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MAKING GROUP FITNESS AN
INTEGRAL PART OF YOUR FACILITY
SUCCESS
                1           LES MILLS INTERNATIONAL © 2011
WHAT ARE THE SECRETS
OF THE WORLD’S MOST
SUCCESSFUL FITNESS
FACILITIES?
         2      LES MILLS INTERNATIONAL © 2011
RESULTS
MOTIVATION
     3   LES MILLS INTERNATIONAL © 2011
When we ask people what they want when they join a fitness facility, they say things
like weight loss, toning up, getting fitter, improving their health. Things we can group
under the heading of getting results.

People aren’t stupid. They know they can get results by running around the block
or exercising in their living room. But they also know that they lack the motivation.
They want a kick in the pants.




WE ARE IN THE MOTIVATION BUSINESS.
WHETHER THEY KNOW IT OR NOT,
THE MOST SUCCESSFUL ORGANIZATIONS
ON THE PLANET DESIGN THEIR FITNESS
FACILITIES TO MEET THIS NEED.
                     4                                                      LES MILLS INTERNATIONAL © 2011
HOW CAN WE TELL WE
ARE DOING A GREAT JOB
OF SIMPLE. THEY ATTEND MORE OFTEN.
IT’S
     MOTIVATING PEOPLE?
Many operators focus solely on sales and profit. Sophisticated clubs and recreation centres add
membership numbers and retention statistics. But there is one number that has a more powerful
effect on success than any of the others. Member attendance.

Attendance is the most important metric in our industry.

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

And what’s the secret to increasing attendance? Increasing motivation and results.


GETTING MORE PEOPLE THROUGH THE DOOR MORE OFTEN.

                                                              5                                  LES MILLS INTERNATIONAL © 2011
SO HOW CAN WE
“MANAGE” MOTIVATION?
Motivation is driven by what’s around us and comes in many different forms. In your facility
it’s the workout environment, the activities you offer, the social relationships between staff
and members, your goal setting tools, the education you provide, your coaches; it’s even
subtle, intangible things like your “member culture”, and how easy it is for members to sign
up and feel like they belong.

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.




                                 6                                                    LES MILLS INTERNATIONAL © 2011
HOW DO THE BEST
FACILITIES DO IT?
c   Design a high energy workout environment
c   Create a relationship selling and new member induction system
c   Recruit a team of great personal and small group trainers
c   Build a club within-the-club system for sports and other activities
c   Develop a member education and social network communication system


AND FOR THE VAST MAJORITY OF FITNESS FACILITIES,
THERE IS ONE SIMPLE METHOD THAT STANDS OUT HEAD
AND SHOULDERS ABOVE THE OTHERS…


                                                                          7   LES MILLS INTERNATIONAL © 2011
GROUP EXERCISE
IS BY FAR THE MOST POWERFUL WEAPON
IN YOUR MOTIVATIONAL ARSENAL!
 c   90% of all exercisers report that they would prefer to work out in a group1

 c   Members who attend Group Exercise come to their club 3 times per week
     compared to IHRSA's figure of 1.9 member visits a week on average.

 c   60% of people rate Group Exercise as the #1 service they specifically look at when
     choosing a gym2

 c   Increase in Group Exercise participation is a key indicator of club growth
     and profitability3
                                                                                           1. Dr. James J Annesi: Effects of Minimal Group Promotion on Cohesion and Exercise Adherence
 c   The challenge for health clubs is that the best seem to be able to achieve 30% plus
                                                                                           2. IHRSA study 2009
     of their traffic engaging in Group Exercise, with the top performers around 50%4
                                                                                           3. IHRSA Retention Report 2007
                                                                                           4. Will Phillips, The Retention Breakthrough




                                                                                     8                                                                LES MILLS INTERNATIONAL © 2011
WHAT ABOUT PERSONAL TRAINING AND                                                         BENCHMARKS FOR


SMALL GROUP TRAINING… DON’T THEY                                                    HIGH PERFORMING FACILITIES




ACHIEVE THE SAME THINGS?
Yes absolutely. These are wonderful innovations that have revolutionized parts of
our industry. And facility operators love them because they can charge for them.                      Unassisted
However even the world’s best only engage around 10% of their attendances in                           Exercise
PT and 3-4% in Small Group Training.                                                 Group
                                                                                    Exercise
                                                                                                         36%
                                                                                    50%
Group Exercise attracts and motivates the masses. Some of the world’s most
successful facilities have over 50% of their attendances in Group Exercise.


“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                                                                                       Small Group
                                                                                                                   Training 4%

                                                                                                   Personal
1. Will Phillips, The Retention Breakthrough
                                                                                                   Training 10%




                                                                             9                          LES MILLS INTERNATIONAL © 2011
WITH A GREAT GROUP
EXERCISE PROGRAM,
YOUR MOTIVATIONAL WEAPONS INCLUDE:
 THE TEACHER
 THE MUSIC
 THE MOVES
 THE STUDIO DESIGN
 THE ENERGY OF THE CROWD
 THE BONDS CREATED AMONG MEMBERS AND INSTRUCTORS
 BUT ONLY IF YOU GET THEM RIGHT...


                                                   10   LES MILLS INTERNATIONAL © 2011
GROUP EXERCISE AT YOUR
CLUB: WEAPON OR WEAKNESS
UNLEASHING THE FULL POTENTIAL OF GROUP EXERCISE
Perhaps you already have a great Group Exercise                   ? Do you offer the most popular music and moves in every one
offering. How do you know?                                          of your classes - that are carefully tested, legally licensed in
? Do you count your attendances and benchmark them                  all respects, get proven results and continually revitalized?
  against other industry top performers? The average              ? Do you lead a Group Exercise culture that attracts the best
  club has 300-400 Group Exercise attendances per week,             instructor talent and inspires loyalty and community?
  but successful Group Exercise clubs have 3,000-4,000 and
                                                                  ? Do you benchmark your instructors against the world’s
  the best clubs up to 10,000. What is your weekly Group
                                                                    best and provide them with inspirational training and
  Exercise attendance?
                                                                    development solutions to grow their skills?
? Can you guarantee your members and guests world-class
                                                                  ? Do your members regularly refer their friends to classes?
  quality classes no matter when they come, and who
  is teaching?                                                    ? Do many of your new clients join your facility because of
                                                                    your Group Exercise excellence?




                                                             11                                                                 LES MILLS INTERNATIONAL © 2011
WHY IS GROUP FITNESS IMPORTANT TO
YOUR BUSINESS?




                  12           LES MILLS INTERNATIONAL © 2011
FACILITY GOALS
OPTIMIZING GROUP FITNESS PERFORMANCE IS THE FASTEST AND LEAST
EXPENSIVE WAY TO INCREASE CUSTOMER ENGAGEMENT AND FACILITY
USAGE
   Commercial connection between
   • group fitness attendance
   • facility attendance
   • retention
   • membership sales
   • long-term profitability
                               13                    LES MILLS INTERNATIONAL © 2011
PACKING CLASSES
THE BEST WAY TO INCREASE YOUR PROFIT AND MEMBERSHIP SIZE
§60% of people rate Group Fitness classes as the most
  important factor for choosing to join a health and fitness
  center
§90% of exercisers prefer to exercise in group
    –People come 3.4 times a week to GF in facilities using
      LES MILLS™ programs compared with 1.9 times a week
      in other facilities
§40% of people cite Group Fitness as the biggest influence on
  how long they stay a member of a club
    –72% of LES MILLS™ participants say they will continue
      to take LES MILLS™ in next 12 months
                               14                    LES MILLS INTERNATIONAL © 2011
PACKING CLASSES
THE BEST WAY TO INCREASE YOUR PROFIT AND MEMBERSHIP SIZE
§Group Fitness member retention rates are higher than other
  member retention rates, on average

§Satisfied Group Fitness members refer people 3x more than
  other members
     -95% LES MILLS™ participants would absolutely or
     strongly recommend LES MILLS™ programs to their
     friends and family



                               15                    LES MILLS INTERNATIONAL © 2011
PACKING CLASSES
IT’S BIGGER THAN MAKING MONEY
§ Creating massive social
   energy
§ Impacting as many people
   as you can within your
   local community
§ Fighting sedentary
   lifestyles and ‘globesity.




                                16   LES MILLS INTERNATIONAL © 2011
GROUP FITNESS MANAGEMENT PURPOSE




HOW MANY PEOPLE CAN YOU MAKE FITTER,
HEALTHIER, HAPPIER EVERY WEEK WHILE
BUILDING YOUR FACILITY’S SUCCESS?
                    17             LES MILLS INTERNATIONAL © 2011
BUILDING FACILITY SUCCESS USING GROUP FITNESS




ACTION #1
SET INSPIRING GOALS FOR YOURSELF AND
FOR YOUR TEAM
                     18              LES MILLS INTERNATIONAL © 2011
GROWING GROUP FITNESS PERFORMANCE
SET YOUR WEEKLY GROUP FITNESS ATTENDANCE BHAG
§ What’s your current Group Fitness weekly attendance? _________
§ How many weekly visits do you think you could achieve in 3 to 5 years
   if your instructors were delivering the best experience in every class in your
   facility? Twice bigger? Three times bigger?



                                        BHAG:               __________________




                                        12 Months: __________________

                                         19                            LES MILLS INTERNATIONAL © 2011
GROWING GROUP FITNESS PERFORMANCE
 SET YOUR WEEKLY GROUP FITNESS ATTENDANCE BHAG
§ What’s your current Group Fitness weekly attendance?           500
§ How many weekly visits do you think you could achieve in 3 to 5 years
   if your instructors were delivering the best experience in every class in your
   facility? Twice bigger? Three times bigger?


                                          BHAG: 2000
                                          12 Months: __________________

                                           20                            LES MILLS INTERNATIONAL © 2011
POTENTIAL FINANCIAL BENEFITS
WHAT’S THE SIZE OF THE PRIZE?
§ BHAG - Group Fitness weekly attendance =                 __________
§ Divide the result by 3 (average number of
   GF visits per week per person in LES MILLS™ facilities): __________
§ Multiply it by your average yearly membership:           $_________


                                                  $:     __________________




                                      21                         LES MILLS INTERNATIONAL © 2011
POTENTIAL FINANCIAL BENEFITS
WHAT’S THE SIZE OF THE PRIZE?
§ BHAG - Group Fitness weekly attendance =                 ___1500_______
§ Divide the result by 3 (average number of
   GF visits per week per person in LES MILLS™ facilities): __500____
§ Multiply it by your average yearly membership:


                                               $: 300,000

                                     22                          LES MILLS INTERNATIONAL © 2011
WHAT DOES IT TAKE TO BECOME A CHAMPION
AT GROUP FITNESS IN YOUR FACILITY
THE PLAN IS BASED AROUND 8 KEYS




                     23              LES MILLS INTERNATIONAL © 2011
IMPLEMENT A SCORECARD

                        24   LES MILLS INTERNATIONAL © 2011
A TEAM CAN’T PLAY TO WIN IF IT DOESN’T KNOW THE
SCORE. IF YOU CAN’T MEASURE IT, YOU CAN’T
MANAGE IT.




                       25              LES MILLS INTERNATIONAL © 2011
IMPLEMENT A GROUP FITNESS SCORECARD
KEY ACTIONS
1. Set goals for growth
   – Weekly Group Fitness attendance and Individual class targets for instructors
2. Count numbers in every class
3. Analyze the data: measure performance versus targets
   –   Weekly Group Fitness attendance
   –   % facility visits delivered by Group Fitness
   –   Average attendance per class
   –   Individual class performance versus target: class ranking and/or cost per head
   –   Program performance (program rankings)
4. Publish the results to your instructors
5. Set a plan for growth



                                               26                                 LES MILLS INTERNATIONAL © 2011
GFM TRAINING:
LEADING TO WIN: LEADING WITH NUMBERS AND UNLEASHING TEAM
MOTIVATION
                            27                    LES MILLS INTERNATIONAL © 2011
MAXIMIZE YOUR SCHEDULE

                         28   LES MILLS INTERNATIONAL © 2011
THE FASTEST, SIMPLEST WAY TO INCREASE WEEKLY ATTENDANCE IS TO GIVE PEOPLE
MORE OF WHAT THEY WANT




 LET YOUR MEMBERS VOTE WITH THEIR FEET.
 GIVE MORE CLASSES TO YOUR MOST
 POPULAR PROGRAMS AND INSTRUCTORS,
 LESS TO THE LESS POPULAR
                                     29                        LES MILLS INTERNATIONAL © 2011
GIVE MEMBERS MORE OF WHAT THEY WANT
3 TOP DRIVERS: PROGRAM, INSTRUCTOR ABILITY AND CLASS TIME
           The type of class                                      79%                                                  17%          3%

          Instructor’s ability                              69%                                               24%                 6%

               Time of class                               65%                                              25%                7%

     Instructor’s personality                       51%                                          33%                       13%

                  The music                          53%                                        29%                      14%

Ambience of the fitness room            32%                                 37%                              22%
                                 Extremely important[5]     4      3    2         Not important at all[1]
                                                            30                                                    LES MILLS INTERNATIONAL © 2011
GROW YOUR SCHEDULE’S PULLING POWER
SCHEDULE DESIGN - 5 strategies to drive Group Fitness growth
______________________________
1. Give people more of what they want (5 actions)
  • Get your programs offer right - understand your
      members and their needs
  •   Offer programs matching the ‘commercial’ formula
  •   Identify your top performing programs and offer them
      more frequently
  •   Offer the right programs mix: 70% Core, 20% Specialty,
      0 to 10% Service
  •   Identify top instructors and schedule them more often

                               31                     LES MILLS INTERNATIONAL © 2011
GROW YOUR SCHEDULE’S PULLING POWER
 SCHEDULE DESIGN - 5 strategies to drive Group Fitness growth
 ______________________________
2. Simplify your offerings:
  8 to 12 great programs versus 45+ activities
3. Think horizontally, not vertically.
   In each 2-hour time slot, offer:
     • At least one opportunity per week to do a cardio,
       strength/toning, mind body/stretching workout
     • Your ‘core’ programs at least twice a week
4. Give instructors class ownership
  Subject to a review of performance vs. targets
5. Consider express classes
                                32                     LES MILLS INTERNATIONAL © 2011
ONGOING SCHEDULE MANAGEMENT
TO GROW NUMBERS
FOCUS PRIMARILY ON RED-LIGHT CLASSES
3 ACTIONS
§ Identify underperforming classes – Red lights
§ Pinpoint the cause(s) of underperformance
  – Program
  – Instructor
  – Time slot/Schedule
  – Marketing
  – Politics
§ Set an action plan



                                       33          LES MILLS INTERNATIONAL © 2011
MAXIMIZE YOUR TIMETABLE

                          34   LES MILLS INTERNATIONAL © 2011
BUILDING UP A GREAT TEAM OF INSTRUCTORS IS THE BEST
THING YOU CAN DO FOR YOUR BUSINESS




NO MATTER WHAT YOUR VISION, MISSION OR
BHAG, YOU ARE GOING TO NEED GREAT
PEOPLE TO HELP YOU GET THERE
                        35                LES MILLS INTERNATIONAL © 2011
A SINGLE GREAT INSTRUCTOR CAN BRING
HUNDREDS OF MEMBERS AND
$ TO YOUR FACILITY
                  36          LES MILLS INTERNATIONAL © 2011
A TEAM OF GREAT INSTRUCTOR CAN
BRING THOUSANDS OF MEMBERS
AND $ TO YOUR FACILITY!

                  37             LES MILLS INTERNATIONAL © 2011
BASED ON 2008 AND 2010 CVM GLOBAL RESEARCH:




RECRUITING GREAT
INSTRUCTORS IS THE TOP
CHALLENGE FACILITIES FACE IN GROWING
GROUP FITNESS
                              38              LES MILLS INTERNATIONAL © 2011
CASTING IS EVERYTHING




INVEST TIME AND RESOURCES TO SEEK OUT
INSTRUCTORS AND TALENT FOR TOMORROW
WHO HAVE THE POTENTIAL
TO PACK THE ROOM
                        39        LES MILLS INTERNATIONAL © 2011
INCENTIVIZE TOP PERFORMANCE AND RETAIN TOP-
PERFORMING INSTRUCTORS. CREATE A SYSTEM
THAT COMBINES FINANCIAL AND NON-FINANCIAL
REWARDS. INCREASE THE COMMITMENT AND
LOYALTY OF YOUR INSTRUCTORS.
                     40              LES MILLS INTERNATIONAL © 2011
ORGANIZE A GREAT
TRAINING PROGRAM FOR YOUR TEAM
                    41           LES MILLS INTERNATIONAL © 2011
CONSTANTLY DEVELOP YOUR TEAM TOWARDS MASTERY
BUILD UP THEIR SKILLS IN THE 5 KEY ELEMENTS OF TEACHING




                                42                        LES MILLS INTERNATIONAL © 2011
LES MILLS’ TRAINING PROCESS
 BUILDING ROCK STARS IN A SHORT TIME
Training actions                                              LES MILLS™ driven   Club driven
Selection of candidates & preparation before Initial Module                           ✓

Initial Module training – 2 to 3 days                                ✓

Clearance to teach at 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                                    ✓

           One Tribe – Changing the World            43                                 LES MILLS INTERNATIONAL © 2011
                                                                                                          Les Mills International © 2010
DEVELOP THE BEST STUDIO YOU CAN AFFORD

                         44              LES MILLS INTERNATIONAL © 2011
CREATE A WOW GROUP FITNESS SPACE




A GREAT GROUP FITNESS DESTINATION PULLS
MEMBERS AND GUESTS INTO THE STUDIO(S)
                      45           LES MILLS INTERNATIONAL © 2011
46   LES MILLS INTERNATIONAL © 2011
47   LES MILLS INTERNATIONAL © 2011
48   LES MILLS INTERNATIONAL © 2011
49   LES MILLS INTERNATIONAL © 2011
50   LES MILLS INTERNATIONAL © 2011
51   LES MILLS INTERNATIONAL © 2011
CREATE A WORLD-CLASS DESTINATION
5 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’


                                     52                         LES MILLS INTERNATIONAL © 2011
CREATE A GROUP FITNESS MARKETING PLAN

                       53               LES MILLS INTERNATIONAL © 2011
THE POWER OF MARKETING TO GROW NUMBERS
WHICH ONE WOULD DO YOU BUY?


                         OR


                         OR           Guts & Butts


Promote your partnership with Les Mills
                              54                     LES MILLS INTERNATIONAL © 2011
YEARLY GROUP FITNESS MARKETING PLAN TO
GROW MEMBERSHIP AND PROFIT
TOP ACTIONS
1.   Launching program(s)
2.   Re-launch events
3.   Ongoing promotion on the benefits of GX




                         55              LES MILLS INTERNATIONAL © 2011
GROUP FITNESS EVENTS
THE FOUNDATION OF YOUR GROUP FITNESS
MARKETING PLAN




EVENTS ARE ONE OF THE MOST EFFECTIVE
WAYS TO RE-LAUNCH MEMBERS MOTIVATION,
ATTENDANCE AND THEREFORE TO INCREASE
RETENTION
                        56             LES MILLS INTERNATIONAL © 2011
GROUP FITNESS EVENTS
QUARTERLY RE-LAUNCH EVENT




EVERY 3 MONTHS YOU REBUILD THE
EXCITEMENT, CREATE MASSIVE SOCIAL
ENERGY AND INCREASE SALES REVENUE.
THE TWO MOST POWERFUL WORDS IN
ADVERTISING ARE ‘FREE’ AND ‘NEW’.
                       57        LES MILLS INTERNATIONAL © 2011
THE SALES / EXPERIENCE CURVE
      Experience




                                                         Sales


“when you host GF events, you are selling non-members an experience,
not a membership – this makes selling so much easier”
                                    58                       LES MILLS INTERNATIONAL © 2011
59   LES MILLS INTERNATIONAL © 2011
E MAIL        GUEST PASS


         60                LES MILLS INTERNATIONAL © 2011
PLAN FOR SUCCESS

                   61   LES MILLS INTERNATIONAL © 2011
PLAN FOR SUCCESS
TOP ACTIONS
§Create a budget to cost,
  prioritize and document your
  plan to achieve your BHAG
§Give ownership of it to your
  Group Fitness Leader
§Report on performance
  against targets to both
  management and your team
  monthly and quarterly
§Work with your team to win
  the next plays
                                 62   LES MILLS INTERNATIONAL © 2011
APPOINT OR BE A WORLD CLASS
GROUP FITNESS LEADER
                     63       LES MILLS INTERNATIONAL © 2011
A GREAT GROUP FITNESS MANAGER CAN
CHANGE THE FUTURE OF YOUR FACILITY
§A single great instructor can bring in hundreds of
  members over time - a great Group Fitness Manager
  will build a team that will bring thousands.
§Recruit a Group Fitness manager with the passion and
  drive to build ENTHUSIASM and SUCCESS at your
  club

THE GROUP FITNESS MANAGER IS A MAJOR HIRE!



                             64                    LES MILLS INTERNATIONAL © 2011
MAKING GROUP FITNESS AN
INTEGRAL PART OF YOUR FACILITY
SUCCESS
                65          LES MILLS INTERNATIONAL © 2011

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8 Keys to Group Fitness Management by Les Mills

  • 1. MAKING GROUP FITNESS AN INTEGRAL PART OF YOUR FACILITY SUCCESS 1 LES MILLS INTERNATIONAL © 2011
  • 2. WHAT ARE THE SECRETS OF THE WORLD’S MOST SUCCESSFUL FITNESS FACILITIES? 2 LES MILLS INTERNATIONAL © 2011
  • 3. RESULTS MOTIVATION 3 LES MILLS INTERNATIONAL © 2011
  • 4. When we ask people what they want when they join a fitness facility, they say things like weight loss, toning up, getting fitter, improving their health. Things we can group under the heading of getting results. People aren’t stupid. They know they can get results by running around the block or exercising in their living room. But they also know that they lack the motivation. They want a kick in the pants. WE ARE IN THE MOTIVATION BUSINESS. WHETHER THEY KNOW IT OR NOT, THE MOST SUCCESSFUL ORGANIZATIONS ON THE PLANET DESIGN THEIR FITNESS FACILITIES TO MEET THIS NEED. 4 LES MILLS INTERNATIONAL © 2011
  • 5. HOW CAN WE TELL WE ARE DOING A GREAT JOB OF SIMPLE. THEY ATTEND MORE OFTEN. IT’S MOTIVATING PEOPLE? Many operators focus solely on sales and profit. Sophisticated clubs and recreation centres add membership numbers and retention statistics. But there is one number that has a more powerful effect on success than any of the others. Member attendance. Attendance is the most important metric in our industry. Regular attenders renew their memberships, refer their friends and promote their clubs at staggering rates when compared to members who pay but seldom use their gyms. And what’s the secret to increasing attendance? Increasing motivation and results. GETTING MORE PEOPLE THROUGH THE DOOR MORE OFTEN. 5 LES MILLS INTERNATIONAL © 2011
  • 6. SO HOW CAN WE “MANAGE” MOTIVATION? Motivation is driven by what’s around us and comes in many different forms. In your facility it’s the workout environment, the activities you offer, the social relationships between staff and members, your goal setting tools, the education you provide, your coaches; it’s even subtle, intangible things like your “member culture”, and how easy it is for members to sign up and feel like they belong. 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. 6 LES MILLS INTERNATIONAL © 2011
  • 7. HOW DO THE BEST FACILITIES DO IT? c Design a high energy workout environment c Create a relationship selling and new member induction system c Recruit a team of great personal and small group trainers c Build a club within-the-club system for sports and other activities c Develop a member education and social network communication system AND FOR THE VAST MAJORITY OF FITNESS FACILITIES, THERE IS ONE SIMPLE METHOD THAT STANDS OUT HEAD AND SHOULDERS ABOVE THE OTHERS… 7 LES MILLS INTERNATIONAL © 2011
  • 8. GROUP EXERCISE IS BY FAR THE MOST POWERFUL WEAPON IN YOUR MOTIVATIONAL ARSENAL! c 90% of all exercisers report that they would prefer to work out in a group1 c Members who attend Group Exercise come to their club 3 times per week compared to IHRSA's figure of 1.9 member visits a week on average. c 60% of people rate Group Exercise as the #1 service they specifically look at when choosing a gym2 c Increase in Group Exercise participation is a key indicator of club growth and profitability3 1. Dr. James J Annesi: Effects of Minimal Group Promotion on Cohesion and Exercise Adherence c The challenge for health clubs is that the best seem to be able to achieve 30% plus 2. IHRSA study 2009 of their traffic engaging in Group Exercise, with the top performers around 50%4 3. IHRSA Retention Report 2007 4. Will Phillips, The Retention Breakthrough 8 LES MILLS INTERNATIONAL © 2011
  • 9. WHAT ABOUT PERSONAL TRAINING AND BENCHMARKS FOR SMALL GROUP TRAINING… DON’T THEY HIGH PERFORMING FACILITIES ACHIEVE THE SAME THINGS? Yes absolutely. These are wonderful innovations that have revolutionized parts of our industry. And facility operators love them because they can charge for them. Unassisted However even the world’s best only engage around 10% of their attendances in Exercise PT and 3-4% in Small Group Training. Group Exercise 36% 50% Group Exercise attracts and motivates the masses. Some of the world’s most successful facilities have over 50% of their attendances in Group Exercise. “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 Small Group Training 4% Personal 1. Will Phillips, The Retention Breakthrough Training 10% 9 LES MILLS INTERNATIONAL © 2011
  • 10. WITH A GREAT GROUP EXERCISE PROGRAM, YOUR MOTIVATIONAL WEAPONS INCLUDE: THE TEACHER THE MUSIC THE MOVES THE STUDIO DESIGN THE ENERGY OF THE CROWD THE BONDS CREATED AMONG MEMBERS AND INSTRUCTORS BUT ONLY IF YOU GET THEM RIGHT... 10 LES MILLS INTERNATIONAL © 2011
  • 11. GROUP EXERCISE AT YOUR CLUB: WEAPON OR WEAKNESS UNLEASHING THE FULL POTENTIAL OF GROUP EXERCISE Perhaps you already have a great Group Exercise ? Do you offer the most popular music and moves in every one offering. How do you know? of your classes - that are carefully tested, legally licensed in ? Do you count your attendances and benchmark them all respects, get proven results and continually revitalized? against other industry top performers? The average ? Do you lead a Group Exercise culture that attracts the best club has 300-400 Group Exercise attendances per week, instructor talent and inspires loyalty and community? but successful Group Exercise clubs have 3,000-4,000 and ? Do you benchmark your instructors against the world’s the best clubs up to 10,000. What is your weekly Group best and provide them with inspirational training and Exercise attendance? development solutions to grow their skills? ? Can you guarantee your members and guests world-class ? Do your members regularly refer their friends to classes? quality classes no matter when they come, and who is teaching? ? Do many of your new clients join your facility because of your Group Exercise excellence? 11 LES MILLS INTERNATIONAL © 2011
  • 12. WHY IS GROUP FITNESS IMPORTANT TO YOUR BUSINESS? 12 LES MILLS INTERNATIONAL © 2011
  • 13. FACILITY GOALS OPTIMIZING GROUP FITNESS PERFORMANCE IS THE FASTEST AND LEAST EXPENSIVE WAY TO INCREASE CUSTOMER ENGAGEMENT AND FACILITY USAGE Commercial connection between • group fitness attendance • facility attendance • retention • membership sales • long-term profitability 13 LES MILLS INTERNATIONAL © 2011
  • 14. PACKING CLASSES THE BEST WAY TO INCREASE YOUR PROFIT AND MEMBERSHIP SIZE §60% of people rate Group Fitness classes as the most important factor for choosing to join a health and fitness center §90% of exercisers prefer to exercise in group –People come 3.4 times a week to GF in facilities using LES MILLS™ programs compared with 1.9 times a week in other facilities §40% of people cite Group Fitness as the biggest influence on how long they stay a member of a club –72% of LES MILLS™ participants say they will continue to take LES MILLS™ in next 12 months 14 LES MILLS INTERNATIONAL © 2011
  • 15. PACKING CLASSES THE BEST WAY TO INCREASE YOUR PROFIT AND MEMBERSHIP SIZE §Group Fitness member retention rates are higher than other member retention rates, on average §Satisfied Group Fitness members refer people 3x more than other members -95% LES MILLS™ participants would absolutely or strongly recommend LES MILLS™ programs to their friends and family 15 LES MILLS INTERNATIONAL © 2011
  • 16. PACKING CLASSES IT’S BIGGER THAN MAKING MONEY § Creating massive social energy § Impacting as many people as you can within your local community § Fighting sedentary lifestyles and ‘globesity. 16 LES MILLS INTERNATIONAL © 2011
  • 17. GROUP FITNESS MANAGEMENT PURPOSE HOW MANY PEOPLE CAN YOU MAKE FITTER, HEALTHIER, HAPPIER EVERY WEEK WHILE BUILDING YOUR FACILITY’S SUCCESS? 17 LES MILLS INTERNATIONAL © 2011
  • 18. BUILDING FACILITY SUCCESS USING GROUP FITNESS ACTION #1 SET INSPIRING GOALS FOR YOURSELF AND FOR YOUR TEAM 18 LES MILLS INTERNATIONAL © 2011
  • 19. GROWING GROUP FITNESS PERFORMANCE SET YOUR WEEKLY GROUP FITNESS ATTENDANCE BHAG § What’s your current Group Fitness weekly attendance? _________ § How many weekly visits do you think you could achieve in 3 to 5 years if your instructors were delivering the best experience in every class in your facility? Twice bigger? Three times bigger? BHAG: __________________ 12 Months: __________________ 19 LES MILLS INTERNATIONAL © 2011
  • 20. GROWING GROUP FITNESS PERFORMANCE SET YOUR WEEKLY GROUP FITNESS ATTENDANCE BHAG § What’s your current Group Fitness weekly attendance? 500 § How many weekly visits do you think you could achieve in 3 to 5 years if your instructors were delivering the best experience in every class in your facility? Twice bigger? Three times bigger? BHAG: 2000 12 Months: __________________ 20 LES MILLS INTERNATIONAL © 2011
  • 21. POTENTIAL FINANCIAL BENEFITS WHAT’S THE SIZE OF THE PRIZE? § BHAG - Group Fitness weekly attendance = __________ § Divide the result by 3 (average number of GF visits per week per person in LES MILLS™ facilities): __________ § Multiply it by your average yearly membership: $_________ $: __________________ 21 LES MILLS INTERNATIONAL © 2011
  • 22. POTENTIAL FINANCIAL BENEFITS WHAT’S THE SIZE OF THE PRIZE? § BHAG - Group Fitness weekly attendance = ___1500_______ § Divide the result by 3 (average number of GF visits per week per person in LES MILLS™ facilities): __500____ § Multiply it by your average yearly membership: $: 300,000 22 LES MILLS INTERNATIONAL © 2011
  • 23. WHAT DOES IT TAKE TO BECOME A CHAMPION AT GROUP FITNESS IN YOUR FACILITY THE PLAN IS BASED AROUND 8 KEYS 23 LES MILLS INTERNATIONAL © 2011
  • 24. IMPLEMENT A SCORECARD 24 LES MILLS INTERNATIONAL © 2011
  • 25. A TEAM CAN’T PLAY TO WIN IF IT DOESN’T KNOW THE SCORE. IF YOU CAN’T MEASURE IT, YOU CAN’T MANAGE IT. 25 LES MILLS INTERNATIONAL © 2011
  • 26. IMPLEMENT A GROUP FITNESS SCORECARD KEY ACTIONS 1. Set goals for growth – Weekly Group Fitness attendance and Individual class targets for instructors 2. Count numbers in every class 3. Analyze the data: measure performance versus targets – Weekly Group Fitness attendance – % facility visits delivered by Group Fitness – Average attendance per class – Individual class performance versus target: class ranking and/or cost per head – Program performance (program rankings) 4. Publish the results to your instructors 5. Set a plan for growth 26 LES MILLS INTERNATIONAL © 2011
  • 27. GFM TRAINING: LEADING TO WIN: LEADING WITH NUMBERS AND UNLEASHING TEAM MOTIVATION 27 LES MILLS INTERNATIONAL © 2011
  • 28. MAXIMIZE YOUR SCHEDULE 28 LES MILLS INTERNATIONAL © 2011
  • 29. THE FASTEST, SIMPLEST WAY TO INCREASE WEEKLY ATTENDANCE IS TO GIVE PEOPLE MORE OF WHAT THEY WANT LET YOUR MEMBERS VOTE WITH THEIR FEET. GIVE MORE CLASSES TO YOUR MOST POPULAR PROGRAMS AND INSTRUCTORS, LESS TO THE LESS POPULAR 29 LES MILLS INTERNATIONAL © 2011
  • 30. GIVE MEMBERS MORE OF WHAT THEY WANT 3 TOP DRIVERS: PROGRAM, INSTRUCTOR ABILITY AND CLASS TIME The type of class 79% 17% 3% Instructor’s ability 69% 24% 6% Time of class 65% 25% 7% Instructor’s personality 51% 33% 13% The music 53% 29% 14% Ambience of the fitness room 32% 37% 22% Extremely important[5] 4 3 2 Not important at all[1] 30 LES MILLS INTERNATIONAL © 2011
  • 31. GROW YOUR SCHEDULE’S PULLING POWER SCHEDULE DESIGN - 5 strategies to drive Group Fitness growth ______________________________ 1. Give people more of what they want (5 actions) • Get your programs offer right - understand your members and their needs • Offer programs matching the ‘commercial’ formula • Identify your top performing programs and offer them more frequently • Offer the right programs mix: 70% Core, 20% Specialty, 0 to 10% Service • Identify top instructors and schedule them more often 31 LES MILLS INTERNATIONAL © 2011
  • 32. GROW YOUR SCHEDULE’S PULLING POWER SCHEDULE DESIGN - 5 strategies to drive Group Fitness growth ______________________________ 2. Simplify your offerings: 8 to 12 great programs versus 45+ activities 3. Think horizontally, not vertically. In each 2-hour time slot, offer: • At least one opportunity per week to do a cardio, strength/toning, mind body/stretching workout • Your ‘core’ programs at least twice a week 4. Give instructors class ownership Subject to a review of performance vs. targets 5. Consider express classes 32 LES MILLS INTERNATIONAL © 2011
  • 33. ONGOING SCHEDULE MANAGEMENT TO GROW NUMBERS FOCUS PRIMARILY ON RED-LIGHT CLASSES 3 ACTIONS § Identify underperforming classes – Red lights § Pinpoint the cause(s) of underperformance – Program – Instructor – Time slot/Schedule – Marketing – Politics § Set an action plan 33 LES MILLS INTERNATIONAL © 2011
  • 34. MAXIMIZE YOUR TIMETABLE 34 LES MILLS INTERNATIONAL © 2011
  • 35. BUILDING UP A GREAT TEAM OF INSTRUCTORS IS THE BEST THING YOU CAN DO FOR YOUR BUSINESS NO MATTER WHAT YOUR VISION, MISSION OR BHAG, YOU ARE GOING TO NEED GREAT PEOPLE TO HELP YOU GET THERE 35 LES MILLS INTERNATIONAL © 2011
  • 36. A SINGLE GREAT INSTRUCTOR CAN BRING HUNDREDS OF MEMBERS AND $ TO YOUR FACILITY 36 LES MILLS INTERNATIONAL © 2011
  • 37. A TEAM OF GREAT INSTRUCTOR CAN BRING THOUSANDS OF MEMBERS AND $ TO YOUR FACILITY! 37 LES MILLS INTERNATIONAL © 2011
  • 38. BASED ON 2008 AND 2010 CVM GLOBAL RESEARCH: RECRUITING GREAT INSTRUCTORS IS THE TOP CHALLENGE FACILITIES FACE IN GROWING GROUP FITNESS 38 LES MILLS INTERNATIONAL © 2011
  • 39. CASTING IS EVERYTHING INVEST TIME AND RESOURCES TO SEEK OUT INSTRUCTORS AND TALENT FOR TOMORROW WHO HAVE THE POTENTIAL TO PACK THE ROOM 39 LES MILLS INTERNATIONAL © 2011
  • 40. INCENTIVIZE TOP PERFORMANCE AND RETAIN TOP- PERFORMING INSTRUCTORS. CREATE A SYSTEM THAT COMBINES FINANCIAL AND NON-FINANCIAL REWARDS. INCREASE THE COMMITMENT AND LOYALTY OF YOUR INSTRUCTORS. 40 LES MILLS INTERNATIONAL © 2011
  • 41. ORGANIZE A GREAT TRAINING PROGRAM FOR YOUR TEAM 41 LES MILLS INTERNATIONAL © 2011
  • 42. CONSTANTLY DEVELOP YOUR TEAM TOWARDS MASTERY BUILD UP THEIR SKILLS IN THE 5 KEY ELEMENTS OF TEACHING 42 LES MILLS INTERNATIONAL © 2011
  • 43. LES MILLS’ TRAINING PROCESS BUILDING ROCK STARS IN A SHORT TIME Training actions LES MILLS™ driven Club driven Selection of candidates & preparation before Initial Module ✓ Initial Module training – 2 to 3 days ✓ Clearance to teach at 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 ✓ One Tribe – Changing the World 43 LES MILLS INTERNATIONAL © 2011 Les Mills International © 2010
  • 44. DEVELOP THE BEST STUDIO YOU CAN AFFORD 44 LES MILLS INTERNATIONAL © 2011
  • 45. CREATE A WOW GROUP FITNESS SPACE A GREAT GROUP FITNESS DESTINATION PULLS MEMBERS AND GUESTS INTO THE STUDIO(S) 45 LES MILLS INTERNATIONAL © 2011
  • 46. 46 LES MILLS INTERNATIONAL © 2011
  • 47. 47 LES MILLS INTERNATIONAL © 2011
  • 48. 48 LES MILLS INTERNATIONAL © 2011
  • 49. 49 LES MILLS INTERNATIONAL © 2011
  • 50. 50 LES MILLS INTERNATIONAL © 2011
  • 51. 51 LES MILLS INTERNATIONAL © 2011
  • 52. CREATE A WORLD-CLASS DESTINATION 5 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’ 52 LES MILLS INTERNATIONAL © 2011
  • 53. CREATE A GROUP FITNESS MARKETING PLAN 53 LES MILLS INTERNATIONAL © 2011
  • 54. THE POWER OF MARKETING TO GROW NUMBERS WHICH ONE WOULD DO YOU BUY? OR OR Guts & Butts Promote your partnership with Les Mills 54 LES MILLS INTERNATIONAL © 2011
  • 55. YEARLY GROUP FITNESS MARKETING PLAN TO GROW MEMBERSHIP AND PROFIT TOP ACTIONS 1. Launching program(s) 2. Re-launch events 3. Ongoing promotion on the benefits of GX 55 LES MILLS INTERNATIONAL © 2011
  • 56. GROUP FITNESS EVENTS THE FOUNDATION OF YOUR GROUP FITNESS MARKETING PLAN EVENTS ARE ONE OF THE MOST EFFECTIVE WAYS TO RE-LAUNCH MEMBERS MOTIVATION, ATTENDANCE AND THEREFORE TO INCREASE RETENTION 56 LES MILLS INTERNATIONAL © 2011
  • 57. GROUP FITNESS EVENTS QUARTERLY RE-LAUNCH EVENT EVERY 3 MONTHS YOU REBUILD THE EXCITEMENT, CREATE MASSIVE SOCIAL ENERGY AND INCREASE SALES REVENUE. THE TWO MOST POWERFUL WORDS IN ADVERTISING ARE ‘FREE’ AND ‘NEW’. 57 LES MILLS INTERNATIONAL © 2011
  • 58. THE SALES / EXPERIENCE CURVE Experience Sales “when you host GF events, you are selling non-members an experience, not a membership – this makes selling so much easier” 58 LES MILLS INTERNATIONAL © 2011
  • 59. 59 LES MILLS INTERNATIONAL © 2011
  • 60. E MAIL GUEST PASS 60 LES MILLS INTERNATIONAL © 2011
  • 61. PLAN FOR SUCCESS 61 LES MILLS INTERNATIONAL © 2011
  • 62. PLAN FOR SUCCESS TOP ACTIONS §Create a budget to cost, prioritize and document your plan to achieve your BHAG §Give ownership of it to your Group Fitness Leader §Report on performance against targets to both management and your team monthly and quarterly §Work with your team to win the next plays 62 LES MILLS INTERNATIONAL © 2011
  • 63. APPOINT OR BE A WORLD CLASS GROUP FITNESS LEADER 63 LES MILLS INTERNATIONAL © 2011
  • 64. A GREAT GROUP FITNESS MANAGER CAN CHANGE THE FUTURE OF YOUR FACILITY §A single great instructor can bring in hundreds of members over time - a great Group Fitness Manager will build a team that will bring thousands. §Recruit a Group Fitness manager with the passion and drive to build ENTHUSIASM and SUCCESS at your club THE GROUP FITNESS MANAGER IS A MAJOR HIRE! 64 LES MILLS INTERNATIONAL © 2011
  • 65. MAKING GROUP FITNESS AN INTEGRAL PART OF YOUR FACILITY SUCCESS 65 LES MILLS INTERNATIONAL © 2011