Membership Unleashed by Les Mills -  Club Industry Seminar 2012
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Industry Trends & Best Practice from - Les Mills

Industry Trends & Best Practice from - Les Mills
Presentation delivered by - Steven Renata

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Membership Unleashed by Les Mills - Club Industry Seminar 2012 Presentation Transcript

  • 1. UNLEASHING YOUR MEMBERSHIP POTENTIAL WITHOUTCUTTING SERVICES OR DISCOUNTNG PRICESFUTURE OF FITNESS 1 LES MILLS INTERNATIONAL © 2011
  • 2. THE FITNESS INDUSTRY HAS EXPERIENCED MASSIVEGROWTH IN THE LAST 40 YEARS… 60 Health & Fitness facility attendance has 50 become the biggest adult ‘sport’ in the Western world. 40 Bigger than football, tennis and golf combined … 30 We thought all stars we aligned for further 20 growth… 10 US Adult Fitness Club Participation 0 1960 1970 1980 1990 2000 2010 2020 2030 2040 LES MILLS INTERNATIONAL © 2011
  • 3. FUTURE OF FITNESS THE WHITE PAPER OUTLINES INDUSTRY ‘CHALLENGES’ THAT POSE AN ALARMING THREAT TO FUTURE SUSTAINABILITY, GROWTH AND SUCCESS… 3 LES MILLS INTERNATIONAL © 2011
  • 4. OUR INDUSTRY IS AT RISK…•  Membership retention is the largest problem facing our industry today•  Based on commodities and lacking the excitement and social engagement of sports - We behaved more as gyms than as true health clubs.•  Competitive industries are evolving faster than us, eg: •  Virtual exercise •  New sports •  Nutritional science •  Medicine•  Stagnating industry - Segmentation rather than innovations – The industry has started to turn into itself – we are fighting for the same customers instead of innovating to attract new ones ie Budget Clubs, Micro Gyms. LES MILLS INTERNATIONAL © 2011
  • 5. BUDGET CLUBS
  • 6. BUDGET CLUBS
  • 7. MICRO GYMS§ Many facilities worldwide are being hurt by low-budget competitors.§ At the same time, there are successful new fitness models emerging (micro gyms) eg: •  Cross Fit Studios •  Orange Theory - $23 per class •  Kosama, Omni, Fitness Together, Title Boxing •  Soul Cycle and Flywheel (US) – $32 per class •  Pure Yoga (Asia and US) – $145 to $165 per month •  Exhale Spa (US) – $195 pm for classes-only membership•  People are willing to pay for value… 7 LES MILLS INTERNATIONAL © 2011
  • 8. WHITE PAPER:WHAT DO PEOPLE WANT? WHY DO THEY JOIN A GYM?THREE AREAS OF OPPORTUNITY1. Exertainment2. Community/Building bonds3. Health 8 LES MILLS INTERNATIONAL © 2011
  • 9. MOTIVATION LES MILLS INTERNATIONAL © 2011
  • 10. HOW CAN WE TELL WE ARE DOING AGREAT JOB OF MOTIVATING PEOPLE? LES MILLS INTERNATIONAL © 2011
  • 11. IT’S SIMPLE THEY ATTEND MORE OFTEN…AND YET THIS IS ONE OF THE LEAST ANDMOST POORLY MEASURED METRICS. LES MILLS INTERNATIONAL © 2011
  • 12. SO HOW CAN WE ‘MANAGE’ MOTIVATIONTO INCREASE ATTENDANCE?.. LES MILLS INTERNATIONAL © 2011
  • 13. HOW THE BEST FACILITIES INCREASE ATTENDANCE1.  Design a high-energy workout environment 2.  Create a relationship selling and new member induction system3.  Recruit a team of great PTs, Small Group/ Team Trainers and Group X Instructors4.  Build a ‘club within a club’ system for sports and other activities5.  Develop a member education and social network communication system LES MILLS INTERNATIONAL© 2011
  • 14. MOTIVATING PEOPLE 1. DESIGNING A HIGH-ENERGYWORKOUT ENVIRONMENT LES MILLS INTERNATIONAL © 2011
  • 15. 15MOTIVATING ATTENDANCE§ 78% say “SPACE” to exercise is extremely/very important!§ 60% say the “AMBIENCE” of the room is extremely/very important “Exertainment” LES MILLS INTERNATIONAL© 2011
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  • 35. BEST PRACTICE2. MEMBERSHIP SELLING ANDNEW MEMBER INDUCTION LES MILLS INTERNATIONAL © 2011
  • 36. MEMBERSHIP SELLINGFrom Hard Transactional selling to Relationship Selling to EducativeSelling:Shifting the MCs’ focus on providing relevant ‘solutions’ for a healthier andhappier lifestyle – not selling a gym membership§ People join to get results and motivation but they stay because they make friends - The Membership Consultant (MC) can be the first powerful relationship…§ People research and buy online more and more§ We need to be more than the low-budget club – MCs need to bring additional value to online buying 36 LES MILLS INTERNATIONAL © 2011
  • 37. MEMBERSHIP SELLING§ MCs to become Membership Coaches responsible for setting up the new member for success – 24 Hour Fitness – 80% of prospects have been member of a gym before… – No sales commission since last year – They have cut from 12 sales consultant to 5 membership coaches per centre – Prices has increased and January 2012 has seen the highest number of sales ever 37 LES MILLS INTERNATIONAL © 2011
  • 38. MEMBERSHIP SELLING§ MCs to become Membership Coaches responsible for setting up the new member for success§ LMNZ Case Study – Shifted from hard selling to relationship selling in 2005 – MCs prescribe a training plan before the membership solutions: – It increases the perceived value and allows for an educated decision to be made – It creates ‘buy-in’ and commitment from prospect… It paves the road for new members to become ‘addicted’ to exercise at your facility… and it creates a bond with the MC. – They are responsible and accountable for new member attendance in first 3 months (21 visits)§ Recruiting and training MCs properly so they can deliver educative sales pitch and prescribe holistic fitness prescription and relevant exercise recommendations based on the customers’ needs 38 LES MILLS INTERNATIONAL © 2011
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  • 42. MEMBER “GETTING STARTED” TOOLS 42 LES MILLS INTERNATIONAL © 2011
  • 43. 6YOUR STAFF ARE ONE OF YOUR LAUNCH AND PROMOTE STEP 1 - Introduce your goals behind the program(s) implementation and behindBEST PROMOTIONAL TOOLS! the launch event. STEP 2 - Instructors teach the new program(s) so the rest of the staff can experience it for2-HOUR PRODUCT TEAM-TRAINING FOR ALL STAFF real, as participants and as beginners. STEP 3 - Product knowledge. Give each staff member a copy of the program(s) GettingBoosting your attendance and membership sales partly depends on your team’s ability Started Brochure(s), a copy of theto ‘sell’ your program(s) to your members and prospects. product knowledge page you have at the end of your Club Performance ManualMake sure you give them the skills to do it well! Run a dynamic and interactive team- and a copy of the GF Benefits board you can find on eClub. Then organize 3 drills.training session by using the following agenda.Drill 1 - Features and benefits Drill 2 - Scenarios Drill 3 - Overcoming objectionsBreak down your staff in groups of 3 Break down your staff in 3 groups and give each group one of the Ask all of them individually the top 5(ideally you want a mix of instructors following profiles: objections they believe people might haveand sales/front-desk team in each before they attend the class (why theygroup) *40-year-old woman who hasn’t exercised properly for some years and is wouldn’t want to go initially) and the top 5 lacking in confidence but wants to lose weight and get back in better shape. objections to do it again post classAllocate each group 3characteristics of each program you *30-year-old guy, with a highly driven personality, is very busy with work Ask all of them the list of their objections andare launching but looking for ways of maintaining fitness and shape without spending too select the top 5 in both categories across much time doing it. your team(For example with BODYPUMP™:weight training to music, pre- *25-year-old woman, exercising already, who is looking for fun and energetic Break down people into pairs and allocate achoreographed program, 55-min full- ways of exercising during the week. few objections to each groupbody workout, hot sounds etc) Ask each group to discuss and prepare the way they would present Ask each of them to work on how they wouldGive them 5 minutes to find 3 and ‘sell’ the program to that specific prospect or member. They overcome each objection and manage toparticipant based benefits for each must choose carefully the features and benefits they would use with motivate the person to go and try the classof the characteristics that specific person. or, how they would motivate the person to do Make each group role-play with one person from another group it againAsk each group to present and playing the role of the customer. Debrief answersfeedback/input if necessary Feedback and repeat for each program(s) you are about to launch. Les Mills International Limited © Issued 13 07 2011 45 4 LES MILLS INTERNATIONAL © 2011
  • 44. RELATIONSHIP SELLINGGoing the extra mile…§ LMNZ – If a prospect doesn’t join, they leave with a 30-day exercise plan to do at home – My Exercise Calendar§  Behaviors must align with Vision… 44 LES MILLS INTERNATIONAL © 2011
  • 45. RELATIONSHIP SELLING ANDNEW MEMBER INDUCTIONLMNZ - Improve the lives of New Zealanders§  Our goal is to get people to exercise, if possible in a gym and if possible, in Les Mills gym. If they don’t join today, we still want them to start exercising. At some point, we are confident they will join because they need MORE, they need motivation and we are the coolest gym in town. Reece Zondag, CEO, LMNZ§ This approach allows us to: – Come across as true fitness experts vs salespeople – Preserve the relationship – Give MCs a good reason to follow up and a real purpose behind each follow-up call – Focus no the talk being always about exercising, their goals, where they are at with it, inviting them to an event vs latest greatest deal 45 LES MILLS INTERNATIONAL © 2011
  • 46. NEW MEMBER INDUCTION PROCESS§ Implement a simple but thorough member on-boarding process facilitating consistent attendance and focusing on usage during first 12 weeks. It will set the foundation for long-term engagement.“Every year, the industry sells millions of memberships to men and women who, thoughthey earnestly wish that they could become regular exercisers, have not yet developed the discipline or habit of regular exercise.” IHRSA Guide to Retention 2007 “12% of all cancellations would be avoided if all new members visited the facility at least once per week during the first calendar month after joining.” FIA Top Ten Strategies for Winning the Retention Battle 46 LES MILLS INTERNATIONAL © 2011
  • 47. NEW MEMBER INDUCTION PROCESSLMNZ - Goal: 21 visits in 3 months•  Induction process with regular and specific points of contact•  MCs are responsible for it (about 30% of their 21 visits commission)•  they sell the dream; they make sure the dream happens!•  Tracks every new member over 84 days and visits at 14, 42 and 84 days 47 LES MILLS INTERNATIONAL © 2011
  • 48. LMNZ NEW MEMBER INDUCTION PLAN21 VISITS IN 84 DAYS 48 LES MILLS INTERNATIONAL © 2011
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  • 51. RELATIONSHIP SELLING AND NEW MEMBERINDUCTIONLMNZ: 21 visits in 84 days§ Result: 50% of members achieving the 21 in 3 months (Goal is: 65%)§ Give MCs a clear and genuine reason to call –  Red status: Rescue call –  Orange: What more can we do to get you here more often? –  Green: High-five call!§ Proven to be very successful in increasing new member usage, maintaining member motivation by discussing exercise progression and driving referrals earlier and more often 51 LES MILLS INTERNATIONAL © 2011
  • 52. BEST PRACTICE3. CREATE A GREAT TEAM OFPT’S, SMALL GROUP/TEAMTRAINERS AND GROUP XINSTRUCTORS LES MILLS INTERNATIONAL © 2011
  • 53. Whatever your goal and/or vision -you need a great team to help youget there. A crucial factor in the success ofyour programs is the quality of theinstructors who teach them. Great Trainers and Instructors drivethousands of attendances eachyear. LES MILLS INTERNATIONAL © 2011
  • 54. GET WORLD CLASSRECRUITMENT AND TRAINING SOLUTIONS   Partnering with Les Mills can help you to: • Build a brand that attracts new talent • Develop the skills and better motivate your team • Ensure training and ongoing staff education is relevant and up-to-date • Guarantee quality and consistency to your members and guests • Keep your team engaged and inspired LES MILLS INTERNATIONAL © 2011
  • 55. LES MILLS™ INSTRUCTOR TRAINING SYSTEMLES MILLS™ TRAINING SYSTEM QUICKLY BUILDS TALENT, ENGAGEMENT AND LOYALTY   National Presenter Instructors in the USA receive National ACE & AFAA education credits and Trainer Team training on completing any LES MILLS™ Bootcamp training module. Advanced and Advanced training (AIM 1 Ongoing Elite LES MILLS™ Quarterly Training Instructor Certification and 2 modules) 2-day initial International Selection training module LES MILLS™ Instructor process (‘clearance to teach’) certification LES MILLS INTERNATIONAL © 2011
  • 56. LES MILLS™ SUPPORTS YOU WITH THE #1 CHALLENGE IN THEINDUSTRY – RECRUITING AND KEEPING GREAT INSTRUCTORS LES MILLS INTERNATIONAL © 2011
  • 57. “HAPPY, ENGAGED AND LOYAL STAFF MAKE HAPPY, ENGAGED AND LOYAL CUSTOMERS.” SOUTHWEST AIRLINES 57 LES MILLS INTERNATIONAL © 2011
  • 58. STAND FOR SOMETHING.CREATE A CAUSE, NOT A BUSINESS.GIVE YOUR TEAM SOMETHING BIGGER THANTHEMSELVES TO FIGHT FOR, SOMETHING THEY CANBE PROUD OF. 58 LES MILLS INTERNATIONAL © 2011
  • 59. WHAT’S YOUR VISION?§ WHY should your staff care about your business and challenge themselves every day?§ People need to be engaged in an inspiring and meaningful purpose… 59 LES MILLS INTERNATIONAL © 2011
  • 60. FOR A FITTER PLANET§ “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.” AIM manual§ “You have to find a way to make people fall in love with fitness.” Les Mills, 1968 60 LES MILLS INTERNATIONAL © 2011
  • 61. BEST PRACTICE4. BUILD A SYSTEM OFINTEGRATED ‘ASSISTED EXERCISEAND ACTIVITES” LES MILLS INTERNATIONAL © 2011
  • 62. BUCKETOLOGY OF ASSISTED EXERCISE Assisted Exercise has higher attendance, BENCHMARKS FORretention and referral rates than unassisted HIGH PERFORMING FACILITIESexercise. Small Group/Team training andPersonal Training are powerful forms to buildcommunity. But even the best operators in theworld have only 1%-14% of the their totalmembership base attending these activities. Unassisted ExerciseIn contrast Group Exercise attracts andmotivates the masses. Some of the world’s Group Exercise 36%most successful facilities have over 50% of theirattendances in GX. Many have 30%-50% 50%“Group Exercise members attend moreregularly, remain members for longer, makemore referrals, perceive greater value in theirmemberships (ie will pay more) and do not Small Group Training 4%leave when a budget gym opens nearby!”1 Personal Training 10% 1. Will Phillips, The Retention Breakthrough LES MILLS INTERNATIONAL© 2011
  • 63. CREATING BONDS WITH DIFFERENT OFFERINGS Group Fitness Team Training Personal Training Event Training Freelance Programmes 63 LES MILLS INTERNATIONAL© 2011
  • 64. PERSONAL TRAINING – 1 TO 1 BOND § A great way to increase the quality of on-boarding, results and connection (member to staff) § Can be a good source of revenue § Increase income opportunities and career opportunities for GX instructors § However: –  Even the best facilities in the world have less than 10% of members using PT on a regular basis vs 50%+ in GX –  Connection is with a single staff member: if the member is unhappy with the PT or if the PT leaves, you could lose the member –  No prescription of other form of exercise such as GX (which is more social and more holistic) 64 LES MILLS INTERNATIONAL© 2011
  • 65. SMALL-GROUP TEAMONE TO FEW BONDS§ Currently the holy grail of the industry§ Everybody wants successful SGTT programs –  Allows more people access to PT –  Increases $ per hour for PTs –  Builds relationships between members… They make good friends. –  Brings back the spirit of sports teams§ Challenges: –  Scheduling –  Booking and Payment Models –  Space, and Equipment –  Safety, Consistency, Scalability 65 LES MILLS INTERNATIONAL© 2011
  • 66. EVENTS TRAININGONE TO MANY BONDS 66 LES MILLS INTERNATIONAL© 2011
  • 67. GROUP EXERCISEIS BY FAR THE MOST POWERFUL WEAPONIN YOUR MOTIVATIONAL ARSENAL! •  90% of all exercisers report that they would prefer to work out in a group.1 •  Members who attend Group Exercise (GX) use their facility 3 times per week compared to IHRSAs figure of 1.9 member visits a week, on average. •  GX is cited as the biggest influence (40%) on how long people remain a member of a fitness facility. •  GX member retention rates are higher than other member retention rates, on average. •  60% of people rate GX as the #1 service they specifically look at when choosing a gym.2 •  Satisfied GX members refer people 3 times more than other members. LES MILLS INTERNATIONAL© 2011
  • 68. There is absolutely a commercial connection between group fitness attendance and long-term profitable facilities! LES MILLS INTERNATIONAL© 2011
  • 69. THE POWER OF GROUP EXERCISE§ Many facilities worldwide are being hurt by low-budget competitors.§ At the same time, there are successful new fitness models emerging (micro gyms) eg: •  Orange Theory - $23 per class •  Kosama, Omni, Fitness Together, Title Boxing •  Soul Cycle and Flywheel (US) – $32 per class •  Pure Yoga (Asia and US) – $145 to $165 per month •  Exhale Spa (US) – $195 pm for classes-only membership 69 LES MILLS INTERNATIONAL© 2011
  • 70. THE BOTTOM LINE IS:Group Exercise attracts MORE MEMBERS, who attend more often,REMAIN LOYAL and attract new members THEMSELVES! 70 LES MILLS INTERNATIONAL© 2011
  • 71. WHAT DOES IT TAKES TO BECOMEA CHAMPION AT GROUPEXERCISE? LES MILLS INTERNATIONAL© 2011
  • 72. 72 LES MILLS INTERNATIONAL© 2011
  • 73. THE PLAN IS BASED AROUND 8 KEYS ELEMENTS WHERE TO START? 73 LES MILLS INTERNATIONAL© 2011
  • 74. 74  WHAT DRIVES MEMBER ATTENDANCE IN GX?#1 DRIVER FOR CLASS ATTENDANCE IS THE PROGRAM Nielsen Consumer Survey 74 LES MILLS INTERNATIONAL© 2011
  • 75. SMART PROGRAMMING § Prospects and members usually need three types of training to cover their basic needs – Strength Toning – Cardio – Mind-Body§ Make sure you have at least one “best in class” program you can recommend in terms of experience, quality, safety, and consistency in each of these categories: 75 LES MILLS INTERNATIONAL© 2011
  • 76. WHERE TO START WHERE TO START?5 program§ Research show genres comprise 75% of GX 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§  25 % Fusion 76 LES MILLS INTERNATIONAL© 2011
  • 77. GET YOUR PROGRAMMING RIGHTAFTER DETERMINING DEMOGRAPHIC POSITIONING… ALLOCATE 70% OF YOURTIMETABLE TO CORE PROGRAMS AND 20 - 30% TO SPECIALTY ONES 77 LES MILLS INTERNATIONAL© 2011
  • 78. LES MILLS INTERNATIONAL© 2011
  • 79. LES MILLS INTERNATIONAL© 2011
  • 80. Les Mills’ BODYPUMP® is the original barbellclass, designed and scientifically proven tostrengthen the entire body. This 60-minute workoutchallenges all major muscle groups by using thebest weight-room exercises, including squats,presses, lifts and curls. Great music, awesomeinstructors and individual choice of weights inspireparticipants to perform 800 reps per class and toget the results they came for - and fast!   Due to its broad appeal, BODYPUMP® attracts big numbers across all time-slots. Best practice suggests scheduling it a minimum of 7 to 12 times across the week to maximize attendance. Most clubs offer at least 2 classes per day.BODYPUMP® participants visit 4.3 timesper week on average versus the industryaverage of less than twice a week for non-Group Exercise club visits.   LES MILLS INTERNATIONAL© 2011
  • 81. DRIVING PEOPLEINTO CLUBS VIA TV  Les Mills is committed to building our brand andgrowing demand for your classes. That’s why we’veteamed up with Beachbody, the best-knownprovider of home workouts, to create "LES MILLSTM PUMP, a set of home-workout DVDs.We’ve seen the power of other brands usinginfomercials to drive consumer awareness.Partnering with Beachbody will introduce a nationalaudience of millions to the Les Mills brand. Theexposure will help to drive more people into yourfacility and classes, and make it that much easierfor you to sign up new members.   LES MILLS INTERNATIONAL© 2011
  • 82. BODYPUMP® CXWORX™ RPM™ BODYBALANCE™ BODYCOMBAT™Les Mills’ BODYPUMP®is the original barbell A short, sharp workout, backed by core An indoor-cycling workout where /BODYFLOW® Les Mills’ BODYCOMBATTM is aclass, designed and conditioning research participants ride to the fiercely energetic cardioscientifically proven to from Penn State BODYBALANCETM/! rhythm of powerful workout inspired bystrengthen the entire University, that BODYFLOW® is a Yoga, music. The inspiring team martial arts such asbody. This 60-minute strengthens and tones coach leads the pack Tai Chi and Pilates Karate, Boxing, Tae Kwonworkout challenges all the body. It hones in on workout that builds through hills, flats, Do, Tai Chi and Muaymajor muscle groups by the torso and sling flexibility and strength. mountain peaks, time Thai. Supported byusing the best weight- muscles that connect the Controlled breathing, trials and interval driving music androom exercises, including upper and lower body. concentration, stretches,squats, presses, lifts and It’s ideal for tightening training. Participants energizing instructors, moves and poses tocurls. Great music, tummy and butt, sweat and burn to reach participants strike, music create an holisticawesome instructors and improving functional the endorphin high!! punch, kick and KATA workout that balancesindividual choice of strength and assisting in their way through Due to its broad appeal and harmonizes the body,weights inspire injury prevention. calories to superior RPMTM attracts big leaving participantsparticipants to perform CXWORX™ bands are cardio fitness.! numbers across all time- centered and calm.!800 reps per class and to available from !get the results they came lesmills.com/equipment.! slots. Attracts maximum Due to its broad appealfor – and fast!! numbers during peak and Best practice suggests BODYBALANCETM/ Due to its broad appeal shoulder times, weekdaysDue to its broad appeal, CXWORXTM attracts big scheduling it 9 to 14 times BODYFLOW® attracts big and weekends. While itBODYPUMP® attracts big through the week to numbers across all time- numbers across all time- also works very well at off-numbers across all time slots. maximize attendance. slots. peak times, performanceslots. Best practice Best practice suggests is dependent on marketing Best practice suggests Most clubs that havesuggests scheduling it a scheduling and the convenience of scheduling it at peak or dedicated cycling studiosminimum of 7 to 12 times BODYBALANCE™ a timing. shoulder times once or offer 3 to 7 classes a day.across the week to minimum of 5 to 7 timesmaximize attendance. Most twice a day. Given the 30- DID YOU KNOW? Best practice suggests minute format, lunchtime through the week.clubs offer at least 2 IT’S POSSIBLE TO schedulingclasses per day. classes are ideal. It’s very popular in the BODYCOMBATTM at least CHARGE A BOOKING FEE FOR RPMTM TO morning, shoulder times 5 to 7 times a week.BODYPUMP® DID YOU KNOW? CXWORX™ CAN BE BRING IN ANCILLARY and during weekends.PARTICIPANTS VISIT 4.3 USED AS A FEE-BASED, REVENUE IN THETIMES PER WEEK ON SMALL-GROUP THOUSANDS PER WEEK.AVERAGE VERSUS THEINDUSTRY AVERAGE OF TRAINING PROGRAM.LESS THAN TWICE A MANY FACILITIES AREWEEK FOR NON-GROUP HAVING SUCCESS WITHEXERCISE CLUB VISITS. THIS BOTH IN AND OUT OF THE GROUP   EXERCISE ROOM. LES MILLS INTERNATIONAL© 2011
  • 83. SHBAM™ BODYVIVE™ BODYJAM™ BODYSTEP™ BODYATTACK™Simple dance moves with A fun, low-impact, whole- A cardio workout offering Using simple movements A sports-inspired cardiochart-topping popular body workout that an addictive fusion of the on, over and around a workout for buildinghits enable participants improves fitness and latest dance moves and height-adjustable step, strength and stamina.to shape up and let out core strength, using body hottest new sounds puts participants get huge High-energy intervaltheir inner star – even if weight, VIVETM tubes and the emphasis as much on motivation from popular training classes combinethey’re dance- balls for extra resistance. having fun as breaking a music and uplifting athletic aerobicchallenged! The 45- Great music, group sweat. Funky instructors instructors. Cardio blocks movements with strengthminute SH’BAM™ interaction and a skilled teach participants how to push fat-burning systems and stabilizationclasses provide the instructor inspire move with attitude into high gear, followed exercises. Dynamicultimate fun and sociable participants to get fit for through this 55-minute by muscle-conditioning instructors and powerfulway to exercise. ! life.! class.! tracks that shape and music motivate tone the body.! participants toward theirAttracts maximum Attracts maximum Attracts maximum fitness goals.!numbers during peak and numbers during peak and numbers during peak and Attracts maximumshoulder times, weekdays shoulder times, weekdays shoulder times, weekdays numbers during peak and Attracts maximumand weekends. Best and weekends. While it and weekends. Can shoulder times, weekdays numbers during peak andpractice suggests also works very well at off- perform strongly off peak and weekends, particularly shoulder times, weekdaysscheduling SH’BAM™ 5 to peak times, performance with a charismatic mornings. Best practice and weekends. Can7 times a week.   is dependent on marketing instructor and strong suggests scheduling at perform strongly off peak and the convenience of marketing. Best practice least 3 to 5 times a week. with a charismatic timing. Best practice suggests scheduling instructor and strong suggests scheduling BODYJAMTM at least 3 to marketing. Best practice BODYVIVETM at least 3 to 7 times a week. suggests scheduling 5 times a week. BODYATTACKTM at least 3 to 7 times a week. VIVE™ tubes and balls are available at lesmills.com/equipment LES MILLS INTERNATIONAL© 2011
  • 84. GROW YOUR GX NUMBERSORGANIZE REGULAR EVENTS THAT ‘WOW’ LES MILLS INTERNATIONAL © 2011
  • 85. WOW GX EVENTSTHE BEST WAY TO CREATE MOMENTUM, RE-IGNITE MEMBER MOTIVATION, BUILDATTENDANCE, COMMUNITY, RETENTION AND…GROW MEMBERSHIP 85 LES MILLS INTERNATIONAL© 2011
  • 86. THE SALES / EXPERIENCE CURVE Experience “When you host GX events, you are selling non-members an experience, not a membership – this makes selling so much easier.” Sales 86 LES MILLS INTERNATIONAL© 2011
  • 87. LES MILLSTM EVENTSBENCHMARK§  Massive BUZZ and interest in club during the 2 weeks building up to event§  Full focus from club team on common goals and interaction between sales, customer experience and product departments – ‘Breaking down silos’§  Sold-out events and massive energy in clubs – all classes at 80 to 100% capacity§  Attendance: 5 to 10% membership§  20% guests per class§  50 to 70% conversion rate of guests§  Massive buzz post-event§  An increase of attendance in 2 to 3 weeks post-event of 10 to 20% 87 LES MILLS INTERNATIONAL© 2011
  • 88. SELLING MEMBERSHIPS WITH EVENTS STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 WHAT TO DO WHAT TO DO WHAT TO DO WHAT TO DO WHAT TO DO Set clear goals in terms Promote the event, Call every guest before Host an outstanding Sell effectively at of member attendance pre-book class spaces the event to confirm event! the event: at event, number of they are coming, membership you want RESULT pre-qualify them RESULT - Work the transition to sell and number of and pre-book sales between the class to guests you need to Create interest, appointment on event Enhance retention and the sales appointment attend the event optimize the number day give the best possible of people coming to first impression of - Provide a training RESULT RESULT the event and allow to the club, training solutions to the needs Focus the team connect with guests solutions and staff to towards achieving a before the event. Increase the % the guests. Increase - Offer two options to common goal of show rate and your conversion rate by start with with a great ensure every qualified selling an experience event membership guests will meet versus a price! offer with a membership consultant RESULT Maximize every sales opportunity WATCH THE SPECIFIC TRAINING VIDEO FOR SELLING WITH EVENTS.64 Les Mills International Limited © Issued 13.07.2011 LES MILLS INTERNATIONAL© 2011
  • 89. EVENTS PLANNING BENCHMARK§  Massive BUZZ and interest in club during the 2 weeks building up to event§  Full focus from club team on common goals and interaction between sales, customer experience and product departments – ‘Breaking down silos’§  Sold-out events and massive energy in clubs – all classes at 80 to 100% capacity§  Attendance: 5 to 10% membership§  20% guests per class§  50 to 70% conversion rate of guests§  Massive buzz post-event§  An increase of attendance in 2 to 3 weeks post-event of 10 to 20% 89 LES MILLS INTERNATIONAL © 2011
  • 90. PROMOTE YOUR PROGRAMS AND EVENTS WITHWORLD CLASS MARKETING AND RESOURCES LES MILLS INTERNATIONAL © 2011
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  • 94. WORLD-CLASS MARKETING AND PROMOTIONAL SOLUTIONS   EVERYTHING YOU NEED TO HOST AMAZING EVENTS THAT ATTRACT NEW MEMBERS AND PROMOTE YOUR PROGRAMS.  The LES MILLS™ Group Fitnesssolution gives you free access to ahuge collection of valuable marketingand promotional resources. We arecontinually working on new ways tohelp you inspire your members andprospects. Currently we’redeveloping online tools, which willallow you to customize material withyour own club logos and messages.   LES MILLS INTERNATIONAL© 2011
  • 95. BEST PRACTICE5. DEVELOP A MEMBER EDUCATIONAND SOCIAL NETWORKCOMMUNICATION SYSTEM LES MILLS INTERNATIONAL © 2011
  • 96. EDUCATION:BECOMING A TRUE “HEALTH CLUB”Health clubs need to becomemore than just places wherepeople go to use exercisemachines!We need to become true providersof holistic health. Educationchanges lives and your memberswill love you for it. LES MILLS INTERNATIONAL © 2011
  • 97. visited the club in the last 45 days. Contacting long term non users could initiate a cancellation – “waking the sleeping dog” concept. However, when a filtered member registers a visit they will automatically be integrated into the service which will start with aTALK TO YOUR MEMBERS Programme Introduction Email. You also have the option to filter out certain membership types, such as Trial, Complimentary, etc. * Members that you do not have an email address for or were on Freeze will also be launched when an email address is acquired or their status becomes active. High User•  Create a personal Regular User relationship with your members Non User Retention Management Proprietary LES MILLS INTERNATIONAL © 2011
  • 98. SOCIAL MEDIASocial media is revolutionizingour ability to communicate!But… it’s not as easy as it looks.Engagement, interest andauthenticity are key.Otherwise it’s meaningless…The key is to start and continue aconversation. Get memberstalking about you… LES MILLS INTERNATIONAL © 2011
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  • 101. ENGAGING THE COMMUNITYCHANGING THE PERCEPTIONOF OUR INDUSTRY§ Lifestyle Family Fitness (Florida) teen fitness initiative –  FREE 2-Month Summer Membership –  Teens can utilize all equipment and participate in Group Exercise classes –  Hourly restrictions in place (ie non-prime time) –  Remember… teens have parents and they grow up to become paying adults 101 LES MILLS INTERNATIONAL © 2011
  • 102. ENGAGING THE COMMUNITYCHANGING THE PERCEPTION OF OUR INDUSTRY 102 LES MILLS INTERNATIONAL © 2011
  • 103. UNLEASHING YOUR MEMBERSHIP POTENTIAL WITHOUTCUTTING SERVICES OR DISCOUNTNG PRICESFUTURE OF FITNESS 103 LES MILLS INTERNATIONAL © 2011