Staying Relevant in the Fitness Industry
Post on 07-May-2015
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DESCRIPTIONFitness 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.
- 1.THE-BIG-SQUEEZE HOW TO REMAIN RELEVANT IN THE HEALTH & FITNESS INDUSTRYPRESENTED BY RODNEY J. MORRISFOR MORE FREE CONTENT VISIT WWW.THE-BIG-SQUEEZE.COM
2. THE-BIG-SQUEEZE HOW TO REMAIN RELEVANT IN THE HEALTH & FITNESS INDUSTRYPRESENTED BY RODNEY J. MORRISFOR MORE FREE CONTENT VISIT WWW.THE-BIG-SQUEEZE.COM 3. ITS EVERY GYM OWNERSWORST NIGHTMARE:LOW $$$ COMPETITORS ARE COMING TO TOWN AND SELLING MEMBERSHIPS AT A FRACTION OF WHAT YOU ARE 4. THERES JUST ONE PROBLEM 5. THEY ARE ALREADY HERE 6. AND THEY ARE NOT DYING6 7. THEY ARE MULTIPLYING 8. STRONG VALUE PROPOSITION MULTIPLE LOCAL STOREFRONTS AGGRESSIVE MARKETING STRATEGY AND NEW, SO 9. YOUR MEMBERS LEAVE 10. WHERE DO THEY GO BUDGET GYM Theyll pay less for less service because at least then theyre not being overchargedYOUR CLUB They drop out of our industry altogether MICRO-GYM/ PREMIUM OFFER Theyll pay more in the hope that this club might actually provide something that delivers on its promise 11. SO YOU GET TYPE OF HEALTH CLUB2010SQUEEZEDYEAR2015HOW WILL YOU COMPETE?LOW COST/BIG BOXBIGGER, THRIFTY, NEWYOUARE YOU WORTH THE $$$SPECIALTY/MI CRO GYMSMALLER, TRENDYANTICIPATED TRENDSLEARN MORE AT WWW.THE-BIG-SQUEEZE.COM 12. BUT HOW LONG CAN YOU LAST12 13. YOU HAVE TO UNDERSTAND OTHER COMPETITIVE MODELS 14. MYTH 1A LOW-BUDGET STRATEGY IS ONLY ABOUT PRICING 15. MYTH 2BEING A LOW-BUDGET BUSINESS MEANS INFERIOR CUSTOMER SERVICE 16. 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 17. SO 18. 19 ILLUSTRATES THE MAIN REASON FOR LEAVING20%Results3%SupportFirst-time Gym-Goers3%Enjoyment6%Facilities11%Cost14%Attendance26%Location26% 0%5%10%15%20%25%30%HOW LONG DID PREVIOUS MEMBERS KEEP THEIR MEMBERSHIP?Unsure5%More than a year80% Previous gym experience16% 18%7-12 mnths 4-6 mnths28%0-3 mnthsPREVIOUS GYM EXPERIENCE VISUAL INSIGHT RAY ALGAR 2011Membership Duration33% 0%5%10%15%WHY THIS IS TRUE20%25%30%35% 19. SOME MODELS GET ITTHE BEST ARE BUILT ON IT 20. WHAT MAKES YOUR MARKET ATTRACTIVE TO COMPETITORS DIGITAL INFRASTRUCTURESPORADIC ATTENDANCE TO LEGACY CLUBSSIMPLICITYYOU ARE AN EASY TARGET CONSUMER SENTIMENT TOWARDS LEGACY CLUBSAFFORDABILITYCHANGING CONSUMER 21. STRATEGYCompanies have only three options: attack, coexist uneasily, or become low-cost players themselves. Harvard Business Review Strategies to Fight Low-cost Rivals 22. 1CLARIFY WHAT YOUR BUSINESS BELIEVES INWere here to put a dent in the universe. Otherwise, why else even be here? Steve Jobs, Founder, Apple 23. 2 REVIEW AND RETHINK YOUR VALUE PROPOSITION 24. 3KEEP YOUR MEMBERS COMING (AND MORE OFTEN)SERVICE BEFORE YOU SELL 25. 4 DELIVER ON VALUE AND RESULTS (ENGAGEMENT) YOU CAN DELIVER RESULTS OR YOU CAN DELIVER EXCUSES. YOU CANNOT HAVE BOTH. 26. HOW TO DELIVER ON VALUE ENGAGE INVEST SERVICE RESULTSDRIVE MARKET RELEVANCE, NOT DIFFERENCE$$$DRIVE HIGH CLUB ATTENDANCE (4 -5 VISITS/WEEK) DRIVE ASSISTED & RESULTS-BASED EXPERIENCESLEARN MORE AT WWW.THE-BIGSQUEEZE.COMDRIVE COMPETITORS TO DIFFERENTIATIO NDRIVE VALUE, NOT PRICE DRIVE MEMBER ENGAGEMENT VIA SOCIAL NETWORKS 27. 5 AIM FOR EXCELLENCECharacter 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 28. 6 RUN MICROBUSINESSES INSIDE YOUR FACILITY?IF YOU CANT BEAT THEM, (WHEN RELEVANT) JOIN THEM 29. 7 EVALUATE TRENDS AND TAKE DECISIVE ACTIONSTAYING AHEAD OF THE CURVE = STAYING RELEVANT 30. 8 HARNESS TECHNOLOGY AND SOCIAL MEDIATECHNOLOGY WILL GROW TO DEFINE HOW HEALTH CLUBS CREATE AND SUSTAIN MEMBER ENGAGEMENT 31. EVALUATE YOUR OWN PRICES AND REFINE EVALUATE YOUR OWN PRICES AND REFINE YOUR MEMBERSHIP OPTIONS (GO SEE) 9 YOUR MEMBERSHIP OPTIONS (GO SEE) 32. 10 INVEST IN THE BEST PEOPLE YOU CAN FIND 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 33. CONCLUSION REMAINING COMPETITIVE 1.Clarify what your business believes in, its 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 KPI3.Review and rethink your value proposition4.Focus on providing people with results and motivation5.Aim for excellence be the best at what you are specialized in!6.Run micro-gym businesses7.Pay attention, remain relevant8.Harness technology and social media9.Evaluate your price and review your membership options10. People, people, people 34. WHETHER IT IS THEEXPERIENCE, THE STAFF, THE RESULTS YOU PROVIDE, THE QUALITY OF PROGRAMS, THE ATMOSPHERE, THE ATTENTION TO DETAIL, OR THE RELATIONSHIPS FORGED, THERE ARE MANYUNIQUEYOUR FITNESS BUSINESS APART FROM QUALITIES THAT CAN SET YOUR COMPETITORS.PLAN EARLY,AND MAKE YOUR MEMBERS AND PROSPECTS UNDERSTAND HOW YOUR FACILITY OFFERS THEMOST VALUE PER DOLLAR SPENT. 35. 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 36. SURVIVAL IN THE MIDDLE MARKET: HOW PUT A STOP TO THE-BIG-SQUEEZE THANK YOU FOR ATTENDING IF YOU WOULD LIKE TO CONNECT OFFLINE TO DISCUSS YOUR CLUBS STRATEGIC PLAN PLEASE VISIT WWW.THE-BIG-SQUEEZE.COM/CONTACT TO REQUEST A FREE CONSULTATIONPRESENTED BY RODNEY J. MORRIS www.rodneyjmorris.com