evolve fitness -digital acquisition plan (october 2015)

Evolve Fitness Club – Digital Acquisition Plan – August 2015 / Justin Perkins – IDM NO: CB1572126

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Digital Acquisition Plan

August 2015

Justin Perkins

IDM NO: CB1572126

EVOLVE Fitness Club


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Contents

Section Page

1 Executive Summary……………………………………………………………………… 3

2 Situation Analysis………………………………………………………………………. 4

2.1 Sector Overview………………………………………………………………………... 4

2.2 Pestle Analysis……………………………………………………………………………… 5

2.3 Current Performance……………………………………………………………………. 6

2.4 Benchmark Analysis……………………………………………………………………… 7

2.5 SWOT Analysis……………………………………………………………………………… 10

2.6 Key Issues…………………………………………………………………..................... 11

3 Objectives………………………………………………………………………………….. 12

3.1 Key Assumptions…………………………………………………………………………… 12

3.2 SMART Objectives………………………………………………………………………… 12

4 Strategy……………………………………………………………………………………… 14

4.1 Audience………………………………………………………………………………………. 14

4.2 Target Personas……………………………………………………………………………. 15

4.3 Benefits & Value Proposition………………………………………………………… 16

4.4 Communication & Touchpoints…………………………………………………….. 17

4.5 Contract Upsell Campaign…………………………………………………………….. 18

5 Tactics……………………………………………………………………………………….. 19

5.1 Controls & Ongoing Improvements………………………………………………. 22

5.2 Timing…………………………………………………………………………………………… 23

6 Budget & Forecasting…………………………………………………………………. 24

7 Appendices………………………………………………………………………………… 26


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1. Executive Summary

The following plan sets out key digital strategies to attract new members to Evolve Fitness

Club, and thereafter to incentivize newly acquired members to take up annual contracts. In

delivering these strategies we intend to outperform the required 2,500 new member

acquisitions over a 3-month campaign timeframe with the following results:

1. Acquire 3,928 new members, with a total marketing spend of £145,750;

2. To incentivize 491 of new members to sign annual – not monthly – contracts;

3. To deliver a return on marketing investment of £519,640.

To achieve these targets, the plan makes a number of recommendations to improve the

overall effectiveness of current digital assets, including website improvements and a more

defined content strategy. However, the key component of our strategy is the delivery of a

new product designed to extend appeal to an engaged target audience.

The plan does not aim to convert reluctant gym-goers, but instead to convince fitness

enthusiasts and current gym members that Evolve offers them the best environment to suit

their lifestyle preferences. To carry this message we intend to utilize the Evolve app

platform to deliver a new branded product entitled Fit Social.

Fit Social is a (digital) club within the physical club, providing

members with a community-lead environment that enhances their

gym and wider fitness experience.

In this plan we will demonstrate how Fit Social is more than just a platform to attract new

members; it will also become a key component of Evolve’s longer term offer, helping to

cement its reputation amongst target member prospects as the leading low-cost gym brand.

Special offers with

other audience-

relevant brands:

cinema, match day

tickets etc.

FIT SOCIAL

Accessed through the

Evolve app

External fitness activity

programme: group

training for distance

running events,

obstacle courses etc.

Special classes e.g.

music-themed – Ibiza

Classics etc. Plus social

gatherings.

Established app

support: calendars,

videos etc. plus

dedicated forums.


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2. Situation Analysis

2.1 Sector Overview

The UK health and fitness industry is enjoying a period of record popularity, with more

clubs, more members and a greater market value than ever before.

The 2015 State of the UK Fitness Industry Report reveals a number of key statistics

highlighting the industry’s current good fortune:

Total market value (public and private) estimated at £4.3 billion, up 5.4% on 2014.

13.7% of the UK population registered as members of a private health and fitness club or

a publicly-owned fitness facility, against 13.2% in the previous year.

Total industry membership up 5.8% to 8.8 million over the past 12 months.

Beneath the headline figures there are several significant shifts in the market, with changing

consumer demands driving changes in how products and services are delivered.

One of the most significant developments, according to 2015 State of the UK Fitness

Industry Report, is the rapid growth of low-cost gyms in the private sector, which now

account for 9% of the total number of private clubs, 10% of the private market value and,

perhaps most significantly, 24% of the private sector membership. The gym is being

democratised, as market segments previously unable to afford fees are beginning to

experience gym membership for the first time.

An Oxygen Consulting Report1 offers further insight into changes in consumer demands,

suggesting simplicity, affordability, accessibility and digital infrastructure are the key market

drivers.

1 A Strategic Investigation into a Disruptive New Segment, Oxygen Consulting Report, Ray Algar, 2012

Highlights:

The health & fitness industry is enjoying a period of record returns;

Low-cost gyms are challenging the traditional legacy clubs as the dominant force;

Affordability for consumers is a key issue, but not at the expense of quality or service;

Accessibility, simplicity and digital infrastructure also identified as key attractions.


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2.2 Pestle Analysis

Table 2.1 Pestle Analysis

POLITICAL

One-party government promises greater continuity.

Long-term policy of successive governments to encourage healthy eating and activity levels.

Increasing pressure to stop zero-hour employee contracts.

ECONOMIC

UK economy continues to grow: by 0.7% to the end of June 20152 - general improvement in consumer confidence but also continued belt-tightening.

Tax breaks for those with charitable / not-for-profit status.

Commercial property prices – both rental and sales – continue to rise3.

SOCIAL

Ageing and growing population4.

Continued pressure (from celeb culture) to look good.

Move towards flexi-time work culture changing work patterns, and by association social patterns.

TECHNOLOGY

Fit-tech market increasingly popular, with proven interest and uptake from gym goers5.

LEGISLATION

Increasing Health and Safety legislation.

ENVIRONMENTAL

Increasing consumer awareness of the green agenda.

Growing demand for organic and natural products, potentially relevant to a fitness club’s food and beverage offer.

2 Office for National Statistics (ONS)

3 Royal Institute of Chartered Surveyors, Commercial Market Survey Report 2015

4 According to KPMG’s report – ‘How will demographic trends affect the retail sector’ – The UK population is

projected to rise to 73.2m by 2035. 5 A Strategic Investigation into a Disruptive New Segment, Oxygen Consulting Report, Ray Algar, 2012


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2.3 Current Performance

Figure 2.1 Evolve’s Marketing Ps

Product

Extensive gym equipment and original fitness classes;

Minimum frills e.g. no swimming pools;

Strong digital infrastructure: app and iBeacons tech.

Price

Budget pricing;

Member fees from £9.99pm - £14.99pm.

Place

Ten sites across the UK;

Located near out of town retail parks with a 10 mile member catchment area.

Extensive parking facilities.

People

Back office departments, including

national marketing team;

70,000 members;

Limited on-site staff (assumed on basis of

budget operation and in line with other

budget gym operators staffing policy).

Promotion

Broad brand awareness campaign

covering local press, radio and street

teams for each site;

Digital properties include website and key

social media channels but no content

strategy;

Monthly e-mail newsletter.

Process

24 hr access.

Ability to book classes via dedicated app;

Easy-in, easy-out contractual terms.


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2.4 Benchmark Analysis

The following analysis6 compares digital marketing activities for direct, indirect and

replacement competition in the health and fitness sector, providing benchmark targets for

Evolve.

Table 2.2 Summary of Benchmark Analysis Results

Type Brand Score

Direct The Gym Group / www.thegymgroup.com 33

Indirect David Lloyd / www.davidlloyd.co.uk 31

Replacement Nike Plus / https://secure-nikeplus.nike.com/plus/ 33

Table 2.3 Detailed Benchmark Analyses

ACQUISITION

The Gym Group David Lloyd Wii Fit

Reach 250,000 monthly visits and 1.4m page views.

200,000 monthly visits and 2.2m page views.

3.6m monthly visits and 17.6m page views.

SCORE 2 2 3

Display Advertising Yes – 0.78% of traffic to

site. Yes – 0.6% of traffic to

site. Yes - 0.03% of traffic to

site.

SCORE 1 1 0

Organic SEO First page listing (Google) under various keywords.

First page listing under various keywords

First listing under various keywords

SCORE 3 3 3

Paid SEO Yes: extensive list of keywords; 3.62% of

search traffic.

Yes, extensive keywords; 4.28% of

search traffic

Limited keywords; 0.80% of traffic to site

SCORE 2 2 1

6 Supporting analysis from www.similarweb.com // correct as of July 2015

Key: 3 = Excellent 2 = Good 1 = Needs Improvement 0 = Very Poor / Unknown


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You Tube

Multiple promotional

videos. (1,112 subscribers)

Broad selection but only 567 subscribers

Extensive video selection. (2,940

subscribers)

SCORE 2 1 3

Twitter

27.4k plus followers. 19.4k

plus tweets.

c. 20k plus followers. 14k plus tweets.

Protected

2 2 0

Facebook

C. 160k Likes. Regular light-hearted posts.

Delivers c. 40% of social media traffic.

C. 100k + Likes. Regular posts. Delivers c. 69% of social media traffic.

5.5m Likes. Strong content mix. Delivers 85% of social media

traffic

SCORE 2 2 3

Customer Reviews

(Trust Pilot)

3.8 / 10

2.7 / 10

6.4 / 10

SCORE 0 0 2

Mobile Optimised Yes Yes Yes

SCORE 3 3 3

Website-based

Enquiry

FAQs and e-mail form. e-mail form but buried

deep in the site hierarchy.

Extensive FAQs and e-mail form.

SCORE 2 1 3

Blog / Newsletter

Yes, regular posts but could be better presented.

Yes, frequent and broad subject range.

No

SCORE 2 2 0

Call to Action on Website

Yes, free sessions and gym finder, but could be better

defined.

Yes, promotions and gym finder.

Invite to ‘Learn More’ above fold.

SCORE 2 2 1

CONVERSION

Communication of OVP

Snappy and precise. Relevant and concise. Poor description; fails to describe product.

SCORE 2 2 1


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Online Enquiries

FAQs and e-mail, but e-mail enquiry received no

response 7 days after sending.

e-mail form, but difficult to find.

Extensive FAQs and e-mail form.

SCORE 1 1 2

RETENTION

Customised Customer Area

Yes Yes Yes

SCORE 3 3 3

Apps None None Yes: extensive app

support

SCORE 0 0 3

Blog / Newsletter See Acquisition See Acquisition See Acquisition

SCORE 2 2 0

Social Media Channels

Good use of three channels and solid

follower base.

Yes, good content across various

channels.

Great content, let down only by

protected Twitter status.

SCORE 2 2 2

2.4.1 Conclusions to inform Evolve’s Digital Marketing Strategy

Facebook is the most prominent social media channel with the most activity and

strongest following;

Ensuring platforms and content are mobile-friendly is critical;

Website must carry clear calls to action.

Website contact options could be more defined and supportive e.g. Live Chat.

Customer reviews generally weak, suggesting a high level of member dissatisfaction.


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2.5 SWOT Analysis

Table 2.4 Swot Analysis

INTE

RN

AL

STRENGTHS: Digital Marketing

Dedicated app providing a range of member support functions;

Newsletter-style monthly e-mail reaching 80% of members;

PPC campaign driving conversion and purchase.

General

Operating in growth market segment with attractive proposition;

Nationwide infrastructure;

Strong offline brand awareness campaigns;

Robust member base.

WEAKNESSES: Digital Marketing

Key social media channels in place but no content strategy;

Data capture strategy identified as a weakness;

Website appears to offer little more than brochure-style detail.

General

Member attrition.

EXTE

RN

AL

OPPORTUNITIES: Digital Marketing

Committed healthy living bloggers;

Fit tech constantly advancing; becoming an integral part of the gym experience;

High use of app and mobile platforms. General

Gym membership rising;

Ageing population, combined with more image-conscious youth, expands potential member base.

THREATS: Digital Marketing

Increasing pressure to implement latest tech and digital infrastructure costly and requires dedicated, expert support.

General

Legacy gyms catching up;

Increasing competition in the budget gym market;

Replacement activity such as outdoor events and Wii Fit / home exercise.

POSITIVE NEGATIVE


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2.6 Key Issues

Data capture detail insufficient

New app should address this issue, especially in conjunction with iBeacons. Need to

ensure this data is captured according to frequency, preferred activity etc.

No content marketing strategy

More engaging content resource required, with social media amplification and more

considered e-mail marketing.

Current PPC campaign limited

Whilst delivering results, consideration needs to be given to an enhanced PPC / SEO

strategy that embraces more than just generic search terms such as Gym and

Fitness. Is there an opportunity to introduce more specific, long-tail search terms?

Brochure-style website needs developing

The current website appears to offer little more than brochure detail: locations;

classes etc., missing an opportunity to implement clearer calls to action.


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3. Objectives

Our objective is to outperform the target member acquisition of 2,500 within the budget of

£150,000 and timeframe of 3 months (July 2015 – September 2015 / 92 days).

A secondary but equally important objective is to develop a welcome campaign designed to

encourage newly acquired members who initially sign a monthly contract to switch to an

annual membership plan.

More specifically, we intend to deliver the following campaign returns:

3,928 new members;

Total lifetime7 sales value of £519,640;

Upsell 491 members to annual contracts.

3.1 Key Assumptions

Approximately 50% (35,000) of the current member base are on rolling monthly

contracts, with the balance on fixed annual terms. We assume this ratio will apply to

new members.

Rolling contracts are valued at £14.99 pm with an average lifespan of 8 months (=

£119.92 member value); annual contracts at £9.99 pm and 14 months (=£139.86).

The average cost per acquisition (CPA) is £50.

5% of home page traffic converts into membership purchase. All sign-ups take place

through the home page.

80% of members opt-in to Evolve’s monthly e-mail newsletter. Again, we will assume

this level also applies to newly acquired members.

3.2 SMART Objectives

OBJECTIVE #1: SELL – SEO & PPC

Acquire 2,025 new members within 3 months with a £65,000 budget, achieving a target

ROMI of £263,027.

OBJECTIVE #2: SELL – FACEBOOK CAMPAIGN

Acquire 850 new members within 3 months with a £25,000 budget, achieving a target ROMI

of £110,407

7 Applying Evolve’s average member lifetime of 14 months for annual contracts and 8 months for rolling

contracts.


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OBJECTIVE #3: SELL – E-MAIL (MEMBERS & SPONSORED)


of £58,841

OBJECTIVE #4: SELL – MOBILE


of £54,554.

OBJECTIVE #5: SELL – DISPLAY ADS


of £23,380

OBJECTIVE #6: (UP)SELL – INCENTIVE PROGRAMME

Upsell 491 new members from a monthly to annual contract within 3 months with a £4,920

budget, achieving a target ROMI of £9,431.

OBJECTIVE #7: SERVE, SPEAK & SIZZLE – FIT SOCIAL

Optimize the Evolve app, creating a community focussed environment that connects

members and enhances longer term member retention.


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4. Strategy

Our strategy aims to attract 3,928 new members. Of these members, we aim to upsell 491

members from monthly to annual contracts.

4.1 Audience

To deliver these targets we will focus on delivering promotional messages through various

media platforms to two defined audience groups:

1. Segments are already members of legacy gyms and other low-cost gyms;

2. Segments most likely to join a low-cost gym.

The gym market is broad in terms of the age groups it attracts. Adults 70 years and over are

the most frequent gym goers8, but other research suggests younger groups are more

numerous.

For low-cost gyms, the 2014 HAFOS survey9 suggests that people in the 15-24 age group are

most likely (55%) to join a budget gym, compared to 16% of 65-75 year-olds.

For the gym market as a whole, Kantar Media10 suggests of the 2.6 million people that

attended gyms (in 2013), over a quarter are aged 25-34, making them over 60% more likely

than the average to be in this age group.

Kantar identify several other defining characteristics of this (25-34) group:

They are 75% more likely (then the average British adult) to exercise more than 4

hours per week;

They are likely to be members and active participants of other sports clubs, with

rugby clubs particularly prevalent;

They are very image-conscious, with 83% more likely to wear designer clothes;

They are relatively affluent, with average family income nearing £40,000 and

comparatively few financial responsibilities such as children and mortgages;

Enjoy going out at night, especially the cinema.

8 Nuffield Health Clubs Member Survey, 2015

9 The 2014 National Health and Fitness Omnibus Survey (HAFOS)

10 Kantar Media TGI – Fitness Fiends – Who is the British Gym Goer?


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4.2 Target Personas

Table 4.1 ECP’s Target Personas11

Career-minded Cora Rugby Mad Rupert

Demographic Female, 25-39, ABC1, no children,

£500-£999 pm disposable income.

Male, 18-24, ABC1, no children, £500 - £999 monthly disposable

income.

Work HR, Media, Advertising Finance, Insurance.

Geography Hotspots in London but strong

representation nationwide. Strong representation nationwide

with hotspots in the Midlands

Hobbies & Interests Socialising, fashion, cinema,

group fitness. All sports, travel, comedy, cinema,

socialising, gym.

Preferred Media Time Out, The Independent,

Cosmopolitan, Facebook. BBC online, The Daily Star, Sky,

Facebook.

Online Behaviour Online for 16-20 hours per week. Heavy mobile user, responds well

to e-mail marketing.

IT literate. Prefers Mobile. Online for 16 – 20 hours per week.

Responds mostly to e-mail and SMS.

Why fitness and why Evolve?

24 hr access, group classes. 24 hr access and affordability.

Potential barriers to purchase?

Work commitments Time. Other sporting activity.

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Developed with You Gov profiling tool (https://yougov.co.uk/profiler) and Sport England’s market segmentation tool (http://segments.sportengland.org/), amalgamating the key shared characteristics of the two relevant segments: Helena and Jamie.

https://yougov.co.uk/profiler


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4.3 Benefits & Value Proposition

With target personas that are both already committed to fitness, our strategy is not to

convert reluctant gym-goers, but instead to convince current fitness enthusiasts and gym

members that Evolve offers them the right environment to suit their lifestyle preferences.

Whilst each of the target personas we have identified is a distinct market, they share a

number of key characteristics that will inform specific tactics:

Active social life. Keen cinema goers;

Like group activities: team sports / group classes;

Limited free time - 24hr accessibility to support lifestyle;

Respond well to e-mail and mobile messages. Embrace tech.

Taking the lead from these shared characteristics, we will appeal through a range of

platforms promoting Evolve’s core USPs: 24/7 accessibility, group classes, tech-forward.

However, to stand out from an increasingly busy marketplace, we intend to further appeal

to our personas’ interests through an enhanced product offering.

Fit Social will be a club within the club that will use the Evolve app to carry messages and

class bookings but with added engagement components:

Figure 4.1 Fit Social Value Proposition

4.4 Communication & Touchpoints

SERVICE

24/7 access, non-invasive but with a genuine club spirit to engage and retain members.

PRODUCT

Original classes with market leading fit tech support. Plus music-themed

classes e.g. Ibiza Classics.

Special offers with other leisure providers: cinema, match tickets.

Non-gym group leisure activities:

local runs, obstacle course events.

IMAGE

Innovative, friendly and modern. Putting the customer in control of

their experience.

PERSONNEL

Enthusiastic and well-qualified instructors with specialist class

knowledge.

FIT SOCIAL

VALUE PROPOSITION


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4.4 Communication & Touchpoints

The shared characteristics of our target personas allow us to utilize many shared

touchpoints. There are opportunities, however, to reflect persona-specific preferences more

precisely where sponsored e-mails are concerned, as illustrated in the graphic below:

Figure 4.2 Customer Journey

Persona #2

Rupert

Targeting affiliates and

third party brands

specific to Rupert’s lifestyle

preferences e.g. local rugby /

football clubs.

Persona #1

Cora

Targeting affiliates and

third party brands

specific to Cora’s lifestyle

preferences e.g. healthy

living bloggers.

REACH / AWARENESS

Enhanced Local PPC / Organic SEO

Display advertising

Social media (Facebook)

Sponsored (third party) E-mails

Lead Nurturing E-mail (current member database)

Mobile

Video

CONVERSION

Website

Landing Pages

Android / Apple App

Reviews and customer testimonials

Social media

Video

RETENTION

Android / Apple App

E-mail

Mobile

Social media

Video


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4.5 Contract Upsell Campaign

Our supporting upsell campaign also targets one of the key shared preferences of both

target personas: Cinema.

Importantly, Evolve also has a shared location strategy (out of town retail parks) with

several large cinema chains.

Our incentive to encourage new members who join on rolling monthly terms to move to

annual terms will therefore be based around the following offer:

Upgrade to an annual contract and receive two free cinema tickets.

Newly acquired members who opt for rolling contracts will be presented with two

opportunities to take advantage of this offer:

1. On the Evolve website sign-up / payment page;

2. Via a welcome e-mail sent to confirm membership following website sign-up.

The Free Cinema Tickets offer will also extend to current members as part of our proposed

Refer a Friend campaign.

Given the shared target persona and location, we intend to approach relevant cinema

brands on the basis of arranging a contra-type deal whereby cinema staff / key customers

can receive benefits at their local Evolve gym, with the objective of achieving a cost-neutral

arrangement between brands. For the purpose of this plan, however, we have applied a

discounted ticket cost (to Evolve) of £10 for two adult tickets.


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5.Tactics

Table 5.1 Media channels, messages and actions to implement the proposed Evolve strategy

REA

CH

/ A

WA

REN

ESS

Channel & Substantiation Message Action & Controls

Google Enhanced Adwords

Local Campaign

Target specific locations – specifically, searches made within a 15 mile radius of

each of the 10 Evolve clubs.

General OVP promotion,

emphasising 24/7 accessibility, affordability,

tech and convenience.

Digital Manager12

Review campaign weekly, evaluating keyword

performance and CTR.

Local SEO

Use geo-targeted terms – budget gyms in York – to reflect Evolve’s physical

locations. Together with long-tail search terms to

accommodate local personas. Searching locally shows a greater readiness to act.

As above, but focus on clear local citation, with accurate

NAP – Name, Address, Phone)

External Management by specialist SEO firm to set-up

local profile and manage.

Weekly reporting.

Facebook Local Awareness

campaign

Target users within a 10 mile radius of each of the 10

Evolve locations.

Our target personas’ social media of choice with an

average 685 minutes a month on Facebook13. Evolve

members are prepared to travel 10 miles.

General OVP promotion, with emphasis on the benefits of

the Evolve App.

Fit Social theme-specific posts, with video promotions showing sample classes and

activities.

Fit Social Manager.

Weekly reporting of new Likes and CTR to website.

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Evolve have a national marketing team, within which we assume there is a Digital Manager with support team who can oversee this function as part of their daily activities. 13

Kantar Media


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E-mail (Evolve database) Friend Referral Campaign

Established communication

channel reaching 80% (56,000) of members.

Target personas receptive to

e-mails.

Lead with contract upsell message – free cinema tickets

on a successful referral;

Secondary messaging to promote other Evolve USPs, namely: Fit Social and app

benefits.

Fit Social Manager.

Template / analytics support

of a specialist e-mail management service e.g.

Mail Chimp

Send in batches of 5,000, with continued A/B testing to

establish optimum design and content.

E-mail (Sponsored)

Reach target personas

through a tie-in with local, high profile brands that we

know personas identify with e.g. local rugby club: Newcastle Falcons

Fit Social promotion as a unique offering, whilst

highlighting key USPs of Evolve’s tech-friendly,

accessible, social environment.

Fit Social Manager.

Delivered through brand

partner’s e-mail platform.

Request batch delivery to enable A/B testing to

establish optimum design and content.

Display Advertising

Rich media, right of page,

skyscraper above fold with high-traffic cinema websites:

Both Odeon and Vue attract

1.5m visitors pm14

Both target personas are regular cinema goers and

there is further tie-in with our upsell campaign.

Rich media format will allow us to carry engaging content, including proposed Fit Social

ad video

Digital Manager.

External design firm.

A / B test two designs to measure CTR.

Rotate adverts across select websites across one-month

campaigns and evaluate.

14

Similar Web


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Mobile

Current Evolve database.

Details collected on sign-up15.

Target segment is heavy mobile user.

Friend referral campaign detailed in E-mail to current

database.

Digital Manager.

External delivery support,

where lists can be integrated across mobile and e-mail

marketing e.g. Mail Chimp / Call Loop.

Review weekly.

Video

Utilize current You Tube platform.

Promote Fit Social ad video content, together with expert

fitness and nutrition videos planned for app

Digital Manager

You Tube-hosted videos.

Weekly review.

CO

NV

ERSI

ON

Channel Message Action

Website

All sign-ups take place here so optimization essential.

Across a three-part, above

fold banner, introduce calls to action, promoting: app, Fit Social and member friend

referral campaign.

Introduce live web chat facility and detailed FAQs.

Digital Manager lead.

External support for website

changes.

Weekly internal updates through CMS.

Android / Apple App

Heavy Mobile Users

Promote benefits of app functions: calendar, videos

etc.

Digital Manager App already developed.

Reviews & Customer

Testimonials

Opportunity to use as a promotional tool.

Integrate into website.

Digital Manager

Collate and review feedback / scores weekly

15

As with e-mail and here assuming – like e-mail – 80% of members.


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Social Media

Established Facebook, Twitter

and You Tube Channels

Daily posts and tweets announcing Fit Social events

and other offers, activity.

Social Media Manager.

Weekly review of Retweets, Likes, Shares, feeding into

wider monthly review.

Mobile See Reach.

See Reach. See Reach.

Video See Reach.

See Reach.

See Reach.

RET

ENTI

ON

Channel Message Action

E-mail

Increase frequency to weekly mail

Updates on Fit Social and other club news.

See Reach

Mobile

Announcements & Special Offers

See Reach

Social Media

Established base on Facebook / Twitter / You Tube

Fit Social Updates, expert video content, general news.

Social Media Manager.

Weekly review of Retweets, Likes, Shares, feeding into

the wider monthly review to establish lesson popularity.

Video See Conversion / Reach

See Conversion / Reach See Conversion / Reach

App Essential tool in the Evolve

offer to keep member engaged and involved.

Delivery of key tools and functions to enhance member experience, plus new expert video uploads and Fit Social.

Digital Manager

4.6 Controls & Ongoing Improvements

Google Analytics, with amendments to ensure new key word tracking;

Whilst weekly reviews have been applied for most of the channels, a detailed monthly

report will be compiled contrasting returns across all campaigns;

Sales figures derived from accounting;

All campaigns subject to an ongoing TIMITI16 review process.

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Try It! Measure It! Tweak It! – Jim Sterne, Web Metrics


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4.7 Timing

Table 5.2 Gantt Chart

Channel 1 2 3 4 5

Fit Social

Establish key club components

Teaser Launch

Launch and Manage

Evolve Website

Implement Live Chat and FAQs

Design and implement new banner

PPC – Implement & Track (I/T)

Agree Ad Words and OVP

SEO (I/T)

Identify x3 SEO firms, assess & engage

E-mail – Current Subscribers (I/T)

Prepare Refer A Friend E-mail

Batch delivery- ongoing A / B testing

E-mail – Third Party (I/T)

Identify partners / prepare content

Batch delivery - ongoing A / B testing

Social / Facebook (I/T)

Develop content plan and local ads

Mobile (I/T)

Develop Referral message – A/B test

Display (I/T) A/ B Test

Identify & engage design firm

Identify ad partners

Month Campaign


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6.Budget & Forecast

The following table shows total new members acquired at 3,928, with a total sales value

across their membership lifetime of £519,640. This equates to an average CPA of £30.42;

comfortably within Evolve’s acceptable CPA of £50.

Table 6.1 Media Mix - Budget & Returns

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Defined here as the total number across the three month campaign timeframe. 18

Searches for low cost gyms within a 15 mile radius of Evolve’s 10 gym locations. 19

CTR based on search accuracy and applying specific average CTR expectations for health & fitness. (http://www.wordstream.com/blog/ws/2014/02/11/average-click-through-rate 20

Reduced number of clicks against UK figures based on Evolve’s defined coverage. 21

According to data from the Mobile Marketing Association 22

Similar Web (www.odeon.co.uk) 23

Google Benchmarks

MEDIA BUDGET UNIVERSE17 CTR CLICKS CONV. RATE

SALES CPA

PPC £50,000 635,34018 3.4%19 21,602 5% 1,080 £46.30

Search £15,000 n/a n/a 18,90620 5% 945 £15.90

Facebook £25,000 3,400,000 0.5% 17,000 5% 850 £29.40

E-mail (Evolve

database) £2,800 56,000 5% 2,800 5% 140 £20

E-mail (Sponsored)

15,000

1,000,000 (25% open

rate = 250,000)

2.5% 6,250 5% 313 £47.90

Mobile (Evolve

Database) 1,680 56,000 15%21 8,400 5% 420 £4

Display

£10,000

4,500,00022 0.0823 3600 5% 180 £55.55

TOTAL 119,480 8,897,340 n/a 78,558 5% 3,928 £30.42


25

Table 6.2 Total budget allocation & ROMI across all campaign components

MEDIA BUDGET ROMI

PPC £50,000 £140,281

Search £15,000 £122,746

Facebook £25,000 £110,407

E-mail (Evolve Database) £2,800 £18,185

E-mail (Sponsored) £15,000 £40,656

Display £10,000 £23,380

Mobile £1,680 £54,554

£119,480 £510,209

Cinema Tickets Upsell Campaign

£4,92024 £9,43125

Cinema tickets to current members for Refer a Friend

£5,60026 N/A

Fit Social Manager £6,00027 N/A

Website Improvements £5,000 N/A

Content Creation (ads) £5,000 N/A

TOTAL £145,750 £519,640

Table 6.3 Net profit after marketing costs and other operational overheads:

Total Sales Costs Net Profit

£519,640

Campaign Marketing Costs: £145,750

Operational Overheads:28

£51,850

£322,040

24

491 members upgrading i.e. half of the total new members on rolling contracts i.e. 3928 / 2 x 25%. £10 cost per referral based on contra deal with local cinema chain. 25

Not accounting for any further up / cross sell on vending machines etc. for longer member duration. 26

560 successful referrals. £10 cost per referral for x2 adult cinema tickets. 27

For three month campaign only. 28

Applied to 3928 new members across 3 months only. Assuming total annual operational overheads of £3.7m / 4 (3 month campaign) = £925,000 / 70,000 (members) = £13.21 cost per member x 3928 (new members) = £51,850


26

7. Appendices

E-Marketing Excellence, Routledge, Dave Chaffey & PR Smith

The SOSTAC Guide to Writing the Perfect Plan, P.R. Smith (2011) Amazon E-book

State of the UK Fitness Industry Report, 2015

The national Health and Fitness Omnibus Survey (HAFOS), 2014

A Strategic Investigation into a Disruptive New Segment – Oxygen Consulting Report, 2012

Nielsen, Les Mills Global Consumer Fitness Survey 2014

Sport England, Affordable Sports Centres Report, 2013

You Gov / PPL Survey – Gym Goers, April 2014

Kantar, Consume, Leisure, Fitness and Gym Statistics, UK, 2014

An ageing population: the untapped potential for hospitality and leisure businesses, 2015, Barclays

Corporate Banking

www.thisismoney.co.uk/money/markets/article-2556681/Fitness-boost-Gym-merger-creates-new-

low-fee-chain-100-clubs.html

ww.mobihealthnews.com/research/

www.smallbusiness.chron.com/target-market-fitness-gyms-3354.html

www.healthclubhandbook.com/

www.leisuremanagement.co.uk

www.healthclubmanagement.co.uk

http://www.leisuredb.com

www.telegraph.co.uk/finance/newsbysector/retailandconsumer/leisure/11338403/How-flagging-

gym-Fitness-First-convinced-you-to-save-it.html

http://www.thisismoney.co.uk/money/markets/article-2556681/Fitness-boost-Gym-merger-creates-new-low-fee-chain-100-clubs.html

http://www.thisismoney.co.uk/money/markets/article-2556681/Fitness-boost-Gym-merger-creates-new-low-fee-chain-100-clubs.html

http://healthclubhandbook.com/

evolve fitness -digital acquisition plan (october 2015)

Documents