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UNLEASHING YOUR MEMBERSHIP POTENTIAL WITHOUT
CUTTING SERVICES OR DISCOUNTNG PRICES
FUTURE OF FITNESS




                     1                LES MILLS INTERNATIONAL Ā© 2011
THE FITNESS INDUSTRY HAS EXPERIENCED MASSIVE
GROWTH IN THE LAST 40 YEARSā€¦
  60
       Health & Fitness facility attendance has
  50   become the biggest adult ā€˜sportā€™ in the
       Western world.
  40   Bigger than football, tennis and golf
       combined ā€¦
  30   We thought all stars we aligned for further
  20   growthā€¦

  10
                                         US Adult Fitness Club Participation
  0
       1960 1970 1980 1990 2000 2010 2020 2030 2040

                                                                  LES MILLS INTERNATIONAL Ā© 2011
FUTURE OF FITNESS
 THE WHITE PAPER OUTLINES INDUSTRY ā€˜CHALLENGESā€™ THAT
 POSE AN ALARMING THREAT TO FUTURE SUSTAINABILITY,
 GROWTH AND SUCCESSā€¦


                             3                         LES MILLS INTERNATIONAL Ā© 2011
OUR INDUSTRY IS AT RISKā€¦
ā€¢ā€Æ Membership retention is the largest problem facing our industry today
ā€¢ā€Æ Based on commodities and lacking the excitement and social
   engagement of sports - We behaved more as gyms than as true health
   clubs.
ā€¢ā€Æ Competitive industries are evolving faster than us, eg:
    ā€¢ā€Æ Virtual exercise
    ā€¢ā€Æ New sports
    ā€¢ā€Æ Nutritional science
    ā€¢ā€Æ Medicine
ā€¢ā€Æ Stagnating industry - Segmentation rather than innovations ā€“ The
    industry has started to turn into itself ā€“ we are fighting for the same
    customers instead of innovating to attract new ones ie Budget Clubs,
    Micro Gyms.
                                                                    LES MILLS INTERNATIONAL Ā© 2011
BUDGET CLUBS
BUDGET CLUBS
MICRO GYMS
Ā§ļ‚§ā€ÆMany facilities worldwide are being hurt
   by low-budget competitors.
Ā§ļ‚§ā€ÆAt the same time, there are successful
   new fitness models emerging (micro
   gyms) eg:
  ā€¢ā€Æ Cross Fit Studios
  ā€¢ā€Æ Orange Theory - $23 per class
  ā€¢ā€Æ Kosama, Omni, Fitness Together, Title Boxing
  ā€¢ā€Æ Soul Cycle and Flywheel (US) ā€“ $32 per class
  ā€¢ā€Æ Pure Yoga (Asia and US) ā€“
     $145 to $165 per month
  ā€¢ā€Æ Exhale Spa (US) ā€“ $195 pm for classes-only
     membership
ā€¢ā€Æ People are willing to pay for valueā€¦


                                             7      LES MILLS INTERNATIONAL Ā© 2011
WHITE PAPER:
WHAT DO PEOPLE WANT? WHY DO THEY JOIN A GYM?
THREE AREAS OF OPPORTUNITY
1. 
Exertainment
2. 
Community/Building bonds
3. 
Health 


                            8           LES MILLS INTERNATIONAL Ā© 2011
MOTIVATION
         LES MILLS INTERNATIONAL Ā© 2011
HOW CAN WE TELL WE ARE DOING A

GREAT JOB OF MOTIVATING PEOPLE?

                              LES MILLS INTERNATIONAL Ā© 2011
ITā€™S SIMPLE THEY ATTEND MORE OFTENā€¦

AND YET THIS IS ONE OF THE LEAST AND
MOST POORLY MEASURED METRICS.
                              LES MILLS INTERNATIONAL Ā© 2011
SO HOW CAN WE ā€˜MANAGEā€™ MOTIVATION

TO INCREASE ATTENDANCE?..

                               LES MILLS INTERNATIONAL Ā© 2011
HOW THE BEST
    FACILITIES INCREASE ATTENDANCE
1.ā€Æ Design a high-energy workout environment 
2.ā€Æ Create a relationship selling and new
    member induction system
3.ā€Æ Recruit a team of great PTs, Small Group/
    Team Trainers and Group X Instructors
4.ā€Æ Build a ā€˜club within a clubā€™ system for sports
    and other activities
5.ā€Æ Develop a member education and social
    network communication system
                                                     LES MILLS INTERNATIONALĀ© 2011
MOTIVATING PEOPLE 
1. DESIGNING A HIGH-ENERGY
WORKOUT ENVIRONMENT


                         LES MILLS INTERNATIONAL Ā© 2011
15




MOTIVATING ATTENDANCE
Ā§ļ‚§ā€Æ78% say ā€œSPACEā€ to exercise is extremely/very important!
Ā§ļ‚§ā€Æ60% say the ā€œAMBIENCEā€ of the room is extremely/very important




                                ā€œExertainmentā€
                                                                LES MILLS INTERNATIONALĀ© 2011
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LES MILLS INTERNATIONAL Ā© 2011
BEST PRACTICE
2. MEMBERSHIP SELLING AND
NEW MEMBER INDUCTION



                            LES MILLS INTERNATIONAL Ā© 2011
MEMBERSHIP SELLING
From Hard Transactional selling to Relationship Selling to Educative
Selling:
Shifting the MCsā€™ focus on providing relevant ā€˜solutionsā€™ for a healthier and
happier lifestyle ā€“ not selling a gym membership
Ā§ļ‚§ā€ÆPeople join to get results and motivation but they stay because they
   make friends - The Membership Consultant (MC) can be the first
   powerful relationshipā€¦
Ā§ļ‚§ā€ÆPeople research and buy online more and more
Ā§ļ‚§ā€ÆWe need to be more than the low-budget club ā€“ MCs need to bring
   additional value to online buying



                                     36                            LES MILLS INTERNATIONAL Ā© 2011
MEMBERSHIP SELLING
Ā§ļ‚§ā€ÆMCs to become Membership Coaches responsible for setting up the new
   member for success
   ā€“ā€Æ24 Hour Fitness
     ā€“ā€Æ80% of prospects have been member of a gym beforeā€¦
     ā€“ā€ÆNo sales commission since last year
     ā€“ā€ÆThey have cut from 12 sales consultant to 5 membership coaches
       per centre
     ā€“ā€ÆPrices has increased and January 2012 has seen the highest
       number of sales ever




                                 37                          LES MILLS INTERNATIONAL Ā© 2011
MEMBERSHIP SELLING
Ā§ļ‚§ā€ÆMCs to become Membership Coaches responsible for setting up the new
   member for success
Ā§ļ‚§ā€ÆLMNZ Case Study
     ā€“ā€ÆShifted from hard selling to relationship selling in 2005
     ā€“ā€ÆMCs prescribe a training plan before the membership solutions:
     ā€“ā€ÆIt increases the perceived value and allows for an educated decision to be made
     ā€“ā€ÆIt creates ā€˜buy-inā€™ and commitment from prospectā€¦ It paves the road for new
       members to become ā€˜addictedā€™ to exercise at your facilityā€¦ and it creates a bond
       with the MC.
    ā€“ā€ÆThey are responsible and accountable for new member attendance
      in first 3 months (21 visits)
Ā§ļ‚§ā€ÆRecruiting and training MCs properly so they can deliver educative sales
   pitch and prescribe holistic fitness prescription and relevant exercise
   recommendations based on the customersā€™ needs

                                        38                                 LES MILLS INTERNATIONAL Ā© 2011
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41   LES MILLS INTERNATIONAL Ā© 2011
MEMBER ā€œGETTING STARTEDā€ TOOLS




                     42           LES MILLS INTERNATIONAL Ā© 2011
6
YOUR STAFF ARE ONE OF YOUR




                                                                                                                                                                                                    LAUNCH AND PROMOTE
                                                                                                               STEP 1 - Introduce your goals behind the
                                                                                                                        program(s) implementation and behind


BEST PROMOTIONAL TOOLS!
                                                                                                                        the launch event.

                                                                                                               STEP 2 - Instructors teach the new program(s) so
                                                                                                                        the rest of the staff can experience it for

2-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) Getting
Boosting your attendance and membership sales partly depends on your teamā€™s ability                                     Started Brochure(s), a copy of the
to ā€˜sellā€™ your program(s) to your members and prospects.                                                                product knowledge page you have at the
                                                                                                                        end of your Club Performance Manual
Make 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 objections
Break 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 have
and sales/front-desk team in each                                                                                       before they attend the class (why they
group)                                   *40-year-old woman who hasnā€™t exercised properly for some years and is         wouldnā€™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 class
Allocate each group 3
characteristics 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 and
are 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 BODYPUMPā„¢:
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 a
choreographed program, 55-min full-      ways of exercising during the week.                                            few objections to each group
body 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 would
Give them 5 minutes to find 3            and ā€˜sellā€™ the program to that specific prospect or member. They               overcome each objection and manage to
participant based benefits for each      must choose carefully the features and benefits they would use with            motivate the person to go and try the class
of 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 again
Ask each group to present and
                                         playing the role of the customer.                                              Debrief answers
feedback/input if necessary
                                         Feedback and repeat for each program(s) you are about to launch.



                                                                                                                                              Les Mills International Limited Ā© Issued 13 07 2011         45 4


                                                                                                                                                                   LES MILLS INTERNATIONAL Ā© 2011
RELATIONSHIP SELLING
Going the extra mileā€¦
Ā§ļ‚§ā€ÆLMNZ ā€“ If a prospect doesnā€™t join, they leave with a 30-day exercise plan
   to do at home ā€“ My Exercise Calendar
Ā§ļ‚§ā€Æ Behaviors must align with Visionā€¦




                                    44                            LES MILLS INTERNATIONAL Ā© 2011
RELATIONSHIP SELLING AND
NEW MEMBER INDUCTION

LMNZ - Improve the lives of New Zealanders
Ā§ļ‚§ā€Æ Our goal is to get people to exercise, if possible in a gym and if possible, in Les Mills
    gym. If they donā€™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
Ā§ļ‚§ā€ÆThis approach allows us to:
   ā€“ā€ÆCome across as true fitness experts vs salespeople
   ā€“ā€ÆPreserve the relationship
   ā€“ā€ÆGive MCs a good reason to follow up and a real purpose behind each
     follow-up call
   ā€“ā€ÆFocus 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 Ā© 2011
NEW MEMBER INDUCTION PROCESS
Ā§ļ‚§ā€ÆImplement 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.

ā€œEvery year, the industry sells millions of memberships to men and women who, though
they earnestly wish that they could become regular exercisers, have not yet developed
                       the discipline or habit of regular exercise.ā€
                             IHRSA Guide to Retention 2007

  ā€œ12% 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.ā€
             FIA Top Ten Strategies for Winning the Retention Battle



                                            46                                  LES MILLS INTERNATIONAL Ā© 2011
NEW MEMBER INDUCTION PROCESS
LMNZ - Goal: 21 visits in 3 months
ā€¢ā€Æ Induction process with regular and specific
   points of contact
ā€¢ā€Æ MCs are responsible for it (about 30% of their   21 visits
   commission)
ā€¢ā€Æ they sell the dream; they make sure the dream
   happens!
ā€¢ā€Æ Tracks every new member over 84 days and
   visits at 14, 42 and 84 days




                                   47                     LES MILLS INTERNATIONAL Ā© 2011
LMNZ NEW MEMBER INDUCTION PLAN
21 VISITS IN 84 DAYS




                                  48   LES MILLS INTERNATIONAL Ā© 2011
49   LES MILLS INTERNATIONAL Ā© 2011
50   LES MILLS INTERNATIONAL Ā© 2011
RELATIONSHIP SELLING AND NEW MEMBER
INDUCTION
LMNZ: 21 visits in 84 days
Ā§ļ‚§ā€ÆResult: 50% of members achieving the 21 in 3 months (Goal is: 65%)
Ā§ļ‚§ā€ÆGive MCs a clear and genuine reason to call
 ā€“ā€Æ Red status: Rescue call
 ā€“ā€Æ Orange: What more can we do to get you here more often?
 ā€“ā€Æ Green: High-five call!
Ā§ļ‚§ā€ÆProven 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 Ā© 2011
BEST PRACTICE
3. CREATE A GREAT TEAM OF
PTā€™S, SMALL GROUP/TEAM
TRAINERS AND GROUP X
INSTRUCTORS 

                            LES MILLS INTERNATIONAL Ā© 2011
Whatever your goal and/or vision -
you need a great team to help you
get there. 
A crucial factor in the success of
your programs is the quality of the
instructors who teach them. 
Great Trainers and Instructors drive
thousands of attendances each
year. 




                                       LES MILLS INTERNATIONAL Ā© 2011
GET WORLD CLASS
RECRUITMENT AND TRAINING SOLUTIONS
	
 Ā 
   Partnering with Les Mills can help you to: 
   ā€¢ Build a brand that attracts new talent
   ā€¢ Develop the skills and better motivate
   your team
   ā€¢ Ensure training and ongoing staff
   education is relevant and up-to-date
   ā€¢ Guarantee quality and consistency to
   your members and guests
   ā€¢ Keep your team engaged and inspired




                                                  LES MILLS INTERNATIONAL Ā© 2011
LES MILLSā„¢ INSTRUCTOR TRAINING SYSTEM
LES MILLSā„¢ TRAINING SYSTEM QUICKLY BUILDS TALENT, ENGAGEMENT AND LOYALTY 
	
 Ā 
        National Presenter                                      Instructors in the USA receive
                                              National          ACE & AFAA education credits
           and Trainer
                                            Team training       on completing any LES MILLSā„¢
            Bootcamp
                                                                training module.




           Advanced and                          Advanced
                                              training (AIM 1            Ongoing
         Elite LES MILLSā„¢                                             Quarterly Training
       Instructor Certiļ¬cation               and 2 modules)




                                        2-day initial                 International
       Selection
                                     training module              LES MILLSā„¢ Instructor
       process
                                 (ā€˜clearance to teachā€™)                certiļ¬cation


                                                                                       LES MILLS INTERNATIONAL Ā© 2011
LES MILLSā„¢ SUPPORTS YOU WITH THE #1 CHALLENGE IN THE
INDUSTRY ā€“ RECRUITING AND KEEPING GREAT INSTRUCTORS




                                              LES MILLS INTERNATIONAL Ā© 2011
ā€œHAPPY, ENGAGED AND LOYAL STAFF MAKE HAPPY,
      ENGAGED AND LOYAL CUSTOMERS.ā€
                 SOUTHWEST AIRLINES
                                  




                      57              LES MILLS INTERNATIONAL Ā© 2011
STAND FOR SOMETHING.
CREATE A CAUSE, NOT A BUSINESS.
GIVE YOUR TEAM SOMETHING BIGGER THAN
THEMSELVES TO FIGHT FOR, SOMETHING THEY CAN
BE PROUD OF.
                     58                LES MILLS INTERNATIONAL Ā© 2011
WHATā€™S YOUR VISION?
Ā§ļ‚§ā€ÆWHY should your staff care about your
   business and challenge themselves
   every day?
Ā§ļ‚§ā€ÆPeople need to be engaged in an
   inspiring and meaningful purposeā€¦




                                       59   LES MILLS INTERNATIONAL Ā© 2011
FOR A FITTER PLANET
Ā§ļ‚§ā€Æā€œWe are warriors in the battle against
   inactivity and over-consumption.ā€
         LMI Instructor Creed, 1998
Ā§ļ‚§ā€Æā€œCreating life-changing experiences every
   time, everywhere. One class at a time,
   one participant at a time.ā€
         AIM manual
Ā§ļ‚§ā€Æā€œYou have to find a way to make people
   fall in love with fitness.ā€
         Les Mills, 1968




                                            60   LES MILLS INTERNATIONAL Ā© 2011
BEST PRACTICE
4. BUILD A SYSTEM OF
INTEGRATED ā€˜ASSISTED EXERCISE
AND ACTIVITESā€


                          LES MILLS INTERNATIONAL Ā© 2011
BUCKETOLOGY OF ASSISTED EXERCISE 
Assisted Exercise has higher attendance,                 BENCHMARKS FOR
retention and referral rates than unassisted        HIGH PERFORMING FACILITIES
exercise. Small Group/Team training and
Personal Training are powerful forms to build
community. But even the best operators in the
world have only 1%-14% of the their total
membership base attending these activities.                           Unassisted
                                                                       Exercise

In contrast Group Exercise attracts and
motivates the masses. Some of the worldā€™s
                                                       Group
                                                      Exercise
                                                                         36%
most successful facilities have over 50% of their
attendances in GX. Many have 30%-50%
                                                       50%
ā€œGroup Exercise members attend more
regularly, remain members for longer, make
more referrals, perceive greater value in their
memberships (ie will pay more) and do not                                          Small Group
                                                                                   Training 4%
leave when a budget gym opens nearby!ā€1 
                                                                   Personal
                                                                   Training 10%
 1. Will Phillips, The Retention Breakthrough




                                                                                      LES MILLS INTERNATIONALĀ© 2011
CREATING BONDS WITH DIFFERENT OFFERINGS
   Group Fitness
   Team Training
        Personal Training
   Event Training




                      Freelance
                     Programmes




                                     63                                    LES MILLS INTERNATIONALĀ© 2011
PERSONAL TRAINING ā€“ 1 TO 1 BOND

                 Ā§ļ‚§ā€ÆA great way to increase the quality of
                            on-boarding, results and connection
                            (member to staff)
                           Ā§ļ‚§ā€ÆCan be a good source of revenue
                           Ā§ļ‚§ā€ÆIncrease income opportunities and career
                              opportunities for GX instructors
                           Ā§ļ‚§ā€ÆHowever:
                             ā€“ā€Æ Even the best facilities in the world have less than
                                10% of members using PT on a regular basis vs
                                50%+ in GX
                             ā€“ā€Æ 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
                             ā€“ā€Æ No prescription of other form of exercise such as GX
                                (which is more social and more holistic)

                                64                                     LES MILLS INTERNATIONALĀ© 2011
SMALL-GROUP TEAM
ONE TO FEW BONDS
Ā§ļ‚§ā€ÆCurrently the holy grail of the
   industry
Ā§ļ‚§ā€ÆEverybody wants successful SGTT
   programs
  ā€“ā€Æ Allows more people access to PT
  ā€“ā€Æ Increases $ per hour for PTs
  ā€“ā€Æ Builds relationships between membersā€¦
     They make good friends.
  ā€“ā€Æ Brings back the spirit of sports teams
Ā§ļ‚§ā€ÆChallenges:
  ā€“ā€Æ   Scheduling
  ā€“ā€Æ   Booking and Payment Models
  ā€“ā€Æ   Space, and Equipment
  ā€“ā€Æ   Safety, Consistency, Scalability


                                              65   LES MILLS INTERNATIONALĀ© 2011
EVENTS TRAINING
ONE TO MANY BONDS





                    66   LES MILLS INTERNATIONALĀ© 2011
GROUP EXERCISE
IS BY FAR THE MOST POWERFUL WEAPON
IN YOUR MOTIVATIONAL ARSENAL!
 ā€¢ā€Æ   90% of all exercisers report that they would prefer to work out in a group.1
 ā€¢ā€Æ   Members who attend Group Exercise (GX) use their facility 3 times per week compared to
      IHRSA's ļ¬gure of 1.9 member visits a week, on average. 
 ā€¢ā€Æ   GX is cited as the biggest inļ¬‚uence (40%) on how long people remain a member of a ļ¬tness
      facility.
 ā€¢ā€Æ   GX member retention rates are higher than other member retention rates, on average.
 ā€¢ā€Æ   60% of people rate GX as the #1 service they speciļ¬cally look at when choosing a gym.2
 ā€¢ā€Æ Satisļ¬ed GX members refer people 3 times more than other members. 



                                                                                                LES MILLS INTERNATIONALĀ© 2011
There is absolutely a commercial connection
  between group ļ¬tness attendance and
        long-term proļ¬table facilities!




                                         LES MILLS INTERNATIONALĀ© 2011
THE POWER OF GROUP EXERCISE
Ā§ļ‚§ā€ÆMany facilities worldwide are
   being hurt by low-budget
   competitors.
Ā§ļ‚§ā€ÆAt the same time, there are
   successful new fitness models
   emerging (micro gyms) eg:
  ā€¢ā€Æ Orange Theory - $23 per class
  ā€¢ā€Æ Kosama, Omni, Fitness Together,
     Title Boxing
  ā€¢ā€Æ Soul Cycle and Flywheel (US) ā€“
     $32 per class
  ā€¢ā€Æ Pure Yoga (Asia and US) ā€“
     $145 to $165 per month
  ā€¢ā€Æ Exhale Spa (US) ā€“ $195 pm for
     classes-only membership


                                       69   LES MILLS INTERNATIONALĀ© 2011
THE BOTTOM LINE IS:
Group Exercise attracts MORE MEMBERS, who attend more often,
REMAIN LOYAL and attract new members THEMSELVES!
                               70                       LES MILLS INTERNATIONALĀ© 2011
WHAT DOES IT TAKES TO BECOME
A CHAMPION AT GROUP
EXERCISE?
                           LES MILLS INTERNATIONALĀ© 2011
72   LES MILLS INTERNATIONALĀ© 2011
THE PLAN IS BASED AROUND 8 KEYS ELEMENTS





                              WHERE TO START?
                     73                 LES MILLS INTERNATIONALĀ© 2011
74	
 Ā 



WHAT DRIVES MEMBER ATTENDANCE IN GX?
#1 DRIVER FOR CLASS ATTENDANCE IS THE PROGRAM






                                                Nielsen Consumer Survey

                            74                           LES MILLS INTERNATIONALĀ© 2011
SMART PROGRAMMING 
Ā§ļ‚§ā€ÆProspects and members usually
   need three types of training to
   cover their basic needs
   ā€“ā€ÆStrength Toning
   ā€“ā€ÆCardio
   ā€“ā€ÆMind-Body
Ā§ļ‚§ā€ÆMake sure you have at least one
   ā€œbest in classā€ program you can
   recommend in terms of
   experience, quality, safety, and
   consistency in each of these
   categories:

                                      75   LES MILLS INTERNATIONALĀ© 2011
WHERE TO START
 WHERE TO START?5 program
Ā§ļ‚§ā€ÆResearch show
    genres comprise 75% of GX
    attendance every week. In
    order of market share, these

   are:

Ā§ļ‚§ā€Æ21% Strength and Weights
Ā§ļ‚§ā€Æ19% Cycling
Ā§ļ‚§ā€Æ14% Mind and Body
Ā§ļ‚§ā€Æ12% Dance
Ā§ļ‚§ā€Æ 9% Martial Arts
Ā§ļ‚§ā€Æ 25 % Fusion

                                   76   LES MILLS INTERNATIONALĀ© 2011
GET YOUR PROGRAMMING RIGHT
AFTER DETERMINING DEMOGRAPHIC POSITIONINGā€¦ ALLOCATE 70% OF YOUR
TIMETABLE TO CORE PROGRAMS AND 20 - 30% TO SPECIALTY ONES




                                    77                            LES MILLS INTERNATIONALĀ© 2011
LES MILLS INTERNATIONALĀ© 2011
LES MILLS INTERNATIONALĀ© 2011
Les Millsā€™ BODYPUMPĀ® is the original barbell
class, designed and scientiļ¬cally proven to
strengthen the entire body. This 60-minute workout
challenges all major muscle groups by using the
best weight-room exercises, including squats,
presses, lifts and curls. Great music, awesome
instructors and individual choice of weights inspire
participants to perform 800 reps per class and to
get the results they came for - and fast!
	
 Ā 


  Due to its broad appeal, BODYPUMPĀ® 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.


BODYPUMPĀ® participants visit 4.3 times
per week on average versus the industry
average of less than twice a week for non-
Group Exercise club visits.
	
 Ā 


                                LES MILLS INTERNATIONALĀ© 2011
DRIVING PEOPLE
INTO CLUBS VIA TV	
 Ā 
Les Mills is committed to building our brand and
growing demand for your classes. Thatā€™s why weā€™ve
teamed up with Beachbody, the best-known
provider of home workouts, to create "
LES MILLSTM PUMP, a set of home-workout DVDs.
Weā€™ve seen the power of other brands using
infomercials to drive consumer awareness.
Partnering with Beachbody will introduce a national
audience of millions to the Les Mills brand. The
exposure will help to drive more people into your
facility and classes, and make it that much easier
for you to sign up new members.
	
 Ā 




                                                      LES MILLS INTERNATIONALĀ© 2011
BODYPUMPĀ®                    CXWORXā„¢ 
                    RPMā„¢                           BODYBALANCEā„¢                BODYCOMBATā„¢
Les Millsā€™ BODYPUMPĀ®
is the original barbell
                             A short, sharp workout,
                             backed by core
                                                          An indoor-cycling
                                                          workout where                  /BODYFLOWĀ® 
                Les Millsā€™
                                                                                                                     BODYCOMBATTM is a
class, designed and          conditioning research        participants ride to the                                   ļ¬ercely energetic cardio
scientiļ¬cally proven to      from Penn State                                             BODYBALANCETM/!
                                                          rhythm of powerful                                         workout inspired by
strengthen the entire        University, that                                            BODYFLOWĀ® is a Yoga,
                                                          music. The inspiring team                                  martial arts such as
body. This 60-minute         strengthens and tones        coach leads the pack           Tai Chi and Pilates         Karate, Boxing, Tae Kwon
workout challenges all       the body. It hones in on                                    workout that builds
                                                          through hills, ļ¬‚ats,                                       Do, Tai Chi and Muay
major muscle groups by       the torso and sling                                         ļ¬‚exibility and strength.
                                                          mountain peaks, time                                       Thai. Supported by
using the best weight-       muscles that connect the                                    Controlled breathing,
                                                          trials and interval                                        driving music and
room exercises, including    upper and lower body.                                       concentration, stretches,
squats, presses, lifts and   Itā€™s ideal for tightening    training. Participants                                     energizing instructors,
                                                                                         moves and poses to
curls. Great music,          tummy and butt,              sweat and burn to reach                                    participants strike,
                                                                                         music create an holistic
awesome instructors and      improving functional         the endorphin high!!                                       punch, kick and KATA
                                                                                         workout that balances
individual 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 participants
participants to perform      CXWORXā„¢ bands are                                                                       cardio ļ¬tness.!
                                                          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 appeal
for ā€“ and fast!!                                                                                                     numbers during peak and
                                                          Best practice suggests         BODYBALANCETM/
                             Due to its broad appeal                                                                 shoulder times, weekdays
Due to its broad appeal,     CXWORXTM attracts big        scheduling it 9 to 14 times    BODYFLOWĀ® attracts big      and weekends. While it
BODYPUMPĀ® 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, performance
slots. Best practice                                                                     Best practice suggests      is dependent on marketing
                             Best practice suggests       Most clubs that have
suggests scheduling it a                                                                 scheduling                  and the convenience of
                             scheduling it at peak or     dedicated cycling studios
minimum of 7 to 12 times                                                                 BODYBALANCEā„¢ a              timing.
                             shoulder times once or       offer 3 to 7 classes a day.
across the week to                                                                       minimum of 5 to 7 times
maximize 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                                    ITā€™S POSSIBLE TO                                           scheduling
classes per day.
            classes are ideal.
                                         Itā€™s very popular in the    BODYCOMBATTM at least
                                                          CHARGE A BOOKING
                                                          FEE FOR RPMTM TO               morning, shoulder times     5 to 7 times a week.
BODYPUMPĀ®                    DID YOU KNOW?
                             CXWORXā„¢ CAN BE               BRING IN ANCILLARY             and during weekends.
PARTICIPANTS VISIT 4.3
                             USED AS A FEE-BASED,         REVENUE IN THE
TIMES PER WEEK ON
                             SMALL-GROUP                  THOUSANDS PER WEEK.
AVERAGE VERSUS THE
INDUSTRY AVERAGE OF          TRAINING PROGRAM.
LESS THAN TWICE A            MANY FACILITIES ARE
WEEK FOR NON-GROUP           HAVING SUCCESS WITH
EXERCISE CLUB VISITS.
       THIS BOTH IN AND OUT
                             OF THE GROUP
	
 Ā                          EXERCISE ROOM.
                                                                                   LES MILLS INTERNATIONALĀ© 2011
SH'BAMā„¢                      BODYVIVEā„¢
                     BODYJAMā„¢                     BODYSTEPā„¢ 
                  BODYATTACKā„¢
Simple dance moves with      A fun, low-impact, whole-      A cardio workout offering    Using simple movements       A sports-inspired cardio
chart-topping popular        body workout that              an addictive fusion of the   on, over and around a        workout for building
hits enable participants     improves ļ¬tness 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 interval
their inner star ā€“ even if   weight, VIVETM tubes and       the emphasis as much on      motivation from popular      training classes combine
theyā€™re dance-               balls for extra resistance.    having fun as breaking a     music and uplifting          athletic aerobic
challenged! The 45-          Great music, group             sweat. Funky instructors     instructors. Cardio blocks   movements with strength
minute SHā€™BAMā„¢               interaction and a skilled      teach participants how to    push fat-burning systems     and stabilization
classes provide the          instructor inspire             move with attitude           into high gear, followed     exercises. Dynamic
ultimate fun and sociable    participants to get ļ¬t for     through this 55-minute       by muscle-conditioning       instructors and powerful
way to exercise. !           life.!                         class.!                      tracks that shape and        music motivate
                                                                                         tone the body.!              participants toward their
Attracts maximum             Attracts maximum               Attracts maximum
                                                                                                                      ļ¬tness goals.!
numbers during peak and      numbers during peak and        numbers during peak and      Attracts maximum
shoulder times, weekdays     shoulder times, weekdays       shoulder times, weekdays     numbers during peak and      Attracts maximum
and weekends. Best           and weekends. While it         and weekends. Can            shoulder times, weekdays     numbers during peak and
practice suggests            also works very well at off-   perform strongly off peak    and weekends, particularly   shoulder times, weekdays
scheduling SHā€™BAMā„¢ 5 to      peak times, performance        with a charismatic           mornings. Best practice      and weekends. Can
7 times a week.	
 Ā           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.
                             VIVEā„¢ tubes and balls
                             are available at
                             lesmills.com/equipment




                                                                                                                               LES MILLS INTERNATIONALĀ© 2011
GROW YOUR GX NUMBERS
ORGANIZE REGULAR EVENTS THAT ā€˜WOWā€™



                                      LES MILLS INTERNATIONAL Ā© 2011
WOW GX EVENTS




THE BEST WAY TO CREATE MOMENTUM, 
RE-IGNITE MEMBER MOTIVATION, BUILD
ATTENDANCE, COMMUNITY, RETENTION ANDā€¦
GROW MEMBERSHIP 
                  85             LES MILLS INTERNATIONALĀ© 2011
THE SALES / EXPERIENCE CURVE
 Experience



               ā€œWhen you host GX events, you are selling
               non-members an experience, not a membership
               ā€“ this makes selling so much easier.ā€




                                                             Sales



                                         86                           LES MILLS INTERNATIONALĀ© 2011
LES MILLSTM EVENTS
BENCHMARK
Ā§ļ‚§ā€Æ Massive BUZZ and interest in club during the 2 weeks building up to event
Ā§ļ‚§ā€Æ Full focus from club team on common goals and interaction between sales,
    customer experience and product departments ā€“ ā€˜Breaking down silosā€™
Ā§ļ‚§ā€Æ Sold-out events and massive energy in clubs ā€“ all classes at 80 to 100% capacity
Ā§ļ‚§ā€Æ Attendance: 5 to 10% membership
Ā§ļ‚§ā€Æ 20% guests per class
Ā§ļ‚§ā€Æ 50 to 70% conversion rate of guests
Ā§ļ‚§ā€Æ Massive buzz post-event
Ā§ļ‚§ā€Æ An increase of attendance in 2 to 3 weeks post-event of 10 to 20%




                                           87                                   LES MILLS INTERNATIONALĀ© 2011
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 Ā© Issued 13.07.2011



                                                                                                                                                        LES MILLS INTERNATIONALĀ© 2011
EVENTS PLANNING
 BENCHMARK
Ā§ļ‚§ā€Æ Massive BUZZ and interest in club during the 2 weeks building up to event
Ā§ļ‚§ā€Æ Full focus from club team on common goals and interaction between sales,
    customer experience and product departments ā€“ ā€˜Breaking down silosā€™
Ā§ļ‚§ā€Æ Sold-out events and massive energy in clubs ā€“ all classes at 80 to 100% capacity
Ā§ļ‚§ā€Æ Attendance: 5 to 10% membership
Ā§ļ‚§ā€Æ 20% guests per class
Ā§ļ‚§ā€Æ 50 to 70% conversion rate of guests
Ā§ļ‚§ā€Æ Massive buzz post-event
Ā§ļ‚§ā€Æ An increase of attendance in 2 to 3 weeks post-event of 10 to 20%




                                           89                                   LES MILLS INTERNATIONAL Ā© 2011
PROMOTE YOUR PROGRAMS AND EVENTS WITH
WORLD CLASS MARKETING AND RESOURCES 



                                    LES MILLS INTERNATIONAL Ā© 2011
LES MILLS INTERNATIONAL Ā© 2011
LES MILLS INTERNATIONAL Ā© 2011
LES MILLS INTERNATIONAL Ā© 2011
WORLD-CLASS MARKETING AND
                                        PROMOTIONAL SOLUTIONS	
 Ā 
                                        EVERYTHING YOU NEED TO HOST AMAZING EVENTS
                                        THAT ATTRACT NEW MEMBERS AND PROMOTE YOUR PROGRAMS.	
 Ā 
The LES MILLSā„¢ Group Fitness
solution gives you free access to a
huge collection of valuable marketing
and promotional resources. We are
continually working on new ways to
help you inspire your members and
prospects. Currently weā€™re
developing online tools, which will
allow you to customize material with
your own club logos and messages. 
	
 Ā 




                                                                                              LES MILLS INTERNATIONALĀ© 2011
BEST PRACTICE
5. DEVELOP A MEMBER EDUCATION
AND SOCIAL NETWORK
COMMUNICATION SYSTEM


                         LES MILLS INTERNATIONAL Ā© 2011
EDUCATION:
BECOMING A TRUE ā€œHEALTH CLUBā€
Health clubs need to become
more than just places where
people go to use exercise
machines!
We need to become true providers
of holistic health. Education
changes lives and your members
will love you for it.




                                   LES MILLS INTERNATIONAL Ā© 2011
visited the club in the last 45 days. Contacting long term non users could initiate a
                                  cancellation ā€“ ā€œwaking the sleeping dogā€ concept. However, when a filtered member
                                  registers a visit they will automatically be integrated into the service which will start with a


TALK 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




ā€¢ā€Æ   Create a personal                                                                                          Regular User


     relationship with
     your members
            
            
            


                                                               Non User




                         Retention Management Proprietary



                                                                                                                LES MILLS INTERNATIONAL Ā© 2011
SOCIAL MEDIA
Social media is revolutionizing
our ability to communicate!

Butā€¦ itā€™s not as easy as it looks.
Engagement, interest and
authenticity are key.

Otherwise itā€™s meaninglessā€¦

The key is to start and continue a
conversation. Get members
talking about youā€¦

                                    LES MILLS INTERNATIONAL Ā© 2011
99   LES MILLS INTERNATIONAL Ā© 2011
100   LES MILLS INTERNATIONAL Ā© 2011
ENGAGING THE COMMUNITY
CHANGING THE PERCEPTION
OF OUR INDUSTRY
Ā§ļ‚§ā€ÆLifestyle Family Fitness (Florida)
   teen fitness initiative
    ā€“ā€Æ FREE 2-Month Summer
       Membership
    ā€“ā€Æ Teens can utilize all equipment
       and participate in Group Exercise
       classes
    ā€“ā€Æ Hourly restrictions in place
       (ie non-prime time)
    ā€“ā€Æ Rememberā€¦ teens have parents
       and they grow up to become
       paying adults


                                           101   LES MILLS INTERNATIONAL Ā© 2011
ENGAGING THE COMMUNITY
CHANGING THE PERCEPTION OF OUR INDUSTRY




                             102           LES MILLS INTERNATIONAL Ā© 2011
UNLEASHING YOUR MEMBERSHIP POTENTIAL WITHOUT
CUTTING SERVICES OR DISCOUNTNG PRICES
FUTURE OF FITNESS




                     103              LES MILLS INTERNATIONAL Ā© 2011

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Membership Unleashed by Les Mills - Club Industry Seminar 2012

  • 1. UNLEASHING YOUR MEMBERSHIP POTENTIAL WITHOUT CUTTING SERVICES OR DISCOUNTNG PRICES FUTURE OF FITNESS 1 LES MILLS INTERNATIONAL Ā© 2011
  • 2. THE FITNESS INDUSTRY HAS EXPERIENCED MASSIVE GROWTH IN THE LAST 40 YEARSā€¦ 60 Health & Fitness facility attendance has 50 become the biggest adult ā€˜sportā€™ in the Western world. 40 Bigger than football, tennis and golf combined ā€¦ 30 We thought all stars we aligned for further 20 growthā€¦ 10 US Adult Fitness Club Participation 0 1960 1970 1980 1990 2000 2010 2020 2030 2040 LES MILLS INTERNATIONAL Ā© 2011
  • 3. FUTURE OF FITNESS THE WHITE PAPER OUTLINES INDUSTRY ā€˜CHALLENGESā€™ THAT POSE AN ALARMING THREAT TO FUTURE SUSTAINABILITY, GROWTH AND SUCCESSā€¦ 3 LES MILLS INTERNATIONAL Ā© 2011
  • 4. OUR INDUSTRY IS AT RISKā€¦ ā€¢ā€Æ Membership retention is the largest problem facing our industry today ā€¢ā€Æ Based on commodities and lacking the excitement and social engagement of sports - We behaved more as gyms than as true health clubs. ā€¢ā€Æ Competitive industries are evolving faster than us, eg: ā€¢ā€Æ Virtual exercise ā€¢ā€Æ New sports ā€¢ā€Æ Nutritional science ā€¢ā€Æ Medicine ā€¢ā€Æ Stagnating industry - Segmentation rather than innovations ā€“ The industry has started to turn into itself ā€“ we are fighting for the same customers instead of innovating to attract new ones ie Budget Clubs, Micro Gyms. LES MILLS INTERNATIONAL Ā© 2011
  • 7. MICRO GYMS Ā§ļ‚§ā€ÆMany facilities worldwide are being hurt by low-budget competitors. Ā§ļ‚§ā€ÆAt the same time, there are successful new fitness models emerging (micro gyms) eg: ā€¢ā€Æ Cross Fit Studios ā€¢ā€Æ Orange Theory - $23 per class ā€¢ā€Æ Kosama, Omni, Fitness Together, Title Boxing ā€¢ā€Æ Soul Cycle and Flywheel (US) ā€“ $32 per class ā€¢ā€Æ Pure Yoga (Asia and US) ā€“ $145 to $165 per month ā€¢ā€Æ Exhale Spa (US) ā€“ $195 pm for classes-only membership ā€¢ā€Æ People are willing to pay for valueā€¦ 7 LES MILLS INTERNATIONAL Ā© 2011
  • 8. WHITE PAPER: WHAT DO PEOPLE WANT? WHY DO THEY JOIN A GYM? THREE AREAS OF OPPORTUNITY 1. Exertainment 2. Community/Building bonds 3. Health 8 LES MILLS INTERNATIONAL Ā© 2011
  • 9. MOTIVATION LES MILLS INTERNATIONAL Ā© 2011
  • 10. HOW CAN WE TELL WE ARE DOING A GREAT JOB OF MOTIVATING PEOPLE? LES MILLS INTERNATIONAL Ā© 2011
  • 11. ITā€™S SIMPLE THEY ATTEND MORE OFTENā€¦ AND YET THIS IS ONE OF THE LEAST AND MOST POORLY MEASURED METRICS. LES MILLS INTERNATIONAL Ā© 2011
  • 12. SO HOW CAN WE ā€˜MANAGEā€™ MOTIVATION TO INCREASE ATTENDANCE?.. LES MILLS INTERNATIONAL Ā© 2011
  • 13. HOW THE BEST FACILITIES INCREASE ATTENDANCE 1.ā€Æ Design a high-energy workout environment 2.ā€Æ Create a relationship selling and new member induction system 3.ā€Æ Recruit a team of great PTs, Small Group/ Team Trainers and Group X Instructors 4.ā€Æ Build a ā€˜club within a clubā€™ system for sports and other activities 5.ā€Æ Develop a member education and social network communication system LES MILLS INTERNATIONALĀ© 2011
  • 14. MOTIVATING PEOPLE 1. DESIGNING A HIGH-ENERGY WORKOUT ENVIRONMENT LES MILLS INTERNATIONAL Ā© 2011
  • 15. 15 MOTIVATING ATTENDANCE Ā§ļ‚§ā€Æ78% say ā€œSPACEā€ to exercise is extremely/very important! Ā§ļ‚§ā€Æ60% say the ā€œAMBIENCEā€ of the room is extremely/very important ā€œExertainmentā€ LES MILLS INTERNATIONALĀ© 2011
  • 16. 16 LES MILLS INTERNATIONAL Ā© 2011
  • 17. 17 LES MILLS INTERNATIONAL Ā© 2011
  • 18. 18 LES MILLS INTERNATIONAL Ā© 2011
  • 19. 19 LES MILLS INTERNATIONAL Ā© 2011
  • 20. 20 LES MILLS INTERNATIONAL Ā© 2011
  • 21. 21 LES MILLS INTERNATIONAL Ā© 2011
  • 22. 22 LES MILLS INTERNATIONAL Ā© 2011
  • 23. 23 LES MILLS INTERNATIONAL Ā© 2011
  • 24. 24 LES MILLS INTERNATIONAL Ā© 2011
  • 25. 25 LES MILLS INTERNATIONAL Ā© 2011
  • 27. 27 LES MILLS INTERNATIONAL Ā© 2011
  • 28. 28 LES MILLS INTERNATIONAL Ā© 2011
  • 29. 29 LES MILLS INTERNATIONAL Ā© 2011
  • 30. 30 LES MILLS INTERNATIONAL Ā© 2011
  • 31. 31 LES MILLS INTERNATIONAL Ā© 2011
  • 32. 32 LES MILLS INTERNATIONAL Ā© 2011
  • 35. BEST PRACTICE 2. MEMBERSHIP SELLING AND NEW MEMBER INDUCTION LES MILLS INTERNATIONAL Ā© 2011
  • 36. MEMBERSHIP SELLING From Hard Transactional selling to Relationship Selling to Educative Selling: Shifting the MCsā€™ focus on providing relevant ā€˜solutionsā€™ for a healthier and happier lifestyle ā€“ not selling a gym membership Ā§ļ‚§ā€ÆPeople join to get results and motivation but they stay because they make friends - The Membership Consultant (MC) can be the first powerful relationshipā€¦ Ā§ļ‚§ā€ÆPeople research and buy online more and more Ā§ļ‚§ā€ÆWe need to be more than the low-budget club ā€“ MCs need to bring additional value to online buying 36 LES MILLS INTERNATIONAL Ā© 2011
  • 37. MEMBERSHIP SELLING Ā§ļ‚§ā€ÆMCs to become Membership Coaches responsible for setting up the new member for success ā€“ā€Æ24 Hour Fitness ā€“ā€Æ80% of prospects have been member of a gym beforeā€¦ ā€“ā€ÆNo sales commission since last year ā€“ā€ÆThey have cut from 12 sales consultant to 5 membership coaches per centre ā€“ā€ÆPrices has increased and January 2012 has seen the highest number of sales ever 37 LES MILLS INTERNATIONAL Ā© 2011
  • 38. MEMBERSHIP SELLING Ā§ļ‚§ā€ÆMCs to become Membership Coaches responsible for setting up the new member for success Ā§ļ‚§ā€ÆLMNZ Case Study ā€“ā€ÆShifted from hard selling to relationship selling in 2005 ā€“ā€ÆMCs prescribe a training plan before the membership solutions: ā€“ā€ÆIt increases the perceived value and allows for an educated decision to be made ā€“ā€ÆIt creates ā€˜buy-inā€™ and commitment from prospectā€¦ It paves the road for new members to become ā€˜addictedā€™ to exercise at your facilityā€¦ and it creates a bond with the MC. ā€“ā€ÆThey are responsible and accountable for new member attendance in first 3 months (21 visits) Ā§ļ‚§ā€ÆRecruiting and training MCs properly so they can deliver educative sales pitch and prescribe holistic fitness prescription and relevant exercise recommendations based on the customersā€™ needs 38 LES MILLS INTERNATIONAL Ā© 2011
  • 39. 39 LES MILLS INTERNATIONAL Ā© 2011
  • 40. 40 LES MILLS INTERNATIONAL Ā© 2011
  • 41. 41 LES MILLS INTERNATIONAL Ā© 2011
  • 42. MEMBER ā€œGETTING STARTEDā€ TOOLS 42 LES MILLS INTERNATIONAL Ā© 2011
  • 43. 6 YOUR STAFF ARE ONE OF YOUR LAUNCH AND PROMOTE STEP 1 - Introduce your goals behind the program(s) implementation and behind BEST PROMOTIONAL TOOLS! the launch event. STEP 2 - Instructors teach the new program(s) so the rest of the staff can experience it for 2-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) Getting Boosting your attendance and membership sales partly depends on your teamā€™s ability Started Brochure(s), a copy of the to ā€˜sellā€™ your program(s) to your members and prospects. product knowledge page you have at the end of your Club Performance Manual Make 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 objections Break 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 have and sales/front-desk team in each before they attend the class (why they group) *40-year-old woman who hasnā€™t exercised properly for some years and is wouldnā€™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 class Allocate each group 3 characteristics 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 and are 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 BODYPUMPā„¢: 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 a choreographed program, 55-min full- ways of exercising during the week. few objections to each group body 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 would Give them 5 minutes to find 3 and ā€˜sellā€™ the program to that specific prospect or member. They overcome each objection and manage to participant based benefits for each must choose carefully the features and benefits they would use with motivate the person to go and try the class of 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 again Ask each group to present and playing the role of the customer. Debrief answers feedback/input if necessary Feedback and repeat for each program(s) you are about to launch. Les Mills International Limited Ā© Issued 13 07 2011 45 4 LES MILLS INTERNATIONAL Ā© 2011
  • 44. RELATIONSHIP SELLING Going the extra mileā€¦ Ā§ļ‚§ā€ÆLMNZ ā€“ If a prospect doesnā€™t join, they leave with a 30-day exercise plan to do at home ā€“ My Exercise Calendar Ā§ļ‚§ā€Æ Behaviors must align with Visionā€¦ 44 LES MILLS INTERNATIONAL Ā© 2011
  • 45. RELATIONSHIP SELLING AND NEW MEMBER INDUCTION LMNZ - Improve the lives of New Zealanders Ā§ļ‚§ā€Æ Our goal is to get people to exercise, if possible in a gym and if possible, in Les Mills gym. If they donā€™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 Ā§ļ‚§ā€ÆThis approach allows us to: ā€“ā€ÆCome across as true fitness experts vs salespeople ā€“ā€ÆPreserve the relationship ā€“ā€ÆGive MCs a good reason to follow up and a real purpose behind each follow-up call ā€“ā€ÆFocus 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 Ā© 2011
  • 46. NEW MEMBER INDUCTION PROCESS Ā§ļ‚§ā€ÆImplement 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. ā€œEvery year, the industry sells millions of memberships to men and women who, though they earnestly wish that they could become regular exercisers, have not yet developed the discipline or habit of regular exercise.ā€ IHRSA Guide to Retention 2007 ā€œ12% 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.ā€ FIA Top Ten Strategies for Winning the Retention Battle 46 LES MILLS INTERNATIONAL Ā© 2011
  • 47. NEW MEMBER INDUCTION PROCESS LMNZ - Goal: 21 visits in 3 months ā€¢ā€Æ Induction process with regular and specific points of contact ā€¢ā€Æ MCs are responsible for it (about 30% of their 21 visits commission) ā€¢ā€Æ they sell the dream; they make sure the dream happens! ā€¢ā€Æ Tracks every new member over 84 days and visits at 14, 42 and 84 days 47 LES MILLS INTERNATIONAL Ā© 2011
  • 48. LMNZ NEW MEMBER INDUCTION PLAN 21 VISITS IN 84 DAYS 48 LES MILLS INTERNATIONAL Ā© 2011
  • 49. 49 LES MILLS INTERNATIONAL Ā© 2011
  • 50. 50 LES MILLS INTERNATIONAL Ā© 2011
  • 51. RELATIONSHIP SELLING AND NEW MEMBER INDUCTION LMNZ: 21 visits in 84 days Ā§ļ‚§ā€ÆResult: 50% of members achieving the 21 in 3 months (Goal is: 65%) Ā§ļ‚§ā€ÆGive MCs a clear and genuine reason to call ā€“ā€Æ Red status: Rescue call ā€“ā€Æ Orange: What more can we do to get you here more often? ā€“ā€Æ Green: High-five call! Ā§ļ‚§ā€ÆProven 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 Ā© 2011
  • 52. BEST PRACTICE 3. CREATE A GREAT TEAM OF PTā€™S, SMALL GROUP/TEAM TRAINERS AND GROUP X INSTRUCTORS LES MILLS INTERNATIONAL Ā© 2011
  • 53. Whatever your goal and/or vision - you need a great team to help you get there. A crucial factor in the success of your programs is the quality of the instructors who teach them. Great Trainers and Instructors drive thousands of attendances each year. LES MILLS INTERNATIONAL Ā© 2011
  • 54. GET WORLD CLASS RECRUITMENT AND TRAINING SOLUTIONS Ā  Partnering with Les Mills can help you to: ā€¢ Build a brand that attracts new talent ā€¢ Develop the skills and better motivate your team ā€¢ Ensure training and ongoing staff education is relevant and up-to-date ā€¢ Guarantee quality and consistency to your members and guests ā€¢ Keep your team engaged and inspired LES MILLS INTERNATIONAL Ā© 2011
  • 55. LES MILLSā„¢ INSTRUCTOR TRAINING SYSTEM LES MILLSā„¢ TRAINING SYSTEM QUICKLY BUILDS TALENT, ENGAGEMENT AND LOYALTY Ā  National Presenter Instructors in the USA receive National ACE & AFAA education credits and Trainer Team training on completing any LES MILLSā„¢ Bootcamp training module. Advanced and Advanced training (AIM 1 Ongoing Elite LES MILLSā„¢ Quarterly Training Instructor Certiļ¬cation and 2 modules) 2-day initial International Selection training module LES MILLSā„¢ Instructor process (ā€˜clearance to teachā€™) certiļ¬cation LES MILLS INTERNATIONAL Ā© 2011
  • 56. LES MILLSā„¢ SUPPORTS YOU WITH THE #1 CHALLENGE IN THE INDUSTRY ā€“ RECRUITING AND KEEPING GREAT INSTRUCTORS LES MILLS INTERNATIONAL Ā© 2011
  • 57. ā€œHAPPY, ENGAGED AND LOYAL STAFF MAKE HAPPY, ENGAGED AND LOYAL CUSTOMERS.ā€ SOUTHWEST AIRLINES 57 LES MILLS INTERNATIONAL Ā© 2011
  • 58. STAND FOR SOMETHING. CREATE A CAUSE, NOT A BUSINESS. GIVE YOUR TEAM SOMETHING BIGGER THAN THEMSELVES TO FIGHT FOR, SOMETHING THEY CAN BE PROUD OF. 58 LES MILLS INTERNATIONAL Ā© 2011
  • 59. WHATā€™S YOUR VISION? Ā§ļ‚§ā€ÆWHY should your staff care about your business and challenge themselves every day? Ā§ļ‚§ā€ÆPeople need to be engaged in an inspiring and meaningful purposeā€¦ 59 LES MILLS INTERNATIONAL Ā© 2011
  • 60. FOR A FITTER PLANET Ā§ļ‚§ā€Æā€œWe are warriors in the battle against inactivity and over-consumption.ā€ LMI Instructor Creed, 1998 Ā§ļ‚§ā€Æā€œCreating life-changing experiences every time, everywhere. One class at a time, one participant at a time.ā€ AIM manual Ā§ļ‚§ā€Æā€œYou have to find a way to make people fall in love with fitness.ā€ Les Mills, 1968 60 LES MILLS INTERNATIONAL Ā© 2011
  • 61. BEST PRACTICE 4. BUILD A SYSTEM OF INTEGRATED ā€˜ASSISTED EXERCISE AND ACTIVITESā€ LES MILLS INTERNATIONAL Ā© 2011
  • 62. BUCKETOLOGY OF ASSISTED EXERCISE Assisted Exercise has higher attendance, BENCHMARKS FOR retention and referral rates than unassisted HIGH PERFORMING FACILITIES exercise. Small Group/Team training and Personal Training are powerful forms to build community. But even the best operators in the world have only 1%-14% of the their total membership base attending these activities. Unassisted Exercise In contrast Group Exercise attracts and motivates the masses. Some of the worldā€™s Group Exercise 36% most successful facilities have over 50% of their attendances in GX. Many have 30%-50% 50% ā€œGroup Exercise members attend more regularly, remain members for longer, make more referrals, perceive greater value in their memberships (ie will pay more) and do not Small Group Training 4% leave when a budget gym opens nearby!ā€1 Personal Training 10% 1. Will Phillips, The Retention Breakthrough LES MILLS INTERNATIONALĀ© 2011
  • 63. CREATING BONDS WITH DIFFERENT OFFERINGS Group Fitness Team Training Personal Training Event Training Freelance Programmes 63 LES MILLS INTERNATIONALĀ© 2011
  • 64. PERSONAL TRAINING ā€“ 1 TO 1 BOND Ā§ļ‚§ā€ÆA great way to increase the quality of on-boarding, results and connection (member to staff) Ā§ļ‚§ā€ÆCan be a good source of revenue Ā§ļ‚§ā€ÆIncrease income opportunities and career opportunities for GX instructors Ā§ļ‚§ā€ÆHowever: ā€“ā€Æ Even the best facilities in the world have less than 10% of members using PT on a regular basis vs 50%+ in GX ā€“ā€Æ 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 ā€“ā€Æ No prescription of other form of exercise such as GX (which is more social and more holistic) 64 LES MILLS INTERNATIONALĀ© 2011
  • 65. SMALL-GROUP TEAM ONE TO FEW BONDS Ā§ļ‚§ā€ÆCurrently the holy grail of the industry Ā§ļ‚§ā€ÆEverybody wants successful SGTT programs ā€“ā€Æ Allows more people access to PT ā€“ā€Æ Increases $ per hour for PTs ā€“ā€Æ Builds relationships between membersā€¦ They make good friends. ā€“ā€Æ Brings back the spirit of sports teams Ā§ļ‚§ā€ÆChallenges: ā€“ā€Æ Scheduling ā€“ā€Æ Booking and Payment Models ā€“ā€Æ Space, and Equipment ā€“ā€Æ Safety, Consistency, Scalability 65 LES MILLS INTERNATIONALĀ© 2011
  • 66. EVENTS TRAINING ONE TO MANY BONDS 66 LES MILLS INTERNATIONALĀ© 2011
  • 67. GROUP EXERCISE IS BY FAR THE MOST POWERFUL WEAPON IN YOUR MOTIVATIONAL ARSENAL! ā€¢ā€Æ 90% of all exercisers report that they would prefer to work out in a group.1 ā€¢ā€Æ Members who attend Group Exercise (GX) use their facility 3 times per week compared to IHRSA's ļ¬gure of 1.9 member visits a week, on average. ā€¢ā€Æ GX is cited as the biggest inļ¬‚uence (40%) on how long people remain a member of a ļ¬tness facility. ā€¢ā€Æ GX member retention rates are higher than other member retention rates, on average. ā€¢ā€Æ 60% of people rate GX as the #1 service they speciļ¬cally look at when choosing a gym.2 ā€¢ā€Æ Satisļ¬ed GX members refer people 3 times more than other members. LES MILLS INTERNATIONALĀ© 2011
  • 68. There is absolutely a commercial connection between group ļ¬tness attendance and long-term proļ¬table facilities! LES MILLS INTERNATIONALĀ© 2011
  • 69. THE POWER OF GROUP EXERCISE Ā§ļ‚§ā€ÆMany facilities worldwide are being hurt by low-budget competitors. Ā§ļ‚§ā€ÆAt the same time, there are successful new fitness models emerging (micro gyms) eg: ā€¢ā€Æ Orange Theory - $23 per class ā€¢ā€Æ Kosama, Omni, Fitness Together, Title Boxing ā€¢ā€Æ Soul Cycle and Flywheel (US) ā€“ $32 per class ā€¢ā€Æ Pure Yoga (Asia and US) ā€“ $145 to $165 per month ā€¢ā€Æ Exhale Spa (US) ā€“ $195 pm for classes-only membership 69 LES MILLS INTERNATIONALĀ© 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 INTERNATIONALĀ© 2011
  • 71. WHAT DOES IT TAKES TO BECOME A CHAMPION AT GROUP EXERCISE? LES MILLS INTERNATIONALĀ© 2011
  • 72. 72 LES MILLS INTERNATIONALĀ© 2011
  • 73. THE PLAN IS BASED AROUND 8 KEYS ELEMENTS WHERE TO START? 73 LES MILLS INTERNATIONALĀ© 2011
  • 74. 74 Ā  WHAT DRIVES MEMBER ATTENDANCE IN GX? #1 DRIVER FOR CLASS ATTENDANCE IS THE PROGRAM Nielsen Consumer Survey 74 LES MILLS INTERNATIONALĀ© 2011
  • 75. SMART PROGRAMMING Ā§ļ‚§ā€ÆProspects and members usually need three types of training to cover their basic needs ā€“ā€ÆStrength Toning ā€“ā€ÆCardio ā€“ā€ÆMind-Body Ā§ļ‚§ā€ÆMake sure you have at least one ā€œbest in classā€ program you can recommend in terms of experience, quality, safety, and consistency in each of these categories: 75 LES MILLS INTERNATIONALĀ© 2011
  • 76. WHERE TO START WHERE TO START?5 program Ā§ļ‚§ā€ÆResearch show genres comprise 75% of GX attendance every week. In order of market share, these are: Ā§ļ‚§ā€Æ21% Strength and Weights Ā§ļ‚§ā€Æ19% Cycling Ā§ļ‚§ā€Æ14% Mind and Body Ā§ļ‚§ā€Æ12% Dance Ā§ļ‚§ā€Æ 9% Martial Arts Ā§ļ‚§ā€Æ 25 % Fusion 76 LES MILLS INTERNATIONALĀ© 2011
  • 77. GET YOUR PROGRAMMING RIGHT AFTER DETERMINING DEMOGRAPHIC POSITIONINGā€¦ ALLOCATE 70% OF YOUR TIMETABLE TO CORE PROGRAMS AND 20 - 30% TO SPECIALTY ONES 77 LES MILLS INTERNATIONALĀ© 2011
  • 80. Les Millsā€™ BODYPUMPĀ® is the original barbell class, designed and scientiļ¬cally proven to strengthen the entire body. This 60-minute workout challenges all major muscle groups by using the best weight-room exercises, including squats, presses, lifts and curls. Great music, awesome instructors and individual choice of weights inspire participants to perform 800 reps per class and to get the results they came for - and fast! Ā  Due to its broad appeal, BODYPUMPĀ® 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. BODYPUMPĀ® participants visit 4.3 times per week on average versus the industry average of less than twice a week for non- Group Exercise club visits. Ā  LES MILLS INTERNATIONALĀ© 2011
  • 81. DRIVING PEOPLE INTO CLUBS VIA TV Ā  Les Mills is committed to building our brand and growing demand for your classes. Thatā€™s why weā€™ve teamed up with Beachbody, the best-known provider of home workouts, to create " LES MILLSTM PUMP, a set of home-workout DVDs. Weā€™ve seen the power of other brands using infomercials to drive consumer awareness. Partnering with Beachbody will introduce a national audience of millions to the Les Mills brand. The exposure will help to drive more people into your facility and classes, and make it that much easier for you to sign up new members. Ā  LES MILLS INTERNATIONALĀ© 2011
  • 82. BODYPUMPĀ® CXWORXā„¢ RPMā„¢ BODYBALANCEā„¢ BODYCOMBATā„¢ Les Millsā€™ BODYPUMPĀ® is the original barbell A short, sharp workout, backed by core An indoor-cycling workout where /BODYFLOWĀ® Les Millsā€™ BODYCOMBATTM is a class, designed and conditioning research participants ride to the ļ¬ercely energetic cardio scientiļ¬cally proven to from Penn State BODYBALANCETM/! rhythm of powerful workout inspired by strengthen the entire University, that BODYFLOWĀ® is a Yoga, music. The inspiring team martial arts such as body. This 60-minute strengthens and tones coach leads the pack Tai Chi and Pilates Karate, Boxing, Tae Kwon workout challenges all the body. It hones in on workout that builds through hills, ļ¬‚ats, Do, Tai Chi and Muay major muscle groups by the torso and sling ļ¬‚exibility and strength. mountain peaks, time Thai. Supported by using the best weight- muscles that connect the Controlled breathing, trials and interval driving music and room exercises, including upper and lower body. concentration, stretches, squats, presses, lifts and Itā€™s ideal for tightening training. Participants energizing instructors, moves and poses to curls. Great music, tummy and butt, sweat and burn to reach participants strike, music create an holistic awesome instructors and improving functional the endorphin high!! punch, kick and KATA workout that balances individual 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 participants participants to perform CXWORXā„¢ bands are cardio ļ¬tness.! 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 appeal for ā€“ and fast!! numbers during peak and Best practice suggests BODYBALANCETM/ Due to its broad appeal shoulder times, weekdays Due to its broad appeal, CXWORXTM attracts big scheduling it 9 to 14 times BODYFLOWĀ® attracts big and weekends. While it BODYPUMPĀ® 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, performance slots. Best practice Best practice suggests is dependent on marketing Best practice suggests Most clubs that have suggests scheduling it a scheduling and the convenience of scheduling it at peak or dedicated cycling studios minimum of 7 to 12 times BODYBALANCEā„¢ a timing. shoulder times once or offer 3 to 7 classes a day. across the week to minimum of 5 to 7 times maximize 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 ITā€™S POSSIBLE TO scheduling classes per day. classes are ideal. Itā€™s very popular in the BODYCOMBATTM at least CHARGE A BOOKING FEE FOR RPMTM TO morning, shoulder times 5 to 7 times a week. BODYPUMPĀ® DID YOU KNOW? CXWORXā„¢ CAN BE BRING IN ANCILLARY and during weekends. PARTICIPANTS VISIT 4.3 USED AS A FEE-BASED, REVENUE IN THE TIMES PER WEEK ON SMALL-GROUP THOUSANDS PER WEEK. AVERAGE VERSUS THE INDUSTRY AVERAGE OF TRAINING PROGRAM. LESS THAN TWICE A MANY FACILITIES ARE WEEK FOR NON-GROUP HAVING SUCCESS WITH EXERCISE CLUB VISITS. THIS BOTH IN AND OUT OF THE GROUP Ā  EXERCISE ROOM. LES MILLS INTERNATIONALĀ© 2011
  • 83. SH'BAMā„¢ BODYVIVEā„¢ BODYJAMā„¢ BODYSTEPā„¢ BODYATTACKā„¢ Simple dance moves with A fun, low-impact, whole- A cardio workout offering Using simple movements A sports-inspired cardio chart-topping popular body workout that an addictive fusion of the on, over and around a workout for building hits enable participants improves ļ¬tness 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 interval their inner star ā€“ even if weight, VIVETM tubes and the emphasis as much on motivation from popular training classes combine theyā€™re dance- balls for extra resistance. having fun as breaking a music and uplifting athletic aerobic challenged! The 45- Great music, group sweat. Funky instructors instructors. Cardio blocks movements with strength minute SHā€™BAMā„¢ interaction and a skilled teach participants how to push fat-burning systems and stabilization classes provide the instructor inspire move with attitude into high gear, followed exercises. Dynamic ultimate fun and sociable participants to get ļ¬t for through this 55-minute by muscle-conditioning instructors and powerful way to exercise. ! life.! class.! tracks that shape and music motivate tone the body.! participants toward their Attracts maximum Attracts maximum Attracts maximum ļ¬tness goals.! numbers during peak and numbers during peak and numbers during peak and Attracts maximum shoulder times, weekdays shoulder times, weekdays shoulder times, weekdays numbers during peak and Attracts maximum and weekends. Best and weekends. While it and weekends. Can shoulder times, weekdays numbers during peak and practice suggests also works very well at off- perform strongly off peak and weekends, particularly shoulder times, weekdays scheduling SHā€™BAMā„¢ 5 to peak times, performance with a charismatic mornings. Best practice and weekends. Can 7 times a week. Ā  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. VIVEā„¢ tubes and balls are available at lesmills.com/equipment LES MILLS INTERNATIONALĀ© 2011
  • 84. GROW YOUR GX NUMBERS ORGANIZE REGULAR EVENTS THAT ā€˜WOWā€™ LES MILLS INTERNATIONAL Ā© 2011
  • 85. WOW GX EVENTS THE BEST WAY TO CREATE MOMENTUM, RE-IGNITE MEMBER MOTIVATION, BUILD ATTENDANCE, COMMUNITY, RETENTION ANDā€¦ GROW MEMBERSHIP 85 LES MILLS INTERNATIONALĀ© 2011
  • 86. THE SALES / EXPERIENCE CURVE Experience ā€œWhen you host GX events, you are selling non-members an experience, not a membership ā€“ this makes selling so much easier.ā€ Sales 86 LES MILLS INTERNATIONALĀ© 2011
  • 87. LES MILLSTM EVENTS BENCHMARK Ā§ļ‚§ā€Æ Massive BUZZ and interest in club during the 2 weeks building up to event Ā§ļ‚§ā€Æ Full focus from club team on common goals and interaction between sales, customer experience and product departments ā€“ ā€˜Breaking down silosā€™ Ā§ļ‚§ā€Æ Sold-out events and massive energy in clubs ā€“ all classes at 80 to 100% capacity Ā§ļ‚§ā€Æ Attendance: 5 to 10% membership Ā§ļ‚§ā€Æ 20% guests per class Ā§ļ‚§ā€Æ 50 to 70% conversion rate of guests Ā§ļ‚§ā€Æ Massive buzz post-event Ā§ļ‚§ā€Æ An increase of attendance in 2 to 3 weeks post-event of 10 to 20% 87 LES MILLS INTERNATIONALĀ© 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 Ā© Issued 13.07.2011 LES MILLS INTERNATIONALĀ© 2011
  • 89. EVENTS PLANNING BENCHMARK Ā§ļ‚§ā€Æ Massive BUZZ and interest in club during the 2 weeks building up to event Ā§ļ‚§ā€Æ Full focus from club team on common goals and interaction between sales, customer experience and product departments ā€“ ā€˜Breaking down silosā€™ Ā§ļ‚§ā€Æ Sold-out events and massive energy in clubs ā€“ all classes at 80 to 100% capacity Ā§ļ‚§ā€Æ Attendance: 5 to 10% membership Ā§ļ‚§ā€Æ 20% guests per class Ā§ļ‚§ā€Æ 50 to 70% conversion rate of guests Ā§ļ‚§ā€Æ Massive buzz post-event Ā§ļ‚§ā€Æ An increase of attendance in 2 to 3 weeks post-event of 10 to 20% 89 LES MILLS INTERNATIONAL Ā© 2011
  • 90. PROMOTE YOUR PROGRAMS AND EVENTS WITH WORLD CLASS MARKETING AND RESOURCES LES MILLS INTERNATIONAL Ā© 2011
  • 94. WORLD-CLASS MARKETING AND PROMOTIONAL SOLUTIONS Ā  EVERYTHING YOU NEED TO HOST AMAZING EVENTS THAT ATTRACT NEW MEMBERS AND PROMOTE YOUR PROGRAMS. Ā  The LES MILLSā„¢ Group Fitness solution gives you free access to a huge collection of valuable marketing and promotional resources. We are continually working on new ways to help you inspire your members and prospects. Currently weā€™re developing online tools, which will allow you to customize material with your own club logos and messages. Ā  LES MILLS INTERNATIONALĀ© 2011
  • 95. BEST PRACTICE 5. DEVELOP A MEMBER EDUCATION AND SOCIAL NETWORK COMMUNICATION SYSTEM LES MILLS INTERNATIONAL Ā© 2011
  • 96. EDUCATION: BECOMING A TRUE ā€œHEALTH CLUBā€ Health clubs need to become more than just places where people go to use exercise machines! We need to become true providers of holistic health. Education changes lives and your members will love you for it. LES MILLS INTERNATIONAL Ā© 2011
  • 97. visited the club in the last 45 days. Contacting long term non users could initiate a cancellation ā€“ ā€œwaking the sleeping dogā€ concept. However, when a filtered member registers a visit they will automatically be integrated into the service which will start with a TALK 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 ā€¢ā€Æ Create a personal Regular User relationship with your members Non User Retention Management Proprietary LES MILLS INTERNATIONAL Ā© 2011
  • 98. SOCIAL MEDIA Social media is revolutionizing our ability to communicate! Butā€¦ itā€™s not as easy as it looks. Engagement, interest and authenticity are key. Otherwise itā€™s meaninglessā€¦ The key is to start and continue a conversation. Get members talking about youā€¦ LES MILLS INTERNATIONAL Ā© 2011
  • 99. 99 LES MILLS INTERNATIONAL Ā© 2011
  • 100. 100 LES MILLS INTERNATIONAL Ā© 2011
  • 101. ENGAGING THE COMMUNITY CHANGING THE PERCEPTION OF OUR INDUSTRY Ā§ļ‚§ā€ÆLifestyle Family Fitness (Florida) teen fitness initiative ā€“ā€Æ FREE 2-Month Summer Membership ā€“ā€Æ Teens can utilize all equipment and participate in Group Exercise classes ā€“ā€Æ Hourly restrictions in place (ie non-prime time) ā€“ā€Æ Rememberā€¦ teens have parents and they grow up to become paying adults 101 LES MILLS INTERNATIONAL Ā© 2011
  • 102. ENGAGING THE COMMUNITY CHANGING THE PERCEPTION OF OUR INDUSTRY 102 LES MILLS INTERNATIONAL Ā© 2011
  • 103. UNLEASHING YOUR MEMBERSHIP POTENTIAL WITHOUT CUTTING SERVICES OR DISCOUNTNG PRICES FUTURE OF FITNESS 103 LES MILLS INTERNATIONAL Ā© 2011