IDEA World 2013 Future of Fitness

P R E S E N T E D B Y

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THE FUTURE OF FITNESS – GROUP FITNESS

UNLEASHED

Steven Renata Randy Hetrick

Darren Jacobsen

© 2013 IDEA Health & Fitness Association. All Rights Reserved.

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SESSION OVERVIEW

•  Group fitness is more than a strong retention tool. When fully utilized, it is the most powerful form of assisted exercise to grow attendance and membership.

•  The growth of budget and micro gyms has changed the industry landscape bringing new opportunities and challenges for full service facilities.

•  Differentiation through execution is the NEW BLACK. World Class execution of group fitness has the potential to grow and sustain your business through referrals and guest acquisition.

•  Les Mills share insights and case studies on how to drive millions of member touches per year. The session also includes a panel discussion of other industry players including ZUMBA and TRX


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SOURCE DATA

Supplement to Club Business International

2013

GLOBAL REP RT

THE IHRSA

®

THE STATE OF THE HEALTH CLUB INDUSTRY


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INDUSTRY OVERVIEW

1.  US is on the rebound with growth predicted at 3% by 2014

2.  Consumer and Business confidence is up - – “Housing effect”

3.  Club Net Membership and Revenues up by 3.1% and 3.6% respectively after 5 years of tough economic conditions

4.  Consolidation with Chain Acquisitions (LA Fitness, TITAN, GOLDS, UFC)

5.  Continued growth of 24/7 Chains (ANYTIME, SNAP)

6.  Continued growth of HVLP Chains (PLANET FITNESS)

7.  Growth with Micro Gyms (ORANGE THEORY, BLINK, SOUL CYCLE)

8.  Growth of MMA/Boxing Gyms (UFC)


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US -NUMBER OF CLUBS BY STATE INDUSTRY RESEARCH

THE AMERICAS STATISTICS - THE UNITED STATES

NUMBER OF CLUBS

Total United States 30,500*NORTH EAST New England Connecticut 515Maine 160 Massachusetts 967New Hampshire 198Rhode Island 141Vermont 114Middle Atlantic New Jersey 1,090 New York 1,739Pennsylvania 1,311SOUTH South Atlantic Delaware 88Washington, D.C. 78Maryland 612Virginia 828West Virginia 115Florida 2,040Georgia 949North Carolina 938South Carolina 436East South Central Alabama 458Kentucky 341Mississippi 249Tennessee 585West South Central Louisiana 538Arkansas 251Oklahoma 374Texas 2,482

5 STATES WITH THE MOST CLUBSCaliforniaTexasFloridaNew YorkPennsylvania

NUMBER OF CLUBS

NORTH CENTRAL East North Central Illinois 1,219Indiana 604Michigan 1,053Ohio 1,141Wisconsin 766West North Central Iowa 378Kansas 271Minnesota 783Missouri 622Nebraska 210North Dakota 85South Dakota 116WEST Mountain Arizona 562Colorado 625Idaho 179Montana 144New Mexico 198Nevada 266Utah 259Wyoming 62Pacific Alaska 83California 3,831Hawaii 107Oregon 465Washington 804

5 STATES WITH THE HIGHEST PENETRATION RATESMassachusettsColoradoNew JerseyIllinoisCalifornia

*As of January 2013

Total number of clubs by state as of July 2012

Source: Info USA, Inc. (Figures reflect number of businesses listed on Yellow Pages under SIC code 7991.)

© C O P Y R I G H T 2 0 1 3 I H R S A | I H R S A G L O B A L R E P O R T 37I H R S A . O R G


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WHY PEOPLE JOIN HEALTH CLUB

INDUSTRY RESEARCH

THE AMERICAS - THE UNITED STATESWHY PEOPLE JOIN HEALTH CLUBSQuestion: Which of the following are personal goals for using the health club you currently belong to?

58.5%

46.4%

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

44.0%

43.8%

41.3%

40.7%

35.3%

34.7%

34.5%

31.9%

19.9%

9.9%

9.3%

0 10 20 30 40 50 60

THE AMERICAS - THE UNITED STATESWHY MEMBERS STAY Question: What keeps you coming back to use the health club you currently belong to?

58.0%

51.1%

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

45.5%

38.0%

36.6%

35.5%

32.7%

22.9%

21.4%

18.0%

17.2%

11.6%

0 10 20 30 40 50 60

Source: The IHRSA Trend Report (Multiple answers were permitted.)


1. To stay healthy 2. To feel better about myself 3. To stay in shape 4. To maintain strength 5. To look better 6. To lose weight 7. To get in shape 8. To stay flexible 9. To build muscle 10. To maintain weight 11. For a specific health concern 12. To gain weight 13. To impress others

1. To get in shape/stay in shape/stay healthy 2. For overall health/well-being 3. It’s at a convenient location to me 4. Variety of equipment, strength and cardiovascular equipment 5. To make progress with my personal goals 6. To get my workout in, rather than to socialize 7. To have fun 8. My friends and family work out at the health club 9. Access to group exercise classes 10. Access to fitness professionals 11. I feel obligated to go because of the money I spend on membership 12. The social aspects of the health club

38 I H R S A G L O B A L R E P O R T | © C O P Y R I G H T 2 0 1 3 I H R S A I H R S A . O R G


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WHY MEMBERS STAY

INDUSTRY RESEARCH

THE AMERICAS - THE UNITED STATESWHY PEOPLE JOIN HEALTH CLUBSQuestion: Which of the following are personal goals for using the health club you currently belong to?

58.5%

46.4%

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

44.0%

43.8%

41.3%

40.7%

35.3%

34.7%

34.5%

31.9%

19.9%

9.9%

9.3%

0 10 20 30 40 50 60

THE AMERICAS - THE UNITED STATESWHY MEMBERS STAY Question: What keeps you coming back to use the health club you currently belong to?

58.0%

51.1%

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

45.5%

38.0%

36.6%

35.5%

32.7%

22.9%

21.4%

18.0%

17.2%

11.6%

0 10 20 30 40 50 60



1. To stay healthy 2. To feel better about myself 3. To stay in shape 4. To maintain strength 5. To look better 6. To lose weight 7. To get in shape 8. To stay flexible 9. To build muscle 10. To maintain weight 11. For a specific health concern 12. To gain weight 13. To impress others

1. To get in shape/stay in shape/stay healthy 2. For overall health/well-being 3. It’s at a convenient location to me 4. Variety of equipment, strength and cardiovascular equipment 5. To make progress with my personal goals 6. To get my workout in, rather than to socialize 7. To have fun 8. My friends and family work out at the health club 9. Access to group exercise classes 10. Access to fitness professionals 11. I feel obligated to go because of the money I spend on membership 12. The social aspects of the health club

38 I H R S A G L O B A L R E P O R T | © C O P Y R I G H T 2 0 1 3 I H R S A I H R S A . O R G


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WHY PEOPLE LEAVE A HEALTH CLUB

INDUSTRY RESEARCH

THE AMERICAS - THE UNITED STATESWHY MEMBERS QUIT HEALTH CLUBSQuestion: Why did you leave/quit your former health club?

45.5%

28.1%

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

27.6%

17.1%

15.4%

12.5%

11.8%

9.0%

8.0%

6.3%

5.3%

5.3%

5.3%

4.4%

4.2%

4.0%

0 10 20 30 40 50

THE AMERICAS - THE UNITED STATESWHY PEOPLE DON’T JOIN HEALTH CLUBSQuestion: What keeps you from joining a health club now?

0 10 20 30 40 50 60

50.7%

27.7%

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

21.6%

18.1%

15.0%

11.1%

9.6%

9.6%

9.0%

7.8%

7.6%

7.6%

5.1%

3.2%



1. It was too expensive/I could not afford it 2. I wasn’t using my membership/ I wasn’t going to the club 3. I could exercise somewhere else for free 4. It was too crowded 5. I moved/the location was no longer convenient 6. I felt out of place 7. I lost my job 8. I developed an injury/surgery/other condition 9. I did not like to exercise 10. Nobody I knew went to my former health club 11. I didn’t reach my fitness goals 12. There was no one there to guide me 13. It was too intimidating 14. I wanted to participate in another type of exercise outside the club 15. I met my fitness goals 16. I didn’t know what to do there

1. Too expensive/cannot afford 2. I exercise somewhere else for free 3. No time 4. I do not exercise 5. I would feel out of place 6. I participate in another type of exercise outside the health club 7. Nobody I know goes to a health club 8. There is no health club located close to me 9. It’s too crowded 10. I am too out of shape to even think about it 11. I don’t know what I would do there 12. I have an injury/surgery/other condition 13. I am not sure there is someone there to guide me 14. I might hurt myself



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WHY PEOPLE DONT JOIN A HEALTH CLUB

INDUSTRY RESEARCH

THE AMERICAS - THE UNITED STATESWHY MEMBERS QUIT HEALTH CLUBSQuestion: Why did you leave/quit your former health club?

45.5%

28.1%

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

27.6%

17.1%

15.4%

12.5%

11.8%

9.0%

8.0%

6.3%

5.3%

5.3%

5.3%

4.4%

4.2%

4.0%

0 10 20 30 40 50

THE AMERICAS - THE UNITED STATESWHY PEOPLE DON’T JOIN HEALTH CLUBSQuestion: What keeps you from joining a health club now?

0 10 20 30 40 50 60

50.7%

27.7%

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

21.6%

18.1%

15.0%

11.1%

9.6%

9.6%

9.0%

7.8%

7.6%

7.6%

5.1%

3.2%



1. It was too expensive/I could not afford it 2. I wasn’t using my membership/ I wasn’t going to the club 3. I could exercise somewhere else for free 4. It was too crowded 5. I moved/the location was no longer convenient 6. I felt out of place 7. I lost my job 8. I developed an injury/surgery/other condition 9. I did not like to exercise 10. Nobody I knew went to my former health club 11. I didn’t reach my fitness goals 12. There was no one there to guide me 13. It was too intimidating 14. I wanted to participate in another type of exercise outside the club 15. I met my fitness goals 16. I didn’t know what to do there

1. Too expensive/cannot afford 2. I exercise somewhere else for free 3. No time 4. I do not exercise 5. I would feel out of place 6. I participate in another type of exercise outside the health club 7. Nobody I know goes to a health club 8. There is no health club located close to me 9. It’s too crowded 10. I am too out of shape to even think about it 11. I don’t know what I would do there 12. I have an injury/surgery/other condition 13. I am not sure there is someone there to guide me 14. I might hurt myself



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THE FUTURE OF FITNESS - WHITE PAPER

THE TRENDS THAT WILL SHAPE HUMAN FITNESS AND ACTIVITY


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Era of New è Age of Now

Attention Participation

Inform Inspire

Interruption Interaction

Return on Investment Return on Involvement

Pumping Markets Creating Movements

TO WIN ACCELERATE INTO THE NOW…


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0102030

405060

1960 1970 1980 1990 2000 2010 2020 2030 2040

US ADULT FITNESS CLUB PARTICIPATION


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FITNESS CLUBS ARE AT RISK OF STAGNATION

We are witnessing segmentation rather than innovation, while competitive industries are evolving e.g. • Online Exercise • Fitness Games • New Sports • Nutrition And Medicine


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SEGMENTATION IN THE CLUB WORLD

•  Budget Gyms

•  Micro Gyms

•  24/7 Gyms

•  MMA/Boxing Gyms

•  Cross Fit Studios


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BUDGET CLUBS @ $10-$15/month


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24/7 CLUBS @ $30 month


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MICRO-GYMS @ $100-$200 month


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MMA/BOXING STUDIOS @ $40-80 month


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CROSS FIT STUDIOS @$100-$150 month


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•  HEALTH – Make clubs more holistic •  COMMUNITY – Make clubs more social

•  EXERTAINMENT – Make exercise more fun

THREE AREAS OF OPPORTUNITY


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When we ask people why they want to join a fitness club they say things like weight loss, toning up, getting fitter, feeling better, improving their health.

These all come under the heading of “results”. But people can get these results without joining or coming to the gym

THE INTERESTING TRUTH ABOUT RESULTS


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Because they lack MOTIVATION

We are in the motivation business.

Whether they know it or not, the world’s best clubs are

masters of meeting this need…

SO WHY DO THEY JOIN OUR CLUBS?


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“If you can’t measure something you can’t manage it.” Q1: So how do we measure motivation? Q2: How do we know if we’re doing a great job of motivating people?

HOW CAN WE MANAGE MOTIVATION?


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In simple terms we can assess our performance by member attendance and their frequency

Become obsessive around understanding what makes members attend more often and measuring this

People who attend the club more often will refer more friends, stay longer and pay more. Attendance is the most important metric in our industry.

MANAGE MOTIVATION WITH ATTENDANCE


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#1 HEALTH MAKE CLUBS MORE HOLISTIC


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• CROSSFIT – 5,000 clubs – $200 per month • ORANGE THEORY – $23 per class/$159 per month • SOUL CYCLE – $32 per class + $30 to reserve a bike • PURE YOGA (NYC) – $145-$165 per month • KOSAMA, OMNI, FITNESS TOGETHER, TITLE BOXING, UFC ETC

INSIGHT: PEOPLE ARE PREPARED TO PAY MORE TO ATTEND MICROS THAN TRADITIONAL CLUBS


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CLUBS WITHIN CLUBS – LES MILLS RIDE LES MILLS RUN, LES MILLS TRI

Products created as specific event training programs. Designed around an organised event (eg marathon, cycle challenge, triathlon). Training organised in 8 or 12 week blocks with an emphasis on guidance, support and motivation. Clear sense of purpose culminating in the event itself and the personal satisfaction of completing it. Participants pay the club direct, prices vary. Available to both members and non-members.


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SOCIAL NUTRITION UNLEASHED


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SOCIAL MEDIA IS REVOLUTIONIZING OUR ABILITY TO COMMUNICATE

But… It’s not as easy as it looks. Engagement, interest and authenticity are key. Otherwise it’s meaningless


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3 QUESTIONS OF ANYTHING YOU CREATE


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DO I WANT TO SEE THIS AGAIN?


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DO YOU WANT TO SHARE IT?


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DO YOU WANT TO IMPROVE IT?


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•  Education = Motivation

•  Between 2006-2016 the cost of the American health system will almost double to $4.1 trillion per year*.

•  It seems that our health is deteriorating at almost as quickly as these costs are increasing. The current system clearly isn’t working - there’s got to be a better way!

*2006 US Treasury Report

THE HEALTH OPPORTUNITY


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EDUCATION - BECOME TRUE ‘HEALTH CLUBS’

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. A few places to start: • Mercola.com • Younger Next Year – Crowley/Lodges • The Omnivore’s Dilemma – Michael Pollan • You: The Owner’s Manual – Roizen/Oz


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START A CONVERSATION WITH MEMBERS

Create a personal relationship with Your members Choose the right medium for them: One way communication? Two way? Social media?


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“Create a cause, not a business”

- Tom Peters

STAND FOR SOMETHING

People don’t come to work to increase shareholder value, they want to make a difference!


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The most successful businesses in the world care about more than just making money…

STAND FOR SOMETHING


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We are the exact opposite of the cigarette and junk food companies

and we have an intimate relationship with a large percentage of the world’s

wealthiest people.

LET’S CREATE A FITTER PLANET

The world is facing a great holistic health challenge and our industry is perfectly positioned to play a big part in the solution.


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CASE STUDY - THE LITTLE GREEN BOOK


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1.  Reduce facility costs

2.  Attract more members

3.  Improve member health

4.  Increase staff engagement

5.  Improve environment

6.  Mitigate global risk

REASONS TO BECOME A GREEN FACILITY


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CASE STUDY – LES MILLS NZ


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CASE STUDY – LES MILLS NZ


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FITTER FOOD

We can change our health and that of the planet by one simple means:

What we put in our mouths…


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Individuals and businesses cannot be allowed to destroy our greatest communal assets. Our leaders need to lead on these initiatives :

• Physical education back in schools, junk food out

• Better urban design

• Tax incentives to be slim and fit

• Encourage healthy eating (tax junk food!)

• Healthier environment

FITTER FACILITIES GOVERNMENT


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There are hundreds of great ideas, from low energy lighting and appliances, to low-flow shower heads and toilets, to signing with a renewable energy provider or even installing solar energy.

Have a professional green audit done on your business. There are incredible savings to be made in resource use and your own money.

FITTER FACILITIES


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#2 EXERTAINMENT MORE MOTIVATING EXERCISE ENVIRONMENTS


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GROUP FITNESS SPACES

CHECK OUT LES MILLS WORLD CLASS STUDIO SEARCH AT WWW.LESMILLS.COM


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SMALL GROUP/ TEAM TRAINING SPACES


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#3 COMMUNITY MAKE CLUBS MORE SOCIAL

The most powerful way to create social connections is to offer assisted exercise:

1.  Personal Training

2.  Small Group Team Training

3.  Group Exercise

“Most of us aren’t really health clubs, we’re not even clubs. We’re just places where people come to lift weights and run on a treadmill” – Michael Scott Scudder


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Personal Training 10%

Small Group Training 4%

Unassisted Exercise

Group Exercise 36%50%

BENCHMARKS FOR HIGH PERFORMING FACILITIES

Research indicates that group exercise is the most effective way of creating motivation for the average fitness member and for the vast majority of fitness facilities Group exercise attracts and motivates the masses. Some of the world’s most successful facilities have over 50% of their attendances in group exercise. “Group Exercise members attend more regularly, remain members for longer, make more referrals, perceive greater value in their memberships (i.e. will pay more) and do not leave when a budget gym opens nearby!”1

MOTIVATION MASTERY DRIVES ATTENDANCE


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Top performing Les Mills licensed clubs remain strong: have many more members, offer more classes per week,

and attract twice as many participants per class than at the global level

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Key Metrics For Top Clubs Based On Total Group Fitness Attendance(1)(2)

Notes: 1. Out of 1,011 Les Mills licensed clubs surveyed; 2. Global Average is based on weighted survey responses, data for top clubs is based on unweighted survey responses

GLOBAL AVERAGE

TOP 20 AVERAGE

TOP 50 AVERAGE

TOP 100

AVERAGE TOP 250

AVERAGE TOP 500

AVERAGE

TOTAL MEMBERS 1,454 10,579 7,940 6,446 5,128 4,050

TOTAL WEEKLY ATTENDANCES 1,505 10,589 8,782 7,431 5,859 4,614

GROUP EXERCISE WEEKLY ATTENDANCE 559 3,615 2,773 2,238 1,677 1,284

LES MILLS WEEKLY ATTENDANCE 209 2,196 1,578 1,225 856 629

GROUP EXERCISE WEEKLY CLASSES 35 120 105 91 73 60

LES MILLS WEEKLY CLASSES 13 61 52 44 34 27

AVERAGE WEEKLY CLASS ATTENDANCE 16 30 26 25 23 22

AVERAGE LES MILLS WEEKLY CLASS ATTENDANCE 15.5 35.8 30.5 28.1 25.3 23.1

WEEKLY ATTENDANCE PER MEMBER 1.0 1.0 1.1 1.2 1.1 1.1

LESSONS FROM TOP 500 GX OPERATORS


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Les Mills licensed clubs that achieve the highest number of GF attendances per week are typically large clubs or those clubs with a large share of Les Mills programs in the timetable

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Top Twenty Clubs Based On Total Group Fitness Attendance(1)(2)

Notes: 1. Out of 1,011 Les Mills clubs surveyed; (2) NA= data not available; (3) Small: Club <1,800m2/19,375ft2; Medium: Club up to 3,150m2/33,900ft2; Large: Club over > 3,150m2/33,900ft2

Ranking Club Name

Weekly Group Fitness

Attendances

GF Share of Total

Attendances Country Club Size(3)

1 LES MILLS AUCKLAND CITY 10,279 66% New Zealand Large

2 LES MILLS EXTREME 5,015 51% New Zealand Small

3 LAS VEGAS ATHLETIC CLUB--GREEN VALLEY 4,672 20% USA Large

4 LAS VEGAS ATHLETIC CLUBS--RAINBOW 4,347 17% USA Large

5 LES MILLS NEW LYNN 3,524 54% New Zealand Medium

6 LAS VEGAS ATHLETIC CLUBS-WEST FLAMINGO 3,428 11% USA Large

7 LIIKUNTAKESKUS HUKKA 3,345 50% Finland Large

8 LES MILLS CHRISTCHURCH 3,269 61% New Zealand Large

9 ACCROSPORT LE HAVRE 3,121 66% France Large

10 スポーツクラブＯＳＳＯ南砂 3,051 71% Japan Large

LEARNINGS FROM THE TOP 10


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Top Twenty Clubs Based On Total Group Fitness Attendance(1)(2)

Notes: 1. Out of 1,011 Les Mills clubs surveyed; (2) NA= data not available; (3) Small: Club <1,800m2/19,375ft2; Medium: Club up to 3,150m2/33,900ft2; Large: Club over > 3,150m2/33,900ft2

Ranking Club Name

Weekly Group Fitness

Attendances

GF Share of Total

Attendances Country Club Size(3)

11 BURLINGTON MALL 3,021 39% Canada Large

12 LES MILLS BRITOMART 2,892 40% New Zealand Medium

13 DOWNTOWN ORLANDO YMCA 2,850 35% USA Large

14 ANON_01346 2,824 NA USA NA

15 LES MILLS HUTT CITY 2,818 52% New Zealand Medium

16 BLACKWOOD FITNESS 2,817 43% Australia Large

16 ANON_01639 2,817 98% USA Large

18 WATERLOO WEBER STREET 2,775 34% Canada Large

19 24H FITNESS_00496 2,726 NA USA NA

20 24H FITNESS_00892 2,702 NA USA NA

Les Mills licensed clubs that achieve the highest number of GF attendances per week are typically large clubs or those clubs with a large share of Les Mills programs in the timetable

LEARNINGS FROM THE TOP 20


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GROWING BIGGER GROUP FITNESS COMMUNITIES

Set your Weekly Group Fitness attendance BHAG

1.  What is your current group fitness weekly attendance?

2.  How many weekly visits do you think you could achieve in 3 to 5 years if your instructors were delivering the best experience in every class in your facility? Twice bigger? Three times bigger? Big Hairy Audacious Goal?

3.  What is this as a 12 month goal?

__?___

__?___

BHAG ?


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Set your Weekly Group Fitness attendance BHAG

1.  What is your current group fitness weekly attendance?

2.  How many weekly visits do you think you could achieve in 3 to 5 years if your instructors were delivering the best experience in every class in your facility? Twice bigger? Three times bigger? Big Hairy Audacious Goal?

3.  What is this as a 12 month goal?

1500

1000

2000

GROWING BIGGER GROUP FITNESS COMMUNITIES


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LES MILLS INTERNATIONAL © 2011

WHAT’S THE SIZE OF THE GROUP FITNESS PRIZE?

BHAG - Group Fitness Weekly Attendance =

Divide the result by 3* (1000/3)

Multiply it by your average yearly membership** (333 x 600)

$___________ *Average number of GF visits per week per person in LES MILLS™ facilities ** $600

2000 -1000

200,000


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8 KEY ELEMENTS OF GROUP EXCELLENCE


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IMPLEMENT A SCORECARD


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TOTAL GROUP ATTENDANCE KEY GROUP PERFORMANCE BENCHMARK CURRENT PERFORMANCE KPI’s

GROWTH POTENTIAL Benchmarks

GOALS Long and short/medium terms

§ Weekly GF Attendance § % Attendance to GF vs

Weekly Club Visits § Total Club Members and

% Members “active”

§ Current TT Max Capacity § Max Studio Capacity

Maximum number of classes you can offer on your timetable per week x maximum number of people you can fit in each class Choose your numbers of classes: Example: Week days = 8-12 per day Weekend = 6-8 per day 50-75+ classes per studio each week

§ BHAG: GF weekly attendance at 3 to 5 years:

§ Potential annual profit increase:

§ 12-month goal:



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1.  Set goals for growth

•  Weekly Group Fitness attendance and Individual class targets for instructors

•  Learn what really motivates people to achieve numbers…

2.  Count numbers in every class

3.  Analyze the data: measure performance versus targets

•  Weekly Group Fitness attendance, % facility visits delivered by Group Fitness

•  Average attendance per class, Individual class performance versus target: class ranking and/or cost per head

•  Program performance (program rankings)

4.  Publish the results to your instructors

5.  Set a plan for growth

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KEY ACTIONS


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MAXIMIZE YOUR SCHEDULE


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THE FASTEST, SIMPLEST WAY TO INCREASE WEEKLY

ATTENDANCE IS TO GIVE PEOPLE MORE OF WHAT

THEY WANT

LET YOUR MEMBERS VOTE WITH THEIR FEET. GIVE MORE CLASSES

TO YOUR MOST POPULAR PROGRAMS AND INSTRUCTORS,

LESS TO THE LESS POPULAR

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TOP ATTENDANCE DRIVERS


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The research on top operators with high weekly attendance highlights that five categories drive three quarters of all weekly group exercise attendance. Offering at least one “best in category” format is critical to driving high weekly group exercise attendance . Many operators make the strategic mistake of either offering mediocre quality in the five key categories and or offering too many formats in the other category

BUCKETOLOGY OF GROUP EXERCISE


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1.  Give people more of what they want (5 actions) •  Get your program offer right using Needscope Model •  Offer programs matching the ‘commercial’ formula •  Identify your top performing programs and offer them more frequently •  Offer the right program mix:

•  70% Core, 20% Specialty, 0 -10% Service •  Identify top instructors and schedule them more often

SCHEDULE DESIGN: 5 STRATEGIES TO DRIVE GROWTH


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2.  Simplify your offerings: •  8 to 12 great programs versus 45+ activities

3.  Think horizontally, not vertically. •  In each 2-hour time slot, offer: •  At least one opportunity per week to do a cardio, strength/toning,

mind body/stretching workout •  Your ‘core’ programs at least twice a week

4.  Give instructors class ownership

•  Subject to a review of performance vs. targets

5.  Consider scheduling express classes

•  30 or 45 mins

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SCHEDULE DESIGN: 5 STRATEGIES TO DRIVE GROWTH


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SIMPLIFY YOUR OFFERINGS ANALYZE AND ACTION PLAN YOUR CURRENT TIMETABLE

ANALYZE

•  How many different programs do you currently offer?

ACTION PLAN

•  Condense class offerings •  Group similar programs and

streamline in-class experiences •  Remove low-attended programs

offered 1-2x/week

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www.ideafit.com Source: AC Nielsen Research

SMART PROGRAMMING – BASED ON CONSUMER NEEDS

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THINK HORIZONTALLY, NOT VERTICALLY KEY PRINCIPLES

Schedule:

•  Core programs at least twice weekly within a 2-hour timeframe

•  Cross-training variety within a 2- hour timeframe across the week



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ONGOING SCHEDULE MANAGEMENT TO GROW NUMBERS TRAFFIC LIGHTING TECHNIQUE

3 ACTIONS

1. Identify underperforming classes – Red lights

2. Pinpoint the cause(s) of underperformance

•  Program, Instructor

•  Time slot/Schedule, Marketing

•  Politics

3. Set an action plan

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MANAGEMENT TO PINPOINT THE CAUSE OF UNDERPERFORMING TIME SLOTS

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5 POSSIBLE AREAS OF UNDERPERFORMANCE

POTENTIAL CAUSE OF THE PROBLEM

PROGRAM Poor quality, poor fit for club, wrong program for time-slot

INSTRUCTOR Poor instructing skill-set, instructor doesn’t fit essence of program; instructor doesn’t teach appropriately for audience (i.e. necessary options)

TIME-SLOT Tough time-slot to fill (warning: don’t jump to conclusions too soon!)

MARKETING Program isn’t being effectively marketing internally or externally

INTERNAL COMMUNICATION/POLITICS

Group of members or staff undermining program success or ‘boycotting’ classes



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WHAT ABOUT YOUR SCHEDULE? RATE YOUR CURRENT DESIGN ON A SCALE OF 1-5 ON ITS EFFECTIVENESS TO SELL YOUR GF PROGRAM

RATE WITH 1 BEING LOWEST, 5 BEING HIGHEST

•  Even our staff has trouble figuring it out

•  Everything’s there, but it’s somewhat confusing or boring

•  It looks OK.

•  It’s organized and easy to read, but could use some improvement

•  It’s simple, inspiring, professional, members can read it and staff

can easily recommend classes



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GOOD SCHEDULE - BAD SCHEDULE

http://to.ly/mCKC

http://to.ly/mCKB

http://to.ly/mCKz

http://to.ly/mCKw

http://tiny.cc/jdn40w


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BUILDING UP A GREAT TEAM OF INSTRUCTORS IS THE BEST THING YOU

CAN DO FOR YOUR BUSINESS

NO MATTER WHAT YOUR VISION, MISSION OR BHAG, YOU ARE GOING TO NEED GREAT PEOPLE TO GET YOU THERE

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A SINGLE GREAT INSTRUCTOR CAN BRING HUNDREDS OF MEMBERS

AND $$ TO YOUR FACILITY


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A TEAM OF GREAT INSTRUCTOR CAN BRING THOUSANDS OF MEMBERS

AND $$ TO YOUR FACILITY


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CASTING IS EVERYTHING

INVEST TIME AND RESOURCES TO SEEK OUT THE INSTRUCTORS & TALENT FOR TOMORROW, WHO’VE THE POTENTIAL TO PACK THE ROOM

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INCREASE THE COMMITMENT AND LOYALTY OF YOUR INSTRUCTORS.

INCENTIVIZE AND RETAIN TOP PERFORMANCE INSTRUCTORS. CREATE A SYSTEM THAT COMBINES FINANCIAL AND NON-FINANCIAL REWARDS.


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ORGANIZE A GREAT TRAINING PROGRAM FOR

YOUR TEAM


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CONSTANTLY DEVELOP YOUR TEAM TOWARDS MASTERY IN THE 5 KEY ELEMENTS OF TEACHING


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Training Actions LES MILLS™ Driven Club Driven Selection of candidates & preparation before Initial Module ✓

Instructor Initial Training– 2 days ✓

Clearance to teach at end of training – grading system ✓

Team-training before Launch ✓

Prepare instructors for certification and submit videos (8 weeks after initial training)

✓

Instructor International Certification ✓

Ongoing training - Quarterly Workshops/Continuing Education

✓

In-house Quality Control and Instructor Development ✓

Team-training before Quarterly Launch ✓

‘Advanced Instructor Module’ training – AIM Modules 1 & 2 ✓

Advanced and Elite Certifications ✓

IMPLEMENT A TRAINING PROCESS THAT ‘BUILDS ROCK STARS’ IN A SHORT TIME



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DEVELOP THE BEST STUDIO YOU CAN AFFORD


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CREATE A WORLD-CLASS DESTINATION 5 TOP EXPERIENTIAL DESIGN PRIORITIES TO ENHANCE PARTICIPANTS’ EXPERIENCE 1.  Sound and microphone: The best you can afford – think concert; if

unbalanced, it makes a difference to attendee experience

2.  Stage: Design and position – big enough to fit 2 or 3 instructors. Think theater and minimizing side views if possible. Use side screens and backdrop – project mood-enhancing images

3.  Lighting: Theatrical stage lighting to enhance dramatic impact

4.  Mirrors: Have none if possible or have them at the side – never behind the stage, as they distract and detract from the experience

5.  Décor: Colors and branding can be very powerful to enhance mood – it should feel like a strong, athletic, fun ‘zone’

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CREATE A GROUP FITNESS MARKETING PLAN


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THE POWER OF BRANDS TO GROW NUMBERS - WHICH ONE DO THE CONSUMERS WANT?

OR

OR

BODY SCULPTING

DANCE OR

OR

SUSPENSION TRAINING


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KEY ACTIONS 1.  Develop an annual group fitness marketing plan to grow

membership and profit.

2.  Launching Program/s

3.  Group X Re-launch Events

4.  Ongoing promotion on the benefits of Group X

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THE SALES / EVENT EXPERIENCE EFFECT

Expe

rienc

e “When you host GF events, you are selling non-members an experience, not a membership – this makes selling so much easier”

Sales


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PLAN FOR SUCCESS


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KEY ACTIONS •  Create a budget to cost, prioritize

and document your plan to achieve your GF BHAG

•  Give ownership of it to your Group Fitness Leader

•  Report on performance against targets to both management and your team, monthly and quarterly

•  Work with your team to win the next plays


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APPOINT OR BE A WORLD CLASS GROUP LEADER


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A GREAT GROUP FITNESS MANAGER CAN CHANGE THE FUTURE OF YOUR FACILITY

•  A single great instructor can bring in hundreds of members over time - a great Group Fitness Manager will build a team that will bring thousands.

•  Recruit a Group Fitness manager with the passion, experience and drive to build ENTHUSIASM and SUCCESS at your club

•  The Group Fitness Manager is a strategic hire

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Health club attendance has become the biggest adult “sport” in the Western World. Bigger than football, tennis and golf combined.

But we have traditionally lacked the excitement and social engagement of sports, and behaved more as gyms than as true health clubs. The faster we can change that, the bigger our future

THE BIG OPPORTUNITY

Health & Medicine

IDEA World 2013 Future of Fitness