships and community’, in which people seek communication, connection, and shared experiences §  ‘The search for meaning’, in which people place emotional, social and spiritual integrity at the core of their beings §  Low-tech solutions like returning to nature, opting out or disconnecting §  New techniques like proactive medication 5 LES MILLS INTERNATIONAL © 2011
  • 6. THE PROBLEM – ACQUISITION IN A COMPETITIVEMARKET •  Big-box operators with large range of products at low price point•  Low service operators at even lower prices•  Skeptical customers viewing price as the only point of difference 6 LES MILLS INTERNATIONAL © 2011
  • 7. THE PROBLEM – RETENTION OF SMALL POPULATION•  >16% of the US population go to a Health and Fitness facility•  About 15M new memberships sold per year and 12M quit•  Nearly 1:4 leave within the first 12 months of joining•  Average length of membership is 67 weeks* *For those paying monthly, without a contract 7 LES MILLS INTERNATIONAL © 2011
  • 8. STANDARD APPROACH FIRST PRINCIPLES§ The goal is to grow earnings - EBITDA•  Grow revenues•  Cut costs§  When EBITDA is #1 guiding principal:•  Revenues are revenues•  Costs are costs LES MILLS INTERNATIONAL © 2011
  • 9. STANDARD APPROACH§ If all revenues are treated as equal, and acquisition is hard you try to EXECUTION supplement membership dues with other products and service LES MILLS INTERNATIONAL © 2011
  • 10. STANDARD APPROACH § If all costs are treated as equal, management looks to trim variable costs like payroll, training and and services EXECUTION LES MILLS INTERNATIONAL © 2011
  • 11. STANDARD APPROACH § Results of cost cutting: •  Members notice •  Generates negativity •  Club less appealing •  Total savings are minimal CONSEQUENCE§ Results of supplementary revenue sources: •  Division is created between ‘cost’ and ‘revenue centers’ •  Members resent add-on costs •  Additional revenues are minimal LES MILLS INTERNATIONAL © 2011
  • 12. REVENUE AND COSTS § All revenues are NOT created equal: §  membership dues are an annuity §  Incremental revenues comes from membership revenue§ All costs are NOT equal §  Reduced member experience causes increase in attrition and decrease in referral REALITY CHECK §  Any revenue loss occurs at the margin which directly impacts the bottom-line profit $1 $17 12 LES MILLS INTERNATIONAL © 2011
  • 13. THE PROMISE §  An integrated method that insulates you from: •  Big box competitors •  Bare bones competitors •  Seasonality 13 LES MILLS INTERNATIONAL © 2011
  • 14. A NEW MENTAL MODELProfit maximization is OLDPurpose maximization is NEW LES MILLS INTERNATIONAL © 2011
  • 15. MEMBERSHIP GROWTH STRATEGY 1.  Relationships 1.  Member  Retention Facilitation Engagement Membership Earnings 2.  Results 2.  Member  Acquisition LES MILLS INTERNATIONAL © 2011
  • 16. THE MECHANICS OF FACILITATION§ During the on-boarding phase, you need the new member to exercise regularly at least ≥ once a weekly, exercise productively and ensure they develop relationships with a broad range of staff§ Once a member has settled-in, you need them to exercise consistently at least ≥ twice a week – and you need to ensure that they develop relationships with other members 1.  Relationships 1.  Member  Retention Facilitation Engagement Membership Earnings 2.  Results 2.  Member  Acquisition LES MILLS INTERNATIONAL © 2011
  • 17. THE ECONOMICS OF FACILITATION§ Facilitation takes many forms – each with a different cost-effectiveness profile: •  Front Desk staff contact with guest and members •  Membership staff enrolling a guest •  Spotting a member in the weight room •  A one-on-one personal training session •  A small group training session •  A group-fitness class •  An educational event •  A social event 1.  Relationships 1.  Member  Retention Facilitation Engagement Membership Earnings 2.  Results 2.  Member  Acquisition LES MILLS INTERNATIONAL © 2011
  • 18. THE PROBLEM WITH FACILITATION§ Typically Health and Fitness facilities are not engineered to enable facilitation: •  Department ‘silos’ with often with a less-than-positive view of one another •  This is a consequence of the ‘profit center’ versus ‘cost center” approach from management§ As an example; PTs and Group-Fitness instructors are often Contractors – meaning that, outside of structured sessions, facilitation is the responsibility of: •  Front Desk Staff •  Membership Staff •  Fitness Floor Staff 1.  Relationships 1.  Member  Retention •  No one at all Facilitation Engagement Membership Earnings 2.  Results 2.  Member  Acquisition LES MILLS INTERNATIONAL © 2011
  • 19. MSG > ENGAGEMENT > MEMBERSHIP § Not surprisingly, the primary driver of membership is engagement : •  To keep a member, ensure that: visitation frequency ≥ once weekly •  To add a member, ensure that: visitation frequency ≥ twice weekly § Instead of trying to sell memberships, focus on prospect engagement •  Use an initial trial to create buy-in 1.  Relationships 1.  Member  Retention Facilitation Engagement Membership Earnings 2.  Results 2.  Member  Acquisition LES MILLS INTERNATIONAL © 2011
  • 20. MGS > FACILITATION > ENGAGEMENT § We must appreciate that health and fitness facilities are not always engaging, special effort is required. § Engagement comes from: Relationships, Results and Environment 1.  Relationships 1.  Member  Retention Facilitation Engagement Membership Earnings 2.  Results 2.  Member  Acquisition LES MILLS INTERNATIONAL © 2011
  • 21. MGS > FACILITATION > ENGAGEMENT §  Relationships always develop in two phases: •  Member-to-staff relationships •  Member-to-member relationships •  However member-to-member relationships lock-in established members and lock out new ones •  Without trained facilitation by staff, only a small % of members will engage 1.  Relationships 1.  Member  Retention Facilitation Engagement Membership Earnings 2.  Results 2.  Member  Acquisition LES MILLS INTERNATIONAL © 2011
  • 22. MGS > MEMBERSHIP > EARNINGS § Membership = Earnings § Membership growth potential is almost open ended 1.  Relationships 1.  Member  Retention Facilitation Engagement Membership Earnings 2.  Results 2.  Member  Acquisition LES MILLS INTERNATIONAL © 2011
  • 23. MEMBERSHIP UNLEASHEDPRACTICAL STEPS 23 LES MILLS INTERNATIONAL © 2011
  • 24. FACILTATIONMEMBERSHIP ONBOARDING 24 LES MILLS INTERNATIONAL © 2011
  • 25. FACILITATION CHALLENGE § “Every year the industry sells millions of memberships to men and women who, though they earnestly wish that they could become regular exercisers, have not yet developed the discipline or habit of regular exercise IHRSA Guide to Retention 2007 25 LES MILLS INTERNATIONAL © 2011
  • 26. MEMBERSHIP ONBOARDING§ People join to get results and motivation BUT they stay because they make friends§ The membership consultant can be the first powerful relationship§ Membership team must build real solutions versus hard sales.§ A high quality member onboarding process focusing on attendance during the first 12 weeks is essential 26 LES MILLS INTERNATIONAL © 2011
  • 27. MEMBERSHIP ONBOARDING § Best practice: § Pay Membership and Personal Training Commissions based on usage during first 12 weeks of membership. § 21 visits in 90 days LES MILLS INTERNATIONAL © 2011
  • 28. EXAMPLE 28 LES MILLS INTERNATIONAL © 2011
  • 29. EXAMPLE 29 LES MILLS INTERNATIONAL © 2011
  • 30. FACILTATION ACTIVITIES30 LES MILLS INTERNATIONAL © 2011
  • 31. PEOPLE CAN GET AN EXERCISE SOLUTION ANYWHERE. BUT NOT MOTIVATION. 31 LES MILLS INTERNATIONAL © 2011
  • 32. THE ROLE OF MOTIVATION§  “Motivation is a trigger that ignites membership. Understanding and leveraging the members motivation affects retention” IHRSA Guide to Membership Retention LES MILLS INTERNATIONAL © 2011
  • 33. FACILITATION THAT MOTIVATES§ The five major categories include: •  Membership/Front Desk (1 member) •  PT (1-3 members) •  Small-Group (4-12 members) •  Large Group (12+ members) •  Events (unlimited) LES MILLS INTERNATIONAL © 2011
  • 34. FACILTATED EXERCISE - MAKE IT SOCIALPersonal Training Small Group Training Group Fitness Training Event Training SOCIAL FREELANCE FREELANCE CYCLE EDUCATIONAL PT PROGRAMS PROGRAMS EVENTS STRENGTH STEP DANCE SPORTS MARTIAL MINDBODY SENIORS 34 LES MILLS INTERNATIONAL© 2011
  • 35. BRANDED FACILTATED EXERCISE MODEL Personal Training Small Group Training Group Fitness Training Event Training 35 LES MILLS INTERNATIONAL© 2011
  • 36. PERSONAL TRAINING § A great way to increase the quality of on-boarding, results and connection between member and to staff§ Can be a good source of revenue§ Increase income opportunities and career opportunities for GX instructors§ However: –  Best facilities only have ≥10% of members using PT on regular basis vs. 30%+ in GX –  Connection is with a single staff member: if the member is unhappy with the PT or if the PT leaves potential to lose the member –  Typically no or low prescription of other forms of exercise such as GX ,which is more social and more holistic 36 LES MILLS INTERNATIONAL© 2011
  • 37. PERSONAL TRAINING § Considerations•  Match new clients with PTs carefully•  PT Manager should check regularly with customers to confirm if they’re happy with their PT. Make it a formal part of the process.•  Offer short term courses•  Encourage PTs to teach GX•  PT can generate revenue for a facility but its impact is relatively small 37 LES MILLS INTERNATIONAL© 2011
  • 38. SMALL GROUP TRAINING§ Currently the holy grail of the industry§ Everybody wants successful SGT programs –  Allows more people access to PT –  Increases $/hr for PTs –  Builds relationship between members… they make good friends. –  Brings back the spirit of sports teams§ Challenges: –  Best facilities only have 3% - 4 % of their members doing SGT –  As yet, no one has really made it successful 38 LES MILLS INTERNATIONAL© 2011
  • 39. GROUP EXERCISE.THE MOST POWERFUL SOURCE OF MEMBER MOTIVATION WHICH CREATES COMMUNITY AND EXCITEMENT IN FACILITIES. 39 LES MILLS INTERNATIONAL © 2011
  • 40. GROUP EXERCISE§ Many facilities worldwide are being hurt by low-budget competitors.§ At the same time, there are successful new business models emerging eg: –  Pure Yoga and Pure Fitness (Asia and US) – Group Ex-only, charging $165 per month in New York –  Exhale Spa (US) - $195 pm for classes –  Soul Cycle and Flywheel (US) - $32 per class 40 LES MILLS INTERNATIONAL © 2011
  • 41. POWER OF GROUP EXERCISE § Retention •  90% of exercisers prefer to exercise in a group •  Group exercise is cited as the biggest influence (40%) on how long people stay a member of a club •  GX member retention rates are higher than other member retention rates, on average § Acquisition •  60% of people rate GX classes as the #1 important service offered by a fitness facility •  Satisfied Group Exercise members refer people 3 times more than other IHRSA/HCD/Les Mills (March, 2009) members IHRSA Consumer Report USA (2011) Micheal Scott Skudder (2010) 41 LES MILLS INTERNATIONAL © 2011
  • 42. THERE IS ABSOLUTELY A COMMERCIAL CONNECTION BETWEEN GROUP EXERCISE ATTENDANCE AND LONG-TERM PROFITABLE FACILITIES. LES MILLS INTERNATIONAL © 2011
  • 43. SMART GX PROGRAMING§ Prospects and members usually need 3-5 types of training to cover their basic needs§ Make sure you have at least one great program you can recommend in terms of quality, experience and consistency in each of these categories –  (21%) Strength –  (19%) Cycle –  (14% Mind Body –  (12%) Dance –  (9%) Martial –  (25%) Cardio/Fusion/Other Les Mills Scoreboard Global Report (April , 2011) 43 LES MILLS INTERNATIONAL © 2011
  • 44. GX NEEDSCOPE MODEL un High bi lity/F Energ Socia y /Chal lenge BOOTCAMP SPORTS CONDITONING SIMPLE DANCE Conformity/Affiliation NICHE CYCLE DANCE MARTIAL ARTS ACTIVE Power SENIORS STEP BARBELL CORE MINDBODY® Rene n w al Perfectio Essence Research ( 2004) LES MILLS INTERNATIONAL © 2011
  • 45. THE BOTTOM LINE IS.GROUP EXERCISE ATTRACTS MORE MEMBERS, WHOATTEND MORE OFTEN, REMAIN LOYAL AND ATTRACT NEW MEMBERS THEMSELVES. 45 LES MILLS INTERNATIONAL © 2011
  • 46. ENGAGEMENT ENVIRONMENT 46 LES MILLS INTERNATIONAL © 2011
  • 47. ENVIRONMENT EFFECTSATTENDANCE§ 70% of Members rate “Ambience of the Studio”… as an “Extremely Important or Important” driver on their attendance Neilsen Research ( 2008) LES MILLS INTERNATIONAL © 2011
  • 48. ENVIRONMENT.CREATE MORE A COMPELLING AMBIENCE. 48 LES MILLS INTERNATIONAL © 2011
  • 49. LES MILLS INTERNATIONAL © 2011
  • 50. LES MILLS INTERNATIONAL © 2011
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  • 52. LES MILLS INTERNATIONAL © 2011
  • 53. 53 LES MILLS INTERNATIONAL © 2011
  • 54. LES MILLS INTERNATIONAL © 2011
  • 55. §  Les Mills World of Fitness, Auckland*, New Zealand§  12,000 members – current membership NZ$110 per month§  5,000m2 / 53,500 ft2 Fitness Only Club§  2,000m2 / 21,500 ft2 Group Fitness Area§  4 studios – largest is 700m2 / 7,500 ft2§  Over 150 classes per week§  50%+ of total attendances§  65 part time Instructors§  9,000 + Group Fitness visits per week§  M’ship retention rate 80% (IHRSA formula)*City of 1.5M people with 175 health clubs LES MILLS INTERNATIONAL © 2011
  • 56. LES MILLS INTERNATIONAL © 2011
  • 57. LES MILLS INTERNATIONAL © 2011
  • 58. LES MILLS INTERNATIONAL © 2011
  • 59. 59 LES MILLS INTERNATIONAL © 2011
  • 60. Inexpensive effects – photo blow-ups LES MILLS INTERNATIONAL © 2011
  • 61. LES MILLS INTERNATIONAL © 2011
  • 62. ENGAGEMENT RELATIONSHIPS62 LES MILLS INTERNATIONAL © 2011
  • 63. THE CHALLENGE § “Most of us aren’t really health clubs, were not even clubs. We’re just places where people come to lift weights and run on a treadmill” Michael Scott Scudder 63 LES MILLS INTERNATIONAL © 2011
  • 64. ENGAGEMENT DRIVESATTENDANCE §  12% of all cancellations would be avoided if all new members attended the facility at least once per week during the 1st calendar month after joining §  FIA Top Ten strategies for Winning the Retention Battle §  High Attendance Correlates with High Retention §  IHRSA Guide to Membership Retention 64 LES MILLS INTERNATIONAL © 2011
  • 65. ENGAGEMENT DRIVESATTENDANCE Example§  2000 members§  Average EBITDA 18%§  Average Retention 50%Strategy§  Improve Retention by 12%Outcome§  Members 120 @ $600§  Increased Revenue $72000§  Increased EBITDA 5% (23%) 65 LES MILLS INTERNATIONAL © 2011
  • 66. ENGAGEMENT FOCUS§ More people through the door more often … §  EBITDA and membership are not invalid, but only a consequence of great facilities and member attendance §  Attendance should be the key metric but is currently one of the least measured by facility owners & managers§ Member Attendance is ultimately the biggest driver of membership and profit, and as such, it should be our biggest indicator of risk to financial success 66 LES MILLS INTERNATIONAL © 2011
  • 67. RELATIONSHIPS SUSTAINENGAGEMENT§  “Facilities with strong member-to-member connections have higher retention” IHRSA Guide to Member Retention 67 LES MILLS INTERNATIONAL© 2011
  • 68. ONE MORE THING.SUCCESS STARTS WITH ENGAGED STAFF. 68 LES MILLS INTERNATIONAL © 2011
  • 69. HAPPY, ENGAGED AND LOYAL STAFF MAKEHAPPY, ENGAGED AND LOYAL CUSTOMERS. 69 LES MILLS INTERNATIONAL © 2011
  • 70. ENGAGE YOUR STAFF§ Why should your staff care about your business and challenge themselves every day?§ To unleash company performance and profit, you need to unleash staff performance, motivation and loyalty.§ People need to be engaged in an inspiring and meaningful purpose, something bigger than them 70 LES MILLS INTERNATIONAL © 2011
  • 71. ENGAGEMENT FROMENDEARMENT § Latest research shows that companies can profit from passion and purpose§ Endearment is based on self- knowledge, candor and maturity -- three essential elements of integrity -- in interactions with others.§ In return stakeholders place uncommon trust in their companies and products and fall in love with them. 71 LES MILLS INTERNATIONAL © 2011
  • 72. ENGAGE STAFF WITH THEBIG PICTURE §  By 2030, 50% of the USA population will be obese (>30% BMI)§  Traditional health care is failing§  By 2016 the cost of the American health system will have doubled to $4.1 trillion per year*.§  It seems that our health is deteriorating at almost as quickly as these costs are increasing.§  Need for a preventative focus§  Health and Fitness facilities are effective preventative health care *2006 US Treasury report 72 LES MILLS INTERNATIONAL © 2011
  • 73. HEALTH AND WELLNESSAND OUR ROLE IN THE FUTURE§ The world is facing a great holistic health challenge and our industry is perfectly positioned to play a big part in the solution.§ 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, most influential people. 73 LES MILLS INTERNATIONAL © 2011
  • 74. VALIDATING STATEMENTS§ “We are warriors in the battle against inactivity and over consumption” LMI Instructor Creed, 1998§ “Creating life changing experiences every time, everywhere. One class at a time, one participant at a time” Les Mills Advanced Instructor Module 2011§ “You have to find a way to make people fall in love with fitness” Les Mills, 1968 74 LES MILLS INTERNATIONAL © 2011
  • 75. STAND FOR SOMETHING.CREATE A CAUSE, NOT A BUSINESS... 75 LES MILLS INTERNATIONAL © 2011
  • 76. CHANGING THE PERCEPTIONOF OUR INDUSTRY § Lifestyle Family Fitness (Florida) teen fitness initiative •  FREE 2-Month Summer Membership •  Teens can utilize all equipment & participate in group exercise classes •  Hourly restrictions in place (i.e. non- prime time) •  Remember…teens have parents & they grow-up to become paying adults 76 LES MILLS INTERNATIONAL© 2011
  • 77. MEMBERSHIP EVENTS77 LES MILLS INTERNATIONAL © 2011
  • 78. GROUP FITNESS EVENTS. ORGANIZING GREAT WOW EVENTS IS THE BEST WAY TO CREATE MOMEMTUM, ENCOURAGE MEMBER MOTIVATION, BUILD ATTENDANCE, COMMUNITY, RETENTION AND GROW MEMBERSHIP 78 LES MILLS INTERNATIONAL © 2011
  • 79. THE MEMBERSHIP EXPERIENCE CURVEExperience When you host GX events, you are selling non-members an experience, not a membership – this makes selling so much easier Les Mills GX Events typically drive 10-20 New Memberships Membership Sales 79 LES MILLS INTERNATIONAL © 2011
  • 80. THE MEMBERSHIP EVENTS MODEL Experience Program 2 Launch Event Quarterly Re-launch Event Quarterly Re-launch Event Program 1 Launch Event Months 3 6 9 12 80 LES MILLS INTERNATIONAL © 2011
  • 81. THE RESULT§ As the number of staff/member-to-member relationships increases, so does retention§  With better new-member retention, you have more money to spend on acquisition§ With more compelling offers, sales becomes easier 1.  Relationships 1.  Member  Retention Facilitation Engagement Membership Earnings 2.  Results 2.  Member  Acquisition LES MILLS INTERNATIONAL © 2011
  • 82. MEMBERSHIP UNLEASHEDHOW LES MILLS PARTNERS GO FROM GOOD TO GREAT LES MILLS INTERNATIONAL © 2011
  • 83. 1. THEY IMPLEMENT THE LES MILLS GX SYSTEM LES MILLS INTERNATIONAL © 2011
  • 84. 2. THEY USE THE RIGHT PROGRAM SOLUTIONS LES MILLS INTERNATIONAL © 2011
  • 85. 3. THEY COMMIT TO REGULAR WORLD CLASS INITIALAND ADVANCED INSTRUCTOR TRAINING LES MILLS INTERNATIONAL © 2011
  • 86. 4. THEY USE THE NEW CLUB PERFORMANCE TOOLS LES MILLS INTERNATIONAL © 2011
  • 87. 5. THEY IMPLEMENT A ROBUST GX REPORTING SYSTEM LES MILLS INTERNATIONAL © 2011
  • 88. 6. THEY HOST BROADWAY CLASS GX EVENTS § Point of sales training that leverages group fitness as a key membership sales tool § Les Mills has formulas for hosting launch and relaunch events, on 3 different budgets, that are proven to: – enhance member retention and acquisition – deliver significant ROI – transform group exercise into a profit centre LES MILLS INTERNATIONAL © 2011
  • 89. 7. THEY LEVERAGE THE NEW US CONSUMER LESMILLS PUMP INITIATIVE §  Beach Body LES MILLS PUMPTM Home DVD§  Biggest marketing initiative since the global launch of BODYPUMPTM in 1997§  Multi Million $$ Infommercial§  Massive consumer drive of new members to sites with LES MILLS Programs§  US launch May 2012 LES MILLS INTERNATIONAL © 2011
  • 90. GX POWERED BY LES MILLS FROM GOOD TO GREAT§  THE AVERAGE LES MILLS LICENSEE FACILITY HAS 500 MORE MEMBERS PER CLUB THAN THE GLOBAL AVERAGE (1) Scoreboard Round 1 and 2 (2) Scoreboard Round 2 90 LES MILLS INTERNATIONAL © 2011
  • 91. GX POWERED BY LES MILLS FROM GOOD TO GREAT § THE MAJORITY OF LES MILLS™ PARTICIPANTS WANT TO CONTINUE TO TAKE LES MILLS™ IN NEXT 12 MONTHS LES MILLS INTERNATIONAL © 2011
  • 92. GX POWERED BY LES MILLS FROM GOOD TO GREAT § LES MILLS GX MEMBERS ATTEND THEIR FACILITIES ALMOST TWICE AS OFTEN  AC Nielsen (2010); IHRSA Consumer Report USA (2011 LES MILLS INTERNATIONAL © 2011
  • 93. GX POWERED BY LES MILLS FROM GOOD TO GREAT § THE MAJORITY OF LES MILLS™ PARTICIPANTS WOULD ABSOLUTELY OR STRONGLY RECOMMEND LES MILLS™ PROGRAMS TO THEIR FRIENDS AND FAMILY AC Nielsen (2010); IHRSA Consumer Report USA (2011) LES MILLS INTERNATIONAL © 2011
  • 94. GX POWERED BY LES MILLS FROM GOOD TO GREAT§ LES MILLS LICENSEES TEND TO HAVE HIGHER % OF CLUB ATTENDANCE PARTICIPATING IN GROUP EXERCISE (1) Scoreboard Round 1 and 2 (2) Scoreboard Round 2 94 LES MILLS INTERNATIONAL © 2011
  • 95. GX POWERED BY LES MILLS FROM GOOD TO GREAT § LES MILLS CLASSES ATTRACT HIGHER TOTAL CLASS ATTENDANCE THAN OTHER CLASSES, ON AVERAGE (3) Scoreboard Round 1 and 2 (4) Scoreboard Round 1 95 LES MILLS INTERNATIONAL © 2011
  • 96. GX POWERED BY LES MILLS FROM GOOD TO GREAT § THE AVERAGE LES MILLS LICENSEE ATTRACTS AROUND 600 WEEKLY GROUP EXERCISE ATTENDANCES THROUGH THE YEAR(3) (3) Scoreboard Round 1 and 2 (4) Scoreboard Round 1 96 LES MILLS INTERNATIONAL © 2011
  • 97. YOUR NEXT STEP Schedule a Membership Growth Strategy ReviewCreate an action plan for the transition to Membership Growth Strategy No Cost, No Risk, No Obligation 97 LES MILLS INTERNATIONAL © 2011
  • 98. PARTICIPANT FEEDBACK FROM PREVIOUS SESSIONS1. 2.  Non Commission Model Sale People emotionally attached 15.  16.  Restore Mothers who gave up everything for their kids People leave their Trainer and Instructors not the Club3.  Accountability for Prescription 17.  Team Training could be a great tool to engage the4.  CXWORXS College segment5.  What keeps your club open? 18.  Clubs should collaborate better with Physical Therapy6.  What is your Value? What is on your mind? Clinics to break the cycle of chronic illness7.  Abundance of daily drama – Seek Wellness 19.  Model required for small studios8.  Keep people ‘connected’ regularly 20.  How do we create community when we operate in silos9.  Attendance = Membership 21.  Club Culture – How to build this10.  Members Surveys 22.  Global perspective “refreshing”t11.  Staff Engagement – Get staff taking the Group X 23.  Engagement is key – Foster culture with corporate classes account12.  Staff training pays for it self, Purpose, Autonomy, 24.  Look after home/community/obesity war Mastery and Scalability 25.  Equity small club (1500 membership) Beach Club13.  Consumer – Holistic View 26.  Get the members together14.  Fitness has become a luxury not a necessity 27.  Difficulty gettting people together 28.  Group Exerciser is thre heartbeat of the Club 98 LES MILLS INTERNATIONAL © 2011

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