Future Trends for the health and fitness industry - Impact for full service operators

1. ACESYMPOSIUMWEST-SANDIEGOMAY2013
THE FUTURE OF FITNESS –
INTEGRATED FITNESS UNLEASHED

2. THE FUTURE OF FITNESS
THETRENDSTHATWILLSHAPEHUMANFITNESSANDACTIVITY

3. 0
10
20
30
40
50
60
1960 1970 1980 1990 2000 2010 2020 2030 2040
US ADULT FITNESS CLUB PARTICIPATION

4. STAGNATION:SEGMENTATIONRATHERTHAN
INNOVATION,WHILECOMPETITIVEINDUSTRIES
AREEVOLVINGE.G.
• ONLINEEXERCISE
• FITNESSGAMES
• NEWSPORTS
• NUTRITIONANDMEDICINE
FITNESS CLUBS ARE AT RISK

5. BUDGET CLUBS

6. MICRO-GYMS

7. • CROSSFIT–5,000clubs–$200permonth
• ORANGETHEORY–$23perclass/$159permonth
• SOULCYCLE–$32perclass+$30toreserveabike!
• PUREYOGA(US)–$145-$165permonth
• KOSAMA,OMNI,FITNESSTOGETHER,TITLEBOXING,UFC
ETC
INSIGHT: PEOPLE ARE PREPARED TO PAY MORE
TO ATTEND MICROS THAN TRADITIONAL CLUBS

8. • EXERTAINMENT–Makeexercisemorefun
• COMMUNITY–Makeclubsmoresocial
• HEALTH–Makeclubsmoreholistic
THREE AREAS OF OPPORTUNITY:
WE CAN GROUP THESE
UNDER ONE HEADING…

9. Whenweaskpeoplewhytheywanttojoinafitnessclubtheysaythingslike
weightloss,toningup,gettingfitter,feelingbetter,improvingtheirhealth.
Theseallcomeundertheheadingof“results”.Butpeoplecangettheseresults
intheirlivingroom,atthelocalpark,orbyrunningaroundtheblock.
SO WHY DO THEY JOIN OUR CLUBS?

10. Becausetheylack
MOTIVATION
Weareinthemotivationbusiness.
Whethertheyknowitornot,theworld’s
bestclubsaremastersofmeeting
thisneed.

11. HOW CAN WE MANAGE MOTIVATION?
Firstwehavetobeabletomeasureit-ifyoucan’tmeasure
somethingyoucan’tmanageit.
Sohowdowemeasuremotivation?Howdoweknowifwe’re
doingagreatjobofmotivatingpeople?

12. Peoplewhoattendtheclubmoreoftenwill
refermorefriends,staylongerandpaymore.
Attendanceisthemostimportantmetricin
ourindustry.
IT’S SIMPLE,
THEY ATTEND MORE OFTEN.
Now let’s talk about motivation using the three areas of opportunity identified
in the Future of Fitness research: exertainment, community and health.

13. EXERTAINMENT
MOREMOTIVATINGEXERCISEENVIRONMENTS

33. GX STUDIOS
CHECKOUTLESMILLSWORLDCLASSSTUDIOSEARCHATWWW.LESMILLS.COM

46. SMALL GROUP TEAM
TRAINING SPACE

55. “Mostofusaren’treallyhealthclubs,we’re
notevenclubs.We’rejustplaceswhere
peoplecometoliftweightsandrunona
treadmill”
–MichaelScottScudder
SOCIAL MOTIVATION/ COMMUNITY

57. SELL THE LONG-TERM RELATIONSHIP

58. MAKE EXERCISE SOCIAL
GroupFitness
SmallGroup/TeamTraining
PersonalTraining
EventTraining

59. GROUP TRAINING
Manyfullserviceclubsarebeinghurtbylow-budgetcompetitors.
Atthesametime,therearesuccessfulnewclubmodelsevolving:
• Crossfit–4,600clubs-$200permonth
• OrangeTheory-$23perclass/$159permonth
• SoulCycleandFlywheel(US)-$32perclass
• PureYoga(AsiaandUS)–$145-$165permonth
• Kosama,Omni,FitnessTogether,TitleBoxing,UFCetcetc

60. Example:
EvolutionoftheExercycle
1980
Old-fashionedstationarybike
1985
Computerizedbike
1990
Cardiotheatre
1995 Spinningclass
Now
Standardized,quality-assuredclasses
MOTIVATION: GROUP TRAINING
GFisthemosteffectivewayofcreating
motivationfortheaveragefitnessmember

61. WHAT ABOUT PERSONAL TRAINING AND SMALL GROUP
TRAINING – DON’T THEY ACHIEVE THE SAME THINGS?
Yesabsolutely. Thesearewonderfulinnovationsthathave
revolutionizedpartsofourindustry.Andfacilityoperatorslovethem
becausetheycanchargeforthem.Howevereventheworld’sbestonly
engagearound10%oftheirattendancesinPTand3-4%inSmallGroup
Training.
GroupExerciseattractsandmotivatesthemasses.Someof
theworld’smostsuccessfulfacilitieshaveover50%oftheir
attendancesinGroupExercise.
“GroupExercisemembersattendmoreregularly,remainmembers
longer,makemorereferrals,perceivegreatervalueintheir
memberships(i.e.willpaymore)anddonotleavewhenabudgetgym
opensnearby!”

62. GROUP FITNESS 2.0

63. REFERRAL
Mostloyalmembers
ACQUISITION
Potentialguestdriver
RETENTION
Highusage
MEMBER LIFE CYCLE

64. Isolation
Genericbasicprogramming
Instructordrivenprograms
Primarycertificationsrequired
Requiredbusinesssilomanaged
by“GXinstructormademanager”
Value
Programdrivenschedulingwith
sportsconditioningtodanceto
mindbody
RiseofstudiospaceforCF,MMA,
Yoga,Barre,etc..
Hybridinstructorsontherise–
PTandGX
Offense
UsebenefitsofGroupFitnessasa
primarysellingfocusinclubs
Keyisdifferentiationon
execution–service&experience
morethanproduct
Programmingbysegment–youth,
senior,babyboomer,athletes
YESTERDAY, TODAY AND TOMMOROW
Future
Present
Past

65. Riseofspecialized studiospace
FROM CROSSFIT TO HITT TO GRIT

66. CLUB WITHIN A CLUB

67. CLUB WITHIN A CLUB FOR MILLENIALS

68. IsitGroupXorisitTraining?
§ Segregatedfitnessteams
§ Trainersdon’tutilizeGroupX
§ GroupXinstructorsdon’tsupportPT
§ Membersalignbasedonexperience
Programmingdeterminesbest“coach”intheclub
WHO OWNS THE SMALL GROUP SPACE?

69. WHATAREYOUSOLVINGFOR?
• Activeclientgrowth?
• Frequencyofclientinteractions?
• Margingrowth
Programmingdeterminesbest“coach”intheclub
WATCHOUTS
• Activeclientcannibalization
• Flatrateversussessionburn
• Programmedorfreestyle?
• Howtoenticenewpeople
START AT THE BEGINNING

70. § FROM:
§ ABC’sofSales
§ Servicesecondary
§ Onesizefitsall
§ Traditionaladvertising
§ Wordofmouthreferrals1to1
Vendorssellfortoday,partnerssellfortomorrow
§ TO:
§ Salesplusservice
§ Educationmatters
§ Differentiatedofferings
§ Socialmediaimpact
§ Wordofmouthreferral1to
10/100/1000
EVOLUTION - VENDORSHIP TO PARTNERSHIP

71. CLUBS WITHIN CLUBS
Productscreatedasspecificeventtrainingprograms.
Designedaroundanorganisedevent(egmarathon,cyclechallenge,triathlon).
Trainingorganisedin8or12weekblockswithanemphasisonguidance,
supportandmotivation.
Clearsenseofpurposeculminatingintheeventitselfandthepersonal
satisfactionofcompletingit.
Participantspaytheclubdirect,pricesvary.
Availabletobothmembersandnon-members.
LESMILLSRIDE™ LESMILLSRUN™ LESMILLSTRI™

73. SOCIAL MEDIA
ISREVOLUTIONIZINGOURABILITYTOCOMMUNICATE
BUT…
IT’SNOTASEASYASITLOOKS.
ENGAGEMENT,INTERESTANDAUTHENTICITYAREKEY.
OTHERWISEIT’SMEANINGLESS

74. EDUCATION=MOTIVATION
Between2006-2016thecostoftheAmericanhealthsystem
willalmostdoubleto$4.1trillionperyear*.
Itseemsthatourhealthisdeterioratingatalmostasquickly
asthesecostsareincreasing. Thecurrentsystemclearly
isn’tworking-there’sgottobeabetterway!
*2006USTreasuryReport
THE HEALTH OPPORTUNITY

75. EDUCATION:
BECOMETRUE‘HEALTHCLUBS’
Healthclubsneedtobecomemorethanjustplaceswhere
peoplegotouseexercisemachines!Weneedtobecometrue
providersofholistichealth.Educationchangeslivesand
yourmemberswillloveyouforit.Afewplacestostart:
• Mercola.com
• YoungerNextYear–Crowley/Lodges
• TheOmnivore’sDilemma–MichaelPollan
• You:TheOwner’sManual–Roizen/Oz

76. TALK TO YOUR
MEMBERS
CREATEAPERSONALRELATIONSHIPWITH
YOURMEMBERS
CHOOSETHERIGHTMEDIUMFORTHEM:
ONEWAYCOMMUNICATION?
TWOWAY?
SOCIALMEDIA?

77. “CREATEACAUSE,
NOTABUSINESS”
-TomPeters
STAND FOR SOMETHING
Peopledon’tcometoworktoincreaseshareholder
value,theywanttomakeadifference!

78. THEMOSTSUCCESSFULBUSINESSES
INTHEWORLDCAREABOUTMORE
THANJUSTMAKINGMONEY
STAND FOR SOMETHING

79. Wearetheexactoppositeofthecigaretteandjunkfood
companiesandwehaveanintimaterelationshipwitha
largepercentageoftheworld’swealthiestpeople.
LET’S CREATE A FITTER PLANET
Theworldisfacingagreatholistichealthchallengeandourindustry
isperfectlypositionedtoplayabigpartinthesolution.

81. • Reducefacilitycosts
• Attractmoremembers
• Improvememberhealth
• Increasestaffengagement
• Improveenvironment
• Mitigateglobalrisk
REASONS TO BECOME A GREEN
FACILITY

84. WECANCHANGEOURHEALTHANDTHATOFTHE
PLANETBYONESIMPLEMEANS:
WHATWEPUTINOURMOUTHS
FITTER FOOD

85. Individualsandbusinessescannotbeallowedtodestroy
ourgreatestcommunalassets.Ourleadersneedtolead
ontheseissues!
Fitnessindustryinitiatives:
• Physicaleducationbackinschools,junkfoodout
• Betterurbandesign
• Taxincentivestobeslimandfit
• Encouragehealthyeating(taxjunkfood!)
• Healthierenvironment
FITTER GOVERNMENT

86. Therearehundredsofgreatideas,fromlow
energylightingandappliances,tolow-flow
showerheadsandtoilets,tosigningwitha
renewableenergyprovideroreveninstalling
solarenergy.
Haveaprofessionalgreenauditdoneonyour
business.Thereareincrediblesavingstobe
madeinresourceuseandyourownmoney.
FITTER FACILITIES

87. EXERTAINMENT,COMMUNITY,EDUCATION
Healthclubattendancehasbecomethebiggestadult
“sport”intheWesternWorld. Biggerthanfootball,tennis
andgolfcombined. Butwehavetraditionallylackedthe
excitementandsocialengagementofsports,and
behavedmoreasgymsthanastruehealthclubs. The
fasterwecanchangethat,thebiggerourfuture!
MOTIVATION:
THE BIG OPPORTUNITY

88. ACESYMPOSIUMWEST-SANDIEGOMAY2013
THE FUTURE OF FITNESS –
INTEGRATED FITNESS UNLEASHED