Fitness presentation by Shara Curlett from the 2013 Fitex Conference in Auckland, NZ. Discusses the new consumer in context to the fitness industry - buying habits, behaviours, and the new way that we need to service them. Touches on becoming a servile brand and covers off an approach to identifying all the "contact points" and identifying your own consumer life cycle.

1. The New Consumer

2. Presented by Shara Curlett
www.revx.co.nz
© REVX NZ Ltd

3. Overview
• Introducing “The New Consumer”
• The Servile Brand
• The “Emotional Entry Point”
• Interaction and Connection
• Putting it all Together
© REVX NZ Ltd

4. The evolution of digital has brought with it
a new age of consumer expectations.

5. 3 Levels of the New Consumer
These new consumer expectations are based on
the need for...
1. Instant Gratification (“I want it now”)
2. Immediate Information (“I want it in my time”)
3. External Recommendation (“I don’t trust you – I trust
what others have to say about you”)

6. As a result...
Choices can now be
made without any direct
communication with
your business.
© REVX NZ Ltd

7. 1. Instant Gratification traits
• They want answers quickly (preferably at their
fingertips) and from multiple sources.
• They are connected, savvy, and know exactly what
they want from your business.
• They want to know in an instant what’s in it for them
(WIIFM).
• Many want the option to “Try before I buy”.
© REVX NZ Ltd

8. How has this impacted the industry?
• Those not online will be left behind.
• Provide multiple sources of value-based information
about your business on an ongoing basis.
• Keep them engaged (regular contact from multiple
sources)
• Move with the times online (or risk being viewed as
“archaic”
© REVX NZ Ltd

9. 2. Immediate information traits
• They have a lot on the go.
• They are flooded with information and “to-do’s” on a
daily basis:
• Advertising; digital devices; general “busy-ness”
• Time is a limited resource – and valuable. They don’t
want to waste it – and they won’t.
• They therefore want ultra-convenience in everything
they do.
© REVX NZ Ltd

10. How has this impacted the industry?
• If they can’t find you instantly online, they may not bother
looking further...or visiting.
• If you don’t solve their problem, someone else will.
• If you lock them in, they may be less likely to buy...
• They are becoming transient and less loyal.
• They want to be in control.
• They want the security to opt-out if you aren’t serving their needs.
• Avoid making the experience painful and (long-winded).
• Make things convenient for them.
© REVX NZ Ltd

11. 3. External recommendations
• Rest assured - they will be doing their research before
they walk through your doors...
• Website
• Social media
• Reviews
• And (in most cases) they will believe what others have to
say.
© REVX NZ Ltd

12. 3. External Recommendations
• Only 47% of consumers around the world say they trust paid
media (television, magazine and newspaper ads)
– a decline of over 20% since 2009.
• 92% of global consumers say they trust earned media (word-ofmouth and recommendations from friends and family) above all
other forms of advertising – an increase of 18% since 2007.
• Online consumer reviews are the second most trusted form of
advertising, with 70% of global consumers trusting them
– an increase of 15% in four years.
- Source: Nielsen, April 2012

13. How has this impacted the industry?
• We need to be proactive:
• Know what’s being said about you, e.g.
• Reviews
• Twitter (don’t forget #words)
• Instagram
• Get some positive reviews out there
• Respond quickly to feedback – sometimes how you
respond is more important than what has been said.
© REVX NZ Ltd

14. Key influencers

15. The New Consumer Journey
Source: IDC Retail Insights, 2012

16. Push
vs.
Pull
• Pull
• Interruption
• One-to-many
• Reactive
• Return on Investment
• Heavy users
• Big promises
• Marketing at
• Consumers
• Brands
• Engagement
• Many-to-one
• Interactive
• Return on Involvement
• Inspirational Consumers
• Intimate gestures
• Connecting with
• People
• Lovemarks

17. Another
way of
looking
at it...

18. What does this mean?
• Perceptions can be created by consumers...without
them even stepping foot through your doors.
• Opinions can be made by people who haven’t
experienced it themselves.
• Your online presence may have only 30 seconds or
less to make an impression on someone.
© REVX NZ Ltd

19. Where is the fitness industry
headed?
• Will gyms survive the onslaught of niche studios, 24hour gyms, bootcamps and online services?
• Will one come out on top?
• Or is there room for everyone?
© REVX NZ Ltd

20. Current state of the industry
• Price-point focus, e.g.
• Voucher deals
• Membership deals
• Package discounts
• Freebies
• Service focus, e.g.
• Group fitness
• Cross-fit approach
© REVX NZ Ltd

21. Business model discussion
• Gyms – technology “gaming”
• Studios – niche / online
• PT’s – leaders / online / gym’s success is their success
• Bootcamps - $ pricepoint
• Group Fitness - $ pricepoint
• Pilates / Yoga / etc. – niche / leader / online / partnerships
• CrossFit – pipeline
© REVX NZ Ltd

22. Research by Fitness NZ revealed initial
findings that fitness centre membership
levels in New Zealand may have grown by
as much as 4% in 2012, almost double the
estimated rate of growth in the wider NZ
economy (2.2%).
However…

23. They also went on to note:
“At the same time the number of facilities
continue to expand, at all price and service
level, meaning there is now more choice than
ever for consumers looking to start into
exercise.”
“…It should be noted that the number of
facilities grew faster than the rise in
members, so many clubs may have even seen
a small drop in number of members, but
overall the number of Kiwis exercising at gyms
in NZ continues to grow.”

24. So how do
we meet the
needs of the
new
consumer?

25. “The way to separate your
business from the crowd is to
go beyond customer service
– to understand their
behavioural drivers and
become a ‘Servile Brand’”
- Trendwatching Report 2012

26. Don’t just service
customers.
Connect and interact with
them through every stage
of their life cycle with you.

27. Becoming a Servile Brand

28. About Servile Brands
• The new consumer has an expectation level that well
surpasses any prior standards.
• If you want their hard-earned dollar on a consistent
basis, then be prepared to work for it.
© REVX NZ Ltd

29. “SERVILE means turning your
brand into a lifestyle servant,
focused on catering to the needs,
desires and whims of your
customers – whenever and
wherever.”
- Trend Briefing, October 2012

30. The Servile Brand…
• Understands the new consumer’s driving behaviours.
• Can not only pre-empt, but solve the new consumer’s
problems before they go looking for the solutions.
• Continually looks for new ways to keep serving the
new consumer better…in ways that “surprise and
delight”.
• They know what others don’t – to enable them to
attract and retain the new consumer.
© REVX NZ Ltd

31. 13 Rules of the Servile Brand
1. Put the need of the consumer before your own.
2. Make the consumer’s life easy…and keep thinking of
ways to do so.
3. Get on board with online advancements that will help, or
connect you with, the consumer.
4. Be unique in a way that the consumer will remember.
5. Go out of your way to look after the consumer.
6. Give the consumer ways to save time…and money...but
not to the detriment of your business.
7. Reward the consumer for doing business with you. © REVX NZ Ltd

32. 13 Rules of the Servile Brand
8. Reward the consumer for sharing your business with others
9. Surprise and delight the consumer (in a positive way)
10.Be innovative in a way that benefits the consumer – and in a
way that meets their needs
11.Provide the consumer with solutions – cater to their needs
and keep asking them what they want
12.Have humility. Admit your wrongdoings, and more
importantly, be seen to be doing something about it.
13.Focus on being loyal to the consumer rather than making
the consumer be loyal to you.
© REVX NZ Ltd

33. A note on innovation
Innovation (e.g. new equipment,
new programming, new
services, etc.) is nothing if you
don’t first provide a level of
service that matches the new
consumer’s expectations.
© REVX NZ Ltd

34. Innovation without a core focus on a new level
of customer service is like a house built on
sand – the whole structure will collapse and fail
if it doesn’t have a good base of support.

35. The Emotional Entrypoint

36. The Emotional Entry Point is
the point where the
consumer connects with
your business
© REVX NZ Ltd

37. The Emotional Entry Point
• Coined by Mia Freedman of “Mamamia”
• Determines whether or not someone decides to engage
with your business – both current and future customers
• Determines whether or not customers – and others –
believes the “real-ness” of your business.
• Determines the personality of your business
• Determines the success of your online efforts
© REVX NZ Ltd

38. context

39. relatable

40. real people

41. helpful and interesting

42. Connection and Interaction

43. C&I - Online
• Facebook conversations
• Twitter
• Instagram
• Pinterest
• Video – personality
• Blog (comments enabled)
• Email / e-news
• LinkedIn Groups
• Forums
• Back-end membership
• Shared images
• Website
© REVX NZ Ltd

44. C&I - Offline
• Q&A / feedback box
• Focus groups
• Staff feedback
• One-on-one
• Personalisation
• Market research
• Genuine interest
• Contact points
© REVX NZ Ltd

45. Putting It All Together

46. What are your contact points?
• How do they hear about your business?
• What is the buying cycle?
• What are their interactions (1st month, 2nd month, etc.)
• How do they progress, grow, and develop?
• How do are their achievements / milestones recognised?
• How do they share information with their friends?
• How do they build relationships with others?
© REVX NZ Ltd

47. Know your ideal customer
as well as you know your
best friend.
© REVX NZ Ltd

48. Different
interpretations...
friend.

49. Different
interpretations...
friend.
Ref: freemanleonard.com

50. Different
interpretations...
friend.

51. Different
interpretations...
friend.

52. What’s the common element?
• The cycle.
• On-going effort is required – and expected – to
continually engage and connect.
© REVX NZ Ltd

53. Critical stages
• Initial search
• Research / information gathering stage
• Consideration – the options
• Decision – the sales process
• Month 1 – confirmation
• Month 2 – progress
• Month 3 – re-confirmation
• Months 4-6 – re-spark the interest
© REVX NZ Ltd

54. Critical stages
• Months 7-9 – progress
• Months 10-12 – milestone achievement and celebration
• Year 2 onwards – keep rewarding them for their loyalty and
continue to evolve and keep up with the times.
© REVX NZ Ltd

55. Example: TRP approach
The Retention People (i.e. TRP). Focused on:
• Continual engagement
• Ensuring connection with “medium to high risk”
• Celebration and recognition
• “Appeared” personalisation
• Measurement and analysis
© REVX NZ Ltd

56. Recommended steps
1. Establish your own customer life cycle. Begin with a model,
then detail each stage.
2. Get all staff to go through each stage, and determine the gaps
and opportunities for improvement.
3. Establish projects to address each opportunity, beginning with
the top priority areas (utilise the priority matrix).
4. Mystery Shop different elements of your customer service.
5. Solicit feedback at every stage both formally and informally
and respond publicly (where appropriate).
© REVX NZ Ltd

57. Tips and suggestions
• Up-skill your staff around the critical contact point stages.
• Alleviate the pain of going through a process by hitting all the
“hot spots”. Analyse your current processes.
• Be different
• Reinforce the value of doing business with you at every step.
© REVX NZ Ltd

58. high
What to focus on
low
IMPACT
ROI  leads  retention  customers
Priority Matrix
low
high
EASE OF IMPLEMENTATION
cost  effort  time  ability
© REVX NZ Ltd

59. Presented by Shara Curlett
www.revx.co.nz
© REVX NZ Ltd