Presentation for ACE Personal Training Symposium West - San Diego May 2013.

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Future Trends for the health and fitness industry - Impact for full service operators

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Presentation for ACE Personal Training Symposium West - San Diego May 2013.

  1. 1. ACESYMPOSIUMWEST-SANDIEGOMAY2013THE FUTURE OF FITNESS –INTEGRATED FITNESS UNLEASHED
  2. 2. THE FUTURE OF FITNESSTHETRENDSTHATWILLSHAPEHUMANFITNESSANDACTIVITY
  3. 3. 01020304050601960 1970 1980 1990 2000 2010 2020 2030 2040US ADULT FITNESS CLUB PARTICIPATION
  4. 4. STAGNATION:SEGMENTATIONRATHERTHANINNOVATION,WHILECOMPETITIVEINDUSTRIESAREEVOLVINGE.G.• ONLINEEXERCISE• FITNESSGAMES• NEWSPORTS• NUTRITIONANDMEDICINEFITNESS CLUBS ARE AT RISK
  5. 5. BUDGET CLUBS
  6. 6. MICRO-GYMS
  7. 7. • CROSSFIT–5,000clubs–$200permonth• ORANGETHEORY–$23perclass/$159permonth• SOULCYCLE–$32perclass+$30toreserveabike!• PUREYOGA(US)–$145-$165permonth• KOSAMA,OMNI,FITNESSTOGETHER,TITLEBOXING,UFCETCINSIGHT: PEOPLE ARE PREPARED TO PAY MORETO ATTEND MICROS THAN TRADITIONAL CLUBS
  8. 8. • EXERTAINMENT–Makeexercisemorefun• COMMUNITY–Makeclubsmoresocial• HEALTH–MakeclubsmoreholisticTHREE AREAS OF OPPORTUNITY:WE CAN GROUP THESEUNDER ONE HEADING…
  9. 9. Whenweaskpeoplewhytheywanttojoinafitnessclubtheysaythingslikeweightloss,toningup,gettingfitter,feelingbetter,improvingtheirhealth.Theseallcomeundertheheadingof“results”.Butpeoplecangettheseresultsintheirlivingroom,atthelocalpark,orbyrunningaroundtheblock.SO WHY DO THEY JOIN OUR CLUBS?
  10. 10. BecausetheylackMOTIVATIONWeareinthemotivationbusiness.Whethertheyknowitornot,theworld’sbestclubsaremastersofmeetingthisneed.
  11. 11. HOW CAN WE MANAGE MOTIVATION?Firstwehavetobeabletomeasureit-ifyoucan’tmeasuresomethingyoucan’tmanageit.Sohowdowemeasuremotivation?Howdoweknowifwe’redoingagreatjobofmotivatingpeople?
  12. 12. Peoplewhoattendtheclubmoreoftenwillrefermorefriends,staylongerandpaymore.Attendanceisthemostimportantmetricinourindustry.IT’S SIMPLE, THEY ATTEND MORE OFTEN.Now let’s talk about motivation using the three areas of opportunity identifiedin the Future of Fitness research: exertainment, community and health.
  13. 13. EXERTAINMENTMOREMOTIVATINGEXERCISEENVIRONMENTS
  14. 14. GX STUDIOSCHECKOUTLESMILLSWORLDCLASSSTUDIOSEARCHATWWW.LESMILLS.COM
  15. 15. SMALL GROUP TEAMTRAINING SPACE
  16. 16. “Mostofusaren’treallyhealthclubs,we’renotevenclubs.We’rejustplaceswherepeoplecometoliftweightsandrunonatreadmill”–MichaelScottScudderSOCIAL MOTIVATION/ COMMUNITY
  17. 17. SELL THE LONG-TERM RELATIONSHIP    
  18. 18. MAKE EXERCISE SOCIAL    GroupFitness SmallGroup/TeamTraining PersonalTraining EventTraining
  19. 19. GROUP TRAININGManyfullserviceclubsarebeinghurtbylow-budgetcompetitors. Atthesametime,therearesuccessfulnewclubmodelsevolving:•  Crossfit–4,600clubs-$200permonth•  OrangeTheory-$23perclass/$159permonth•  SoulCycleandFlywheel(US)-$32perclass•  PureYoga(AsiaandUS)–$145-$165permonth•  Kosama,Omni,FitnessTogether,TitleBoxing,UFCetcetc
  20. 20. Example: EvolutionoftheExercycle1980 Old-fashionedstationarybike1985 Computerizedbike1990 Cardiotheatre1995  SpinningclassNow Standardized,quality-assuredclassesMOTIVATION: GROUP TRAININGGFisthemosteffectivewayofcreatingmotivationfortheaveragefitnessmember
  21. 21. WHAT ABOUT PERSONAL TRAINING AND SMALL GROUPTRAINING – DON’T THEY ACHIEVE THE SAME THINGS?Yesabsolutely. Thesearewonderfulinnovationsthathaverevolutionizedpartsofourindustry.Andfacilityoperatorslovethembecausetheycanchargeforthem.Howevereventheworld’sbestonlyengagearound10%oftheirattendancesinPTand3-4%inSmallGroupTraining.GroupExerciseattractsandmotivatesthemasses.Someoftheworld’smostsuccessfulfacilitieshaveover50%oftheirattendancesinGroupExercise.“GroupExercisemembersattendmoreregularly,remainmemberslonger,makemorereferrals,perceivegreatervalueintheirmemberships(i.e.willpaymore)anddonotleavewhenabudgetgymopensnearby!”
  22. 22. GROUP FITNESS 2.0
  23. 23. REFERRALMostloyalmembersACQUISITIONPotentialguestdriverRETENTIONHighusageMEMBER LIFE CYCLE
  24. 24. IsolationGenericbasicprogrammingInstructordrivenprogramsPrimarycertificationsrequiredRequiredbusinesssilomanagedby“GXinstructormademanager”ValueProgramdrivenschedulingwithsportsconditioningtodancetomindbodyRiseofstudiospaceforCF,MMA,Yoga,Barre,etc..Hybridinstructorsontherise–PTandGXOffenseUsebenefitsofGroupFitnessasaprimarysellingfocusinclubsKeyisdifferentiationonexecution–service&experiencemorethanproductProgrammingbysegment–youth,senior,babyboomer,athletesYESTERDAY, TODAY AND TOMMOROWFuturePresentPast
  25. 25. Riseofspecialized studiospaceFROM CROSSFIT TO HITT TO GRIT
  26. 26. CLUB WITHIN A CLUB
  27. 27. CLUB WITHIN A CLUB FOR MILLENIALS
  28. 28. IsitGroupXorisitTraining?§  Segregatedfitnessteams §  Trainersdon’tutilizeGroupX§  GroupXinstructorsdon’tsupportPT§  MembersalignbasedonexperienceProgrammingdeterminesbest“coach”intheclubWHO OWNS THE SMALL GROUP SPACE?
  29. 29. WHATAREYOUSOLVINGFOR?•  Activeclientgrowth?•  Frequencyofclientinteractions?•  MargingrowthProgrammingdeterminesbest“coach”intheclubWATCHOUTS•  Activeclientcannibalization•  Flatrateversussessionburn•  Programmedorfreestyle?•  HowtoenticenewpeopleSTART AT THE BEGINNING
  30. 30. §  FROM:§  ABC’sofSales§  Servicesecondary§  Onesizefitsall§  Traditionaladvertising§  Wordofmouthreferrals1to1Vendorssellfortoday,partnerssellfortomorrow§  TO:§  Salesplusservice§  Educationmatters§  Differentiatedofferings§  Socialmediaimpact§  Wordofmouthreferral1to10/100/1000EVOLUTION - VENDORSHIP TO PARTNERSHIP
  31. 31. CLUBS WITHIN CLUBSProductscreatedasspecificeventtrainingprograms.Designedaroundanorganisedevent(egmarathon,cyclechallenge,triathlon).Trainingorganisedin8or12weekblockswithanemphasisonguidance,supportandmotivation.Clearsenseofpurposeculminatingintheeventitselfandthepersonalsatisfactionofcompletingit.Participantspaytheclubdirect,pricesvary.Availabletobothmembersandnon-members.LESMILLSRIDE™ LESMILLSRUN™ LESMILLSTRI™        
  32. 32. SOCIAL MEDIAISREVOLUTIONIZINGOURABILITYTOCOMMUNICATEBUT…IT’SNOTASEASYASITLOOKS.ENGAGEMENT,INTERESTANDAUTHENTICITYAREKEY.OTHERWISEIT’SMEANINGLESS
  33. 33. EDUCATION=MOTIVATIONBetween2006-2016thecostoftheAmericanhealthsystemwillalmostdoubleto$4.1trillionperyear*.Itseemsthatourhealthisdeterioratingatalmostasquicklyasthesecostsareincreasing. Thecurrentsystemclearlyisn’tworking-there’sgottobeabetterway!*2006USTreasuryReportTHE HEALTH OPPORTUNITY
  34. 34. EDUCATION:BECOMETRUE‘HEALTHCLUBS’Healthclubsneedtobecomemorethanjustplaceswherepeoplegotouseexercisemachines!Weneedtobecometrueprovidersofholistichealth.Educationchangeslivesandyourmemberswillloveyouforit.Afewplacestostart:• Mercola.com• YoungerNextYear–Crowley/Lodges• TheOmnivore’sDilemma–MichaelPollan• You:TheOwner’sManual–Roizen/Oz
  35. 35. TALK TO YOURMEMBERSCREATEAPERSONALRELATIONSHIPWITHYOURMEMBERSCHOOSETHERIGHTMEDIUMFORTHEM:ONEWAYCOMMUNICATION?TWOWAY? SOCIALMEDIA?
  36. 36. “CREATEACAUSE,NOTABUSINESS”-TomPetersSTAND FOR SOMETHINGPeopledon’tcometoworktoincreaseshareholdervalue,theywanttomakeadifference!  
  37. 37. THEMOSTSUCCESSFULBUSINESSESINTHEWORLDCAREABOUTMORETHANJUSTMAKINGMONEY    STAND FOR SOMETHING    
  38. 38. Wearetheexactoppositeofthecigaretteandjunkfoodcompaniesandwehaveanintimaterelationshipwithalargepercentageoftheworld’swealthiestpeople. LET’S CREATE A FITTER PLANETTheworldisfacingagreatholistichealthchallengeandourindustryisperfectlypositionedtoplayabigpartinthesolution.
  39. 39. • Reducefacilitycosts• Attractmoremembers• Improvememberhealth• Increasestaffengagement• Improveenvironment• MitigateglobalriskREASONS TO BECOME A GREENFACILITY
  40. 40. WECANCHANGEOURHEALTHANDTHATOFTHEPLANETBYONESIMPLEMEANS:WHATWEPUTINOURMOUTHSFITTER FOOD
  41. 41. Individualsandbusinessescannotbeallowedtodestroyourgreatestcommunalassets.Ourleadersneedtoleadontheseissues!Fitnessindustryinitiatives:• Physicaleducationbackinschools,junkfoodout• Betterurbandesign• Taxincentivestobeslimandfit• Encouragehealthyeating(taxjunkfood!)• HealthierenvironmentFITTER GOVERNMENT
  42. 42. Therearehundredsofgreatideas,fromlowenergylightingandappliances,tolow-flowshowerheadsandtoilets,tosigningwitharenewableenergyprovideroreveninstallingsolarenergy.Haveaprofessionalgreenauditdoneonyourbusiness.Thereareincrediblesavingstobemadeinresourceuseandyourownmoney.FITTER FACILITIES
  43. 43. EXERTAINMENT,COMMUNITY,EDUCATIONHealthclubattendancehasbecomethebiggestadult“sport”intheWesternWorld. Biggerthanfootball,tennisandgolfcombined. Butwehavetraditionallylackedtheexcitementandsocialengagementofsports,andbehavedmoreasgymsthanastruehealthclubs. Thefasterwecanchangethat,thebiggerourfuture!MOTIVATION:THE BIG OPPORTUNITY
  44. 44. ACESYMPOSIUMWEST-SANDIEGOMAY2013THE FUTURE OF FITNESS –INTEGRATED FITNESS UNLEASHED

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