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Excellence Of Operating Quality, Profitable Clubs


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2012 Excellence of Operating Health Clubs

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Excellence Of Operating Quality, Profitable Clubs

  1. 1. IHRSA – LA, 2012Excellence of Operating Quality, Profitable Clubs”
  2. 2. “Welcome”
  3. 3. Redefine or ReframeThe Issue…
  4. 4. Sometimes it seems to be getting harder…
  5. 5. Session Objectives• A look at the industry• People + Product + Position = Revenue/Success
  6. 6. Or Not…
  7. 7. Millions of Fitness Participants120100 80 60 Series1 40 20 0 Spinning Elliptical Electronic Running / Treadmill Walking Bike Jogging Outdoor Outdoor
  9. 9. Be – Do – Have OR See – Do - GetBESEE DO HAVE GET
  10. 10. Be Clear - Be Honest & Open – Be The Best Humility &Clarity of Openness to Operate AsDirection Learn, Adapt If You Are & Grow The Best
  11. 11. “The secret of success is constancy to purpose” Benjamin Disraeli
  12. 12. Leadership Truths• People Determine the Potential of Our Team• Relationships Determine the Morale of Our Team• Structure Determines the Size of Our Team• Vision Determines the Direction of Our Team• Leadership Determines the Success of Our Team
  13. 13. Team Learnings• What are their Strengths and Weaknesses?• What are their TRIGGERS?  What gets them going?  What inhibits them?• What is their style of Learning?  Analyzing  Doing  Watching
  15. 15. Four (4) Basic Requirements of Great Management1. Select good People2. Define clear expectations  What do you get paid to do?3. Praise and Recognize in Public and Highlight Behaviors/Results the Organization Values4. Care for/about your People….do not take care of them  “You can‟t ask for their hand until you show them your heart”
  16. 16. Management• Management delivers consistent results• Management begins with the individual and his/her strengths and talent• Great managers capitalize on what is UNIQUE about each person• Great managers RELEASE the POTENTIAL of their employees and TEAM
  17. 17. People PerformanceVALUES PERFORMANCE
  18. 18. Simple Review Process What we What I like want to see Mastery of Your Drive program offerings Quality & Sales accuracy of Performance paperwork
  19. 19. Staff Coaching Relationship Goals Train Building MonitorMotivate Feedback Performance
  20. 20. 15 Techniques That Build Loyal Followers by Dan Rockwell, July 23, 20111. Enable other‟s success2. Leverage other‟s strengths3. Improve others performance4. Adopt high standards5. Correct & discipline6. Answer public challenges publicly7. Give meaning to tasks8. Stand behind people when they screw up9. Admit when you are wrong10. Be emotionally steady11. Clearly describe what you want12. Model behaviors you expect13. Share the spotlight14. Don‟t„ be a buddy15. Make it easy to get things done
  21. 21. Hassle Map “Demand”What is the member‟s “hassle” with regard to your product? Reducing the hassle for the member creates a WIN for everyone!
  22. 22. New Paradigm with Information ConsumptionPUSH PULL Just There
  23. 23. “Experiential Product” Operating Model Every Thing You Do – Every Touch Point Support / InterventionEnrollment On-Boarding Connection Of At Risk Members Community Loyalty
  24. 24. I Don‟t Want To Go To The Club Today!I stop coming
  25. 25. Life Can Be Hard… Stuff gets in the way
  26. 26. Kids Play – Adults WorkArea of playis important
  27. 27. Happiness Is Good Engagement
  28. 28. You Helped Me Get Results! I feel good
  29. 29. There Are People Like Me HereI‟ve made friends and connections with like minded people
  30. 30. Your People Care And Are GreatThey helped me, supported meand I appreciate them
  31. 31. I Belong To This Community
  32. 32. This Is MY PlaceI belong and I don‟t wantto leave
  33. 33. Others Really Have Got To Experience ThisI‟m a Promoter,Raving Fan,Brand Ambassador,Supporter.I‟m your best customer
  34. 34. RelationshipsSTRANGER Casual/Cordial Friends Committed & Loyal
  35. 35. Goodbye! Product Other Interests Move Die Dissatisfaction 3% 1% 5% 14% Competition 9% Attitude -Indifference by Employees 68% US News & World Report
  36. 36. Do You Care?Can I Trust You?
  37. 37. Value Proposition Useful Value CreationUsable Desirable
  38. 38. Lewin‟s Equation• B = Behavior• f = Function Of• P = Person• E = Environment• B = f (P,E) Behavior is a function of the Person in his/her Environment
  39. 39. What Areas Need To Be Designed (Or Re-Designed)? ? ? ? ? ? ?? ? ? ? ? ? ? ?
  40. 40. Designing The Experience Food Pro Sales Service Shop Tennis Fitness AquaticsDance Operations Pilates Group Fitness R-Ball Child SmallYouth Care Group TrainingPrograms
  41. 41. What Am I Thinking?• Time• Need• Desire• Facility• Significant Other• Money (affordability or value)
  42. 42. What is Sales?An exchange where both parties win
  43. 43. Take Sales As An Example… Show Call / TI Appointment Set (Guest Registration Card / Interest Profile) (Computer Entry) (Confirm Appointment) (Thank You Email Sent) Presentation of MembershipNeeds Analysis Tour Trial close (Presentation Sheet) Enrollment Paperwork Additional Services Presentation Referral Presentation (New Member Packet) (Orientation & Intro Services) (Referral Sheet) Orientation Program Design(Enter into computer Schedule it!) (Enter into computer) Computer Update Thank You Sent Follow-up (CRM)
  44. 44. How people buy… Comparison• Alignable Differences• Nonalignable DifferencesAlignable Differences carry a lot more weight with consumersThe process of comparing tends to focus on alignable (it‟s easier)Unique properties are hard to evaluate
  45. 45. What you can do to help people buy… (knowing how comparisons play a role)• Communicate what‟s in common with competitors. Find ways help consumers find comparable elements that turn what seem like nonalignable into alignable differences• Convince the consumer that the unique feature is critical. Help them understand the unique feature‟s role• Familiarize customers with new features. Encourage individual evaluation instead of comparison evaluationKnowing more about how people make comparisons can help you make better decisions and influence the way you encourage customers to evaluate you-Harvard Business Review, Art Markman (research with Dedre Gentner, Doug Medin and Shi Zhang (posted July 21, 2011)
  46. 46. 2 or 3 Choices seems to be Ideal• Offering 1• Offering 2• Offering 3 The power of comparison – “Predictably Irrational” Financial Times Example Print Only Print Print and Online ------ Online Only Online
  47. 47. Prospect Identity• More and more research says personal identification – being (noun) versus doing (verb) has a greater impact on behavior and triggers play a significant role• Questionnaire about voting versus voter• Civic minded citizen versus letting us put a sign in your yardAs a health minded exerciser… versus someone doing a program, joining….
  48. 48. Brand Emotions• Friendly & Nice• Warm & Accepting• Comforting & Supporting• Considerate of You and your circumstance• Happy• Safe• Authentic / “Real Deal”
  49. 49. Painkiller, Vitamin or Drug?1. Painkillers are products that address existing needs/pain points (addictive)2. Vitamins are products that don‟t necessarily address an immediately apparent need. The solution makes the prospect‟s life better – yet they might not realize it3. Drugs are like Vitamins. You must sell a prospect that it will make life better but unlike vitamins it is addictive. It has: 1. Accruing Benefit – the more you use the better it gets 2. Mounting Loss – the longer you use the more you rely on it. Going cold turkey is hard 3. Product-Market Fit – drugs are vitamins with product-market fit. How disappointed would you be if you couldn‟t use it anymore – / by Angie / By Sarah Tavel (Senior Associate, Bessemer Venture Partners) hat tip to Greg Duffy at Dropcam for inspiring post
  50. 50. Your Position Is Communicated By…? ? ? ? ? ? ? ? ? ? ?
  51. 51. Position CommunicationStaff Offering & Members Direct Mail Program In-Club Website & Value Signage Materials Online Proposition Presence Advertising Physical ? Plant
  52. 52. Marketing Approach Appropriate Specific Solutions Results Connection Friendliness Welcoming Programs and PeopleFacilitiesFeatures Based *Marketing/Branding Path
  53. 53. What Is The Story Here…• Tell the story of your club• What is the “elevator” description?• Why is it interesting?• What is different about it?• What emotions do you want to generate?
  54. 54. Your Position
  55. 55. Review Sharing on
  56. 56. • Spark conversation and prompt dialogue between members to help build connection and communities• Engage in the conversation; interact with members to congratulate, encourage and immediately address concerns or negative feedback• Provides a forum for fans to share their experiences with the Club One brand• Using Facebook Places (tracks check-ins and allows users to share current location with friends) as well as Facebook Deals (rewards check-ins and provides special offers)• Hosting monthly “Ask the Expert” discussion forums• Share exclusive offers to fans – incentives return visits to Club One‟s Facebook fan page
  57. 57. Positive Interactions
  58. 58. • Provides quick updates, maintenance alerts, and topical information to our members• Re-tweet articles and bit.lys
  59. 59. • 667 sold inSan Jose• $22,011 inrevenue share• San Francisco& San Diego upnext
  60. 60. Yelp Daily Deals•Massive subscriber list•Paid lead generator withhigh conversion tomemberships
  61. 61. Dedicated YouTube ChannelPost “How To” videos,success stories, meet aClub One expert andbehind the scenes sneakpeeks for new programsShare the Club Oneexperience – view what areal class looks like fromthe comfort of your home
  62. 62. Continuing Advocate Identification• Sent to Member Survey non-responders• Net promoter question will help us continue toidentify even more advocates
  63. 63. OptimalThe WOW Factor, Optimization of member Memberexperience Experience1st impression, Friendliness, Training,Membership Services, Service Desk Efficiency PeopleGroup Fitness, Personal Training, OneStart ProgramsSpecialty/fee-based programsCleanliness; Upkeep, Housekeeping FacilitiesAmenities, Maintenance, Equipment
  64. 64. Net Promoter results 100% Average For All Industries = 16 90% Optimal 80% 80% of total score 70% Member are intangibles 60% Experience 50% People 19 26 32 39 38 50 40%50% 30% Programs45%40%35%30% 20%25% NP20%15%10% 10% Facilities 5% 0% 0% 2005 2006 2007 2008 2009 2010
  65. 65. Top 3 “Take A-Ways”1. ________________________________2. ________________________________3. ________________________________
  66. 66. “Were you listening…?”
  67. 67. “We hope this was helpful”
  68. 68. Contact InformationBill McBridePresident & Chief Operating OfficerClub One, underscore
  69. 69. Top 101. Have integrity in everything you do. Your word is your bond. Follow through on your commitments. Your name and our name are our best assets2. Everyone is responsible for creating a safe environment for our members and associates3. Everyone‟s job is to GET and KEEP members. Sales and Retention are not departments but a way of operating. We all have to sell the benefits of our brand4. Operate towards a unified goal not a job description – innovative ways to get the job done are the norm – all hands on all required tasks5. If it‟s in your control, you must control it. If you receive or become aware of a problem, it‟s your job to fix it. If it‟s not in your control, you must adapt. This includes expense management, payroll and system compliance
  70. 70. Top 106. We run pristine clubs – cleanliness, maintenance and the small nice touches are to be focused on and delivered7. We create Wow by delighting our members and giving them more than they pay for. We seek happiness and fun in our work8. We treat each other with appreciation and respect as together we can accomplish exponentially more9. Know your markets (prospects) – Know your members – Serve them. Know our product. Use the system10. Be good neighbors – give to your community – Be the place & source for health, wellness & fitness. Expand the brand