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Bally Total Fitness

Technology in Motion
Why Mobile at Bally
–Fitness corresponds with freedom, movement and action
–Natural environmental and cultural fit
–Mobile would amplify the experience and environment




                                                         5
Where to Begin
Observations:
 • Members
   • Already using mobile while working out
   • Using social networks to talk about Bally, but not to engage
     with Bally
   • 10% of web visitors using a mobile device


 • Employees
   • Interacting with consumers while in motion, but then tethered
       for system access and transactions
   •   Using mobile in personal lives




                                                                     6
Culture and Technology

• IT culture needed to change from “order taker” with
  long implementation cycles to business driver with
  quick turn around times
• Technology needed to become more interactive,
  engaging, and supportive of a mobile workforce and
  consumer




                                                        7
Fostering IT Innovation

• Formal innovation processes
  – Annual IT Innovation Summit
  – Embedded IT
  – IT Develop Exploration
• Real results




                                   8
Innovation Process: Annual IT Innovation
                Summit
 • Annual summit involving all IT personnel
 • Innovation focus areas and teams formed
 • Research conducted and solutions proposed by cross-
   functional teams
 • Innovation ideas presented to IT leadership during
   multi-day innovation summit




                                                         9
Innovation Process: Embedded IT
• Permanently embedded IT staff
  – Provides open communication with all levels of fitness and call
    center staff
  – First hand observation of technology, business processes and
    member communications

• Seasonally embedded IT staff
  – Peak season IT staff embedded in fitness centers
  – Shared experiences and conversations with fitness center staff
  – Post peak season debrief focused on how to improve technology
    and processes




                                                                      10
Innovation Process: IT Developer
              Exploration
• After the annual innovation summit, block time for
  developers to explore technology in support of
  innovation ideas
• Innovation and exploration bandwidth is built into
  resource allocations on project plans




                                                       11
2011 Real Results

• Results Center
  – 2012 Digital Sign Expo APEX Award Bronze Medalist

• Mobile Applications
  –   Robust mobile vision
  –   Numerous iPad applications
  –   Employee facing iPhone applications
  –   Consumer facing applications in development




                                                        12
2011 Innovation Projects: Results
              Center
Key Innovation:
 Large scale interactive video display
based upon Microsoft Kinect



                                         • Show a member what their future self
                                         would look like if they adopt a healthy
                                         lifestyle
                                         • Provide members and potential
                                         members with a library of exercise
                                         videos for major muscle groups




                                                                             13
Mobile Technology Vision

• Employees interacting with consumers
• Employees interacting with the environment
• Consumers interacting with the environment
• Consumers interacting with employees
• Consumers interacting with each other
• Work anywhere, on any device



                                               14
Employee to Consumer
iPad Apps
  – Club Tour
  – Membership and Personal Training
    Presentation
  – Membership and Personal Training Sales
  – Registered Guests
  – Who is in my club




                                             15
Employee to Environment
iPhone Apps
 – Facility Maintenance
 – Workout Equipment Maintenance
 – Preventative Maintenance




                                   16
Consumer to Environment
Mobile Web
  – Guest pass downloads
  – Find a club
  – Group Ex Schedules




                           QR Codes on fitness
                           equipment for workout tips
                           or instruction




                                                        17
Consumer to Environment
iPhone/Android App
  –   Profile maintenance
  –   Class schedules and details
  –   Membership ID
  –   Order a smoothie




                                    17
Consumer to Environment
WiFi Location Awareness (802.11)
  – Automatic check-in
  – Post messages to Facebook
  – Personalized marketing




                                   18
Consumer to Employee

iPhone/Android App
 – Find a trainer
 – Personal trainer interaction
   • Fitness advisor
   • Nutrition advisor




                                  19
Consumer to Consumer - Social

• iPhone/Android – design stages
  – Find a workout friend
  – Self-organizing interactive communities based on workout
    preferences
  – Gamification - Competition fostering between individuals or
    locations




                                                                  20
Work Anywhere – On Any Device
• Bally IT is 80% virtual
• Employees can work anywhere
  on any device using virtual
  desktops – iPad being the most
  prevalent
• iPad based executive reporting
• Reduced IT office space by 50%
• Reduced desktop hardware and
  software support by 60%


                                   21
Key Considerations
• User Experience is everything
  –   Augment the environment
  –   Foster interaction without feeling intrusive
  –   Emotions through technology
  –   Common digital language across technologies
• Security
  – Transactional security
  – Secure access for consumers
• Vendors
  – User experience
  – Experience with similar design goals




                                                     22
Enterprise Benefits of Mobile

In locations with new technology:
•   Juice Bar sales up 100%
•   Member retention up 10%
•   Top membership sales in the chain
•   Reduced maintenance costs and downtime




                                             23
Future of Mobile
• Context aware, personalized marketing and services
  –   How often do I workout and at which location(s)
  –   Where do I spend time in the location
  –   What services do I use (PT, Group Ex)
  –   What products have I purchased
  –   What people have I 'teamed up with'
• Expansive community and social integration
• Mobile Intercept App using natural
• Private label apps within a container app




                                                        24
Summary
• Observe the world around you
  – How are consumers/employees interacting with other
    organizations versus your organization
  – How are consumers/employees interacting with each other
    and can your organization facilitate or participate in the
    conversation
• Use technology to amplify your relationship with
  consumers




                                                             25

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Mobile march 1

  • 2. Why Mobile at Bally –Fitness corresponds with freedom, movement and action –Natural environmental and cultural fit –Mobile would amplify the experience and environment 5
  • 3. Where to Begin Observations: • Members • Already using mobile while working out • Using social networks to talk about Bally, but not to engage with Bally • 10% of web visitors using a mobile device • Employees • Interacting with consumers while in motion, but then tethered for system access and transactions • Using mobile in personal lives 6
  • 4. Culture and Technology • IT culture needed to change from “order taker” with long implementation cycles to business driver with quick turn around times • Technology needed to become more interactive, engaging, and supportive of a mobile workforce and consumer 7
  • 5. Fostering IT Innovation • Formal innovation processes – Annual IT Innovation Summit – Embedded IT – IT Develop Exploration • Real results 8
  • 6. Innovation Process: Annual IT Innovation Summit • Annual summit involving all IT personnel • Innovation focus areas and teams formed • Research conducted and solutions proposed by cross- functional teams • Innovation ideas presented to IT leadership during multi-day innovation summit 9
  • 7. Innovation Process: Embedded IT • Permanently embedded IT staff – Provides open communication with all levels of fitness and call center staff – First hand observation of technology, business processes and member communications • Seasonally embedded IT staff – Peak season IT staff embedded in fitness centers – Shared experiences and conversations with fitness center staff – Post peak season debrief focused on how to improve technology and processes 10
  • 8. Innovation Process: IT Developer Exploration • After the annual innovation summit, block time for developers to explore technology in support of innovation ideas • Innovation and exploration bandwidth is built into resource allocations on project plans 11
  • 9. 2011 Real Results • Results Center – 2012 Digital Sign Expo APEX Award Bronze Medalist • Mobile Applications – Robust mobile vision – Numerous iPad applications – Employee facing iPhone applications – Consumer facing applications in development 12
  • 10. 2011 Innovation Projects: Results Center Key Innovation: Large scale interactive video display based upon Microsoft Kinect • Show a member what their future self would look like if they adopt a healthy lifestyle • Provide members and potential members with a library of exercise videos for major muscle groups 13
  • 11. Mobile Technology Vision • Employees interacting with consumers • Employees interacting with the environment • Consumers interacting with the environment • Consumers interacting with employees • Consumers interacting with each other • Work anywhere, on any device 14
  • 12. Employee to Consumer iPad Apps – Club Tour – Membership and Personal Training Presentation – Membership and Personal Training Sales – Registered Guests – Who is in my club 15
  • 13. Employee to Environment iPhone Apps – Facility Maintenance – Workout Equipment Maintenance – Preventative Maintenance 16
  • 14. Consumer to Environment Mobile Web – Guest pass downloads – Find a club – Group Ex Schedules QR Codes on fitness equipment for workout tips or instruction 17
  • 15. Consumer to Environment iPhone/Android App – Profile maintenance – Class schedules and details – Membership ID – Order a smoothie 17
  • 16. Consumer to Environment WiFi Location Awareness (802.11) – Automatic check-in – Post messages to Facebook – Personalized marketing 18
  • 17. Consumer to Employee iPhone/Android App – Find a trainer – Personal trainer interaction • Fitness advisor • Nutrition advisor 19
  • 18. Consumer to Consumer - Social • iPhone/Android – design stages – Find a workout friend – Self-organizing interactive communities based on workout preferences – Gamification - Competition fostering between individuals or locations 20
  • 19. Work Anywhere – On Any Device • Bally IT is 80% virtual • Employees can work anywhere on any device using virtual desktops – iPad being the most prevalent • iPad based executive reporting • Reduced IT office space by 50% • Reduced desktop hardware and software support by 60% 21
  • 20. Key Considerations • User Experience is everything – Augment the environment – Foster interaction without feeling intrusive – Emotions through technology – Common digital language across technologies • Security – Transactional security – Secure access for consumers • Vendors – User experience – Experience with similar design goals 22
  • 21. Enterprise Benefits of Mobile In locations with new technology: • Juice Bar sales up 100% • Member retention up 10% • Top membership sales in the chain • Reduced maintenance costs and downtime 23
  • 22. Future of Mobile • Context aware, personalized marketing and services – How often do I workout and at which location(s) – Where do I spend time in the location – What services do I use (PT, Group Ex) – What products have I purchased – What people have I 'teamed up with' • Expansive community and social integration • Mobile Intercept App using natural • Private label apps within a container app 24
  • 23. Summary • Observe the world around you – How are consumers/employees interacting with other organizations versus your organization – How are consumers/employees interacting with each other and can your organization facilitate or participate in the conversation • Use technology to amplify your relationship with consumers 25