Good to Great GOLD - 2011 Global Group Fitness Research - steven renata 2011

LES MILLS INTERNATIONAL © 20112

GOOD TO GREAT

WHAT MAKES THE TOP CLUBS GREAT AND GOLD

RESEARCH METHODOLOGY

OVERVIEW � An online survey was undertaken during February/March 2011.

� Clubs were asked to record and report back full details of member attendance of both GF and non-GF for a specific week .

� A total of 1,187 clubs recorded and entered data. The survey data was then post-weighted to be representative of the Les Mills licensed club population.

Region Number of Les Mills Programs

<=3 >3

Europe 32% 18%

North America 14% 6%

South America 9% 6%

Asia-Pacific 6% 8%

Distribution of Clubs With At Least One Les Mills Program(1)

Notes: 1. Source: Data provided by Les Mills

RESEARCH METHODOLOGY

OVERVIEW Proportion of Clubs That Have Les Mills Programs

90

%

57

%

54

%58

%

52

%

89

% Distribution of Clubs that license specific Les Mills program in the survey data is in line with

Les Mills internal data

Survey data

Les Mills Internal Data

Notes: 1. Source: Data provided by Les Mills

32

%

32

%

17

%

31

%

4%

21

%

33

%

34

%

16

%

52

%

31

%

2%

27

%

BODYPUM

P

BODYSTEP

BODYATTACK

BODYCO

MBAT

BODYVIV

EBO

DYBALANCE

RPM

SH'BAM

BODYJA

M

3.46 3.42

Average Number of Les Mills

Programs per Club

GLOBAL GX METRICS SURVEY

OBJECTIVES

1. Provide club decision makers with better insight into trends

2. Provide accurate measure of group fitness attendance data

3. Provide benchmarks on a global scale, and what is possible as ‘stretch’ goals

4. Provide a comparison with other clubs of a similar membership size4. Provide a comparison with other clubs of a similar membership size

GLOBAL GX METRICS SURVEY

IMPORTANCE OF ATTENDANCE AS A KEY METRIC

� Attendance is the key metric in the wider club and fitness industry but one of the least measured with many club owners tending to concentrate on profit and membership.

� “Those measures remain important, but attendance is ultimately the biggest driver of membership, customer engagement and profit, and biggest driver of membership, customer engagement and profit, and as such, it’s our biggest indicator and risk to financial success. It’s a critical measure that we are currently lacking awareness of as an industry, yet it’s vital to have data if we want to learn and grow.”

Phillip Mills, CEO, Les Mills International

KEY FINDINGS FROM THE RESEARCH

• The average club attracts 676 weekly GX attendances

• The Top 100 clubs attract an average of 2525• The Top 20 clubs attract an average of 3880• The Top 10 clubs attract an average of 4656

• LES MILLS Classes amongst top performers attract higher total class attendances on averageattendances on average

• Average of 37 participants vs. 29 for other classes (on average)

• Average GX attendance is 33% of club attendance • Top performing club has 57% of club attendance • Industry average is 10 -20% range.

• LM GX participant visit a club on average 3.4 times per week • In the US the average participant visit to a club is 1.92



GLOBAL RESULTS: TOP 10 PERFORMERS

Ranking Club Name

Weekly Group Fitness

Attendances

GF Share of Total

Attendances Region Club Size

1 LES MILLS AUCKLAND CITY 9658 57% New Zealand Large

2 IKSU SPORT 8358 36% Sweden Large

3 THE EDGE 4134 30% USA Large

4 ANONYMOUS 4048 48% Spain Medium

5 ESPACE VITAL 3927 NA Belgium NA

6 SPORTIUM COYOACAN 3624 65% Mexico Large

7 THE PEAK 3376 33% UK Large

8 LES MILLS WELLINGTON 3316 34% New Zealand Large

9 LES MILLS NEW LYNN 3302 50% New Zealand Large

10 24h FITNESS_00955 3260 NA USA NA


GOLDS RESULTS: TOP 10 PERFORMERSGlobal Weekly Group Fitness Attendance Ranking

GOLD's Ranking

Global Ranking Club Name

Weekly Group Fitness

Attendance

Total Weekly Club

Attendance

GF Share of Total

Attendances

Total Club Membershi

pVis per mem

Total Weekly GF Attendances Les

Mills OnlyTotal Weekly GF Classes

1 22GOLD'S GYM STERLING 2872 9179 31.3 5695 1.6 1494 95

2 69GOLD'S GYM NORTHWEST 2052 9959 20.6 11000 0.9 1406 91

3 125Gold's Gym -Brownsville 1748 1085 67

4 145Gold's Gym -Poughkeepsie 1688 1364 55

5 168

Gold's Gym -Corpus Christi -South Staples 1600 1044 72

6 178Gold's Gym -Fairfax Station 1574 1019 65

7 203Gold's Gym -Austin - South 1491 951 63

8 230

Gold's Gym -Austin - Hester's Crossing 1419 1017 63

9 271

Gold's Gym -Austin - Bee Caves 1296 893 52

10 317

Gold's Gym - San Antonio - Bandera Trails 1198 788 68


GOLDS RESULTS: BENCHMARKING AGAINST THE BEST

Benchmarks:

• Best GOLDS was GX attendance per week: 2872

• Top 10 Average GX attendance per week: 4656

• Best GOLDS Average GX attendance as% of total club visits: 31.3%

• Top 10 Average GX attendance as % of total club visits: 50%

• Best GOLDS total average member visits per week 1.6

• Top 10 total average member visits per week 1.58

Best KPIs to use for Ranking

• % GX visits as a proportion of total club visits

• Average number of club visits per member

Low Sample Size from GOLDS CLUBS in 1st Global Survey

We believe the real value of the data comes from looking at the data comes from looking at the

opportunity it presents…

There is absolutely a commercial connection between group fitness between group fitness

attendance and long-term profitable clubs

IMPORTANCE OF GX TO YOUR BUSINESS

Les Mills Scoreboard survey follows other industry research about the impact of GX on club growth and profitability:

•Nearly 40% of people cite GX as the biggest influence on how long they stay a member of a club

•60% of people rate GX classes as the most important factor for choosing to join a health clubchoosing to join a health club

•One extra visit per week from each member can increase retention by around 3%

•GX member retention rates are higher than other member retention rates, on average

•Satisfied GX members refer people 3 times more than other club members

IMPORTANCE OF LES MILLS GX TO BUSINESS

BENCHMARKING AGAINST THE AVERAGE AND THE BEST

• The average Les Mills licensed club has ±500 more members per club than the global average

• 14,000 Les Mills licensees have an average of 1433 members per club

• Globally clubs have 930 members on average• Globally clubs have 930 members on average

• North American clubs have 1515 members on average

• Clubs offering Les Mills GX can charge higher membership fees on average

• Les Mills Auckland, New Zealand

• Average of 10,000 group exercise attendances each week

• Comparatively high membership fees of $100USD p/month

• Charges additional fees for specialised programs

• Example: 1900 members each week (19% of attendances)

#1 PERFORMER – LES MILLS AUCKLAND (NZ)

MEMBERSHIP AND GX NON MEMBERSHIP DUES

• Example: 1900 members each week (19% of attendances) pay to attend RPM™ (cycling) classes, which generates USD$6000 in weekly revenue on top of membership dues

• More than 55% of visits are to do a group class, despite charging some of the highest monthly membership prices in the city

Increasing sales will increase profit in the short-term, but more people in the door is the key to a sustainable and successful business. business.

A new business model is needed which focuses on getting more people through the club door, more often.focuses on getting more people through the club door, more often.

FROM GOOD TO GREAT

ACTION #1


SET YOURSELF AND YOUR TEAM INSPIRING AND CHALLENGING GOALSWHAT’S THE DREAM?

EXAMPLE OF CHALLENGING LONG TERMS GOALS STRETCH YOURSELF

� Club membership capacity target– Les Mills New Zealand clubs target 2.2 members p/ 10.5 sq. ft., versus

industry average of 1.0

� Average number of visits to club per week per member


– Top 5 Big Clubs: Virgin Active Spain (1,5), IKSY sport (1.5), Les Mills Auckland (1.4), The Edge Vermont (1), Virgin Active Spain (1,5)

– Top performers small club category: Arena Trek 2,5; Maggia Fitness 1,8

� % of club visits attending GX– Top performers are between 55% and 70% when the average in Les Mills

clubs is 33% and rest of industry average is 10 to 20%

– There is a link in the survey between top performers with KPIs above

EXAMPLE OF CHALLENGING LONG TERMS GOALS STRETCH YOURSELF

� GX average weekly attendance– Top 10 : 4656

– Top 20 : 3880

– Industry average 676

– Go for maximum timetable capacity or even bigger - the maximum studio capacity


capacity

� Average class attendance– The highest average class attendance achieved for any program is 27

– Les Mills clubs average class attendance is 16, but the top 20 Les Mills performers average Les Mills class attendance is 37

TRACK YOUR PERFORMANCE AGAINST TARGETSIF YOU CAN’T MEASURE IT, YOU CAN’T MANAGE IT


ACHIEVING TOP GX PERFORMANCE AND NUMBERSIDENTIFY WHAT YOUR STRENGTHS ARE, AND WHERE YOU CAN GROWTOP PERFORMERS MASTER SEVERAL OF THE 8 KEYS OF GX MANAGEMENT


LES MILLS SCOREBOARD #2 PERFORMER:IKSU SPORT, SWEDENFROM GOOD TO GREAT

• Not for Profit association• Total membership of 15,000• 8358 group fitness attendances a week • 36.3% of weekly visits to club


• 36.3% of weekly visits to club• 229 group fitness classes offered weekly • 125 instructors• 1.5 visits per member weekly

LES MILLS SCOREBOARD #3 PERFORMER:THE EDGE, VERMONT, USAFROM GOOD TO GREAT

• 4134 weekly group fitness attendances • 30.5% of weekly visits are for group fitness • Total membership of 12,000• 239 group fitness classes offered weekly • Average of 1.1 visits per member weekly


• Average of 1.1 visits per member weekly • 424 staff with 110 (26%) involved in group fitness

LES MILLS SCOREBOARD, GOLD’S #1 PERFORMER:FROM GOOD TO GREAT: GOLD’S STERLING


LES MILLS SCOREBOARD: GOLD’S #2 PERFORMER FROM GOOD TO GREAT: GOLD’S NORTHWEST


LES MILLS SCOREBOARD: GOLD’S #3 PERFORMER FROM GOOD TO GREAT: GOLD’S BROWNSVILLE


http://www.youtube.com/watch?v=asuSqDBNOEk&feature=youtu.be

THE POWER OF GREAT PROGRAMING

FROM GOOD TO GREAT…

32

#1 DRIVER FOR ATTENDANCE IS THE PROGRAM

GET YOUR PROGRAM OFFER RIGHT

Les Mills International © 2010

Source:Nielsen Consumer Survey

GIVE MEMBERS MORE OF WHAT THEY WANT

GET YOUR PROGRAM OFFER RIGHT- UNDERSTAND YOUR MEMBERS AND THEIR NEEDS

Les Mills International © 2011 Les Mills International © 20101

MAXIMIZE YOUR TIMETABLE


Just five program genres comprise 75% of group exercise attendance every week. In order of market share, these are:

21% Strength And Weights19% Cycling14% Mind And Body12% Dance9% Martial Arts


PROGRAM GENRES – WHAT’S HOT, WHAT’S NOT?

9% Martial Arts

34

GOLDS LAKE RIDGE - 5:15 am

GOLDS LORTON – BODYFLOW

35

FROM GOOD TO GREATGREAT PROGRAMMING: STRENGTH CATEGORYBODYPUMP® & CXWORX™ PROGRAMS THAT DRAW


36

FROM GOOD TO GREATGREAT NEW PROGRAMMING: DANCE CATEGORYSH’BAM BRINGS THE GIRLS OUT IN CROWDS


37

FROM GOOD TO GREATGREAT PROGRAMMING: CYCLE CATEGORYRPM CONVERTS THE NEW USER TO AN ADDICT

Ranking Program

Share of Les Mills

Attendances

2 RPM 16.0%


2 RPM 16.0%

Participate last 2 wks

Ever Attend

Aware 50

45

2658%

90%

RPM awareness converts well into trial and loyalty

Source: Nielsen Consumer SurveySource: Les Mills Scoreboard

Jv3

Slide 37

Jv3 The Scoreboard chart has Clubname instead of program name. Also not 100% sure you want to be showing the relative weakness of the lower programs when they are having problems with Vive etc?JODAR vanessa, 7/8/2011

THE POWER OF WOW STUDIOS

LES MILLS ULTIMATE STUDIO SEARCH

39

STUDIO AMBIENCE DRIVES ATTENDANCE

Source:Nielsen Consumer Survey

#1 EQUAL: FITNESS STUDIO ONEDORNSETTEN, GERMANY

#1 EQUAL: FIRST COAST FITNESSST JOHNS, FLORIDA

OTHER GREAT STUDIOS

LES MILLS BRITOMART

LES MILLS BRITOMART

LES MILLS AUCKLAND

H3 SHANGHAI

H3 SHANGHAI

RE-CREATION CARNEGIE, MELBOURNE

THE HOUSTONIAN

ACTION PLANWHAT THREE ACTIONS WILL YOU TAKE TO WHAT THREE ACTIONS WILL YOU TAKE TO MAXIMIZE GROUP X AND GROW YOUR PROFIT AND PERFORMANCE?

www.lesmills.com

[email protected]

Good to Great GOLD - 2011 Global Group Fitness Research - steven renata 2011

Health & Medicine

virgin active

les mills

total club

key findings

researchgolds

data provided

weekly visits

survey data