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LESMILLSGRIT® SERIES
DRIVING ATTENDANCE
AND MEMBERSHIP
1
Thompson, Walter R. ACSM's Health & Fitness Journal. 17(6):10-20, November/December 2013.
1. HIGH INTENSITY INTERVAL TRAINING
2. BODY WEIGHT TRAINING
3. EDU/CERTIFIED & EXPERIENCED FITNESS PROFESSIONALS
4. STRENGTH TRAINING
5. EXERCISE AND WEIGHT LOSS
6. PERSONAL TRAINING
7. FITNESS PROGRAMS FOR OLDER ADULTS
8. FUNCTIONAL FITNESS
9. SMALL GROUP TEAM TRAINING
10. YOGA
2014 TOP HEALTH & FITNESS
TRENDS
1. ON TREND
2. INCREASE MEMBER
ENGAGEMENT
3. PROVIDE ACCESSIBLE PT
4. DRIVE ASSISTED EXERCISE
ATTENDANCE
8 REASONS WHY SMALL GROUP TEAM
TRAINING WORKS
5. ATTRACT MILLENNIALS
6. DIFFERENTIATE OFFERING
7. DELIVER RESULTS FOR YOUR
MEMBERS
8. GREATER REVENUE
3
PERSONAL
TRAINING
SMALL
GROUP
TRAINING
GROUP
EXERCISE
POSITIONING IS KEY
• Small Group Team Training is a feeder to both Personal Training and Group Exercise
• Assisted exercise creates both member to staff and member to member engagement
• Research shows there is a positive correlation between facilities with a higher level of assisted exercise on overall
gym attendance and retention.
4
REVENUE
STREAMS
SGTT CREATES A NEW REVENUE
STREAM
UNASSISTED
EXERCISE
PERSONAL
TRAINING
SMALL GROUP
TEAM TRAINING
GROUP
EXERCISE
• SGTT provides an affordable PT option for members
• In case studies with existing customers, early indications suggest PT revenue is greater at facilities
with successful SGTT
5 5
DELIVERS FASTER RESULTS
WITH SHORTER WORKOUTS
SUPPORTS LEAN MUSCLE &
FAT LOSS THROUGH HIGHER
HGH PRODUCTION
IMPROVES AEROBIC CAPACITY
HIGH INTENSITY INTERVAL TRAINING
CONSIDERATIONS FOR SGTT
SIGNIFICANTLY INCREASES
METABOLISM
BURNS MORE FAT
PROMOTES HORMONE PRODUCTION
6
HIIT IMPACT ON SGTT PROGRAMING
BOOTCAMPS STRENGTH
TRAINING
WEIGHT
LOSS
CORE
TRAINING
FUNCTIONAL
TRAINING
CROSS
TRAINING
HIGH
INTENSITY
INTERVAL
TRAINING
MARTIAL
ARTS
EQUIPMENT
BASED
SKILLS
BASED
RESULTS
BASED
• High Intensity Interval Training (HIIT) as the number 1 trend for 2014
• Source ACSM
7
LES MILLS GRIT ® Series will push your members to the max
and beyond. The workouts are designed to give members up
close and personal attention – assisted exercise, leading to
increased motivation and results.
• Three unique programs offering fitness results, fast.
• 30 minutes of intense challenge to set training routines.
• Explosive music to send energy levels through the roof.
• Highly-charged certified trainers giving one-on-one attention.
SMALL GROUP TEAM TRAINING
8
9
10
VIDEOS http://www.youtube.com/user/lesmillsgroupfitness
“We are unbelievably happy with the results
we’ve seen since launching LES MILLS GRIT®!
We wanted to create value for our members with
these packages, and create a stronger connection
between them and our club. We’ve certainly done
that! In just 6 months we’ve made enough profit to
build a new small group training studio – and a
cycle studio – which will help us to build on the
success we’ve already seen from LES MILLS
GRIT™. This has been a game-changer for our
members, our coaches and our business!”
Lydia Haskell, Owner
The Fitness Rave, Baltimore
11
KEYTOSUCCESS BESTPRACTICE
TRENDS MATTER1. Be on top of lasting trend, avoid fads
Re-engage members
GREAT
PROGRAMMING
Aim for a range of relevant programs that are
motivating
NAIL THE
BUSINESS MODEL
GET EVERYONE
ON BOARD
RECRUIT & TRAIN
THE RIGHT PEOPLE
GET THE WORD OUT
Set a clear goal and choose a model that
supports.
In-depth Program knowledge
Educate staff on benefits
Qualified professionals
Find new talent and support growth
Have awesome marketing material
Use all avenues to promote
DIFFERERENTIATE
FROM GROUP FITNESS Have a solid implementation plan in place
2.
3.
4.
5.
6.
7.
12
• October 2013 Market Research to assess club success and best
practice
– 55 of 112 sites surveyed
– 4 week research
– 2-5 appointments each day
LES MILLS GRIT® SERIES
US Best Practice Research
13* December 2013 - 162 licensed GRIT facilities nationally
7 KEYS
1. Establishing a Business Model
2. Pay Structure
3. Value Adds
4. Marketing Message
5. GRIT Coaches
6. Online Booking System
7. Location of Workouts within the Facility
DRIVERS FOR SUCCESS
14
• Over 95% of facilities using ancillary revenue models
• Drop In and Block Course are the most popular models
• EFT models used in over a third of facilities
Drop In Package
Block
Sessions
Monthly
Unlimited
Monthly
Limited
Not
Charging
Auto Renew
Package
Auto Renew
Monthly
Facility Type
Chain 13 9 12 1 5 4 1
Single Site 5 2 8 2 2
PT/GF Studios 5 2 3 3 2 1 1
Non Profit 8 4 2 2 2 1
Total Facilities 31 17 25 8 7 2 5 5
% of Facilities 56% 31% 45% 15% 13% 4% 9% 9%
1. ESTABLISHING A BIZ MODEL
Membership ModelAnalysis
1. ESTABLISHING A BIZ MODEL
Price Point Analysis
16
AVERAGES
• All Clubs: $12.50/workout
• Top Performing Facilities $14.50/workout
• Worst Performing Facilities $11.70/workout
• Top Full Service Facilities (no studios) $11.75/workout
• Worst Full Service Facilities (no studios) $9/workout
1. ESTABLISHING A BIZ MODEL
17
• Average session rate $12.50
• Average session cost $44
• Target session attendance 10 people/workout
• Target sessions per week 6-9 /week
• Break Even at 100% capacity $4
• Break Even at 50% capacity $9
Break EvenAnalysis
Universal Athletic Club
Premium Membership
$120/month Unlimited Access
LMG, Boxing, CROSSFIT Bundle
Pay: $15 base + $2/head
9 LM GRIT workouts per week
Team Training Studio
$7000 gross/$3800 net
The Fitness Rave
8 week limited Block
$279 per 8 week block
Separate: TRX, P90X
Pay: Bonus $1600 - $650/block
2 LM GRIT workouts per coach
Team Training Studio
$8000 gross/$3200 net
ACAC West Chester
4 week auto-renew block
$13/workout or $99/8 workout block
10 LM GRIT workouts per week
40% commission incentivized lead
Team Training Studio
$4000 revenue increase
MOVE Club
Concession/bulk
$25/session or $20 with Auto-Renew
Separate: TRX
9 LM GRIT workouts per week
$7 per head. Minimum $20
Group Exercise studio
%10 PT revenue increase
1. ESTABLISHING A BIZ MODEL
Options For Success
2. PAY STRUCTURE
Majority of Facilities Use Incentives
19
• There are three primary pay models
• Two thirds of the facilities offer incentive based pay
Facility Type Flat Rate Base+/Head % Sales
Chains 11 16
Single Site 6 4 3
PT/GF Studios 4 3 2
Non Profit 9
Total 19 18 21
% of Total Facilities
Contacted 33% 31% 36%
2. PAY STRUCTURE
20
• Flat rates trend toward poor performance
• Incentivized rates trend toward strong performance
• Incentivized rates drive sustainable margins
• Auto-renew processes makes success easier
• Top performing facilities incentivized someone at
management level to help drive sales
Best Practice
2. PAY STRUCTURE
21
• Incentivized pay rates can still yield a +50% profit margin
• 8 week block, 2 workouts per week, $12.50 per workout
• Target 10 people over 9 workouts per week
• Incentivized pay = $15 base + $3 per head
• GRIT Leader pay = 2%
Monthly Annual
Gross Revenue $5412.5 $64,950
Net Revenue $2847.5 $34,170
Profit Margin 53% 53%
Best Practice Example
3. LES MILLS GRIT VALUE ADDS
Assessment and Measurement
Time Test
5-10 min Body composition, waist,
hip, weight
5 -10 min Push up test
5 -10 min Vertical leap test
5 -20 min Anaerobic threshold test
3. LES MILLS GRIT VALUE ADDS
GRIT Challenge
23
3. LES MILLS GRIT VALUE ADDS
Nutrition Tips and Cooking Recipes
3. LES MILLS GRIT VALUE ADDS
Social Media
4. MARKETING MESSAGE
Research Builds Credibility
4. MARKETING MESSAGE
Results Campaigns Are Most Effective
27
4. MARKETING MESSAGE
New Member Prescription
28
POINT OF SALE
6 WEEK INTRO
GET FIT PHASE
3-6
60 minute sessions
a week
Introduce
HIIT/LES
MILLS GRIT®
Getting Fit Together plan
Steadily familiarize to exercise.
Build fitness to 3-4 moderate intensity
cardio sessions. Maximize your “free”
offering take on.
Ready to replace 1
cardio with 2 HIIT
Sessions
4. MARKETING MESSAGE
29
Get More Results From Your Mix
GETFITPHASE GRITPHASE
4. MARKETING MESSAGE
Infographics for Millenials
5. GRIT COACHES
Best Practice
31
 Hybrids are the best Coaches
 PTs buy-in when they are
incentivized and see the
prospecting opportunity
 GF instructors need more
sales training than PTs
32
6. ONLINE BOOKING SOLUTIONS
Best Practice
6. ONLINE BOOKING SOLUTIONS
33
EVENT BRITE
 No monthly fees
 Credit card processing fee of 3% +
Convenience Fee/transaction of 2.5%
+ .99 cents. Option to add the
convenience fees to the ticket price or
absorb and include in the ticket price.
 Compatible with PayPal and Google
Checkout – integrate with other
aspects of business if these accounts
already exist.
 Ability to post schedule online
 Can have participants choose sessions
as part of ‘ticket’
 No option for auto-renew, but ability to
mass email via RSS feed when new
events are posted
MIND BODY
 As low as $75/month
 Additional credit card processing fees not
listed on site – setup through private
merchant account
 Ability to post schedule online
 Participants can register for specific
sessions to control attendance
 Option to setup for auto-renewal when all
sessions in a package are used
 Training sessions and online videos and
tutorials available
 Reporting functions to analyze business
success and manage metrics
ProsAnd Cons
7. LOCATION OF WORKOUT
Best Practice
35
7. LOCATION OF WORKOUT
Branding
36
7. WORKOUT SPACE TOOLS
Branded Equipment

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Drive Attendance and Membership with LES MILLS GRIT® Small Group Training

  • 2. Thompson, Walter R. ACSM's Health & Fitness Journal. 17(6):10-20, November/December 2013. 1. HIGH INTENSITY INTERVAL TRAINING 2. BODY WEIGHT TRAINING 3. EDU/CERTIFIED & EXPERIENCED FITNESS PROFESSIONALS 4. STRENGTH TRAINING 5. EXERCISE AND WEIGHT LOSS 6. PERSONAL TRAINING 7. FITNESS PROGRAMS FOR OLDER ADULTS 8. FUNCTIONAL FITNESS 9. SMALL GROUP TEAM TRAINING 10. YOGA 2014 TOP HEALTH & FITNESS TRENDS
  • 3. 1. ON TREND 2. INCREASE MEMBER ENGAGEMENT 3. PROVIDE ACCESSIBLE PT 4. DRIVE ASSISTED EXERCISE ATTENDANCE 8 REASONS WHY SMALL GROUP TEAM TRAINING WORKS 5. ATTRACT MILLENNIALS 6. DIFFERENTIATE OFFERING 7. DELIVER RESULTS FOR YOUR MEMBERS 8. GREATER REVENUE 3
  • 4. PERSONAL TRAINING SMALL GROUP TRAINING GROUP EXERCISE POSITIONING IS KEY • Small Group Team Training is a feeder to both Personal Training and Group Exercise • Assisted exercise creates both member to staff and member to member engagement • Research shows there is a positive correlation between facilities with a higher level of assisted exercise on overall gym attendance and retention. 4
  • 5. REVENUE STREAMS SGTT CREATES A NEW REVENUE STREAM UNASSISTED EXERCISE PERSONAL TRAINING SMALL GROUP TEAM TRAINING GROUP EXERCISE • SGTT provides an affordable PT option for members • In case studies with existing customers, early indications suggest PT revenue is greater at facilities with successful SGTT 5 5
  • 6. DELIVERS FASTER RESULTS WITH SHORTER WORKOUTS SUPPORTS LEAN MUSCLE & FAT LOSS THROUGH HIGHER HGH PRODUCTION IMPROVES AEROBIC CAPACITY HIGH INTENSITY INTERVAL TRAINING CONSIDERATIONS FOR SGTT SIGNIFICANTLY INCREASES METABOLISM BURNS MORE FAT PROMOTES HORMONE PRODUCTION 6
  • 7. HIIT IMPACT ON SGTT PROGRAMING BOOTCAMPS STRENGTH TRAINING WEIGHT LOSS CORE TRAINING FUNCTIONAL TRAINING CROSS TRAINING HIGH INTENSITY INTERVAL TRAINING MARTIAL ARTS EQUIPMENT BASED SKILLS BASED RESULTS BASED • High Intensity Interval Training (HIIT) as the number 1 trend for 2014 • Source ACSM 7
  • 8. LES MILLS GRIT ® Series will push your members to the max and beyond. The workouts are designed to give members up close and personal attention – assisted exercise, leading to increased motivation and results. • Three unique programs offering fitness results, fast. • 30 minutes of intense challenge to set training routines. • Explosive music to send energy levels through the roof. • Highly-charged certified trainers giving one-on-one attention. SMALL GROUP TEAM TRAINING 8
  • 9. 9
  • 11. “We are unbelievably happy with the results we’ve seen since launching LES MILLS GRIT®! We wanted to create value for our members with these packages, and create a stronger connection between them and our club. We’ve certainly done that! In just 6 months we’ve made enough profit to build a new small group training studio – and a cycle studio – which will help us to build on the success we’ve already seen from LES MILLS GRIT™. This has been a game-changer for our members, our coaches and our business!” Lydia Haskell, Owner The Fitness Rave, Baltimore 11
  • 12. KEYTOSUCCESS BESTPRACTICE TRENDS MATTER1. Be on top of lasting trend, avoid fads Re-engage members GREAT PROGRAMMING Aim for a range of relevant programs that are motivating NAIL THE BUSINESS MODEL GET EVERYONE ON BOARD RECRUIT & TRAIN THE RIGHT PEOPLE GET THE WORD OUT Set a clear goal and choose a model that supports. In-depth Program knowledge Educate staff on benefits Qualified professionals Find new talent and support growth Have awesome marketing material Use all avenues to promote DIFFERERENTIATE FROM GROUP FITNESS Have a solid implementation plan in place 2. 3. 4. 5. 6. 7. 12
  • 13. • October 2013 Market Research to assess club success and best practice – 55 of 112 sites surveyed – 4 week research – 2-5 appointments each day LES MILLS GRIT® SERIES US Best Practice Research 13* December 2013 - 162 licensed GRIT facilities nationally
  • 14. 7 KEYS 1. Establishing a Business Model 2. Pay Structure 3. Value Adds 4. Marketing Message 5. GRIT Coaches 6. Online Booking System 7. Location of Workouts within the Facility DRIVERS FOR SUCCESS 14
  • 15. • Over 95% of facilities using ancillary revenue models • Drop In and Block Course are the most popular models • EFT models used in over a third of facilities Drop In Package Block Sessions Monthly Unlimited Monthly Limited Not Charging Auto Renew Package Auto Renew Monthly Facility Type Chain 13 9 12 1 5 4 1 Single Site 5 2 8 2 2 PT/GF Studios 5 2 3 3 2 1 1 Non Profit 8 4 2 2 2 1 Total Facilities 31 17 25 8 7 2 5 5 % of Facilities 56% 31% 45% 15% 13% 4% 9% 9% 1. ESTABLISHING A BIZ MODEL Membership ModelAnalysis
  • 16. 1. ESTABLISHING A BIZ MODEL Price Point Analysis 16 AVERAGES • All Clubs: $12.50/workout • Top Performing Facilities $14.50/workout • Worst Performing Facilities $11.70/workout • Top Full Service Facilities (no studios) $11.75/workout • Worst Full Service Facilities (no studios) $9/workout
  • 17. 1. ESTABLISHING A BIZ MODEL 17 • Average session rate $12.50 • Average session cost $44 • Target session attendance 10 people/workout • Target sessions per week 6-9 /week • Break Even at 100% capacity $4 • Break Even at 50% capacity $9 Break EvenAnalysis
  • 18. Universal Athletic Club Premium Membership $120/month Unlimited Access LMG, Boxing, CROSSFIT Bundle Pay: $15 base + $2/head 9 LM GRIT workouts per week Team Training Studio $7000 gross/$3800 net The Fitness Rave 8 week limited Block $279 per 8 week block Separate: TRX, P90X Pay: Bonus $1600 - $650/block 2 LM GRIT workouts per coach Team Training Studio $8000 gross/$3200 net ACAC West Chester 4 week auto-renew block $13/workout or $99/8 workout block 10 LM GRIT workouts per week 40% commission incentivized lead Team Training Studio $4000 revenue increase MOVE Club Concession/bulk $25/session or $20 with Auto-Renew Separate: TRX 9 LM GRIT workouts per week $7 per head. Minimum $20 Group Exercise studio %10 PT revenue increase 1. ESTABLISHING A BIZ MODEL Options For Success
  • 19. 2. PAY STRUCTURE Majority of Facilities Use Incentives 19 • There are three primary pay models • Two thirds of the facilities offer incentive based pay Facility Type Flat Rate Base+/Head % Sales Chains 11 16 Single Site 6 4 3 PT/GF Studios 4 3 2 Non Profit 9 Total 19 18 21 % of Total Facilities Contacted 33% 31% 36%
  • 20. 2. PAY STRUCTURE 20 • Flat rates trend toward poor performance • Incentivized rates trend toward strong performance • Incentivized rates drive sustainable margins • Auto-renew processes makes success easier • Top performing facilities incentivized someone at management level to help drive sales Best Practice
  • 21. 2. PAY STRUCTURE 21 • Incentivized pay rates can still yield a +50% profit margin • 8 week block, 2 workouts per week, $12.50 per workout • Target 10 people over 9 workouts per week • Incentivized pay = $15 base + $3 per head • GRIT Leader pay = 2% Monthly Annual Gross Revenue $5412.5 $64,950 Net Revenue $2847.5 $34,170 Profit Margin 53% 53% Best Practice Example
  • 22. 3. LES MILLS GRIT VALUE ADDS Assessment and Measurement Time Test 5-10 min Body composition, waist, hip, weight 5 -10 min Push up test 5 -10 min Vertical leap test 5 -20 min Anaerobic threshold test
  • 23. 3. LES MILLS GRIT VALUE ADDS GRIT Challenge 23
  • 24. 3. LES MILLS GRIT VALUE ADDS Nutrition Tips and Cooking Recipes
  • 25. 3. LES MILLS GRIT VALUE ADDS Social Media
  • 26. 4. MARKETING MESSAGE Research Builds Credibility
  • 27. 4. MARKETING MESSAGE Results Campaigns Are Most Effective 27
  • 28. 4. MARKETING MESSAGE New Member Prescription 28 POINT OF SALE 6 WEEK INTRO GET FIT PHASE 3-6 60 minute sessions a week Introduce HIIT/LES MILLS GRIT® Getting Fit Together plan Steadily familiarize to exercise. Build fitness to 3-4 moderate intensity cardio sessions. Maximize your “free” offering take on. Ready to replace 1 cardio with 2 HIIT Sessions
  • 29. 4. MARKETING MESSAGE 29 Get More Results From Your Mix GETFITPHASE GRITPHASE
  • 31. 5. GRIT COACHES Best Practice 31  Hybrids are the best Coaches  PTs buy-in when they are incentivized and see the prospecting opportunity  GF instructors need more sales training than PTs
  • 32. 32 6. ONLINE BOOKING SOLUTIONS Best Practice
  • 33. 6. ONLINE BOOKING SOLUTIONS 33 EVENT BRITE  No monthly fees  Credit card processing fee of 3% + Convenience Fee/transaction of 2.5% + .99 cents. Option to add the convenience fees to the ticket price or absorb and include in the ticket price.  Compatible with PayPal and Google Checkout – integrate with other aspects of business if these accounts already exist.  Ability to post schedule online  Can have participants choose sessions as part of ‘ticket’  No option for auto-renew, but ability to mass email via RSS feed when new events are posted MIND BODY  As low as $75/month  Additional credit card processing fees not listed on site – setup through private merchant account  Ability to post schedule online  Participants can register for specific sessions to control attendance  Option to setup for auto-renewal when all sessions in a package are used  Training sessions and online videos and tutorials available  Reporting functions to analyze business success and manage metrics ProsAnd Cons
  • 34. 7. LOCATION OF WORKOUT Best Practice
  • 35. 35 7. LOCATION OF WORKOUT Branding
  • 36. 36 7. WORKOUT SPACE TOOLS Branded Equipment