A presentation from Martin Franklin of Les Mills at active-net 2015. What our customers are looking for from the 'activity experience'.

1. NIELSEN: LES MILLS GLOBAL CONSUMER FITNESS SURVEY (2014)
Martin Franklin April 2015
CONSUMER FITNESS
TRENDS STATISTICS &
INSIGHTS FOR FITNESS
FACILITIES

2. FACTS & INSIGHTS
1. WHO EXERCISES
2. WHAT ARE EXERCISERS DOING?
3. WHERE AND WHY ARE THEY EXERC
4. WHAT DRIVES PEOPLE INTO FITNESS FACILITIE
6. LES MILLS5. GROUP FITNESS EXERCISERS

3. 1. WHO EXERCISES?

4. WHO EXERCISES?
Globally, 78% of the
adults over 18 years
old exercise or would
like to
Another 39% are
not currently
exercising to keep fit
and healthy but
would like to
22%
39%
39%
22% have
no interest in
exercising
39% exercise
regularly with
87% exercising
3 or more times
a week
FACTS
81% of Millennials
(18 to 34 year olds)
exercise or would
like to (vs. only 61%
of Boomers)
36% are not currently
exercising to keep fit
and healthy but would
like to
20%
45%
36%
20% have no
interest in
exercising
45%
exercise
regularly
27% of the adult population
(18+) attend a fitness facility
27%
24%22%
18%
9%Never been
Lapsed
Have no
interest in
exercising
Member
Casual member
WHO WOULD CONSIDER
JOINING?20% of regular exercisers who are not
member of a gym would
25% of exercise considerers who are not
member of a gym would
60% of lapsed members would
36% of Millennials (aged 18-34) would
43% of Millennials (aged 18-34) would
(24% of the adult population)

5. INSIGH
TS WHO EXERCISES?
Fitness centers have real
growth opportunities in
specific areas.
The vast majority
of the adult
population either
exercise
regularly or
would like to.
The market
of people
in the exercise
contemplation stage is
equally important to
the regular exercisers
one (39% of the adult
population).
A HUGE OPPORTUNITY IF OPERATORS CAN
UNDERSTAND THEIR REQUIREMENTS AND GAIN A
DEEPER UNDERSTANDING OF THE STAGES OF
CHANGE (CONTEMPLATION, PLANNING AND
RELAPSE) FOR INDIVIDUALS IN EACH CATEGORY.
of regular exercisers
who are not currently
attending a gym would
consider doing so
20%
of exercise
considerers who are
not currently attending a
gym would consider
25%
81% of lapsed
members, would
consider rejoining their
local gym
60%
61%for Boomers.
The Millennials
>>
exercise or
would like to
versus

6. 2. WHAT ARE THE
EXERCISERS
DOING?

7. WHAT ARE
THE
EXERCISER
S DOING?
FACTS
FITNESS IS THE
WORLD’S BIGGEST
‘SPORT’
29
%
27
%
31
%
59
%
12
%
13
% 4% 7%
13
%
15
% 10
%
15
% 7%
22
%
21
%
18
%
7%
12
%
GYM-TYPE ACTIVITIES = 61%
61% of regular exercisers are
currently doing gym-type activities.
36% of
regular
exercisers do
fitness class
type of
activities.
37% of
regular
exercisers are
currently
doing
equipment-
type
activities.
High frequency exercisers using equipment
type activities are also likely to attend
between 3-5 group fitness classes per week.
76% of regular exercisers are aged
18 to 34 years old
69% of exercisers that aren’t doing
gym-type activities would consider.
36%
FITNESS
CLASS
ACTIVITIES
37%
EQUIPME
NT TYPE
ACTIVITIE
S
Running/Tri
Swimming
Cycling
Walking
Teamsports
Individualsports
Grouptraining–outdoors
Grouptraining–indoors
Fitnessclassesinmusic
Yoga
Pilates
Dance
WorkingoutPT
Freeweights
Weightsmachines
Cardiomachines
Boxing
Other
29
%
27
%
31
%
59
%
12
%
13
%
13
%
15
% 10
%
15
%
22
%
21
%
18
% 12
%4%
7% 7%7%

8. INSIGH
TS
WHAT ARE THE EXERCISERS
DOING?
SHIFTING FOCUS TOWARD
MILLENNIALS.
48% of exercisers do gym-type activities - Half the target market.
The huge majority Millennials who regularly exercise are doing gym-type
activities
OPERAT
ORS
WILL
BENEFIT
BY
Re-engineering their
overall value proposition
and marketing towards them
despite all the commentary
Designing and promoting
assisted exercise with
Millennials
in mind.
Promoting and offering more fitness
class activities
• Equal in popularity to equipment type
activities
• Almost twice as popular for considerers
The principle of ‘caveat emptor’ applies
as the range of offering and investment
increases, trying to be all things to all
people. Lower risk investment exists
with the promotion and delivery of
fitness class activities for both users
and considerers. Further retention and
referral opportunities exist in the cross
promotion of fitness classes to high
frequency equipment users.
around ‘Baby
Boomers’, who are a
tougher market to
reach and less-likely to
consider gym-type
activities.

9. 3. WHERE AND
WHY ARE THEY
EXERCISING?

10. FACT
S
LARGE
MULTI-
PURPOSE
GYM/FITNE
SS
CENTER/H
EALTH
CLUB
SMALL
BOUTIQUE
GYM WITH
A SINGLE
ACTIVITY
LOCAL/COM
MUNAL/REC
REATION/CH
URCH HALL
PERSON
AL
TRAININ
G
STUDIO
AT YOUR
HOME
DEDICATE
D DANCE,
YOGA OR
PILATES
STUDIO
FITNESS CLASSES TO MUSICTEAM TRAINING PERSONAL TRAINING
WHERE ARE THEY
EXERCISING?
MILLENNIALS (18 – 34
YEARS)
HOME
EXERCISERS
82%
82% of Gym members & casual gym members also
exercise at home
45% of high frequency gym attendees also use a
DVD/pre-recorded workout at home
45%
52% of all gym members are doing either a DVD
and/or gaming and/or online workout program (rising
to 70% for high frequency gym attendees)
52%
37%
37% of the market (defined as those who are either
regularly exercising or those who aren’t currently
exercising but would like to) are doing either a DVD
and/or gaming and/or online workout program at home
ALL AGES
48%
49%
41%
23%
35%
25%
20%
25%24%
18%
23%
30%
20%
16%
21% 19%
15%
17%
45%
44%
38%
25%
37%
26%
17%
24%
27% 26%
19%
36%
30%
19%19%
26%
31%
24%

11. USER
FACTS
WHY ARE THEY
EXERCISING?
MAIN DRIVERS THAT PEOPLE
EXERCISE:
40%
27%
32%
37%
GET HEALTHY / MAINTAIN HEALTH GET IN / MAINTAIN SHAPE (LOSE WEIGHT, TONE-UP ETC.)
31%
33%
FUN
23%
16%
CALM / RELAXING CONVENIENT
23%
20% 17%
CHALLENGING
ALL AGES
THE IDEAL FITNESS EXPERIENCE
IS:
MILLENNIAL
S

12. USER
FACTS
WHY ARE THEY
EXERCISING?
WHEN THE GOING GETS
TOUGH,
THE REASON PEOPLE
EXERCISE IS:
Knowing it is
good for me
Knowing it will
give me a pick-
me-up Achieving my
end fitness goal
61
%
47
%
32
%
35
%
31
%26
%
ALL AGES
MILLENNIA
LS

13. FACTS WHY ARE THEY GOING TO
BOUTIQUE GYM’S /
FACILITIES?
The type of
people that go
there
The
atmosphere/vibe I get more
personalised
attention /
coaching from
staff
I like to follow
new trends in
fitness activities
63% 63%
47%
42%
40% 38%
29% 34%
ALL AGES
MILLENNIA
LS

14. INSIGH
TS
WHERE AND WHY ARE
THEY EXERCISING?
Hugely popular with the
Millennials who crave
assisted ad social exercise,
authentic experiences,
atmosphere and opportunity
to connect with ‘like-minded’
people in their workouts.
Large multi-
purpose fitness
facilities remain the
most popular
venue across all
activities…
…However they are losing
market share quickly to new
business models, in
particularly
micro-gyms.
Dedicated types of
spaces are best suited
to achieve these
desires.
PREFERR
ED
EXERCIS
E
SPACES
ARE
SHIFTING
ADAPT
OR …

15. AMPLIFY
MESSAGING
AROUND ‘GETTING
AND MAINTAINING
HEALTH’.
FOCUS ON OVERCOMING
BARRIERS, PROMOTING AND
OFFERING AN EFFORTLESS,
CONVENIENT ACCESS TO
EXERCISE AND SUPPORTING
MEMBERS IN THE
CHALLENGING PROCESS OF
CREATING AN EXERCISE HABIT.
This is the main reason for people to
exercise; research shows that it
delivers higher attendance than the
more superficial goals relating to
appearance.
Millennials - 'Getting/staying in
shape' ranks higher than
'getting/maintaining health’, which
should be reflected in the messaging
and offering.
‘Feeling too tired’ is the most used excuse to
not exercise regularly, closely followed by
'busy schedule' and 'a lack of motivation’.
Motivational messaging to improve
attendance should reinforce the WHY. Key
messages include:
• 'exercise provides a pick-me-up’
• 'exercise acts as a means to an end fitness
goal’
THE 'IDEAL EXERCISE EXPERIENCE – PROMOTE
AND DELIVER.
Fun and convenience - key drivers regardless of age.
Millennials (18-34 years) - 'challenging' replaces 'calm/relaxing'.
Operators can create the optimum mix and volume of 'ideal exercise experiences' by assessing
the % of challenging versus calm/relaxing workouts benchmarked against membership age
demographics.
INSIGH
TS
WHERE AND WHY ARE
THEY EXERCISING?

16. HOME
SPACE
FUELS THE
GYM
SPACE.
HOME EXERCISE
COMPLEMENTS
GYM
PARTICIPATION
RATHER THAN
COMPETES WITH
IT.
Promoting the 'live
club version' of the
home activities. The
motivational benefits
of the venue and
working out with
others.
Offering free home
workouts, especially
free weights, yoga,
dance and fitness
classes to music.
DVDs/Gaming and online
platforms provide the
greatest opportunity to
engage members and
educate prospects at home
through the various stages
of exercise change.
INSIGH
TS
WHERE ARE THEY
EXERCISING?

17. 4. WHAT DRIVES
PEOPLE INTO
FITNESS
FACILITIES?

18. USER
FACTS
WHAT DRIVES
PEOPLE INTO
FITNESS
FACILITIES?
22
%
14
%
9%
50%
36%
31%
29% 28%
TOP DRIVERS WHY
PEOPLE ATTEND
THEIR CURRENT
FITNESS FACILITY
ARE:
Convenient
location
Great
atmosphere Great
equipment
Great fitness
classes to
music
My friends
go there
WHEN ASKED
THE MAIN
REASON
Convenien
t location
(22%)
Great fitness
classes to
music (14%)
Great
equipment
(9%)
Location is
convenient
to me
The
atmosphere
/ vibe is
good
The
equipment
They offer
fitness
classes to
music
My friends go
there

19. CONSIDERER
FACTS
WHAT DRIVES PEOPLE
INTO FITNESS
FACILITIES?
THE TOP THREE THINGS
GROUP FITNESS
CONSIDERERS LIKE ABOUT
GROUP FITNESS CLASSES
ARE…
CONSIDERATION OF GROUP
FITNESS:
31% of gym members who
don’t currently do fitness
classes to music would
consider
21% of casual
members who don’t
currently do fitness
classes to music would
consider
21% of lapsed
members/never been a
member who don’t currently
do fitness classes to music
would consider.
37
%
28
%
Great
music
27%
Exercise style/
structure/
method
Motivation
31
%
21
%
21
%

20. 5. GROUP FITNESS
EXERCISERS

21. WHO IS DOING FITNESS CLASS
ACTIVITIES?
THE
LARGES
T
SEGME
NT
ACROS
S ALL
AGE
MILLENNIALS (18 TO 34 YEARS) ARE
MORE LIKELY TO BE DOING FITNESS
CLASS ACTIVITIES
2.5 TIMES
BIGGER
THAN GEN
X (35 TO
49 YEARS)
6 TIMES
BIGGER
THAN
BABY
BOOMERS
(50 TO 60
YEARS).
FEMALES, and more specifically FEMALE
MILLENNIALS, are more likely to be doing
fitness class activities
THE DOMINANT PROFILE IS
FEMALE OUTNUMBERING
MALES 5:1
36%
52%
OF REGULAR EXERCISERS CURRENTLY PARTICIPATE IN FITNESS
CLASS ACTIVITIES.
JUST OVER HALF OF REGULAR EXERCISERS WHO ARE NOT
CURRENTLY PARTICIPATING IN FITNESS CLASS ACTIVITIES
WOULD CONSIDER.

22. GROUP FITNESS
EXERCISERS
HIGHER
ATTENDANCE
34% 45%
56%
54%
10% 1%
45% gym attendees who participate in group fitness visit their gym
5+ times per week. In comparison to only 34% for all gym
attendees.
High (5+ times a week)
Medium (1-4 times per week)
Low (less than once per week)
All gym
attendees
Gym attendees
who participate
in group fitness
USER
FACTS
CANCELLATION
RATES
46% of group fitness users
are likely to cancel their
membership or stop attending
their gym if their preferred
class was cancelled.
LEADS
GENERATION
84% of group fitness
attendees recommend their
current facility to their
friends and family
compared to 76% of gym
attendees.
Just over half of regular
exercisers who are not
currently participating in
fitness classes would.
LONGER TENURE AMONGST
MEMBERS
9% 11%
29% 38%
61% 51%
All gym
attendees
Gym attendees
who participate
in group fitness
61% of all gym
attendees are with their
facility for less than 12
months.
In comparison to 51%
for gym attendees who
participate in group fitness.
38% of gym
attendees attending
group fitness classes
remain loyal for 1 to 5
years versus 29% for
total gym attendees.
11% vs. 9% remain
loyal for more than 5 years.
New (less than 12m)
Medium (1-5 years)
Long (5+ years)

23. CONSIDERER
FACTS
GROUP FITNESS
EXERCISERS
KEY DRIVERS FOR
CONSIDERERS ARE:
WHEN
CONSIDERIN
G 'FITNESS
CLASSES TO
MUSIC', THE
FOLLOWING
IS MOST
IMPORTANT
TO
CONSIDERE
RS. 57% 51% 44% 42%
MAIN BARRIERS TO ATTENDING
ARE:
• A DISLIKE OF BEING CROWDED. CROWDING
IS CONSIDERED 2X AS IMPORTANT AS A
DETERRENT.
• A DISLIKE OF WORKING OUT WITH OTHER
PEOPLE.
• PRICE OF CLASSES (IF ADDITIONAL TO
MEMBERSHIP).
Large
room
Small
amount of
people in the
class
Price of
class
Instructor
37
%
KEY DRIVERS FOR
PARTICIPANTS ARE:
30% 27% 26% 26%
Energyofabiggroup
Exercisestyle/structure/method
Convenientscheduletimes
Instructor
SUBSTANCE
OVER
STYLE
IS THE IDEAL
INSTRUCTOR
PREFERENCE
50%
28
%
Great
music
27%
Exercise style/
structure/
method
Motivation

24. INSIGH
TS
GROUP FITNESS
EXERCISERS
Investing in recruitment
and training of
instructors. Members
are demanding higher
quality and more
coaching.
Offering
programs that
are relevant to
Women and
Millennials
Building bigger studios – Participants
rank 'the energy of big group' number one
driver and considerers rank 'a large room
as the most important driver (57%).
Promoting different aspects
whether you are talking to users or
considerers. With considerers focus
on:
OPERATOR
S CAN
IMPROVE
OVERALL
PARTICIPAT
ION BY…
GROUP FITNESS MATTERS – OPERATORS CAN HAVE
CONFIDENCE THAT IF WELL EXECUTED, IT CAN
DRIVE ATTENDANCE, RETENTION, REFERRALS AND
MEMBERSHIP GROWTH.
• ‘Great music, a motivating environment and great
programing delivered by a well educated coach’.
• ‘Assisted’ versus ‘Group’ - having to workout with
other people is what puts non-attendees off.
• ‘Not crowded’, ‘small group training’.

25. TRP 10,000™ Study: Dr Melvyn Hillsdon (HCM, Jan ‘15)

26. GROWING MEMBERSHIP AND PROFIT
Why Group Fitness matters
26

27. Growing
membership?
It’s simple…
Get more people to come more
often.
27

28. Membership retention is the largest
problem facing our industry today.
US: 15 million new members join every year; 12 million leave…
28

29. RETENTION CHALLENGE
• 1∕3 of members stop
attending by month 3 –
that’s after an average
of just 12 workouts!
• 50% of members stop
attending by month 6

30. WHAT DOES THIS MEAN TO YOU?
• Decreasing staff (floor staff in
particular)
• Lower wages
– Low engagement and
staff quality
– High turn over
• Reducing members’ services
such as:
– Towels and locker-room
amenities
– Hours
– Childcare
COST REDUCTION -
REALITY CHECK!
• All costs are NOT equal
– Any cost that
diminishes the
member experience
causes an increase
in attrition and a
decrease in sign-
ups
– Any revenue loss
occurs at the margin
46% of Group
Fitness
participants are
likely to cancel
their
membership or
stop attending
their gym if their
preferred class
was cancelled!

31. Results, coaching and
Motivation
31
Getting people to come more often?
Giving them more of what they want!

32. Growing attendance
‘Managing’ Motivation
32
Growing attendance
for 2 groups:
- New Customers
- Existing Customers

33. How good are we really at providing results
and motivation to new members?

34. Reality Check
70 to 80% of low-cost clubs’
members have been a member
of a club before… and 50 to
60% of them left their previous
gym within 6 months. Their
main reason for leaving was
due to a low attendance…
Global report on the low-budget
segment 2014.
• 1∕3 of members stop attending
by month 3 – that’s after an
average of just 12 workouts.
• 50% of members stop
attending by month 6 – so, if
you’re lucky, 24 workouts...
spread over a 24-week period!

35. New member
induction
strategy
and process
The Holy Grail
of the industry…

36. PENNSYLVANIA STATE UNIVERSITY
Get Fit
Together

37. The Questions
Can we do that using
Group Exercise only,
without any other form
of exercise or diet?
Can we get
deconditioned adults, the
most resistant type of
people to exercise, back
into healthy lifestyles?

38. 25new fitness
participants, so-called
‘couch potatoes’,
between the ages of
25 and 40 years
The Program
Exercise program of 30 weeks
combining various LES MILLS™ GX programs to meet the
American College of Sports Medicine’s recommendations
• Cardio - 60 minutes 3 to 4 times per week
• Strength – 8 to 10 strength exercises 2 days per week
• Flexibility exercises once per week
Average BMI of 30
Nodietary changes

39. Cardio = One of either Les Mills' BODYATTACK™; BODYCOMBAT™; BODYSTEP™; BODYVIVE™; RPM™; SH'BAM™.
Participants went through a gradual build up of intensity through a build up of length and frequency of each of the 3 activities.
6 Weeks
Familiarization Protocol
CARDIO
(per week)
BODYPUMP™
(per week)
BODYBALANCE®
(per week)
Week 1 20 mins 20 mins (Tracks 1-4) 10 mins (Tracks 1-2)
Week 2 2 x 20 mins 30 mins (Tracks 1-6) 20 mins (Tracks 1-4)
Week 3 2 x 30 mins 30 mins (Tracks 1-6) and 1 x 20 mins
(Tracks 1-4)
25 mins (Tracks 1-5)
Week 4 2 x 35 mins and
1 x 20 mins
60 mins (Tracks 1-10) 40 mins (Tracks 1-7)
Week 5 2 x 50 mins and
1 x 20 mins
60 mins (Tracks 1-10) and 1 x 20 mins
(Tracks 1-4)
60 mins
Week 6 2 x 60 mins and
1 x 30 mins
1 x 60 mins (Tracks 1-10) and
1 x 40 mins (Tracks 1-7)
60 mins

40. Next
24 Weeks
CARDIO
(per week)
BODYPUMP™
(per week)
BODYBALANCE®
(per week)
Weeks 7 - 18
180 mins
(3 x 60)
120 mins
(2 x 60)
60 mins
(1 x 60)
Weeks 19 - 30
240 mins
(4 x 60)
120 mins
(2 x 60)
60 mins
(1 x 60)

41. What was
tested over the
course of the
study?
• Cardiovascular fitness, weight, triglycerides, fat and lean tissue percentage,
glucose levels, blood pressure, cholesterol, bone density
• Attendance/compliance
• Enjoyment, motivation, interest in class, confidence, attendance and enjoyment
were measured

42. EXPERIMENTAL MEASURES REPORT
Penn State University’s
‘Get Fit Together’ Research Detail
ML/KG/MIN
< 30
UNHEALTHY
30-34
POOR
35-39
BELOW
AVERAGE
40-44
AVERAGE
45-49
ABOVE
AVERAGE
50-54
GOOD
>55
EXCELLEN
T

57%
WEEK 0 15 30
ACHIEVED
ML/KG/MIN
30 40 47
CARDIOVASCULAR FITNESS
ML/KG/MIN
< 60
UNHEALTHY
61-72
LEAN
73-84
IDEAL
85-96
AVERAGE
> 97
UNHEALTHY

5KG
(11LBS
)
WEEK 30 15 0
ACHIEVED
ML/KG/MIN
77 89 92
MASS – MEN (178 CM)
ML/KG/MIN
< 50
UNHEALTHY
51-60
LEAN
61-79
IDEAL
71-80
AVERAGE
> 80
UNHEALTHY

3KG
(7LBS)
WEEK 30 15 0
ACHIEVED
ML/KG/MIN
77 78 80
MASS – WOMEN (163 CM)

43. PERCENTAGE
< 5
UNHEALTHY
6 - 13
ATHLETE
14 - 21
FITNESS
22 - 29
ACCEPTABLE
> 30
UNHEALTHY

8%
WEEK 30 15 0
ACHIEVED % 24 28 32
FAT MASS % - MEN
FAT MASS % - WOMEN
PERCENTAGE
< 13
UNHEALTHY
14 - 21
ATHLETE
22 - 29
FITNESS
30 - 37
ACCEPTABLE
> 38
UNHEALTHY

5%
WEEK 30 15 0
ACHIEVED % 38 4 43
EXPERIMENTAL MEASURES REPORT
Penn State University’s
‘Get Fit Together’ Research Detail
TRIGLYCERIDES
MG/DL
<150
NORMAL
150-199
BORDERLINE
200 -499
HIGH
>500
EXTREME

16%
WEEK # 30 15 0
ACHIEVED
RATIO
90 95 107

44. RATIO
< 3.6
LOW
3.6-6.3
AVERAGE
6.3-8.0
MODERATE
> 8.0
HIGH

16%
WEEK # 30 15 0
ACHIEVED RATIO 3.6 3.9 4.3
MEN – TOTAL CHOLESTEROL
Penn State University’s
‘Get Fit Together’ Research Detail
WOMEN – TOTAL CHOLESTEROL
RATIO
< 3.2
LOW
3.2-5.0
AVERAGE
5.0-6.1
MODERATE
> 8.1
HIGH

8%
WEEK # 30 15 0
ACHIEVED RATIO 3.2 3.4 3.5

45. The Results
across itscompliance
99%
weeks
30

46. Key
Take-
outs?

47. You can achieve the desired training effects
through Group Exercise only and, you can trust
LES MILLSTM programs to be highly effective to
provide new members with results and to create
exercise ‘stickability’.
Key Take-outs
# 1

48. Key Take-outs
A mixture of cardio, strength and flexibility
is best to prescribe to new members.
# 2

49. Key Take-outs
# 3
Don’t expect deconditioned people to commit to
full-length classes.
Recommend a gradual build up of intensity
over the first 6 weeks (length and duration of
their workouts).

50. Programs
Range
Quality
Intensity
Stickability

51. Get Fit
Together

54. Instructors
Transform from
‘no pain, no gain’
to ‘step by step’
Sort the
logistics
Connect and
encourage

55. Marketing
Existing
clients
Referrals
Email,
website
Facebook
and social
media
Get Fit Together
pack

56. NEW TREND
GROWING MEMBERSHIP AND PROFIT Ι LES MILLS™
INSIGHT SERIES
FOR EXISTING
USERS

57. RE-
INVENTING
OURSELVE
S
As an industry, we need to keep
innovating to find more ways to
attract new customers into
exercise facilities and to
increase members’ engagement.
This will keep the industry
fresh, relevant and
competitive in the decades
ahead as competition increases,
populations change, technology
and medicine redefine what is
possible.

58. • Retention is still our biggest
challenge
• The competition is continually
increasing, leading to a serious
price war
• Stagnating industry –
segmentation rather than innovation
• We struggle getting new people to
join our clubs -less than 17% of
adults belong to health-clubs in any
single country, and market
penetration of 10.5% is enough to be
among the top 10 of all countries
GROWI
NG
MEMBERS
HIP AND
PROFIT IS
TOUGH…

59. LES MILLS INTERNATIONAL © 2013 59
EXERCISE
CLUBS ARE
AT RISK
The world and our customers are
changing, while competitive
industries are evolving faster than
we are.

60. Immediate satisfaction
Technology
An experience
Best value for ££
THE
MILLENNIALS
ARE ‘IN’ -
ARE YOU
COOLENOUG
H?
Gen Y thinks exercise
“lacks excitement
and sociability.”
Engage: GenY

61. NEW TYPES
OF
COMPETITIO
N
Motivation, entertainment, social connection and
convenience

63. New technologies hold huge implications for the exercise industry in terms of the
consumer’s experience and, more importantly, who is in charge of the experience.
It is no exaggeration to say that many consumers will expect all their experiences, including
exercise, to deliver ‘what I want, when I want it, and where I want it – oh, and I may want
it differently tomorrow.’
AC NIELSEN’S WHITE PAPER
5 YEARS
AGO…

64. 64
THE FUTURE IS
NOW
In today’s ‘connected’ society, the ‘on-demand’
delivery concept is well established, and often
expected.
It is becoming an entry price in most B2C
businesses…
Flexible, convenient, technology-based
workouts that people can easily fit into their
busy schedules is a trend that’s here to stay.
Virtual Group Exercise is likely to become a
common offer, and not only in exercise facilities.

65. WHY, WHAT, HOW
VIRTUAL GROUP
EXERCISE
Virtual group exercise has arrived in a big way
and is already unfolding in some 3,000 clubs
worldwide.Clubs are capitalizing on the new group exercise concept to cater to
markets and to cut costs. The operators who’ve already opted in
consider these systems a way to increase studio utilization, reduce
costs, improve the member experience, and to complement their
live, flesh-and-blood group exercise instructors.
IRHSA – CBI – JULY 30, 2013

66. THE THREE COMPONENTS
OF
VIRTUAL GROUP EXERCISEPROJECTION/STUDIO SET UP PLATFORM PROGRAMS2 31

67. INNOVATION CYCLE DATA
– UK TEST CASE
The introduction of innovation into the studio
has attracted nearly 200 more members to
the cycling classes compare to the previous
month. This is an increase of 50%. As a
result, the number of bookings has also
increased by 55% with nearly 800 more
bookings were made from 01 Feb to 03 Mar
compared with the whole of Jan 2015.
Month
Numberof
bookings
Numberof
unique
members
Average
booking per
member
Feb-15 2,227 546 4.1
Jan-15 1,431 362 4.0

68. VIRTUAL GROUP
EXERCISE
• A trend that is here to stay
• Today’s consumers expect flexibility, convenience and
high-quality experiences anytime
• A must to remain relevant
• A very easy and cost-effective way to reduce real estate
waste, significantly expanding the appeal of your
offering
• A great new-member acquisition weapon and a highly
effective retention tool
• Implementing a GX VIRTUAL solution requires 3 things:
• A great audiovisual studio set up for a fully immersive
experience
• A reliable platform – plug-and-play box or free-standing
kiosk
• World-class program content to hook members, generate
referrals and attract new members
• Choose the best-in-class option

69. 69
How do the best facilities do?
• Design a high-energy workout
environment
• Create a relationship selling and new
member induction system
• Recruit a team of great personal
and small group trainers
• Build a ‘club within a club’ system
for sports and other activities
• Develop a member education and
social network communication
system

70. The bottom line
is…
Group Fitness attracts MORE
MEMBERS, who attend more
often, REMAIN LOYAL and
attract new members
THEMSELVES!
There is definitely a
commercial connection
between Group Fitness
attendance and
long-term profitable facilities.
70

71. What does it takes to achieve
ultimate attendance?
71
First, define success. Set some GOALS.

72. 72
Option 1:
Your membership - this is the
attendance you would get if
only 50% of your members
attended 2 classes a week)
Option 2:
50% of your
current club
visits per
week
Option 3:
Your
maximal
studio
capacity
Option 4:
Your
adjusted
studio
capacity
Current
weekly GF
attendance
Then, choose a first milestone to go for, a 12-month goal…
What is your ultimate GF weekly
attendance potential at 3 to 5 years?
Choosing a number…

73. Achieving
your goals
Group Fitness
Management
blueprint
IMPLEMENT A GF SCORECARD
MAXIMIZE CLASS SCHEDULE
RECRUIT GREAT INSTRUCTORS
ORGANIZE A TRAINING PLAN
DEVELOP THE BEST STUDIO
CREATE A GF MARKETING PLAN
PLAN FOR SUCCESS
HAVE A GREAT LEADER
73

74. 6. LES MILLS

75. FACTS LES MILLS
OFFERING LES MILLS IS THE PROVEN WAY TO
INCREASE GROUP FITNESS ATTENDANCE,
MEMBER LOYALTY, REFERRALS AND
THEREFORE MEMBERSHIP ACQUISITION,
RETENTION AND PROFIT.
A third of the market
know of Les Mills
52% of gym
attendees know of Les
Mills
On average Les Mills users attend 3.1classes per week
93% of Les Mills users have recommended their
current facility to friends and family, compared to 84%
of 'group fitness attendees' and 76% of 'gym
attendees'.
INVESTING ON
RESULTS
Les Mills is a strategic choice
for those operators looking to
increase group fitness
attendance, member loyalty,
referrals and therefore
membership and profit.
PARTNERING WITH THE
BEST
INSIGH
TS
Les Mills allows operators to
focus on member experience
execution using 'best in class
resources', avoiding the pitfalls
of trying to create and execute
member experience programs.
Les Mills has researched
backed tools to help operators
survive and thrive.

76. www.lesmills.com