when times are tough you have to get close to your customers
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Fitness Industry Association Manchester, England
June 2009
When Times Are Tough You Have To Get Close To Your Customers
“Welcome”
Creating Value
Useful
DesirableUsable
Value Creation
The Doom Loop
• New Direction, Program, Leader, Event, Fad, Or Acquisition… No Buildup; No Accumulated Momentum… Disappointing Results…Reaction, without understanding…
Build Up… Breakthrough
• Disciplined People
• Disciplined Thought
• Disciplined Action
Culture is sustainable,
Personality driven is temporary.
The Flywheel
• Revolution means turning the wheel.
• People line up, energized by results…Flywheel Builds momentum…Steps forward…Accumulation of Visible Results
What do we really know about our members?
• Age• Gender• Address• Employment• Usage• Activity• Purchase patterns• Interests• Goals
How do you use the information to better service your members?
What do we really know about our NON‐members?
It could be as little as 30 minutes
An aquatics member using the club under her doctor’s prescription had her class time changed by 30 minutes – she complained and was not accommodated due to swim lessons being more profitable. She cancelled her membership because this caused her to not be able to maintain her routine. This is how fragile our solution is to people. A 30 minute adjustment and she was out with NO plan to continue her exercise…
Can Be Trained Must Be HiredTechnical Skill InitiativeExercise Testing OwnershipSales Presentation AdaptabilityListening Positive ThinkerProblem Solving Bottom Line OrientedConflict Resolution AccountableGoal Orientation Visionary
Honest/Integrity
The Stockdale ParadoxAdmiral Stockdale
Retain faith that you will prevail in the end, regardless of the difficulties.
AND at the same time…
Confront the most brutal facts of your current reality, whatever they might be.
(Versus blind optimism)
Lewin’s Equation
B = Behaviorf = Function OfP = PersonE = EnvironmentB = f (P,E)
Behavior is a function of the Person in his/her Environment
Successful Experience Design
• Integrates user & the club• It is learned but NOT open to introspection• It is invisible• It is multidisciplinary• It is cultural
We are still all learning how to design experiences & getting better every day!
What goes into designing the Member Experience?
• Good Clear Focus on
Vision
• The Right People
• Feedback Loop
• Fast Iterations
UseDesign
Marketing Solutions Utopia –The Direction
FacilitiesFeatures
Based
ConnectionFriendlinessWelcoming
Appropriate Specific Solutions
Programs and People
Results
This represents the evolution of our marketing and positioning.
As we move further towards segmentation, relationshipmarketing, weight loss, Wellpower, Habit Changer and new offerings - we will have a very strong competitive advantage.
No one is coming close to our targeted member focused approach!
*Marketing/Branding Path
Revenue Flywheel
Retention Through Member Knowledge& Unique Approach
Ancillary RevenueSolution Programs
No Barrier Involvement
Sales & Marketing
The US Health Club MarketClubCorp
Western Athletic Clubs
Sports Club LA
Sport & Health…
Equinox
TSI
Bally’s
24 Hour Fitness
LA Fitness
Gold’s Gym
Curves
JCC
Life Time Fitness
YMCA
Wellbridge
Who/What is Your Competition?
Designing the Member Experience
Experience IS the Product!
Good Design when well done is invisible
When it’s right you don’t think about it
Reasons Given for Quitting
Product Dissatisfaction
14%
Competition9%
Other Interests5%
Move3%
Die1%
Attitude - Indifference by
Employees68%
US News & World Report
Unhappy Customers who Remain Faithful
0102030405060708090
100
No Complaints UnresolvedComplaints
ResolvedComplaints
Quickly ResolvedComplaints
Purpose
We deliver quality fitness and wellness solutions that support meaningful change in
people’s lives.
Mission
We deliver relevant quality fitness and wellness programs and while doing so, establish meaningful personal connections that support lasting and life‐changing results for our members.
We leverage our expertise through multiple delivery channels including commercial health clubs, corporate partnerships and community centers.
Building Blocks to a great member experience
Say “Hi”
Be Responsive
Teamwork
Clean &Stocked
EquipmentUp-Keep
Say “Goodbye”& Good Job”
Have Fun
Our members come to us for a shared purpose-to improve their health and fitness. Help them escape the rigors of their day by showing your enthusiasm, friendliness and support. Reward their hard work, and we’ll be rewarded with their loyalty.
Help make fitness easy for our members by responding enthusiastically to any questions or concerns. Guarantee members a response within 48 hours and then proactively seek answers internally.
TEAMS understand the power of unity. We look sharp an act with confidence and serve our members with the utmost respect. When our members win, the TEAM win.
Work together to pick up towels, wipe down equipment, pick up paper and do the little things that keep our club clean, well-stocked and clutter free. A clean place is a better place to work and work out at!
Club One works on a 72-hour turnaround time for fixing equipment. Post signs notifying our members when they can expect broken equipment to be back in operation, alert your manager if equipment is not operable within 72 hours, and most importantly, be prepared to use back-up equipment so that our members continue to have a positive experience.
Always acknowledge our members for their commitment to fitness and for visiting us with a friendly “Thank you,” Goodbye,” “Hope you had a good workout,” or some other farewell. Encourage them to visit again soon.
Happiness is contagious. If you enjoy what you’re doing, your colleagues will enjoy what they’re doing and our members will have more fun.
Connection
Creating The Value Proposition: Wow or Delight
RetentionEnrollment
The Club TeamThe Organization
Our Purpose - Some Version Of:Improve The Quality Of People’s Lives
People Are Unfit And Would Like To Be Fit & Healthy
The Member
Connection
Customer Satisfaction = Results
Customer Satisfaction(Sales Results)
Staff Facility
Product / Service(Experience)
• New Sales• Member Results• Referrals• PT Revenue• Guest Fees• Program Revenue• Other non‐dues Revenue• Retention
Retention
Starts with the sales process and is only as successful as every interaction and touch point
Loyalty
Intervention Of At Risk Members
Every Thing You Do – Every Touch Point
Retention Model
Enrollment
On-Boarding
Connection
Members For Life
Reasons Prospects Buy Memberships to our Clubs
• To alleviate a hurt, pain or embarrassment
• Replace something that is missing
• To invest in the future
• To please someone else
Pleasure Pain Principle
We do things in life for one of two reasons:
To Gain Pleasure
Or
To Avoid Pain
Three Types of Prospects
• The Exerciser
• The previous Exerciser
• The non‐Exerciser
Facilities
Programs
People
OptimalMember
Experience
Cleanliness; Upkeep, HousekeepingAmenities, Maintenance, Equipment
Group Fitness, Personal Training, One StartSpecialty/fee-based programs
1st impression, Friendliness, Training, Membership Services, Service Desk Efficiency
The WOW Factor, Optimization of member experience
Facilities
Programs
People
OptimalMember
Experience
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Net Promoter Results
80% of total score are intangibles
0%5%
10%15%20%25%30%35%40%
2005 2006 2007 2008 2009
NP
19 26 32 39
Average For All Industries = 16
Contact Information
Bill McBrideChief Operating Officer
Club One, [email protected]
[email protected](Bill underscore [email protected])
“I hope this was helpful”