Transcript
Page 1: Staying Relevant in the Fitness Industry

PRESENTED BY RODNEY J. MORRISFOR MORE FREE CONTENT VISIT WWW.THE-BIG-SQUEEZE.COM

“THE-BIG-SQUEEZE”

HOW TO REMAIN RELEVANT IN THE HEALTH & FITNESS INDUSTRY

Page 2: Staying Relevant in the Fitness Industry

PRESENTED BY RODNEY J. MORRISFOR MORE FREE CONTENT VISIT WWW.THE-BIG-SQUEEZE.COM

“THE-BIG-SQUEEZE”

HOW TO REMAIN RELEVANT IN THE HEALTH & FITNESS INDUSTRY

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WORST NIGHTMARE:

LOW $$$ COMPETITORS ARE COMING TO TOWN AND SELLING MEMBERSHIPS AT A

FRACTION OF WHAT YOU ARE

IT’S EVERY GYM OWNER’S

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THERE’S JUST ONE PROBLEM…

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THEY ARE ALREADY HERE

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6AND THEY ARE NOT DYING…

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…THEY ARE MULTIPLYING

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• STRONG VALUE PROPOSITION

• MULTIPLE LOCAL STOREFRONTS

• AGGRESSIVE MARKETING STRATEGY

• AND NEW, SO…

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YOUR MEMBERS LEAVE

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They’ll pay less for less service because at least then they’re not being ‘overcharged’

WHERE DO THEY GO…

They drop out of our industry altogether

BUDGET GYM

YOUR CLUB

MICRO-GYM/PREMIUM OFFER

They’ll pay more in the hope that this club might actually provide something that delivers on its promise

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TYPE

OF

HEA

LTH

CLU

B LOW COST/BIG BOX

YOU

SPECIALTY/MICRO GYM

BIGGER, THRIFTY, NEW

ARE YOU WORTH THE $$$

SMALLER, TRENDY

HOW WILL YOU

COMPETE?

ANTICIPATED TRENDS

2010 2015YEAR

LEARN MORE AT WWW.THE-BIG-SQUEEZE.COM

SO YOU GET SQUEEZED

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BUT HOW LONG CAN YOU LAST

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YOU HAVE TO UNDERSTAND OTHER COMPETITIVE MODELS

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A LOW-BUDGET STRATEGY IS ONLY ABOUT PRICING

MYTH 1

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BEING A LOW-BUDGET BUSINESS MEANS INFERIOR CUSTOMER SERVICE

MYTH 2

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"Just because customers want low cost, this does not mean that businesses can get away with providing cheap equipment or facilities. The experience must still feel high quality.”

Henry Mason Head of Research and Analysis at trendwatching.com

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SO…

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WHY THIS IS TRUE

20%First-time Gym-Goers

80%Previous gym experience

PREVIOUS GYM EXPERIENCE VISUAL INSIGHT RAY ALGAR 2011

Results

Support

Enjoyment

Facilities

Cost

Attendance

Location

3%

3%

6%

11%

14%

26%

26%

0% 5% 10% 15% 20% 25% 30%

ILLUSTRATES THE MAIN REASON FOR LEAVING

Unsure

More than a year

7-12 mnths

4-6 mnths

0-3 mnths

Membership Duration

0% 5% 10% 15% 20% 25% 35%30%

5%

16%

18%

28%

33%

HOW LONG DID PREVIOUS MEMBERS KEEP THEIR MEMBERSHIP?

19

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THE BEST ARE BUILT ON IT

SOME MODELS “GET IT”

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WHAT MAKES YOUR MARKET ATTRACTIVE TO COMPETITORS

YOU ARE AN EASY TARGET

AFFORDABILITY

SIMPLICITY

CHANGING CONSUMER

CONSUMER SENTIMENT TOWARDS

LEGACY CLUBS

SPORADIC ATTENDANCE TO

LEGACY CLUBS

DIGITAL INFRA-STRUCTURE

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STRATEGY

Harvard Business Review – Strategies to Fight Low-cost Rivals

‘Companies have only three options: attack, coexist uneasily, or become low-cost players

themselves.’

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We’re here to put a dent in the universe. Otherwise, why else even be here? Steve Jobs, Founder, Apple

1

CLARIFY WHAT YOUR BUSINESS

BELIEVES IN

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2REVIEW AND RETHINK YOUR VALUE PROPOSITION

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3KEEP YOUR MEMBERS COMING (AND MORE OFTEN)

SERVICE BEFORE

YOU SELL

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4DELIVER ON VALUE AND RESULTS (ENGAGEMENT)

YOU CAN DELIVER RESULTS OR

YOU CAN DELIVER EXCUSES.

YOU CANNOT HAVE BOTH.

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ENGAGE – INVEST – SERVICE – RESULTSHOW TO DELIVER ON VALUE

$$$DRIVE MARKET RELEVANCE, NOT DIFFERENCE

DRIVE HIGH CLUB ATTENDANCE

(4 -5 VISITS/WEEK)

DRIVE “ASSISTED” & RESULTS-BASED EXPERIENCES

DRIVE COMPETITORS TO DIFFERENTIATION

DRIVE VALUE, NOT PRICE

DRIVE MEMBER ENGAGEMENT VIA SOCIAL NETWORKS

LEARN MORE AT WWW.THE-BIG-SQUEEZE.COM

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5AIM FOR EXCELLENCE

“Character is like a tree and reputation like a shadow. The shadow is what we think of it; the tree is the real thing.”

- Abraham Lincoln

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IF YOU CAN’T BEAT THEM, (WHEN

RELEVANT) JOIN THEM

6RUN MICRO-BUSINESSES INSIDE YOUR FACILITY

?

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EVALUATE TRENDS AND TAKE DECISIVE ACTION

STAYING AHEAD OF THE CURVE = STAYING RELEVANT

7

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TECHNOLOGY WILL GROW TO DEFINE HOW HEALTH CLUBS CREATE AND SUSTAIN MEMBER ENGAGEMENT

8HARNESS TECHNOLOGY AND SOCIAL MEDIA

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EVALUATE YOUR OWN PRICES AND REFINE YOUR MEMBERSHIP OPTIONS (GO SEE)EVALUATE YOUR OWN PRICES AND REFINE YOUR MEMBERSHIP OPTIONS (GO SEE) 9

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I am convinced that nothing we do is more important than hiring and developing people. At the end of the day you bet on people, not on strategies.”- Lawrence Bossidy, Former COO of GE and author

10 INVEST IN THE BEST PEOPLE YOU CAN FIND

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1. Clarify what your business believes in, it’s purpose, your ‘why’ … what contribution to the fitness industry and to people do you want to make? What legacy do you want to leave?

2. Do all you can to achieve the highest possible level of members engagement – attendance should be your #1 KPI

3. Review and rethink your value proposition…

4. Focus on providing people with results and motivation

5. Aim for excellence – be the best at what you are specialized in!

6. Run micro-gym businesses

7. Pay attention, remain relevant

8. Harness technology and social media

9. Evaluate your price and review your membership options

10. People, people, people…

CONCLUSION – REMAINING COMPETITIVE

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MOST VALUE PER DOLLAR SPENT.

EXPERIENCE, THE QUALITY OF PROGRAMS, THE ATMOSPHERE, THE ATTENTION TO DETAIL, OR THE RELATIONSHIPS FORGED,

UNIQUE QUALITIESTHAT CAN SET YOUR FITNESS BUSINESS APART FROM YOUR COMPETITORS.

WHETHER IT IS THE

THERE ARE MANY

THE STAFF, THE RESULTS YOU PROVIDE,

PLAN EARLY, AND MAKE YOUR MEMBERS AND PROSPECTS UNDERSTAND HOW YOUR FACILITY OFFERS THE

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By 2015, thousands of health clubs will be forced out of business by fierce competitors. How will you survive?

VISIT WWW.THE-BIG-SQUEEZE.COM

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THANK YOU FOR ATTENDING IF YOU WOULD LIKE TO CONNECT OFFLINE TO DISCUSS YOUR CLUB’S STRATEGIC PLAN PLEASE VISIT WWW.THE-BIG-SQUEEZE.COM/CONTACT TO REQUEST A FREE CONSULTATION

PRESENTED BY RODNEY J. MORRISwww.rodneyjmorris.com

SURVIVAL IN THE MIDDLE MARKET: HOW PUT A STOP TO “THE-BIG-SQUEEZE”


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