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Megatrends	
  in	
  Management,	
  Leadership	
  	
  
&	
  Naviga4ng	
  Change	
  
1 BMC3.com 5/17/14
by	
  Bill	
  McBride	
  
BMC3.com2
q  Shi.ing	
  dynamics	
  &	
  Trending	
  
q 	
  	
  Changing	
  technologies	
  
q 	
  	
  Member	
  knowledge	
  
q 	
  	
  Consumer	
  behavior	
  
q 	
  	
  Informa?on	
  /	
  Decision	
  Making	
  
5/17/14
Overview:	
  5	
  Parts	
  
Part	
  1:	
  Shi.ing	
  Dynamics	
  
5/17/14BMC3.com3
The	
  Only	
  Constant	
  is	
  Change…	
  
How	
  are	
  we	
  going	
  to	
  deal	
  with	
  it?	
  
“There	
  is	
  nothing	
  permanent	
  except	
  change.”	
  	
  
	
   	
   	
   	
   	
  -­‐	
  Heraclitus	
  (ancient	
  Greek	
  philosopher	
  who	
  
	
   	
   	
   	
   	
   	
   	
  lived	
  about	
  100	
  years	
  before	
  Plato)	
  
Total	
  Industry	
  
5/17/14BMC3.com4
	
  	
  
	
   	
   	
   	
  Revenues	
  (US$) 	
  #	
  Clubs	
   	
  #	
  Of	
  Members	
  
Europe	
  	
   	
   	
   	
  $32,022,818,913	
  	
   	
  46,396	
  	
   	
  41,947,250	
  
United	
  States	
  &	
  Canada	
  	
   	
  $24,396,000,000	
  	
   	
  36,742	
  	
   	
  55,903,000	
  
Asia-­‐Pacific	
  	
   	
   	
   	
  $13,601,250,000	
  	
   	
  21,658	
  	
   	
  17,033,697	
  
La?n	
  America	
  	
   	
   	
  $5,527,333,520	
  	
   	
  46,130	
  	
   	
  14,307,240	
  
Africa	
  &	
  Middle	
  East	
  	
  	
   	
  $199,718,831	
  	
   	
  2,234	
  	
  	
   	
  2,549,933	
  
	
  
Total	
  	
  	
  	
  	
   	
   	
   	
  $75,747,121,264	
  	
  	
  	
   	
  153,160	
  	
  	
  	
   	
  131,741,120	
  
Part	
  1:	
  Trending	
  
BMC3.com5
IBIS	
  World	
  Industry	
  Report	
  71394	
  –	
  	
  
February	
  2012	
  -­‐	
  Gym,	
  Health	
  &	
  Fitness	
  Clubs	
  in	
  the	
  US	
  
•  $25.3bn	
  in	
  Revenue	
  
•  $2.1bn	
  in	
  Profit	
  
•  .9%	
  Annual	
  Growth	
  07-­‐12	
  
•  $7.6bn	
  in	
  Wages	
  
•  2.8%	
  Annual	
  Growth	
  12-­‐17	
  
•  29,365	
  commercial	
  clubs	
  
•  Young	
  people	
  and	
  Baby	
  Boomers	
  will	
  aim	
  to	
  stay	
  fit,	
  
suppor?ng	
  demand	
  
•  Consumers	
  35	
  and	
  older	
  will	
  drive	
  growth	
  
Key	
  Success	
  Factors:	
  
	
  
• 	
  Easy	
  access	
  for	
  clients	
  
• 	
  Effec4ve	
  product	
  promo4on	
  
• 	
  Economies	
  of	
  scale	
  
• 	
  Provisions	
  for	
  appropriate	
  facili4es	
  
• 	
  Having	
  technical	
  knowledge	
  of	
  product	
  
• 	
  Business	
  exper4se	
  as	
  operators	
  
5/17/14
Part	
  1:	
  Trending	
  
5/17/14BMC3.com6
•  Women	
  are	
  becoming	
  a	
  larger	
  buying	
  force	
  for	
  all	
  
brand	
  products.	
  	
  	
  	
  	
  
•  This	
  will	
  represent	
  a	
  dominant	
  majority	
  with	
  
regard	
  to	
  consumer	
  brand	
  patronage	
  and	
  
advocacy.	
  	
  
•  85%	
  of	
  all	
  brand	
  purchases	
  are	
  made	
  by	
  women	
  
yet	
  only	
  3%	
  of	
  adver?sing	
  agency	
  crea?ve	
  
directors	
  are	
  women.	
  
•  	
  Women	
  make	
  up	
  64%	
  of	
  Facebook	
  users,	
  58%	
  of	
  
Twifer	
  users	
  and	
  82%	
  of	
  Pinterest	
  users.	
  
Part	
  1:	
  Trending	
  -­‐	
  More	
  Women	
  in	
  Health	
  Clubs	
  
BMC3.com7
Sources: 2011 IHRSA Profiles of Success, She-Conomy.com & Digital Flash NY
5/17/14
•  	
  Women	
  are	
  becoming	
  the	
  dominant	
  
user	
  of	
  health	
  clubs	
  in	
  the	
  US,	
  as	
  well	
  as	
  
the	
  majority	
  of	
  the	
  popula?on	
  and	
  the	
  
driving	
  force	
  in	
  consumer	
  spending.	
  
•  	
  The	
  current	
  club	
  make	
  up	
  is	
  51%	
  female	
  
to	
  49%	
  male.	
  
•  	
  In	
  2011	
  nearly	
  3	
  out	
  of	
  5	
  NEW	
  members	
  
(57%)	
  were	
  women	
  (to	
  43%	
  men).	
  
•  	
  This	
  shi.	
  may	
  change	
  the	
  way	
  we	
  
operate,	
  program	
  and	
  design	
  our	
  
facili?es.	
  	
  There	
  are	
  profound	
  
implica?ons.	
  
	
  
Part	
  1:	
  Trending
BMC3.com8
Q:	
  	
  What	
  does	
  this	
  means	
  to	
  us?	
  
	
  
A:	
  There’s	
  a	
  unique	
  opportunity	
  to	
  
capture	
  market	
  share	
  and	
  enhance	
  
the	
  service	
  offerings	
  in	
  the	
  industry	
  
by	
  providing	
  these	
  “bou?que”	
  level	
  
Pilates,	
  Yoga	
  and	
  Barre	
  classes	
  in	
  a	
  
larger,	
  luxury	
  fitness	
  center.	
  
q US	
  Fitness	
  Industry	
  produces	
  annual	
  revenues	
  
of	
  $21	
  billion	
  
q 	
  US	
  expenditure	
  of	
  yoga	
  &	
  Pilates	
  classes	
  is	
  $5.7	
  
billion	
  and	
  is	
  increasing	
  
q 	
  Pilates	
  training	
  alone	
  has	
  grown	
  456%	
  in	
  9	
  years	
  
q 	
  New	
  movement	
  toward	
  mind/body,	
  lower-­‐
impact	
  exercise	
  classes	
  like	
  Pilates	
  &	
  Yoga	
  to	
  draw	
  
women	
  together	
  for	
  mo?va?on	
  
5/17/14
What’s	
  Different	
  in	
  the	
  Fitness	
  Industry?	
  
5/17/14BMC3.com9
}  MORE	
  IMPORTANT:	
  
-­‐  Segmenta4on	
  
-­‐  Mass	
  customiza4on	
  
-­‐  Individual	
  member	
  knowledge	
  
-­‐  Human	
  connec4on	
  
-­‐  	
  Opera?ng	
  with	
  integrity	
  and	
  transparency	
  
-­‐  3rd	
  party	
  valida4on	
  
-­‐  Sales,	
  marke?ng,	
  opera?ons	
  &	
  technology	
  are	
  
“blurring”	
  
-­‐  Specialized,	
  small	
  group	
  “efficient”	
  training	
  will	
  
become	
  even	
  more	
  important	
  to	
  consumers	
  
-­‐  Func4onal	
  training	
  spaces	
  and	
  passive	
  areas	
  are	
  
more	
  popular	
  	
  
-­‐  Cardio	
  equipment	
  usage	
  is	
  stable	
  
}  LESS	
  IMPORTANT:	
  
Selectorized strength equipment
usage appears to be on a decline in the
U.S.
	
  
BMC3.com
BMC3.com12
“Welcome”
BMC3.com13
Obesity	
  Epidemic	
  &	
  Inac?vity	
  Crisis	
  	
  
BMC3.com15
q  Governments	
  are	
  looking	
  for	
  new	
  sources	
  of	
  revenue	
  and	
  poli?cians	
  want	
  to	
  “do	
  
something”	
  
q  	
  	
  Healthcare	
  costs	
  are	
  skyrocke?ng	
  
	
  
	
  
q  	
   The	
   US	
   Government	
   is	
   focused	
   on	
   outcomes:	
   conges?ve	
   heart	
   failure,	
   acute	
  
myocardial	
  infarc?on	
  (heart	
  afack),	
  and	
  pneumonia	
  
q  	
  	
  Informa?on	
  delivery	
  and	
  consump?on	
  are	
  going	
  through	
  a	
  major	
  revolu?on	
  
5/17/14
BMC3.com16 5/17/14
	
  
	
  
	
  
“Predic?on	
  is	
  very	
  difficult,	
  
especially	
  if	
  it’s	
  about	
  the	
  future.”	
  
-­‐	
  Niels	
  Bohr 	
   	
  
The	
  Economy	
  
BMC3.com17 5/17/14
• 	
  Fiscal	
  cliff	
  
• 	
  Federal	
  deficit	
  
• 	
  Foreign	
  debt	
  
	
  
q 	
  The	
  last	
  ?me	
  the	
  economy	
  was	
  beset	
  by	
  
influences	
  like	
  these	
  the	
  industry	
  took	
  a	
  huge	
  
hit	
  
q 	
  It	
  has	
  taken	
  years	
  for	
  us	
  to	
  begin	
  to	
  see	
  
posi?ve	
  membership	
  growth	
  again	
  
Accountable	
  Care	
  Organiza?ons	
  (ACO)	
  
BMC3.com18
q  Currently	
  75%	
  of	
  healthcare	
  costs	
  go	
  to	
  trea?ng	
  diseases	
  that	
  are	
  largely	
  
preventable	
  
q  The	
  advent	
  of	
  ACOs	
  are	
  crea?ng	
  a	
  paradigm	
  shi.	
  in	
  medical	
  care	
  from	
  disease	
  
treatment	
  to	
  disease	
  preven?on	
  
q  This	
  will	
  create	
  significant	
  opportuni?es	
  for	
  health	
  management	
  
What’s	
  that?	
  	
  
A	
  healthcare	
  organiza?on	
  characterized	
  by	
  a	
  payment	
  and	
  care	
  delivery	
  
model	
  that	
  seeks	
  to	
  ?e	
  provider	
  reimbursements	
  to	
  quality	
  metrics.	
  
	
  
5/17/14
HIPPA	
  
5/17/14BMC3.com19
q The	
  Health	
  Informa?on	
  Portability	
  and	
  Accountability	
  Act	
  (HIPAA)	
  governs	
  the	
  
collec?on,	
  usage	
  &	
  storage	
  of	
  bio	
  data	
  
q 	
  Now	
  that	
  healthcare	
  reform	
  has	
  survived	
  its	
  challenge	
  in	
  the	
  supreme	
  court,	
  
HIPAA	
  will	
  be	
  expanding	
  
q 	
  This	
  may	
  have	
  broad	
  implica?ons	
  for	
  the	
  industry	
  
	
  
	
  
Data	
  the	
  industry	
  has	
  always	
  held	
  (like	
  BMI,	
  heart	
  rate	
  or	
  even	
  weight)	
  may	
  
now	
  fall	
  under	
  the	
  HIPAA	
  umbrella.	
  	
  
Economic	
  Incen?ves	
  /	
  Penal?es	
  	
  
5/17/14BMC3.com20
Mandating economic
incentives
May reach a new segment of
the market (those motivated
by extrinsic rewards)
In theory this could create an
expanded market for the industry
Part	
  2:	
  Changing	
  Technologies	
  
BMC3.com21
q  Quantified Self - Digital	
  Sensors	
  Are:	
  
}  Quickly	
  becoming	
  the	
  number	
  one	
  source	
  of	
  data	
  (mobile	
  GPS	
  data)	
  
}  	
  Part	
  of	
  the	
  way	
  our	
  environment	
  interacts	
  with	
  us	
  (NFC)	
  
}  	
  Incorporated	
  into	
  our	
  clothing	
  and	
  apparel	
  (Sensors,	
  Google	
  Glasses)	
  
}  Concussion	
  patches	
  	
  
}  Smart	
  Phone	
  capability	
  –	
  photo	
  of	
  equipment	
  screen	
  –	
  info	
  logged	
  in	
  the	
  correct	
  
data	
  field	
  	
  
Accuracy	
  is	
  increasing	
  at	
  exponen4al	
  rates!	
  
	
  
	
  In	
  the	
  next	
  decade	
  advances	
  in	
  facial	
  recogni?on	
  will	
  probably	
  	
  	
  
	
  	
  	
  	
  	
  	
  	
  	
  	
  replace	
  the	
  need	
  for	
  manual	
  club	
  check-­‐ins	
  and	
  access	
  
5/17/14
3rd	
  Party	
  Devices	
  
5/17/14BMC3.com22
+ Fit Bit + Bit Gym
+ Jaw Bone + WiThings +
My Zone + Zephyr
+ Body Bugg + Fit Bug
Mobile	
  
BMC3.com23
q  It	
  is	
  being	
  predicted	
  that	
  mobile	
  Web	
  
usage	
  will	
  overcome	
  desktop	
  Web	
  
usage	
  by	
  2015	
  
q  	
  Google	
  now	
  develops	
  and	
  tests	
  all	
  
their	
  new	
  applica4ons	
  on	
  mobile	
  first	
  
	
  
q  38%	
  of	
  smart	
  phone	
  users	
  have	
  made	
  some	
  type	
  of	
  commerce	
  
transac?on	
  using	
  their	
  phone	
  
q 	
  	
  	
  	
  Mobile	
  user	
  usability	
  and	
  u?lity	
  demands	
  will	
  con?nue	
  to	
  
increase	
  as	
  this	
  modality	
  eclipses	
  desktop	
  Internet	
  usage.	
  	
  
	
   5/17/14
q Current	
  Func4onality	
  
•  Mobile	
  access	
  to	
  class	
  schedules	
  
•  Ability	
  to	
  download	
  classes	
  to	
  personal	
  calendars	
  
•  Class	
  change	
  no?fica?on	
  
•  Promo?ons	
  
•  Instant	
  access	
  to	
  contact	
  us	
  
•  Membership	
  card	
  
•  Social	
  check-­‐ins	
  on	
  Facebook	
  &	
  Foursquare	
  
•  YouTube	
  integra?on	
  
•  iPhone	
  &	
  Android	
  Plasorm	
  
Fitness	
  Mobile	
  App:	
  
Keep	
  Members	
  Connected	
  from	
  Mobile	
  Devices	
  	
  
BMC3.com24 5/17/14
More	
  App	
  Func?onality	
  
BMC3.com25
q  	
  Online	
  Booking	
  &	
  Scheduling	
  
q  	
  Member	
  mobile	
  social	
  network	
  
q  	
  Check-­‐ins	
  &	
  wall	
  posts	
  
q  	
  Offer	
  &	
  review	
  sharing	
  
q  Geo-­‐social	
  Challenge	
  
q  	
  Check-­‐in	
  at	
  various	
  outdoor	
  workout	
  spots	
  for	
  points	
  
q  	
  Challenge	
  friends	
  to	
  a	
  compe??on	
  
q  	
  Bio-­‐metric	
  tool	
  tracking	
  &	
  calculators	
  
q  	
  Provide	
  a	
  mobile	
  tracking	
  resource	
  
q  	
  Reward	
  healthy	
  behavior	
  outside	
  the	
  club	
  
	
  
5/17/14
Some	
  Thoughts	
  From	
  the	
  Leisure	
  Handbook	
  2014	
  
Leisure	
  Management	
  Magazine	
  –	
  UK	
  
5/17/14BMC3.com26
}  Foresight	
  2014	
  
}  1	
  Interac?ve	
  Technology	
  –	
  having	
  fun	
  immersed	
  in	
  an	
  experience	
  (smell,	
  site,	
  sound,	
  
temperature)	
  
}  The	
  importance	
  of	
  “stars”	
  in	
  social	
  media.	
  	
  According	
  to	
  the	
  University	
  of	
  CA,	
  Berkely:	
  
}  “A	
  variance	
  of	
  just	
  half	
  a	
  star	
  ra?ng	
  can	
  determine	
  whether	
  a	
  business	
  thrives	
  or	
  goes	
  bust	
  
according	
  to	
  economists	
  at	
  the	
  University”	
  
}  Google	
  Glass	
  -­‐	
  What	
  will	
  you	
  do	
  when	
  your	
  customers	
  show	
  up	
  wearing	
  Google	
  Glass?	
  
}  End	
  of	
  Life	
  Care	
  -­‐	
  An	
  industry	
  around	
  a	
  good	
  death	
  may	
  cause	
  some	
  disrup?on.	
  	
  
(Family,	
  comfort,	
  care,	
  spiritual)	
  
}  Retail	
  &	
  Leisure	
  –	
  Xercise	
  4Less	
  teaming	
  up	
  with	
  Tesco	
  with	
  100	
  health	
  clubs	
  in	
  
grocery	
  stores.	
  	
  Retailers	
  are	
  looking	
  for	
  ways	
  to	
  mone?ze	
  the	
  redundant	
  space	
  
created	
  by	
  e-­‐commerce	
  and	
  leisure	
  is	
  providing	
  a	
  crea?ve	
  solu?on	
  
}  Ikea	
  ($)	
  &	
  Marriof	
  (Ops)	
  teaming	
  up	
  with	
  a	
  new	
  brand	
  Moxy	
  –	
  hotels	
  with	
  IKEA	
  
furnishings	
  and	
  design	
  
5/17/14BMC3.com27
}  Cellular	
  Health	
  
}  Living	
  organisms	
  are	
  made	
  up	
  of	
  balance	
  
}  Fungi	
  /	
  Bacteria	
  (immune	
  system)	
  
}  Sodium	
  /	
  Potassium	
  
}  Exercise	
  /	
  Rest	
  
}  Acid	
  /	
  Alkali	
  
}  Oxygen	
  /	
  Carbon	
  Dioxide	
  
}  Good	
  cellular	
  health	
  is	
  the	
  founda?on	
  of	
  wellbeing.	
  	
  More	
  research	
  and	
  awareness	
  on	
  
this	
  are	
  on	
  the	
  way	
  
	
  
The	
  Limita?ons	
  of	
  Technology:	
  A	
  Club	
  Perspec?ve	
  	
  
5/17/14BMC3.com28
q  Companies	
  are	
  devo?ng	
  ?me	
  and	
  money	
  to	
  technologies	
  &	
  
social	
  media	
  presences,	
  but	
  few	
  are	
  seeing	
  high	
  ROI	
  
q  Health	
  &	
  Wellness	
  apps	
  now	
  number	
  a	
  lot	
  more	
  than	
  15,000,	
  
but	
  there’s	
  been	
  no	
  significant	
  change	
  in	
  the	
  consumer	
  reach	
  
of	
  the	
  industry	
  
q  Club	
  One	
  completed	
  a	
  pilot	
  of	
  biometric	
  trackers,	
  but	
  found	
  
no	
  significant	
  change	
  in	
  brand	
  affinity	
  or	
  users	
  achieving	
  
health	
  goals	
  (possible	
  random	
  nature	
  of	
  device	
  assignment)	
  
	
  
q  	
  Technology	
  alone	
  hasn’t	
  shown	
  an	
  ability	
  to	
  create	
  or	
  keep	
  a	
  
new	
  market	
  as	
  of	
  yet	
  
q  I	
  have	
  a	
  resounding	
  belief	
  that	
  technology	
  with	
  human	
  touch	
  
is	
  the	
  key	
  to	
  op?miza?on	
  
	
  	
  
Tip	
  for	
  operators:	
  
	
  
Before	
  geing	
  too	
  caught	
  
up	
  in	
  the	
  hype	
  of	
  the	
  
cloud,	
  open	
  API’s	
  or	
  social	
  
networks;	
  remember	
  good	
  
opera4ons	
  is	
  the	
  core	
  and	
  
human	
  interac4on	
  with	
  
technology	
  seems	
  to	
  have	
  
the	
  best	
  opportunity	
  
BMC3.com29
The	
  	
  Group	
  Exercise	
  market	
  is	
  growing	
  and	
  driven	
  by:	
  
q  	
  Women:	
  
}  In	
  2011,	
  nearly	
  3	
  out	
  of	
  5	
  new	
  members	
  (57%)	
  were	
  women	
  to	
  43%	
  
men	
  (compared	
  to	
  51%	
  women	
  in	
  2010)	
  	
  
}  68%	
  of	
  group	
  fitness	
  par?cipants	
  are	
  women	
  	
  
q  	
  Age:	
  
}  Baby	
  Boomers	
  are	
  afracted	
  to	
  “so.	
  fitness”	
  –	
  Yoga,	
  Pilates,	
  Tai	
  Chi,	
  
hands-­‐on	
  flexibility,	
  etc,	
  these	
  are	
  all	
  delivered	
  in	
  group	
  fitness	
  classes	
  
}  They	
  are	
  35	
  and	
  over	
  but	
  technologically	
  savvy	
  
q  	
  Growing	
  demand	
  for	
  social	
  component	
  and	
  sense	
  of	
  community:	
  
q  	
  Strong	
  perceived	
  value	
  proposi4on	
  
}  All	
  forms	
  of	
  personal	
  training	
  available	
  in	
  group	
  exercise	
  (TRX)	
  
5/17/14
Part	
  3:	
  Member	
  Knowledge	
  	
  
Member	
  Knowledge	
  
BMC3.com30
Group	
  exercisers	
  have	
  higher	
  life4me	
  customer	
  value	
  than	
  non-­‐group	
  fitness	
  members	
  because:	
  
}  They	
  come	
  more	
  oken.	
  	
  	
  
	
  Average	
  days	
  of	
  physical	
  ac?vity	
  for	
  typical	
  club	
  member	
  is	
  <3.	
  Average	
  in	
  group	
  fitness	
  (Les	
  
Mills)	
  =	
  3.9	
  in	
  USA	
  -­‐	
  25%	
  greater	
  
}  They	
  stay	
  longer	
  as	
  a	
  member.	
  	
  
	
  Afri?on	
  rates	
  are	
  inversely	
  correlated	
  to	
  usage	
  and	
  length	
  of	
  membership.	
  	
  Higher	
  usage,	
  
lower	
  afri?on.	
  Group	
  exercisers	
  have	
  longer	
  average	
  membership	
  lives	
  
}  They	
  spend	
  more.	
  	
  
	
  Reflec?on	
  of	
  greater	
  commitment	
  
}  They	
  are	
  knowledgeable.	
  	
  
	
  Want	
  a	
  diversity	
  of	
  offerings	
  and	
  this	
  creates	
  s?ckiness	
  
}  They	
  develop	
  rela4onships	
  with	
  instructors.	
  	
  
	
  Drives	
  afendance	
  and	
  addi?onal	
  points	
  of	
  contact	
  
}  They	
  have	
  higher	
  net	
  promoter	
  scores	
  
5/17/14
Member	
  Knowledge	
  
BMC3.com31
Group	
  exercise	
  provides	
  a	
  social	
  component	
  and	
  sense	
  of	
  community	
  -­‐	
  	
  
q  	
  Further	
  drives	
  down	
  alri4on	
  rates	
  
q  	
  Consumers	
  are	
  looking	
  for	
  this	
  afribute	
  and	
  equipment	
  alone	
  is	
  not	
  the	
  answer	
  
q  	
  Strong	
  digital	
  component	
  that	
  group	
  exercisers	
  know	
  how	
  to	
  use	
  
5/17/14
Part	
  4:	
  Consumer	
  Behavior	
  
	
  
BMC3.com32
New	
  Paradigm	
  With	
  Informa4on	
  Consump4on	
  
	
  
PUSH
PULL Just
There
5/17/14
The	
  7	
  Biggest	
  Counterintui?ve	
  Social	
  Media	
  Mistakes	
  
(by	
  Belle	
  Beth	
  Cooper,	
  Buffer	
  Blog	
  –	
  October	
  5,	
  2013)	
  
5/17/14BMC3.com33
1.  Losing out on traffic – Post the same thing multiple times
•  Your readers aren’t reading every moment of the day
2.  Using more tools than necessary – Don’t use all the tools available
•  Focus on results
3.  Don’t measure every social media metric you can
•  The question to answer: Is the social media worth it?
4.  Publishing when no one’s online – Don’t publish your posts when you write them
•  FB engagements are 18% higher on Thursdays & Fridays
5.  Filling up the character count – Say less
•  Shorter posts get more engagement
•  Twitter tweets with less than 100 characters get 17% more engagement
6.  More hashtags, less content – Get back to basics
•  Using Twitter hashtags correctly can mean 2X engagement for your tweets
1 or 2 (3 lowers overall engagement)
7.  Talking to the wrong people – Don’t publish your posts when it’s convenient for you
•  Test for your target audience – men, later in the day – women, earlier
Parature	
  Whitepaper	
  
Customer	
  Service:	
  	
  The	
  Next	
  Genera?on:	
  	
  	
  
8	
  Megatrends	
  Evolving	
  Customer	
  Service	
  and	
  the	
  Customer	
  Experience	
  
5/17/14BMC3.com34
}  One:	
  	
  New	
  Age	
  Support	
  –	
  When	
  customers	
  have	
  a	
  problem	
  with	
  a	
  product,	
  
71%	
  of	
  16-­‐24	
  year-­‐olds	
  and	
  65%	
  of	
  25	
  to	
  34-­‐year-­‐olds	
  search	
  for	
  a	
  solu?on	
  
online	
  first.	
  	
  -­‐	
  Sitel	
  Study	
  
}  Two:	
  	
  The	
  Power	
  Shi.s	
  to	
  the	
  Customer	
  –	
  82%	
  of	
  consumers	
  say	
  gexng	
  their	
  
issue	
  resolved	
  quickly	
  is	
  the	
  top	
  element	
  of	
  a	
  great	
  online	
  experience.	
  	
  -­‐	
  
LivePerson	
  Connec?ng	
  with	
  Customers	
  Report	
  
}  Three:	
  	
  Advantage	
  –	
  Speed	
  and	
  Agility	
  –	
  “Siloed	
  and	
  disjointed	
  
implementa?ons	
  for	
  different	
  customer	
  service	
  channels	
  simply	
  don’t	
  cut	
  it	
  
anymore.”	
  –	
  Kate	
  Leggef,	
  Forrester	
  Research	
  
}  Four:	
  	
  Social	
  Media	
  –	
  It	
  isn’t	
  Just	
  for	
  Marke?ng	
  Anymore	
  –	
  71%	
  of	
  consumers	
  
who	
  experience	
  a	
  quick	
  and	
  effec?ve	
  brand	
  response	
  on	
  social	
  media	
  are	
  
likely	
  to	
  recommend	
  that	
  brand	
  to	
  others	
  
Parature	
  Whitepaper	
  
Customer	
  Service:	
  	
  The	
  Next	
  Genera?on:	
  	
  	
  
8	
  Megatrends	
  Evolving	
  Customer	
  Service	
  and	
  the	
  Customer	
  Experience	
  
5/17/14BMC3.com35
}  Five:	
  	
  Mobile	
  Mafers	
  –	
  1)	
  	
  Put	
  the	
  Most	
  Important	
  Informa?on	
  Front	
  and	
  Center.	
  	
  2)	
  	
  
Keep	
  Content	
  Simple.	
  	
  3)	
  	
  Invest	
  in	
  the	
  User	
  Interface.	
  
}  Six:	
  	
  The	
  Convergence	
  of	
  the	
  Twain	
  –	
  SoMoGlo	
  (Social,	
  Mobile,	
  Global)	
  –	
  The	
  number	
  
of	
  mobile	
  social	
  network	
  users	
  in	
  the	
  US	
  will	
  grow	
  from	
  58.5%	
  in	
  2012	
  to	
  79.1%	
  by	
  
2015,	
  and	
  nearly	
  70	
  million	
  people	
  will	
  access	
  Facebook	
  from	
  their	
  phones	
  each	
  
month	
  this	
  year,	
  equaling	
  85.4%	
  of	
  the	
  overall	
  mobile	
  social	
  networking	
  popula?on.	
  	
  
That	
  share	
  will	
  rise	
  to	
  87.4%	
  by	
  2014,	
  according	
  to	
  eMarketer.	
  
}  Seven:	
  	
  The	
  Big	
  Challenge	
  of	
  Big	
  Data	
  –	
  This	
  is	
  a	
  balancing	
  act	
  on	
  key	
  metrics,	
  using	
  
cloud	
  based	
  aggrega?on	
  to	
  have	
  informa?on	
  to	
  act	
  on	
  and	
  not	
  be	
  overwhelmed	
  by	
  
}  Eight:	
  	
  Knowledge	
  is	
  Power	
  –	
  A	
  recent	
  study	
  from	
  Fleishman-­‐Hillard	
  found	
  89%	
  of	
  
consumers	
  go	
  directly	
  to	
  business	
  websites	
  or	
  turn	
  to	
  Google,	
  Bing	
  or	
  another	
  search	
  
engine	
  to	
  find	
  informa?on	
  on	
  products,	
  services	
  or	
  businesses	
  before	
  any	
  human	
  to	
  
human	
  interac?on	
  takes	
  place	
  (if	
  it	
  ever	
  does).	
  
Parature	
  Whitepaper	
  
Customer	
  Service:	
  	
  The	
  Next	
  Genera?on:	
  	
  	
  
8	
  Megatrends	
  Evolving	
  Customer	
  Service	
  and	
  the	
  Customer	
  Experience	
  
5/17/14BMC3.com36
}  Conclusion:	
  	
  Tug-­‐of-­‐War	
  going	
  on	
  between	
  digital	
  mastery	
  and	
  the	
  human	
  
element.	
  
}  Your	
  online	
  presence	
  is	
  now	
  as	
  “real”	
  as	
  your	
  bricks	
  and	
  mortar.	
  
}  Your	
  online	
  presence	
  is	
  now	
  more	
  important	
  than	
  the	
  old	
  ?me	
  Yellow	
  Pages	
  
used	
  to	
  be	
  for	
  your	
  business’s	
  visibility.	
  
Trending:	
  Making	
  Decisions	
  Fast!	
  
5/17/14BMC3.com37
What used to be a message, is now a conversation.
Today’s consumer finds and shares their own
information about products in their own way, on
their own time.
Consumers use 10.4 sources of
information when making a
purchasing decision, up from 5.3
sources in 2010.
Continuing Advocate Identification
BMC3.com38 5/17/14
Making	
  Reviews	
  and	
  Referrals	
  More	
  Important	
  
5/17/14BMC3.com39
Consumers use 10.4 sources of
information when making a
purchasing decision, up from 5.3
sources in 2010.
Part	
  4:	
  Digital	
  Marke?ng	
  
5/17/14BMC3.com40
}  Search	
  Lis?ngs	
  &	
  Reputa?on	
  Management	
  
Why	
  is	
  it	
  important?	
  	
  
90% of web traffic
comes from
organic listings.
The top 3 spots
on Google get
58% of clicks.
Social Search:
friend
recommendations
and likes garner
higher placement.
Club	
  One’s	
  Digital	
  Marke?ng	
  Hub	
  
BMC3.com41
Viral Sharing
Engaging
Conversation
Geo-Social &
Gaming
Recommendation
Engines
Online Group
Purchasing
Building
Community
5/17/14
What	
  Social	
  Media	
  IS	
  &	
  is	
  NOT	
  About	
  
BMC3.com42
}  The	
  virtual	
  and	
  physical	
  world	
  are	
  
becoming	
  one	
  in	
  the	
  same.	
  	
  
}  Social	
  Media	
  is	
  NOT	
  simply	
  having	
  a	
  
Facebook	
  page	
  as	
  an	
  extension	
  of	
  your	
  
website,	
  having	
  a	
  LinkedIn	
  page,	
  
YouTube	
  channel	
  nor	
  a	
  FourSquare	
  
account.	
  
Social	
  Media	
  IS	
  about	
  understanding	
  your	
  best	
  customers,	
  brand	
  advocates,	
  neutrals	
  and	
  
detractors;	
  data	
  collec?on;	
  qualifying	
  prospects;	
  engagement;	
  segmen?ng;	
  delivering	
  
personalized	
  messages;	
  and	
  communica?ng	
  WITH	
  them	
  not	
  TO	
  them.	
  	
  
5/17/14
Part	
  5:	
  Informa?on	
  /	
  Decision	
  Making	
  
BMC3.com43
What	
  is	
  the	
  member’s	
  “hassle”	
  with	
  regard	
  to	
  your	
  product?	
  
Reducing	
  the	
  hassle	
  for	
  the	
  member	
  creates	
  a	
  WIN	
  for	
  everyone!	
  
This	
  is	
  not	
  going	
  to	
  be	
  an	
  op>on…	
  it	
  will	
  just	
  be	
  the	
  way	
  you	
  must	
  operate…	
  
5/17/14
How	
  people	
  buy…	
  Comparison	
  
5/17/14BMC3.com44
	
  Alignable	
  Differences	
  vs.	
  Nonalignable	
  Differences	
  
	
  Alignable	
  Differences	
  carry	
  a	
  lot	
  more	
  weight	
  with	
  consumers	
  
	
  
q 	
  The	
  process	
  of	
  comparing	
  tends	
  to	
  focus	
  on	
  alignable	
  (it’s	
  easier)	
  
q 	
  Unique	
  proper?es	
  are	
  hard	
  to	
  evaluate	
  
q 	
  With	
  the	
  current	
  segmenta?on	
  and	
  specializa?on	
  in	
  our	
  industry	
  –	
  
being	
  able	
  to	
  align	
  your	
  product	
  to	
  other	
  choices	
  is	
  extremely	
  important	
  
	
  
2	
  or	
  3	
  Choices	
  seems	
  to	
  be	
  Ideal	
  
5/17/14BMC3.com45
}  Offering	
  1	
  
}  Offering	
  2	
  
}  Offering	
  3	
  
	
  
	
  The	
  power	
  of	
  comparison	
  –	
  “Predictably	
  Irra?onal”	
  
	
   	
  Financial	
  Times	
  Example	
  
	
  
	
   	
  Print	
  Only 	
   	
   	
  	
  
	
   	
  Print	
  and	
  Online 	
   	
   	
  	
  
	
   	
  Online	
  Only 	
   	
   	
  	
  
What	
  you	
  can	
  do	
  to	
  help	
  people	
  buy…	
  	
  
(knowing	
  how	
  comparisons	
  play	
  a	
  role)	
  
BMC3.com46
q  Communicate	
  what’s	
  in	
  common	
  with	
  compe?tors.	
  	
  Find	
  ways	
  to	
  help	
  
consumers	
  find	
  comparable	
  elements	
  that	
  turn	
  what	
  seem	
  like	
  nonalignable	
  
into	
  alignable	
  differences	
  
q  	
  Show	
  the	
  consumer	
  how	
  the	
  unique	
  feature	
  is	
  cri?cal.	
  	
  Help	
  them	
  understand	
  
the	
  unique	
  feature’s	
  role	
  
	
  
q  	
  Familiarize	
  customers	
  with	
  new	
  features.	
  	
  Encourage	
  individual	
  evalua?on	
  
instead	
  of	
  comparison	
  evalua?on	
  
q  	
  Knowing	
  more	
  about	
  how	
  people	
  make	
  comparisons	
  can	
  help	
  you	
  make	
  befer	
  
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)	
  
5/17/14
Prospect	
  Iden?ty	
  
5/17/14BMC3.com47
q 	
  More	
  and	
  more	
  research	
  says	
  personal	
  iden?fica?on	
  –	
  being	
  (noun)	
  
versus	
  doing	
  (verb)	
  has	
  a	
  greater	
  impact	
  on	
  behavior	
  and	
  triggers	
  play	
  a	
  
significant	
  role	
  
q 	
  Ques?onnaire	
  about	
  vo?ng	
  versus	
  voter	
  
q 	
  Civic	
  minded	
  ci?zen	
  versus	
  lexng	
  us	
  put	
  a	
  sign	
  in	
  your	
  yard	
  
	
  
As	
  a	
  health	
  minded	
  exerciser…	
  versus	
  someone	
  doing	
  a	
  program,	
  joining….	
  
	
  
Painkiller,	
  Vitamin	
  or	
  Drug?	
  
5/17/14BMC3.com48
Painkillers	
  are	
  products	
  that	
  address	
  exis?ng	
  needs/pain	
  points	
  (addic?ve).	
  
	
  
Vitamins	
  are	
  products	
  that	
  don’t	
  necessarily	
  address	
  an	
  immediately	
  apparent	
  need.	
  	
  
The	
  solu?on	
  makes	
  the	
  prospect’s	
  life	
  befer	
  –	
  yet	
  they	
  might	
  not	
  realize	
  it.	
  
	
  
Drugs	
  are	
  like	
  Vitamins	
  -­‐	
  You	
  must	
  sell	
  a	
  prospect	
  that	
  it	
  will	
  make	
  life	
  befer	
  but	
  
unlike	
  vitamins	
  it	
  is	
  addic?ve.	
  	
  It	
  has:	
  
1.  Accruing	
  Benefit	
  –	
  the	
  more	
  you	
  use	
  the	
  befer	
  it	
  gets.	
  
2.  Moun?ng	
  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.	
  	
  
Source:	
  Women2.org	
  /	
  by	
  Angie	
  /	
  By	
  Sarah	
  Tavel	
  
Requirements	
  for	
  Success	
  in	
  Group	
  Exercise	
  Market	
  
BMC3.com49
q  Consistent	
  high	
  quality	
  of	
  classes	
  
q  	
  Members	
  are	
  more	
  knowledge	
  today	
  (read	
  reviews,	
  etc)	
  
q  	
  Local	
  knowledge	
  of	
  best	
  instructors	
  
q  	
  Diverse	
  and	
  updated	
  offerings	
  to	
  meet	
  broad	
  spectrum	
  of	
  needs	
  	
  
q  	
  2	
  out	
  of	
  5	
  members	
  require	
  variety	
  in	
  programs	
  
q  	
  Deliver	
  against	
  three	
  key	
  future	
  influences:	
  
q  	
  Permanent	
  Connec?on	
  /	
  internet	
  &	
  devices	
  
q  	
  Personaliza?on	
  is	
  increasingly	
  required	
  
q  	
  Convergence,	
  blurring	
  and	
  blending	
  are	
  reshaping	
  exis?ng	
  categories	
  of	
  products	
  
and	
  services	
  
	
  
5/17/14
More	
  Requirements	
  for	
  Success	
  in	
  Group	
  Exercise	
  Market	
  
BMC3.com50
q  Outstanding	
  child	
  care	
  
}  Majority	
  of	
  customers	
  are	
  women	
  -­‐	
  many	
  with	
  children	
  
q  Offer	
  an	
  experience	
  that	
  has	
  prior	
  only	
  been	
  
available	
  in	
  small,	
  bou4que	
  studios	
  
q  Ability	
  to	
  inspire	
  those	
  that	
  like	
  fitness	
  but	
  not	
  
tradi4onal	
  gyms	
  
q  Plaqorms	
  and	
  apps	
  to	
  effec?vely	
  deliver	
  
schedules,	
  changes,	
  instructor	
  informa?on,	
  
special	
  events	
  in	
  easy	
  to	
  use	
  formats	
  
	
  
5/17/14
Do	
  You	
  Care?	
  Do	
  I	
  Trust	
  You?	
  
BMC3.com51
1.
2.
3.
5/17/14
0
5
10
15
20
25
30
35
40
No
Complaints
Unresolved
Compliants
Resolved
Complaints
Quickly
Resolved
Relevancy?	
  
BMC3.com52
q  Are	
  you	
  relevant…	
  
q 	
  Are	
  you	
  posi?oned	
  for	
  the	
  evolu?onary	
  adapta?on…	
  
q 	
  Are	
  you	
  thinking	
  about	
  the	
  design	
  elements	
  of	
  the	
  disrup?on	
  in	
  the	
  
space…	
  
q 	
  Are	
  you	
  open	
  to	
  change…	
  
q 	
  Are	
  you	
  speaking	
  the	
  language…	
  
q 	
  Are	
  you	
  where	
  your	
  consumers	
  are	
  with	
  your	
  message…	
  
5/17/14
3	
  New	
  Things	
  You	
  Will	
  Consider…	
  
5/17/14BMC3.com53
1
2
3
Thank	
  You!	
  
5/17/14BMC3.com54
	
  
	
  
Bill	
  McBride	
  
Cell:	
  	
  (415)	
  299-­‐9482	
  	
  
Email:	
  	
  BillMcBride@BMC3.com	
  
www.linkedin.com/in/billmcbride	
  |	
  www.BMC3.com	
  	
  
	
  

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Megatrends in Management, Leadership and Navigating Change (NEHRSA 2014)

  • 1. Megatrends  in  Management,  Leadership     &  Naviga4ng  Change   1 BMC3.com 5/17/14 by  Bill  McBride  
  • 2. BMC3.com2 q  Shi.ing  dynamics  &  Trending   q     Changing  technologies   q     Member  knowledge   q     Consumer  behavior   q     Informa?on  /  Decision  Making   5/17/14 Overview:  5  Parts  
  • 3. Part  1:  Shi.ing  Dynamics   5/17/14BMC3.com3 The  Only  Constant  is  Change…   How  are  we  going  to  deal  with  it?   “There  is  nothing  permanent  except  change.”              -­‐  Heraclitus  (ancient  Greek  philosopher  who                lived  about  100  years  before  Plato)  
  • 4. Total  Industry   5/17/14BMC3.com4            Revenues  (US$)  #  Clubs    #  Of  Members   Europe          $32,022,818,913      46,396      41,947,250   United  States  &  Canada      $24,396,000,000      36,742      55,903,000   Asia-­‐Pacific          $13,601,250,000      21,658      17,033,697   La?n  America        $5,527,333,520      46,130      14,307,240   Africa  &  Middle  East        $199,718,831      2,234        2,549,933     Total                $75,747,121,264          153,160          131,741,120  
  • 5. Part  1:  Trending   BMC3.com5 IBIS  World  Industry  Report  71394  –     February  2012  -­‐  Gym,  Health  &  Fitness  Clubs  in  the  US   •  $25.3bn  in  Revenue   •  $2.1bn  in  Profit   •  .9%  Annual  Growth  07-­‐12   •  $7.6bn  in  Wages   •  2.8%  Annual  Growth  12-­‐17   •  29,365  commercial  clubs   •  Young  people  and  Baby  Boomers  will  aim  to  stay  fit,   suppor?ng  demand   •  Consumers  35  and  older  will  drive  growth   Key  Success  Factors:     •   Easy  access  for  clients   •   Effec4ve  product  promo4on   •   Economies  of  scale   •   Provisions  for  appropriate  facili4es   •   Having  technical  knowledge  of  product   •   Business  exper4se  as  operators   5/17/14
  • 6. Part  1:  Trending   5/17/14BMC3.com6 •  Women  are  becoming  a  larger  buying  force  for  all   brand  products.           •  This  will  represent  a  dominant  majority  with   regard  to  consumer  brand  patronage  and   advocacy.     •  85%  of  all  brand  purchases  are  made  by  women   yet  only  3%  of  adver?sing  agency  crea?ve   directors  are  women.   •   Women  make  up  64%  of  Facebook  users,  58%  of   Twifer  users  and  82%  of  Pinterest  users.  
  • 7. Part  1:  Trending  -­‐  More  Women  in  Health  Clubs   BMC3.com7 Sources: 2011 IHRSA Profiles of Success, She-Conomy.com & Digital Flash NY 5/17/14 •   Women  are  becoming  the  dominant   user  of  health  clubs  in  the  US,  as  well  as   the  majority  of  the  popula?on  and  the   driving  force  in  consumer  spending.   •   The  current  club  make  up  is  51%  female   to  49%  male.   •   In  2011  nearly  3  out  of  5  NEW  members   (57%)  were  women  (to  43%  men).   •   This  shi.  may  change  the  way  we   operate,  program  and  design  our   facili?es.    There  are  profound   implica?ons.    
  • 8. Part  1:  Trending BMC3.com8 Q:    What  does  this  means  to  us?     A:  There’s  a  unique  opportunity  to   capture  market  share  and  enhance   the  service  offerings  in  the  industry   by  providing  these  “bou?que”  level   Pilates,  Yoga  and  Barre  classes  in  a   larger,  luxury  fitness  center.   q US  Fitness  Industry  produces  annual  revenues   of  $21  billion   q   US  expenditure  of  yoga  &  Pilates  classes  is  $5.7   billion  and  is  increasing   q   Pilates  training  alone  has  grown  456%  in  9  years   q   New  movement  toward  mind/body,  lower-­‐ impact  exercise  classes  like  Pilates  &  Yoga  to  draw   women  together  for  mo?va?on   5/17/14
  • 9. What’s  Different  in  the  Fitness  Industry?   5/17/14BMC3.com9 }  MORE  IMPORTANT:   -­‐  Segmenta4on   -­‐  Mass  customiza4on   -­‐  Individual  member  knowledge   -­‐  Human  connec4on   -­‐   Opera?ng  with  integrity  and  transparency   -­‐  3rd  party  valida4on   -­‐  Sales,  marke?ng,  opera?ons  &  technology  are   “blurring”   -­‐  Specialized,  small  group  “efficient”  training  will   become  even  more  important  to  consumers   -­‐  Func4onal  training  spaces  and  passive  areas  are   more  popular     -­‐  Cardio  equipment  usage  is  stable   }  LESS  IMPORTANT:   Selectorized strength equipment usage appears to be on a decline in the U.S.  
  • 10.
  • 14.
  • 15. Obesity  Epidemic  &  Inac?vity  Crisis     BMC3.com15 q  Governments  are  looking  for  new  sources  of  revenue  and  poli?cians  want  to  “do   something”   q     Healthcare  costs  are  skyrocke?ng       q    The   US   Government   is   focused   on   outcomes:   conges?ve   heart   failure,   acute   myocardial  infarc?on  (heart  afack),  and  pneumonia   q     Informa?on  delivery  and  consump?on  are  going  through  a  major  revolu?on   5/17/14
  • 16. BMC3.com16 5/17/14       “Predic?on  is  very  difficult,   especially  if  it’s  about  the  future.”   -­‐  Niels  Bohr    
  • 17. The  Economy   BMC3.com17 5/17/14 •   Fiscal  cliff   •   Federal  deficit   •   Foreign  debt     q   The  last  ?me  the  economy  was  beset  by   influences  like  these  the  industry  took  a  huge   hit   q   It  has  taken  years  for  us  to  begin  to  see   posi?ve  membership  growth  again  
  • 18. Accountable  Care  Organiza?ons  (ACO)   BMC3.com18 q  Currently  75%  of  healthcare  costs  go  to  trea?ng  diseases  that  are  largely   preventable   q  The  advent  of  ACOs  are  crea?ng  a  paradigm  shi.  in  medical  care  from  disease   treatment  to  disease  preven?on   q  This  will  create  significant  opportuni?es  for  health  management   What’s  that?     A  healthcare  organiza?on  characterized  by  a  payment  and  care  delivery   model  that  seeks  to  ?e  provider  reimbursements  to  quality  metrics.     5/17/14
  • 19. HIPPA   5/17/14BMC3.com19 q The  Health  Informa?on  Portability  and  Accountability  Act  (HIPAA)  governs  the   collec?on,  usage  &  storage  of  bio  data   q   Now  that  healthcare  reform  has  survived  its  challenge  in  the  supreme  court,   HIPAA  will  be  expanding   q   This  may  have  broad  implica?ons  for  the  industry       Data  the  industry  has  always  held  (like  BMI,  heart  rate  or  even  weight)  may   now  fall  under  the  HIPAA  umbrella.    
  • 20. Economic  Incen?ves  /  Penal?es     5/17/14BMC3.com20 Mandating economic incentives May reach a new segment of the market (those motivated by extrinsic rewards) In theory this could create an expanded market for the industry
  • 21. Part  2:  Changing  Technologies   BMC3.com21 q  Quantified Self - Digital  Sensors  Are:   }  Quickly  becoming  the  number  one  source  of  data  (mobile  GPS  data)   }   Part  of  the  way  our  environment  interacts  with  us  (NFC)   }   Incorporated  into  our  clothing  and  apparel  (Sensors,  Google  Glasses)   }  Concussion  patches     }  Smart  Phone  capability  –  photo  of  equipment  screen  –  info  logged  in  the  correct   data  field     Accuracy  is  increasing  at  exponen4al  rates!      In  the  next  decade  advances  in  facial  recogni?on  will  probably                        replace  the  need  for  manual  club  check-­‐ins  and  access   5/17/14
  • 22. 3rd  Party  Devices   5/17/14BMC3.com22 + Fit Bit + Bit Gym + Jaw Bone + WiThings + My Zone + Zephyr + Body Bugg + Fit Bug
  • 23. Mobile   BMC3.com23 q  It  is  being  predicted  that  mobile  Web   usage  will  overcome  desktop  Web   usage  by  2015   q   Google  now  develops  and  tests  all   their  new  applica4ons  on  mobile  first     q  38%  of  smart  phone  users  have  made  some  type  of  commerce   transac?on  using  their  phone   q         Mobile  user  usability  and  u?lity  demands  will  con?nue  to   increase  as  this  modality  eclipses  desktop  Internet  usage.       5/17/14
  • 24. q Current  Func4onality   •  Mobile  access  to  class  schedules   •  Ability  to  download  classes  to  personal  calendars   •  Class  change  no?fica?on   •  Promo?ons   •  Instant  access  to  contact  us   •  Membership  card   •  Social  check-­‐ins  on  Facebook  &  Foursquare   •  YouTube  integra?on   •  iPhone  &  Android  Plasorm   Fitness  Mobile  App:   Keep  Members  Connected  from  Mobile  Devices     BMC3.com24 5/17/14
  • 25. More  App  Func?onality   BMC3.com25 q   Online  Booking  &  Scheduling   q   Member  mobile  social  network   q   Check-­‐ins  &  wall  posts   q   Offer  &  review  sharing   q  Geo-­‐social  Challenge   q   Check-­‐in  at  various  outdoor  workout  spots  for  points   q   Challenge  friends  to  a  compe??on   q   Bio-­‐metric  tool  tracking  &  calculators   q   Provide  a  mobile  tracking  resource   q   Reward  healthy  behavior  outside  the  club     5/17/14
  • 26. Some  Thoughts  From  the  Leisure  Handbook  2014   Leisure  Management  Magazine  –  UK   5/17/14BMC3.com26 }  Foresight  2014   }  1  Interac?ve  Technology  –  having  fun  immersed  in  an  experience  (smell,  site,  sound,   temperature)   }  The  importance  of  “stars”  in  social  media.    According  to  the  University  of  CA,  Berkely:   }  “A  variance  of  just  half  a  star  ra?ng  can  determine  whether  a  business  thrives  or  goes  bust   according  to  economists  at  the  University”   }  Google  Glass  -­‐  What  will  you  do  when  your  customers  show  up  wearing  Google  Glass?   }  End  of  Life  Care  -­‐  An  industry  around  a  good  death  may  cause  some  disrup?on.     (Family,  comfort,  care,  spiritual)   }  Retail  &  Leisure  –  Xercise  4Less  teaming  up  with  Tesco  with  100  health  clubs  in   grocery  stores.    Retailers  are  looking  for  ways  to  mone?ze  the  redundant  space   created  by  e-­‐commerce  and  leisure  is  providing  a  crea?ve  solu?on   }  Ikea  ($)  &  Marriof  (Ops)  teaming  up  with  a  new  brand  Moxy  –  hotels  with  IKEA   furnishings  and  design  
  • 27. 5/17/14BMC3.com27 }  Cellular  Health   }  Living  organisms  are  made  up  of  balance   }  Fungi  /  Bacteria  (immune  system)   }  Sodium  /  Potassium   }  Exercise  /  Rest   }  Acid  /  Alkali   }  Oxygen  /  Carbon  Dioxide   }  Good  cellular  health  is  the  founda?on  of  wellbeing.    More  research  and  awareness  on   this  are  on  the  way    
  • 28. The  Limita?ons  of  Technology:  A  Club  Perspec?ve     5/17/14BMC3.com28 q  Companies  are  devo?ng  ?me  and  money  to  technologies  &   social  media  presences,  but  few  are  seeing  high  ROI   q  Health  &  Wellness  apps  now  number  a  lot  more  than  15,000,   but  there’s  been  no  significant  change  in  the  consumer  reach   of  the  industry   q  Club  One  completed  a  pilot  of  biometric  trackers,  but  found   no  significant  change  in  brand  affinity  or  users  achieving   health  goals  (possible  random  nature  of  device  assignment)     q   Technology  alone  hasn’t  shown  an  ability  to  create  or  keep  a   new  market  as  of  yet   q  I  have  a  resounding  belief  that  technology  with  human  touch   is  the  key  to  op?miza?on       Tip  for  operators:     Before  geing  too  caught   up  in  the  hype  of  the   cloud,  open  API’s  or  social   networks;  remember  good   opera4ons  is  the  core  and   human  interac4on  with   technology  seems  to  have   the  best  opportunity  
  • 29. BMC3.com29 The    Group  Exercise  market  is  growing  and  driven  by:   q   Women:   }  In  2011,  nearly  3  out  of  5  new  members  (57%)  were  women  to  43%   men  (compared  to  51%  women  in  2010)     }  68%  of  group  fitness  par?cipants  are  women     q   Age:   }  Baby  Boomers  are  afracted  to  “so.  fitness”  –  Yoga,  Pilates,  Tai  Chi,   hands-­‐on  flexibility,  etc,  these  are  all  delivered  in  group  fitness  classes   }  They  are  35  and  over  but  technologically  savvy   q   Growing  demand  for  social  component  and  sense  of  community:   q   Strong  perceived  value  proposi4on   }  All  forms  of  personal  training  available  in  group  exercise  (TRX)   5/17/14 Part  3:  Member  Knowledge    
  • 30. Member  Knowledge   BMC3.com30 Group  exercisers  have  higher  life4me  customer  value  than  non-­‐group  fitness  members  because:   }  They  come  more  oken.        Average  days  of  physical  ac?vity  for  typical  club  member  is  <3.  Average  in  group  fitness  (Les   Mills)  =  3.9  in  USA  -­‐  25%  greater   }  They  stay  longer  as  a  member.      Afri?on  rates  are  inversely  correlated  to  usage  and  length  of  membership.    Higher  usage,   lower  afri?on.  Group  exercisers  have  longer  average  membership  lives   }  They  spend  more.      Reflec?on  of  greater  commitment   }  They  are  knowledgeable.      Want  a  diversity  of  offerings  and  this  creates  s?ckiness   }  They  develop  rela4onships  with  instructors.      Drives  afendance  and  addi?onal  points  of  contact   }  They  have  higher  net  promoter  scores   5/17/14
  • 31. Member  Knowledge   BMC3.com31 Group  exercise  provides  a  social  component  and  sense  of  community  -­‐     q   Further  drives  down  alri4on  rates   q   Consumers  are  looking  for  this  afribute  and  equipment  alone  is  not  the  answer   q   Strong  digital  component  that  group  exercisers  know  how  to  use   5/17/14
  • 32. Part  4:  Consumer  Behavior     BMC3.com32 New  Paradigm  With  Informa4on  Consump4on     PUSH PULL Just There 5/17/14
  • 33. The  7  Biggest  Counterintui?ve  Social  Media  Mistakes   (by  Belle  Beth  Cooper,  Buffer  Blog  –  October  5,  2013)   5/17/14BMC3.com33 1.  Losing out on traffic – Post the same thing multiple times •  Your readers aren’t reading every moment of the day 2.  Using more tools than necessary – Don’t use all the tools available •  Focus on results 3.  Don’t measure every social media metric you can •  The question to answer: Is the social media worth it? 4.  Publishing when no one’s online – Don’t publish your posts when you write them •  FB engagements are 18% higher on Thursdays & Fridays 5.  Filling up the character count – Say less •  Shorter posts get more engagement •  Twitter tweets with less than 100 characters get 17% more engagement 6.  More hashtags, less content – Get back to basics •  Using Twitter hashtags correctly can mean 2X engagement for your tweets 1 or 2 (3 lowers overall engagement) 7.  Talking to the wrong people – Don’t publish your posts when it’s convenient for you •  Test for your target audience – men, later in the day – women, earlier
  • 34. Parature  Whitepaper   Customer  Service:    The  Next  Genera?on:       8  Megatrends  Evolving  Customer  Service  and  the  Customer  Experience   5/17/14BMC3.com34 }  One:    New  Age  Support  –  When  customers  have  a  problem  with  a  product,   71%  of  16-­‐24  year-­‐olds  and  65%  of  25  to  34-­‐year-­‐olds  search  for  a  solu?on   online  first.    -­‐  Sitel  Study   }  Two:    The  Power  Shi.s  to  the  Customer  –  82%  of  consumers  say  gexng  their   issue  resolved  quickly  is  the  top  element  of  a  great  online  experience.    -­‐   LivePerson  Connec?ng  with  Customers  Report   }  Three:    Advantage  –  Speed  and  Agility  –  “Siloed  and  disjointed   implementa?ons  for  different  customer  service  channels  simply  don’t  cut  it   anymore.”  –  Kate  Leggef,  Forrester  Research   }  Four:    Social  Media  –  It  isn’t  Just  for  Marke?ng  Anymore  –  71%  of  consumers   who  experience  a  quick  and  effec?ve  brand  response  on  social  media  are   likely  to  recommend  that  brand  to  others  
  • 35. Parature  Whitepaper   Customer  Service:    The  Next  Genera?on:       8  Megatrends  Evolving  Customer  Service  and  the  Customer  Experience   5/17/14BMC3.com35 }  Five:    Mobile  Mafers  –  1)    Put  the  Most  Important  Informa?on  Front  and  Center.    2)     Keep  Content  Simple.    3)    Invest  in  the  User  Interface.   }  Six:    The  Convergence  of  the  Twain  –  SoMoGlo  (Social,  Mobile,  Global)  –  The  number   of  mobile  social  network  users  in  the  US  will  grow  from  58.5%  in  2012  to  79.1%  by   2015,  and  nearly  70  million  people  will  access  Facebook  from  their  phones  each   month  this  year,  equaling  85.4%  of  the  overall  mobile  social  networking  popula?on.     That  share  will  rise  to  87.4%  by  2014,  according  to  eMarketer.   }  Seven:    The  Big  Challenge  of  Big  Data  –  This  is  a  balancing  act  on  key  metrics,  using   cloud  based  aggrega?on  to  have  informa?on  to  act  on  and  not  be  overwhelmed  by   }  Eight:    Knowledge  is  Power  –  A  recent  study  from  Fleishman-­‐Hillard  found  89%  of   consumers  go  directly  to  business  websites  or  turn  to  Google,  Bing  or  another  search   engine  to  find  informa?on  on  products,  services  or  businesses  before  any  human  to   human  interac?on  takes  place  (if  it  ever  does).  
  • 36. Parature  Whitepaper   Customer  Service:    The  Next  Genera?on:       8  Megatrends  Evolving  Customer  Service  and  the  Customer  Experience   5/17/14BMC3.com36 }  Conclusion:    Tug-­‐of-­‐War  going  on  between  digital  mastery  and  the  human   element.   }  Your  online  presence  is  now  as  “real”  as  your  bricks  and  mortar.   }  Your  online  presence  is  now  more  important  than  the  old  ?me  Yellow  Pages   used  to  be  for  your  business’s  visibility.  
  • 37. Trending:  Making  Decisions  Fast!   5/17/14BMC3.com37 What used to be a message, is now a conversation. Today’s consumer finds and shares their own information about products in their own way, on their own time. Consumers use 10.4 sources of information when making a purchasing decision, up from 5.3 sources in 2010.
  • 39. Making  Reviews  and  Referrals  More  Important   5/17/14BMC3.com39 Consumers use 10.4 sources of information when making a purchasing decision, up from 5.3 sources in 2010.
  • 40. Part  4:  Digital  Marke?ng   5/17/14BMC3.com40 }  Search  Lis?ngs  &  Reputa?on  Management   Why  is  it  important?     90% of web traffic comes from organic listings. The top 3 spots on Google get 58% of clicks. Social Search: friend recommendations and likes garner higher placement.
  • 41. Club  One’s  Digital  Marke?ng  Hub   BMC3.com41 Viral Sharing Engaging Conversation Geo-Social & Gaming Recommendation Engines Online Group Purchasing Building Community 5/17/14
  • 42. What  Social  Media  IS  &  is  NOT  About   BMC3.com42 }  The  virtual  and  physical  world  are   becoming  one  in  the  same.     }  Social  Media  is  NOT  simply  having  a   Facebook  page  as  an  extension  of  your   website,  having  a  LinkedIn  page,   YouTube  channel  nor  a  FourSquare   account.   Social  Media  IS  about  understanding  your  best  customers,  brand  advocates,  neutrals  and   detractors;  data  collec?on;  qualifying  prospects;  engagement;  segmen?ng;  delivering   personalized  messages;  and  communica?ng  WITH  them  not  TO  them.     5/17/14
  • 43. Part  5:  Informa?on  /  Decision  Making   BMC3.com43 What  is  the  member’s  “hassle”  with  regard  to  your  product?   Reducing  the  hassle  for  the  member  creates  a  WIN  for  everyone!   This  is  not  going  to  be  an  op>on…  it  will  just  be  the  way  you  must  operate…   5/17/14
  • 44. How  people  buy…  Comparison   5/17/14BMC3.com44  Alignable  Differences  vs.  Nonalignable  Differences    Alignable  Differences  carry  a  lot  more  weight  with  consumers     q   The  process  of  comparing  tends  to  focus  on  alignable  (it’s  easier)   q   Unique  proper?es  are  hard  to  evaluate   q   With  the  current  segmenta?on  and  specializa?on  in  our  industry  –   being  able  to  align  your  product  to  other  choices  is  extremely  important    
  • 45. 2  or  3  Choices  seems  to  be  Ideal   5/17/14BMC3.com45 }  Offering  1   }  Offering  2   }  Offering  3      The  power  of  comparison  –  “Predictably  Irra?onal”      Financial  Times  Example        Print  Only            Print  and  Online            Online  Only        
  • 46. What  you  can  do  to  help  people  buy…     (knowing  how  comparisons  play  a  role)   BMC3.com46 q  Communicate  what’s  in  common  with  compe?tors.    Find  ways  to  help   consumers  find  comparable  elements  that  turn  what  seem  like  nonalignable   into  alignable  differences   q   Show  the  consumer  how  the  unique  feature  is  cri?cal.    Help  them  understand   the  unique  feature’s  role     q   Familiarize  customers  with  new  features.    Encourage  individual  evalua?on   instead  of  comparison  evalua?on   q   Knowing  more  about  how  people  make  comparisons  can  help  you  make  befer   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)   5/17/14
  • 47. Prospect  Iden?ty   5/17/14BMC3.com47 q   More  and  more  research  says  personal  iden?fica?on  –  being  (noun)   versus  doing  (verb)  has  a  greater  impact  on  behavior  and  triggers  play  a   significant  role   q   Ques?onnaire  about  vo?ng  versus  voter   q   Civic  minded  ci?zen  versus  lexng  us  put  a  sign  in  your  yard     As  a  health  minded  exerciser…  versus  someone  doing  a  program,  joining….    
  • 48. Painkiller,  Vitamin  or  Drug?   5/17/14BMC3.com48 Painkillers  are  products  that  address  exis?ng  needs/pain  points  (addic?ve).     Vitamins  are  products  that  don’t  necessarily  address  an  immediately  apparent  need.     The  solu?on  makes  the  prospect’s  life  befer  –  yet  they  might  not  realize  it.     Drugs  are  like  Vitamins  -­‐  You  must  sell  a  prospect  that  it  will  make  life  befer  but   unlike  vitamins  it  is  addic?ve.    It  has:   1.  Accruing  Benefit  –  the  more  you  use  the  befer  it  gets.   2.  Moun?ng  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.     Source:  Women2.org  /  by  Angie  /  By  Sarah  Tavel  
  • 49. Requirements  for  Success  in  Group  Exercise  Market   BMC3.com49 q  Consistent  high  quality  of  classes   q   Members  are  more  knowledge  today  (read  reviews,  etc)   q   Local  knowledge  of  best  instructors   q   Diverse  and  updated  offerings  to  meet  broad  spectrum  of  needs     q   2  out  of  5  members  require  variety  in  programs   q   Deliver  against  three  key  future  influences:   q   Permanent  Connec?on  /  internet  &  devices   q   Personaliza?on  is  increasingly  required   q   Convergence,  blurring  and  blending  are  reshaping  exis?ng  categories  of  products   and  services     5/17/14
  • 50. More  Requirements  for  Success  in  Group  Exercise  Market   BMC3.com50 q  Outstanding  child  care   }  Majority  of  customers  are  women  -­‐  many  with  children   q  Offer  an  experience  that  has  prior  only  been   available  in  small,  bou4que  studios   q  Ability  to  inspire  those  that  like  fitness  but  not   tradi4onal  gyms   q  Plaqorms  and  apps  to  effec?vely  deliver   schedules,  changes,  instructor  informa?on,   special  events  in  easy  to  use  formats     5/17/14
  • 51. Do  You  Care?  Do  I  Trust  You?   BMC3.com51 1. 2. 3. 5/17/14 0 5 10 15 20 25 30 35 40 No Complaints Unresolved Compliants Resolved Complaints Quickly Resolved
  • 52. Relevancy?   BMC3.com52 q  Are  you  relevant…   q   Are  you  posi?oned  for  the  evolu?onary  adapta?on…   q   Are  you  thinking  about  the  design  elements  of  the  disrup?on  in  the   space…   q   Are  you  open  to  change…   q   Are  you  speaking  the  language…   q   Are  you  where  your  consumers  are  with  your  message…   5/17/14
  • 53. 3  New  Things  You  Will  Consider…   5/17/14BMC3.com53 1 2 3
  • 54. Thank  You!   5/17/14BMC3.com54     Bill  McBride   Cell:    (415)  299-­‐9482     Email:    BillMcBride@BMC3.com   www.linkedin.com/in/billmcbride  |  www.BMC3.com