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Driving Growth and Retention with Group Fitness - IHRSA EUROPE - Dublin 2009
1. 1
DRIVE GROWTH AND
RETENTION WITH GROUP
FITNESS
2. DRIVE YOUR GROWTH AND RETENTION WITH
GROUP FITNESS
1. The Future of Group Fitness
2. Identify the Group Fitness Opportunity within your Business (BHAG)
3. Build a Scorecard and use the Numbers to drive Decisions
4. Recruit a World Class team and put in place a robust Retention Plan
5. Make Group Fitness a cornerstone of your Marketing Plan
3. FROM CIRCUS TO CIRQUE DU SOLEIL…
FROM AEROBICS TO GROUP FITNESS…
4. THE WORLD BEFORE HEALTH CLUB GROUP FITNESS…
COMMUNITY HALLS, AEROBICS, LYCRA AND AMATEURS
5. GOING TO THE GYM IS BECOMING THE LARGEST SPORT
IN THE WORLD… OVER 100 MILLION MEMBERS
2009 IHRSA Global Report
6. 90% OF ALL EXERCISERS PREFER TO WORKOUT IN A GROUP…
1999 James J. Annesi: Effects of Minimal Group
Promotion on Cohesion and Exercise Adherence
7. GROUP FITNESS IS ONE WAY TO ACHIEVE THIS IN A HEALTH
CLUB ENVIRONMENT..
11. 11
…AND SO THE ENVIRONMENT HAS BECOME MIRROR-LESS,
MORE INVITING …
2003 August Issue of Health Psychology.
“Gym mirrors a turn-off for Women” Study by McMaster University Hamilton , Canada
13. GROUP FITNESS IS THE #1 CHOICE OF SERVICE OR
AMENITY THAT MAJORITY OF MEMBERS ARE INTERESTED IN
ABOVE PERSONAL TRAINING, MASSAGE AND CAFES
2009 IHRSA / HCD & Les Mills Survey
N= 6065 respondents
14. THE 2nd MOST IMPORTANT FACTOR IN MAKING A DECISION
TO JOIN A HEALTH CLUB IS MULTIPLE GROUP EXERCISE
ROOMS WITH FANTASTIC CLASSES…
2009 IHRSA / HCD & Les Mills Survey
N= 6065 respondents
15. THE #1 FACTOR THAT WOULD ENCOURAGE PEOPLE TO TRY
GROUP FITNESS CLASSES IS SCHEDULING MORE CLASSES ON
THE TIMETABLE AT DIFFERENT TIMES
2009 IHRSA / HCD & Les Mills Survey
N= 6065 respondents
17. OVER 6 MILLION PEOPLE EVERY WEEK PARTICIPATE IN
OUR CLASSES IN 13000 CLUBS IN OVER 80 COUNTRIES
North America Europe
1995 6685
Asia
813
South America Australasia
2394 1173
18. LEAD BY A TRIBE OF 70000 INSTRUCTORS THAT WOULD FILL
AN OLYMPIC STADIUM… OR CROKE PARK
19. OUR GOAL IS TO BE THE NUMBER ONE IN FITNESS EXPERIENCE
IN EVERY MARKET WE ARE IN – 100 MILLION PEOPLE
AND A TOP 100 GLOBAL BRAND BY 2025
20. 20
WE NOW KNOW THAT YOU CAN QUADRUPLE WEEKLY GROUP
FITNESS VISITS WITHIN 3–5 YEARS... IMPACTING BOTTOM LINE
www.lesmills.com/global/en/clubs/group-fit-p.r.o.f.i.t
21. 21
YOU CAN ALSO SERVICE 25%– 87% OF MEMBERS WITH
GROUP FITNESS… THESE MEMBERS STAY LONGER
Facility name Number of members % of total visits from GF
California WOW, Bangkok, Thailand 15,000 52%
Golds, Austin South, Texas, USA 11,300 25%
Yuba City Racquet Club, California, USA 5,000 40%
Holmes Place, Hamburg, Germany 4,400 31%
Fitness First, Adelaide, Australia 4,400 28%
Bodyplex Woodstock, Georgia, USA
, 2,500 37%
Sportschool rsus Leeuwarden, Holland
U , 2,350 40%
,
Fitness Concepts, Massech , USA 2,000 43%
Active Health Club, Cairns, Australia 1,980 68%
InjoyMed, Lauterbach Germany
, 1,950 47%
Planet Form, Grigny Paris, France
, 1,401 87%
Liikuntakeskus a , Oulu, Finland 1,300 27%
CorpusNovum Oirschot Holland
, , 1,200 60%
Cambridge Fitness Center, New Zealand 900 40%
GYM -TECH Health and Fitness Club, Ireland 540 51%
The House, San Diego, Califronia USA
, 500 80%
GSS Fitness Center, Sitges Spain
, Spain 440 80%
www.lesmills.com/global/en/clubs/group-fit-p.r.o.f.i.t
Intention to renew membership by Les Mills Members versus Non les Mills Members 72.2% vs. 63.4%)
22. 22
GROUP FITNESS MEMBERS REFER MORE PEOPLE THAN NON
GROUP FITNESS MEMBERS…
2009 IHRSA / HCD & Les Mills Survey
N= 6065 respondents
74.7% vs. 67.4%
23. 23
GROUP FITNESS IS A KEY WEAPON TO WIN THE RETENTION
AND PRICE WAR...
24. 24
FUTURE GROUP FITNESSS SUCCESS REQUIRES
INVESTMENT…
Increase in weekly visits in 3-5 years 500 visits increases to 2,000 750 visits increases to 3,000
Revenue* from Group Fitness $250,000 $375,000
Costs
Increased GFM wages $9,000 $12,500
Increased instructor wages $15,000 $16,000
Studio improvements $7,500 $15,000
Additional marketing costs $8,000 $12,000
License fees (3 & 5 programs) $8,000 $12,000
Increased training costs $2,500 $5,000
Total annual costs $50,000 $72,500
Forecast annual profit $200,000 $302,500
* Revenue calculation (increase in weekly attendances / 3 average visits per week) * $500
25. 25
START BY CREATING A GROUP FITNESS “BHAG”
Add up your current weekly class attendances
1000
TOTAL ____________
What could this be in 3-5 years if your instructors were delivering best in
city/state/country/world experiences every time?
POTENTIAL TOTAL GF ATTENDANCES (BHAG) 3000
_________
Divide the new attendance target by 3 (average Les Mills visits per week per AC Nielsen)
1000
POTENTIAL INCREASE IN NEW MEMBERS ____________
Multiply the number of members by your standard annual membership fee
€
500 000
POTENTIAL INCOME GAIN $ ____________
28. 28
THE TEAM CAN’T PLAY TO WIN IF IT DOESN’T KNOW
THE SCORE
29. KNOWLEDGE IS POWER…7 BIG QUESTIONS
1. What percentage of total club visits is provided by GF?
2. Do you know if your GF attendance is growing? If so, by how
much?
3. Which of your programs have the most pulling power?
4. What programs could take your club to the next level?
5. Who your world-class instructors are?
6. Which instructors need training to transform weekly attendance
figures?
7. Who reports to you on GF performance if the GFM’s too busy?
32. 32
4 FOUNDATIONS OF YOUR SCORECARD
1. Count every class
2. Use the best digital technology you can afford or independent
third party counts
3. Set class-by-class and weekly targets
4. Create accurate comparative stats and publish them
39. CASE STUDY 1 |Bladium Sports and Fitness Club, CA
Club overview
2728 Club members
Total visits per week ~ 1700-2000
GF visits per week ~ 750-900
% of total visits provided by GF ~45-50%
4 Studios
7 LES MILLS Programs
65-70 classes a week
14-16 instructors
Full time GFM
40. CASE STUDY 1 |Bladium Sports and Fitness Club, CA
Before Application
Excel based management
Unable to bench mark GF performance
No instructor rankings
No program based analysis
41. CASE STUDY 1 |Bladium Sports and Fitness Club, CA
With Smart Application
Highlights Group Fitness visits against targets
Identifies underperforming programs, classes or instructors
Motivates the team by sharing the numbers and creating healthy
competition between instructors
Impact of Smart Application
GFM saves ‘at least’ 10 hours per month to focus on business
strategies
Eliminates “Excel” mistakes
Easily presents information to the club manager and allows for quick
business decisions to be made.
42. AUTOMATED CLASS COUNTING CAN IMPROVE
THE WAY YOU RECORD GROUP FITNESS DATA…
Auto Count Camera
Application
43. 43
SCORECARD 7 MUST-DO’S
1. Start accurate manual/camera counts immediately
2. Monitor total weekly attendances
3. Set class targets with instructors
4. Enter class counts and targets into your Scorecard spreadsheet
5. Publish results monthly and recognize/reward success
6. Graph target against actual over a sustained period of time
€500 000
45. 45
A SINGLE GREAT INSTRUCTOR CAN BRING
HUNDREDS OF MEMBERS TO YOUR CLUB
46. 46
A TEAM OF GREAT INSTRUCTORS CAN BRING
THOUSANDS OF MEMBERS TO YOUR CLUB!
47. 47
CASTING IS EVERYTHING
“Never try to teach a pig how to sing.
It wastes your time and annoys the pig”
48. 48
EXAMPLES OF GROUP FORMATS AND ESSENCE
The real weights workout where I feel strong and get challenged
The Martial Arts workout where I am unleashed
The Yoga, Tai Chi, Pilates workout where I feel strong and centered,
long and strong
The dance workout where I get high on the feeling of dance
Ride the rhythm for the athlete within
The lively step workout where I get lifted
The cardio conditioning workout inspired by sports training
The low-impact workout that lets you choose just how hard you work