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Club	Joy	15th	Year	Anniversary	
Presentation:	Insights	on	the	Future	
of	the	Health	and	Fitness	Industry	
Hans	Muench,	MBA...
Canada	born,	at	home	everywhere	
	
	
	
Boston	
		
Austria,	Italy	
Hong	Kong		Switzerland
My	Background	–		
benefitting	from	different	perspectives	
•  Born	&	raised	in	Toronto,	Canada	
•  Competitive	/	ranked	te...
The	big	picture
Germany	Nr.	1,	NL	Nr.	8	in	Europe
But	Scandinavia	has	higher	
penetration	rates	
NL	#4	
DE	#7
Penetration,	Deals	&	Share
How	the	big	chains	feel
Conviction	Index	Top	chains
CEO	Report:	Recent	changes	made	
Digital	marketing	efforts,	renovation	updated	
website/	mobile	Apps	to	engage	members
Highlights	from	IHRSA	European	Congress	
Lisbon,	Portugal	October	15-18,	2018	
•  Disruption	Digitalisation	–	example	Soli...
The	most	significant	innovations	
•  Of	our	lifetime…	
•  That	will	change	much	of	what	we	do,	and	
how	we	do	it	
•  In	th...
Innovation	–	Crossing	the	Chasm
Buridan’s	Ass	Paradox	
	
	
	
Making	a	decision,	even	if	it	is	the	„wrong“	decision,		
is	better	than	no	decision	at	all!
Strategic	management	process	
Strategic	Planning	
Strategic	analyse	
Strategy	evaluation	
Strategy	implementation	
Strateg...
Steve	Tharrett,	Club	Intel)
Club	Intel’s	Future	Four	
The	4th	Industrial	Revolution	
Four	digital	phenomena	appear	well	positioned	
to	change	the	way	...
I-Beacons	/	Data-driven	decisions:	
Solinca,	PT	(Customer	Journey)	
-	tracking	where	members	spend	time
Digital	Marketing	Survey	Nov.	2019	
		
Topline	results	
10	questions	
50	responses	
(including	some	
here	in	the	room)
Alan	Leach,	Westwood.ie		
(member	IHRSA	Board	of	Directors)		
•  Currently	generate	approximately	13,000	digital	leads/yr	...
Some	Threats	to	the	Business	
•  Aggregators	/	Pay	as	you	go	models	
•  Trading	down	
•  Trading	up	
•  Social	Media	backl...
Data	Analysis	– Solinca(PT)
The	new	Era	of	User	Experience	
Omnichannel
Virtual	Reality	-	Digital	Tag	Zürich	
25.10.2018
Integrating	technology,	supporting	
clients	outside	your	own	4	walls
Virtuagym	Coaching	&	Apps	
•  Silos	are	being	eliminated	by	customer	needs	
•  Example	Solinca/Pump		&	Technogym	
•  Examp...
The	12	month	membership…an	
endangered	species?	
•  Example	Hardys,	Greifenberg	(DE):		
Programs	(3/8	week,	3	month,	goal-...
Example	Momentum	(UK)	
•  Duncan	Green	
•  Webinars:	topics	related	to	sales	&	marketing	
•  Content	(is	king):	reports	(2...
Increasing	Lifetime	Value	of	a	client	
•  Statistics	show	that	it	is	50%	easier	to	upsell	a	
current	client	than	it	is	to	...
My	Gym	(Salzburg)	Easy	Upgrades	
•  Mineral	Drinks	/	Sunbeds	
•  Vibration	plates	/	Small	Group	classes		
•  Semi-private	...
Cross-Marketing,	Partner	Marketing	
•  Fritz	Training	
(Straubing)	
•  Hardys	(Greifenberg)	
•  Holmes	Place	(Vienna)	
•  ...
Tax-deductible	memberships	
Plus		
promotion
al	network	
of	fitness-	
friendly	
companies	
in	your	
target	area
Being	bigger	(and	better)		
than	you	are	now	using	partners	
Example	Franchises	(Anytime	Fitness)
Size	Matters	
•  Boutiques	fastest	growing	segment	
(AFSfitness.com/Succeed	conference	Apr.’19)		
•  Small,	fast	millenial...
Boutique	Fitness	in	China	
https://www.youtube.com/watch?v=qXcbZU7ooak&feature=youtu.be
Booking	and	Payment	
•  Via	Smart	Phone	
•  Pods	can	be	found		
and	booked	by	App		
(using	QR	code)	
•  Charge	by	minute		...
Virtual	Club	Tours	
Midtown	Club,	Chicago	
October	2017	
	
Seen	at	Consumer	
Electronic	Show,	Las	
Vegas	January	2017	
	
C...
AR:	example	Self	-	Monitoring	
•  Chip	under	your	skin	
•  Apple	Health	/	Polar	/	Wearables	
•  Medical	Applications	(diab...
How	much	innovation	can	you	handle?	
•  You	/		Your	staff	/	Your	members		
•  Example	Kemmerling	(Schwerte,	DE)		
-	extend...
Prognoses:	Touch	&	Tec	Congress	
October	6,	2018,	Mannheim,	DE	
1.  Chatbots:		
-  will	become	a	central	part	of	online	ma...
Betterment	
Fitness	
Connection	
Digital	
Nutrition	
Mindfulness	
Health	Care	
Wearable
Midmarket,	premium	club	touch	
•  Examples	Be	You,	Joskos	(DE)	
•  Owners	knows	name/face	of	80%	plus	of	its	
members	
•  ...
Sell	the	(Health)	Benefits	of	Exercise	
(IHRSA)
Focus	on	Posture	-	new	book	by	Regine	
Trat	“Lebenswert”	
•  Selbsthil-fee	
•  Seeing	customer	
needs	
•  Humour	
•  Speci...
Mental	Health	Programs	
•  Example	UK	(Health	Club	Management)	
•  Behaviour	Modification	
•  Customer	journey	–	assisted	...
Stay	abreast	of	research		
–	the	power	of	positivity
Smartphone	Detox	
•  “Coming	down”	
•  Apple’s	new	monitoring	update	weekly	
•  Oase	(Bochum,	DE):	smart	phones	not	
permi...
•  Augsburg,	Germany:	Traffic	Lights	now	on	
ground		
(also	introduced	in	Rotterdam,	NL	2017)	
•  Special	walking	lanes	fo...
Mind	Full							or								Mindful?
Learning	Organisations	
•  Continual	improvement	
•  Many	“eyes	and	ears”	following	trends	
(involving	as	many	levels	of	s...
Conclusions	
•  In	order	to	survive	in	the	medium	term,	
operators	must	stay	competitive	by	getting	
better	at	many	things...
Thanks!	
	
E:	hans@hans-muench.com	
Facebook	/	Linkedin	
Tel.	+41-77-975-5180	
Skype:	hans.muench1	
www.hans-muench.com
Kalkar, DE presentation November 16, 2018
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Kalkar, DE presentation November 16, 2018

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Industry Insights based on impressions gained from various conferences attended this year as well as club / supplier visits/meetings.

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Kalkar, DE presentation November 16, 2018

  1. 1. Club Joy 15th Year Anniversary Presentation: Insights on the Future of the Health and Fitness Industry Hans Muench, MBA Muench Solutions Consulting GmbH Winterthur, Switzerland E: hans@hans-muench.com Sponsored by:
  2. 2. Canada born, at home everywhere Boston Austria, Italy Hong Kong Switzerland
  3. 3. My Background – benefitting from different perspectives •  Born & raised in Toronto, Canada •  Competitive / ranked tennis player •  High school, university and MBA in USA •  Lived and worked in 7 countries on 3 continents •  Health club and supplier experience •  IHRSA: Boston, Europe, International Development •  AFS (Boutique Association) Advisory Council •  Consultant to expanding clubs and suppliers •  Lecturer, MBA Programme, German University
  4. 4. The big picture
  5. 5. Germany Nr. 1, NL Nr. 8 in Europe
  6. 6. But Scandinavia has higher penetration rates NL #4 DE #7
  7. 7. Penetration, Deals & Share
  8. 8. How the big chains feel
  9. 9. Conviction Index Top chains
  10. 10. CEO Report: Recent changes made Digital marketing efforts, renovation updated website/ mobile Apps to engage members
  11. 11. Highlights from IHRSA European Congress Lisbon, Portugal October 15-18, 2018 •  Disruption Digitalisation – example Solinca Beacon Technology •  Emotional Intelligence – Lexie Griffiths •  Innovation – processes, sharing the burden and and trust •  Market Segmentation - low cost, midmarket, premium, boutique - Outdoor, at home, online - Seniors, athletic performance, kids, post-natal…
  12. 12. The most significant innovations •  Of our lifetime… •  That will change much of what we do, and how we do it •  In the next 20 years •  Have not been invented or brought to market yet •  Example: smart phones are only 10 years old
  13. 13. Innovation – Crossing the Chasm
  14. 14. Buridan’s Ass Paradox Making a decision, even if it is the „wrong“ decision, is better than no decision at all!
  15. 15. Strategic management process Strategic Planning Strategic analyse Strategy evaluation Strategy implementation Strategy control Information Information Information Information Corporate culture Organization Corporate Governance Business ethics (modified by Welge & Al-Laham, 2012, p. 186) Corporate culture •  Understanding of corporate culture •  Values •  Impact of corporate culture Strategisches Management II
  16. 16. Steve Tharrett, Club Intel)
  17. 17. Club Intel’s Future Four The 4th Industrial Revolution Four digital phenomena appear well positioned to change the way we do business in the fitness industry; •  The internet of things (IOT): Digital Communications in the Cloud, smart devices •  Artificial intelligence (AI): sensors (cars) •  Augmented reality (AR) - education and healthcare are among the most prevalent users •  Virtual reality (VR): virtual tours, Icarus
  18. 18. I-Beacons / Data-driven decisions: Solinca, PT (Customer Journey) - tracking where members spend time
  19. 19. Digital Marketing Survey Nov. 2019 Topline results 10 questions 50 responses (including some here in the room)
  20. 20. Alan Leach, Westwood.ie (member IHRSA Board of Directors) •  Currently generate approximately 13,000 digital leads/yr •  Finalising a new website… a FAR bigger project than people think •  One has to think content marketing, SEO, search marketing, usability, lead generation forms etc. •  Investing €35,000 a year into new CRM and web intelligence platform. •  Invest €90,000 in google adwords, to increase to €180,000 in 2019. •  Investing €90,000 into Facebook advertising.
  21. 21. Some Threats to the Business •  Aggregators / Pay as you go models •  Trading down •  Trading up •  Social Media backlash and effect on your image and brand •  Disalignment between owners, staff and users •  Agile Competition (boutiques, APPS) •  The new way of finding and serving clients
  22. 22. Data Analysis – Solinca(PT)
  23. 23. The new Era of User Experience Omnichannel
  24. 24. Virtual Reality - Digital Tag Zürich 25.10.2018
  25. 25. Integrating technology, supporting clients outside your own 4 walls
  26. 26. Virtuagym Coaching & Apps •  Silos are being eliminated by customer needs •  Example Solinca/Pump & Technogym •  Example MagicLine & Prime Time Fitness (VG) •  Digital Training Plans •  Community – also a reason for GroupX •  Service and services for / when clients are not in your four walls
  27. 27. The 12 month membership…an endangered species? •  Example Hardys, Greifenberg (DE): Programs (3/8 week, 3 month, goal-focused) •  Low barrier offers (Aggregator offers, 10-20 use cards, GrX, PT packages) •  Dorent.com and the sharing economy (Uber, AirBNB, Car-scooter-bike sharing)
  28. 28. Example Momentum (UK) •  Duncan Green •  Webinars: topics related to sales & marketing •  Content (is king): reports (21 Scripts) FOC •  Pricing (3 options, people usually choose the middle one) •  Doing things in-house / using external services •  Consulting services for those needing help (i.e. Face Force)
  29. 29. Increasing Lifetime Value of a client •  Statistics show that it is 50% easier to upsell a current client than it is to sell to a new client •  Extending the average length of membership •  Upsell examples •  Ongoing upselling •  Includes referrals and sharing their good experience with others.
  30. 30. My Gym (Salzburg) Easy Upgrades •  Mineral Drinks / Sunbeds •  Vibration plates / Small Group classes •  Semi-private PT / Towel Service •  Rental Lockers / Bring a Friend (FF F Fridays)
  31. 31. Cross-Marketing, Partner Marketing •  Fritz Training (Straubing) •  Hardys (Greifenberg) •  Holmes Place (Vienna) •  Also: Health Care provider interaction and corporate partnerships
  32. 32. Tax-deductible memberships Plus promotion al network of fitness- friendly companies in your target area
  33. 33. Being bigger (and better) than you are now using partners Example Franchises (Anytime Fitness)
  34. 34. Size Matters •  Boutiques fastest growing segment (AFSfitness.com/Succeed conference Apr.’19) •  Small, fast millenials acting like big players •  Specialists – less price senstive •  Examples: Soul Cycle, RowHouse, 1Rebel, F45
  35. 35. Boutique Fitness in China https://www.youtube.com/watch?v=qXcbZU7ooak&feature=youtu.be
  36. 36. Booking and Payment •  Via Smart Phone •  Pods can be found and booked by App (using QR code) •  Charge by minute (3 US cents) plus deposit •  Milleniums-friendly •  Cashless clubs in Europe: Hardys(DE), Scandic
  37. 37. Virtual Club Tours Midtown Club, Chicago October 2017 Seen at Consumer Electronic Show, Las Vegas January 2017 Cost: US 100.000 Now the same product & program costs half
  38. 38. AR: example Self - Monitoring •  Chip under your skin •  Apple Health / Polar / Wearables •  Medical Applications (diabetes check) •  Truck drivers – steering wheel sensors identifying tiredness •  Ring.com (for club operators): real time tracking what’s going on
  39. 39. How much innovation can you handle? •  You / Your staff / Your members •  Example Kemmerling (Schwerte, DE) - extending average length of membership through continual innovation •  How much innovation is expected/demanded? •  Perception (Image) •  Table Stakes (increasing)
  40. 40. Prognoses: Touch & Tec Congress October 6, 2018, Mannheim, DE 1.  Chatbots: -  will become a central part of online marketing of every company (dynamic usage curve chart) 2. Messenger: - by 2020 more than 75% of all companies will be present in Messenger applications
  41. 41. Betterment Fitness Connection Digital Nutrition Mindfulness Health Care Wearable
  42. 42. Midmarket, premium club touch •  Examples Be You, Joskos (DE) •  Owners knows name/face of 80% plus of its members •  Birthday, anniversary recognition •  Create Ambassadors within your membership •  Creating community and bringing “old rabbits” together with new members
  43. 43. Sell the (Health) Benefits of Exercise (IHRSA)
  44. 44. Focus on Posture - new book by Regine Trat “Lebenswert” •  Selbsthil-fee •  Seeing customer needs •  Humour •  Special programs
  45. 45. Mental Health Programs •  Example UK (Health Club Management) •  Behaviour Modification •  Customer journey – assisted / supported •  Services outside the club / integrated with Smartphones and watches •  Example Virtuagym •  Example Club Joy (FitSnacks) •  WellToDo newsletter (Brain Training)
  46. 46. Stay abreast of research – the power of positivity
  47. 47. Smartphone Detox •  “Coming down” •  Apple’s new monitoring update weekly •  Oase (Bochum, DE): smart phones not permitted on the fitness floor •  There is danger ahead! •  Stress, Burnout and more - “Smartphone Neck syndrome”
  48. 48. •  Augsburg, Germany: Traffic Lights now on ground (also introduced in Rotterdam, NL 2017) •  Special walking lanes for “Szombies” “Szombies” = Smart Phone Zombies
  49. 49. Mind Full or Mindful?
  50. 50. Learning Organisations •  Continual improvement •  Many “eyes and ears” following trends (involving as many levels of staff as possible) •  (quicker) Adaptation to market developments •  Encouraging mistakes •  Not making the same mistakes •  The competition and your clients force you to do this, and this is necessary for survival
  51. 51. Conclusions •  In order to survive in the medium term, operators must stay competitive by getting better at many things they do not excel in now •  Modernize your organisation systems and attitude by looking outside and inside •  Innovate and speed up your organisation‘s implementation rate •  Be confident, build your team and be happyJ
  52. 52. Thanks! E: hans@hans-muench.com Facebook / Linkedin Tel. +41-77-975-5180 Skype: hans.muench1 www.hans-muench.com

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