8 keys to connection

LES MILLS INTERNATIONAL © 2011

BUILDING SUSTAINABLE AND SUCCESSFUL HEALTH AND FITNESS FACILITIESGROWING MEMBERSHIP AND PROFITABILITY

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Health & Fitness facility attendance has become the biggest adult ‘sport’ in the Western world.

Bigger than football, tennis and golf combined …

We thought all stars we aligned for further growth…

THE FITNESS INDUSTRY HAS EXPERIENCED MASSIVE GROWTH IN THE LAST 40 YEARS…

US Adult Fitness Club Participation


FUTURE OF FITNESSTHE WHITE PAPER OUTLINES INDUSTRY ‘CHALLENGES’ THAT POSE AN ALARMING THREAT TO FUTURE SUSTAINABILITY, GROWTH AND SUCCESS…

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OUR INDUSTRY IS AT RISK…• Membership retention is the largest problem facing our industry today• Based on commodities and lacking the excitement and social

engagement of sports - We behaved more as gyms than as true health clubs.

• Competitive industries are evolving faster than us, eg:• Virtual exercise• New sports• Nutritional science• Medicine

• Stagnating industry - Segmentation rather than innovations – The industry has started to turn into itself – we are fighting for the same customers instead of innovating to attract new ones (Budget clubs; micro Gyms)

Budget Clubs


MICRO GYMS Many facilities worldwide are being hurt

by low-budget competitors. At the same time, there are successful

new fitness models emerging (micro gyms) eg:• Cross Fit Studios• Orange Theory - $23 per class• Kosama, Omni, Fitness Together, Title Boxing• Soul Cycle and Flywheel (US) – $32 per class• Pure Yoga (Asia and US) –

$145 to $165 per month• Exhale Spa (US) – $195 pm for classes-only

membership

• People are willing to pay for value…

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WHITE PAPER: WHAT DO PEOPLE WANT? WHY DO THEY JOIN A GYM?THREE AREAS OF OPPORTUNITY1. Exertainment2. Community/Building

bonds3. Health

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WE BELIEVE WE CAN COMBINE THESE UNDER ONE HEADING…


MOTIVATION


HOW CAN WE TELL WE ARE DOING A GREAT JOB OF MOTIVATING PEOPLE?IT’S SIMPLE. THEY ATTEND MORE OFTEN.

Many operators focus solely on sales and profit. Sophisticated clubs and recreation centers add membership numbers and retention statistics. These are valid but BUT can not guide management decisions –We need to manage using leading measures which predict what the outcomes will be.

There is one number that has a more powerful effect on success than any of the others, that influences everything else: Member attendance.

ATTENDANCE IS THE MOST IMPORTANT METRIC IN OUR INDUSTRY. BUT ONE OF THE LEAST MEASURED BY CLUB OWNERS.

Regular attendees renew their memberships, refer their friends and promote their clubs at staggering rates when compared to members who pay but seldom use their gyms.


SO HOW CAN WE‘MANAGE’ MOTIVATION TO ATTEND?

For all the good efforts of the equipment companies, it’s not about the machines. It’s about becoming more than just a place where people come to pump iron and run on a treadmill. Leave that to the budget gyms that charge $10 a month.

LES MILLS INTERNATIONAL© 2011

HOW DO THE BESTFACILITIES DO IT?

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


• 90% of all exercisers report that they would prefer to work out in a group.1

• Members who attend Group Exercise (GX) use their facility 3 times per week compared to IHRSA's figure of 1.9 member visits a week, on average.

• GX is cited as the biggest influence (40%) on how long people remain a member of a fitness facility.

• GX member retention rates are higher than other member retention rates, on average.

• 60% of people rate GX as the #1 service they specifically look at when choosing a gym.2

• Satisfied GX members refer people 3 times more than other members.

GROUP EXERCISESTANDS OUT HEAD AND SHOULDERS AS A MOTIVATIONAL WEAPON


Yes absolutely. These are wonderful innovations that have revolutionised parts of our industry. And facility operators love them because they can charge for them. However even the world’s best only engage around 10% of their attendances in PT and 3-4% in Small Group Training.

Group Exercise attracts and motivates the masses. Some of the world’s most successful facilities have over 50% of their attendances in Group Exercise.

WHAT ABOUT PERSONAL TRAINING AND SMALL GROUP TRAINING… DON’T THEY ACHIEVE THE SAME THINGS?

“GROUP EXERCISE MEMBERS ATTEND MORE REGULARLY, REMAIN MEMBERS 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

1. Will Phillips, The Retention Breakthrough


WHAT DOES IT TAKES TO BECOME A CHAMPION AT GROUP EXERCISE?


THE PLAN IS BASED AROUND 8 KEYS

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WHERE TO START?

One Tribe – Changing the World Les Mills International © 2010 One Tribe – Changing the World Les Mills International © 2010

CREATE A SCORECARD

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THE TEAM CAN’T PLAY TO WIN IF IT DOESN’T KNOW THE SCORE


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IF YOU CAN’T MEASURE IT, YOU CAN’T MANAGE IT

One Tribe – Changing the World Les Mills International © 2010

IMPLEMENT A SCORECARDGET THE TEAM TO PLAY FOR WINNING1. Count the numbers

– Systematic in every class– Third party or digital

2. Set class attendance targets– Give your instructor a specific goal and

benchmark– Clarify their contribution towards the BHAG– Set two types of class targets – long and short

term ones

3. Analyze and use the data– To make ongoing timetable and management

decisions based on facts and not on personal interpretation or ‘feelings’

– Data-tracking system to track performance versus targets

4. Publish the results to instructors – Ranking your instructors creates friendly rivalry

which is essential to drive attendance growth

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LEADING TO WIN - SETTING CLASS TARGETSTHE ART OF DEFINING NEW TARGETS AND THE 10 FACTORS TO CONSIDER:


TRACK YOUR NUMBERSKEY GF KPI’S TO TRACK PERFORMANCE VS TARGETS1. Weekly GF attendance2. % club Visits delivered by GF3. Average attendance per class4. Individual class performance:

• Class rankings• Option: Cost per head

5. Program performance (program rankings)


MAXIMIZE YOUR TIMETABLE

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THE ULTIMATE BENCHMARK OF A TIMETABLE IS THE NUMBER OF PEOPLE IT PULLS IN


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GIVE MEMBERS MORE OF WHAT THEY WANT 3 TOP DRIVERS: PROGRAM, INSTRUCTOR ABILITY AND CLASS TIME


GET YOUR PROGRAMMING RIGHT• Prospects and members usually need

three types of training to cover their basic needs

• Make sure you have at least one great program you can recommend BLINDLY in terms of quality, experience and consistency in each of these categories:

– Strength toning– Cardio– Mind-body stretch

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GETTING YOUR PROGRAMMING RIGHTWHERE TO START? 5 program genres comprise 75% of GX attendance every week In order of market share, these are:

• 21% Strength and Weights

• 19% Cycling• 14% Mind and Body• 12% Dance• 9% Martial Arts

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GET YOUR PROGRAMMING RIGHTALLOCATE 70% OF YOUR TIMETABLE TO CORE PROGRAMS MATCHING YOUR NATURAL TARGET MARKET AND 20 - 30% TO SPECIALTY ONES TO TARGET NICHE OR NEW TARGET MARKETS

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1. Think horizontally1. Offer at least one strength/toning option, one Cardio workout and

one mind body/stretching option through the week in each 2-hour timeslot .

2. Make sure you offer your core programs at least two to three times a week across each 2-hour timeslot.

2. Use specialty programs in shoulder or off peak slots3. Consider express classes to suit people busy life style and

new high intensity and express workout trends


DESIGNING TIMETABLEEXTRA TIPS TO GROW YOUR ATTENDANCE


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A SINGLE GREAT INSTRUCTOR CAN BRING HUNDREDS OF MEMBERS AND $$ TO YOUR CLUB


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A TEAM OF GREAT INSTRUCTORS CAN BRING THOUSANDS OF MEMBERS AND $$ TO YOUR CLUB


CASTING IS EVERYTHING

NEVER TRY TO TEACH A PIG HOW TO SING. IT WASTES YOUR TIME AND ANNOYS THE PIG.

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– Changing the World Les Mills International © 2010One TribeOne Tribe – Changing the World Les Mills International © 2010

BASED ON 2008 AND 2010 CVM GLOBAL RESEARCH:

RECRUITING INSTRUCTORS IS THE TOP CHALLENGE CLUBS FACE IN GROWING GROUP FITNESS

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REVERSE THE TREND!

LOOK NOW FOR THE TALENTS OF TOMORROW

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Fun, social atmosphere, variety, entertaining


Source: AC Nielsen Research

RECRUIT IN THE ‘ESSENCE’REMEMBER WHAT KIND OF EXPERIENCE PEOPLE WANT FROM THEM


SOURCING NEW TALENTSPREAD YOUR NET WIDER. RECRUIT NEW TALENT BEYOND YOUR FACILITY.

• Summer camp counselors

• BODYJAMTM - Hold a rave

• Stunt academies

• Modeling agencies

• Acting schools• Gymnastics

associations• Talent agencies• Armed Forces• www.lesmills.co

m (employment page)

• Emergency services

• Athletic clubs• Sporting

goods stores/cycle shops

• Music/theater schools

• Current facility staff

• Current LM instructors

• Members taking LM classes

• Spouses of current instructors

• Theater and dance companies

• Physical Education schools

• Referrals from teaching team

• College/universities

• Schoolteachers

• Baristas/waiters and waitresses

• Dance/Karate/Yoga schools

• Dance clubs• Cheerleaders

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http://www.lesmills.com/

http://www.lesmills.com/


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RECRUITING WITH LES MILLS AND PROFESSIONAL TOOLSRECRUITMENT CAMPAIGN AND VIDEOS


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RECRUITING WITH LES MILLS AND PROFESSIONAL TOOLSMANAGER GUIDE, SELECTION PROCESS AND FORMS, INTERVIEW GUIDE…


RETAIN YOUR INSTRUCTORS

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INCREASE THE COMMITMENT AND LOYALTY OF YOUR INSTRUCTORS. INCENTIVIZE TOP PERFORMANCE AND RETAIN TOP-PERFORMING INSTRUCTORS. CREATE A SYSTEM THAT COMBINES FINANCIAL AND NON-FINANCIAL REWARDS.


ORGANIZE WORLD-CLASS INSTRUCTOR TRAINING

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IMPLEMENT AN EXTERNAL AND IN-HOUSE TRAINING AND ASSESSMENT

CONSTANTLY DEVELOP YOUR TEAM TOWARDS MASTERY


CONSTANTLY DEVELOP YOUR TEAM TOWARDS MASTERYBUILD UP THEIR SKILLS IN THE 5 KEY ELEMENTS OF TEACHING

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LES MILLS’ TRAINING PROCESSBUILDING ROCK STARS IN A SHORT TIME

Training actions LES MILLS™ driven

Club driven

Selection of candidates and preparation before Initial Module

✓

Initial Module training – 2 days ✓

Clearance to teach at the end of training – grading system

✓

Team-training before Launch ✓

Prepare Instructor’s Certification and send videos ( up to 12 weeks post module)

✓

INSTRUCTOR INTERNATIONAL CERTIFICATION ✓

Ongoing training - Quarterly Workshops ✓

In-house quality control ✓

Team-training before Quarterly Launch ✓

Advanced instructor training – AIM Modules 1 and 2 ✓

ADVANCED AND ELITE CERTIFICATIONS ✓


DEVELOP THE BEST STUDIO YOU CAN AFFORD

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CREATE A WOW GF DESTINATION

A GREAT GF DESTINATION PULLS MEMBERS AND GUESTS INTO THE STUDIO(S)


“Exertainment”

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78% say room to exercise is extremely/very important! 60% say the ambience of the room is extremely/very important

MOTIVATING ATTENDANCE


HERITAGE

SOME ARCHITECT SOMEWHERE DECIDED THAT GF STUDIOS SHOULD HAVE WHITE WALLS, STRIP LIGHTS AND HAVE MIRRORS ALL AROUND. AND LIKE A VIRUS, IT’S SPREAD!

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CREATE A WORLD-CLASS DESTINATION5 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 GF MARKETING PLAN

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One Tribe – Changing the World Les Mills International © 2010 One Tribe – Changing the World Les Mills International © 2010 One Tribe – Changing the World Les Mills International © 2010

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YEARLY GX MARKETING PLAN TO GROW MEMBERSHIP AND PROFITTOP ACTIONS1. Launching program(s) and Launch events2. Quarterly Re-launch events3. Ongoing internal promotion on the benefits of your GX programs

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LES MILLSTM EVENTSBENCHMARK Massive BUZZ and interest in club during the 2 weeks building up to event Full focus from club team on common goals and interaction between sales,

customer experience and product departments – ‘Breaking down silos’ Attendance: 5 to 10% membership Sold-out events and massive energy in clubs – all classes at 80 to 100% capacity 20% guests per class 50 to 70% conversion rate of guests

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Experience

Sales

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

THE SALES / EXPERIENCE CURVE

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WORLD-CLASS MARKETING AND PROMOTIONAL SOLUTIONS

EVERYTHING YOU NEED TO HOST AMAZING EVENTSTHAT ATTRACT NEW MEMBERS AND PROMOTE YOUR PROGRAMS.

The LES MILLS™ Group Fitness solution gives you free access to a huge collection of valuable marketing and promotional resources. We are continually working on new ways to help you inspire your members and prospects. Currently we’re developing online tools, which will allow you to customize material with your own club logos and messages.


PLAN FOR SUCCESS

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PLAN FOR SUCCESSGF BUDGET EXAMPLE


PLAN FOR SUCCESSMONTHLY HEADLINE REPORT FOR MANAGEMENT AND INSTRUCTORS

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EXAMPLE HEADLINE MONTHLY GROUP FITNESS REPORTReporting month July-08

Name of facility Club Fabuloso

Overall goal: To grow GF attendances by 25% in 12 months

Actual attendance trends

Last MONTHCurrent month

Increase/decrease

Comment

Actual attendances 4850 4900 50Small increase month-to-month despite school holidays

Monthly Budget Actual Variance Comment

Total monthly costs4,500 4,300 200

Savings mainly due to gifts being supplied for free for monthly promotion due to local company sponsorship

Attendances5,000 4,900 (100) School holidays impacted attendances more than

expected

GF visit/Total visitsActual GF visits

Total Visits Percentage Comment

For July4,900 12,000 41% Substantial proportion of members attend GF


APPOINT OR BE A WORLDCLASS GF MANAGER

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YOU NEED A GREAT TEAM TO HELP YOU ACHIEVE YOUR VISION AND GOALS


AND MORE THAN ANYTHING …YOU NEED TO RECRUIT/BE A GREAT TEAM CAPTAIN AND LEADER!Engaging members more is KEY to increasing club’s usage, membership and profit

– Changing the World Les Mills International © 2010One Tribe

YOU ARE AS IMPORTANT TO YOUR FACILITY AS THE SALES MANAGER

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GX MANAGERS - YOU ARE A MAJOR HIRE


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You are a key business driver You lead a team which is

responsible for bringing and retaining thousands of members to your facility

You drive up to 50% of your club attendance…

AS A GREAT GROUP FITNESS MANAGER YOU CAN CHANGE THE FUTURE OF YOUR CLUB


HIRE OR BE A WORLD-CLASS GX MANAGERCAN YOU…• Hitting your weekly attendance goals and staying

within budget

• Rigorously implementing the Key Elements of GFM

• Communicating with management to increase support for Group Fitness over time

• Leading your team to deliver extraordinary fitness experiences to your members

• Being a coach, not an ego

• Building a powerful and purpose-driven team

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One Tribe – Changing the World Les Mills International © 2010 88

STAND FOR SOMETHING. CREATE A CAUSE, NOT A BUSINESS.GIVE YOUR TEAM SOMETHING BIGGER THAN THEMSELVES TO FIGHT FOR.


FOR A FITTER PLANET

“We are warriors in the battle against inactivity and over-consumption.”

LMI Instructor Creed, 1998

“Creating life-changing experiences every time, everywhere. One class at a time, one participant at a time.”

AIM manual

“Making people fall in love with fitness.”Les Mills, 1968

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8 keys to connection

Education

Transcript of 8 keys to connection