staying relevant in the fitness industry
DESCRIPTION
Fitness consumers and changing and have more options than ever before. In order to remain profitable, operators needs to clearly understand how to adopt a business strategy that leverages technology and is relevant to the way consumers want to buy. Clubs operating with high-overhead and a multitude of low value-add services are the most at risk. Learn how to refine your business for the new year.TRANSCRIPT
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
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
WORST NIGHTMARE:
LOW $$$ COMPETITORS ARE COMING TO TOWN AND SELLING MEMBERSHIPS AT A
FRACTION OF WHAT YOU ARE
IT’S EVERY GYM OWNER’S
THERE’S JUST ONE PROBLEM…
THEY ARE ALREADY HERE
6AND THEY ARE NOT DYING…
…THEY ARE MULTIPLYING
• STRONG VALUE PROPOSITION
• MULTIPLE LOCAL STOREFRONTS
• AGGRESSIVE MARKETING STRATEGY
• AND NEW, SO…
YOUR MEMBERS LEAVE
They’ll pay less for less service because at least then they’re not being ‘overcharged’
WHERE DO THEY GO…
They drop out of our industry altogether
BUDGET GYM
YOUR CLUB
MICRO-GYM/PREMIUM OFFER
They’ll pay more in the hope that this club might actually provide something that delivers on its promise
TYPE
OF
HEA
LTH
CLU
B LOW COST/BIG BOX
YOU
SPECIALTY/MICRO GYM
BIGGER, THRIFTY, NEW
ARE YOU WORTH THE $$$
SMALLER, TRENDY
HOW WILL YOU
COMPETE?
ANTICIPATED TRENDS
2010 2015YEAR
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SO YOU GET SQUEEZED
12
BUT HOW LONG CAN YOU LAST
YOU HAVE TO UNDERSTAND OTHER COMPETITIVE MODELS
A LOW-BUDGET STRATEGY IS ONLY ABOUT PRICING
MYTH 1
BEING A LOW-BUDGET BUSINESS MEANS INFERIOR CUSTOMER SERVICE
MYTH 2
16
"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
SO…
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
THE BEST ARE BUILT ON IT
SOME MODELS “GET IT”
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
STRATEGY
Harvard Business Review – Strategies to Fight Low-cost Rivals
‘Companies have only three options: attack, coexist uneasily, or become low-cost players
themselves.’
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
2REVIEW AND RETHINK YOUR VALUE PROPOSITION
3KEEP YOUR MEMBERS COMING (AND MORE OFTEN)
SERVICE BEFORE
YOU SELL
4DELIVER ON VALUE AND RESULTS (ENGAGEMENT)
YOU CAN DELIVER RESULTS OR
YOU CAN DELIVER EXCUSES.
YOU CANNOT HAVE BOTH.
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
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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
IF YOU CAN’T BEAT THEM, (WHEN
RELEVANT) JOIN THEM
6RUN MICRO-BUSINESSES INSIDE YOUR FACILITY
?
EVALUATE TRENDS AND TAKE DECISIVE ACTION
STAYING AHEAD OF THE CURVE = STAYING RELEVANT
7
TECHNOLOGY WILL GROW TO DEFINE HOW HEALTH CLUBS CREATE AND SUSTAIN MEMBER ENGAGEMENT
8HARNESS TECHNOLOGY AND SOCIAL MEDIA
EVALUATE YOUR OWN PRICES AND REFINE YOUR MEMBERSHIP OPTIONS (GO SEE)EVALUATE YOUR OWN PRICES AND REFINE YOUR MEMBERSHIP OPTIONS (GO SEE) 9
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
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
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
By 2015, thousands of health clubs will be forced out of business by fierce competitors. How will you survive?
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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”