Filex 2010 management training day slides

Managing a successful fitness business in 2010 “ Don’t try to be better than anyone else – be better than yourself.” Dan Jansen,US Olympic Speed Skater

The day I have planned . . . 11:30 5+1 Steps to Business Management 12pm Managing by the Numbers 12:40 Lunch 1:30 Marketing – traditional and modern mediums 3:10 Break 3:40 Retention Strategies 4:50 Human Resource Systems 6pm Question time or The Over Flow!

The day you have planned . . .

Club Operations ~ in 5+1 easy steps~

There are little eyes upon you, And they’re watching night and day. There are little ears that quickly Take in every word you say; There are little hands all eager To do anything you do; And a little boy who’s dreaming Of the day he’ll be like you. You’re the little fellow’s idol; You’re the wisest of the wise, In his little mind about you, No suspicions ever rise; He believes in you devoutly, Holds that all you say and do, He will say and do, in your way When he’s a grown up like you. There’s a wide-eyed little fellow, Who believes you’re always right And his ears are always open, And he watches day and night; You are setting an example Every day in all you do For the little boy who’s waiting To grow up to be like you.

Managing the Numbers “The key to success in life is to become ‘brilliant’ at the basics.” Vince Lombardi

Track Key Performance Indicators KPI’s take the subjectivity out of judging performance when looking at individuals. KPI’s allow you to compare apples with apples when looking at different clubs.

Membership Income:Total income: Goal could be 70% Attrition Rate Goal could be 3 to 4% monthly Wages:Revenue Goal could be between 38 and 44% Revenue per metre Revenue per member Visits/week/member Club KPI’s

Sales Closing ratio Incoming call:Appointment Average Membership No. of referrals at point of sale Prospecting Calls:Appointments There are plenty of other sales ratio and KPI’s that you can look at including Department KPI’s

Marketing: Enquiry:Sale ratio – This tells us if the marketing is bringing in qualified leads. Income per source – Tells us we are covering the marketing costs Department KPI’s

Gym Floor: Appointment hours: Rostered hours worked Group Fitness: Cost per participant Total Number of participants Personal Training: Profitability of the department Membership penetration Sessions conducted per week Closing ratio Department KPI’s

“ Standards separate the superstars from the rest” Anon

Marketing ~ traditional and modern mediums ~ “A great product doesn’t make sense if nobody knows about it” Mark Twain

You see a gorgeous guy at a party. You go up to him and say, "I'm f anta s tic in bed". This is Direct Marketing .

You're at a party with a bunch of friends and see a gorgeous guy. One of your friends goes up to him and pointing at you say s , "She's fantastic in bed". This is Advertising.

You see a gorgeous guy at a party. You go up to him and get his telephone number. The next day you call and say, "Hi, I'm fantastic in bed". This is Telemarketing.

You're on your way to a party when you realise that there could be handsome men in all these houses you're passing. So you climb onto the roof of the car and shout at the top of your lungs, "I'm fantastic in bed!" This is Junk Mail .

You're at a party and see a gorgeous guy. You get up and straighten your dress. You walk up to him and pour him a drink. You say,"May I," and reach up to straighten his tie brushing your body lightly against his arm, and then say, "By the way, I'm fantastic in bed". This is Public Relations.

You're at a party and see a gorgeous guy. He walks up to you and says, "I hear you're fantastic in bed". This is Brand Recognition

The Markets The interested de-conditioned The non-believer The uninterested de-conditioned The conditioned

The Un-interested and Non Believer

They don’t care about the benefits of exercise and health Are not motivated toward exercise Are not looking for solutions Have no commitment to regular exercise Do not want any support The Un-interested and Non Believer

The Conditioned Understand the benefits of exercise Are intrinsically motivated Enjoy exercise & activity Have found the right solution Have a commitment to exercise Get back on track easily Need little support

Understand the benefits of exercise Need to be extrinsically motivated Do not necessarily enjoy exercise Have not found the right solution No commitment to regular exercise – YET Do not get back on track easily Need lots of support The Interested De-conditioned

From IHRSA studies in 1998: I felt certain I would get my money’s worth I could pay for specific programs or activities I had a friend or partner to exercise with The club had trainers who would give me the help I need The club would give me a completely personalised fitness program I Would Join a Health Club if …

#1 Fear: The Fear of ‘Physique Anxiety’ The 5 Fears of Joining a Health Club From IHRSA studies in 1998:

#2 Fear: The Fear of ‘Looking Stupid’ #3 Fear: The Fear of ‘Feeling Like A Klutz’ #4 Fear: The Fear of ‘Isolation’ The 5 Fears of Joining a Health Club

#5 Fear: The Fear of a ‘Hard Sell’ experience The 5 Fears of Joining a Health Club

Your marketing material needs to ensure: The market you are aiming to attract What makes people join a club The fears of joining a club The Marketing Equation Your market + Needs – Fears = New Members /Clients What does all this mean?

Lead Boxes These work brilliantly if: There is a relationship between the 2 businesses They are in the right venue Are looked after Have a an entry form that helps qualify your leads Have leads that are followed up!

VOLUNTEERS NEEDED FOR WEIGHTLOSS STUDY 50 people between the ages of 30 and 50 are needed for study to determine factors that contribute to weight loss . To be eligible for the study: You must not have exercised for more than 12 month; You must be 10kg over weight; You must guarantee to follow the program we prescribe; You must live within 5km of Active Health Club For more information contact The Research Director based at Active Health Club: 9870 8775

8 weeks: External marketing Traditional methods Guerrilla methods 4 weeks: Exercise adherence program 4 weeks: Referral program Designing your club plan

Business goals: Growth or maintenance Budget Planning 12 month plan Communicate it with Management, Team, financiers(?) Get creative in your marketing! Use as many mediums as possible to market What works in the industry? What works in other industries? Designing your marketing plan

“ People don’t care how much you know, until they know how much you care” Dr Kenneth Cooper Retention Strategies Create Membership Magnetism

Result of Magnetism The prime strategy of your retention strategies are to lengthen the average length of membership!

Creating ‘Raving Fans’ There are 3 secrets . . . Decide what you want Discover what the customer wants Deliver this . . . Plus 1% Plus 2 magic ingredients: Consistency Flexibility

Service is not a department it is culture Calling back when promised Explaining what caused the problem . . . in simple English Letting the member know who and what numbers to call Contacting the member promptly when the problem is resolved Giving members full access to speak to management

Service is not a department it is culture Telling how long it will take to solve the problem Offering useful alternatives if the problem cannot be solved Treating member like people not account numbers Advising members on how to avoid a future problem Giving progress reports if a problem cannot be immediately resolved.

The REAL reason service is important We often don’t realise how much a customer will spend with us when we first meet or see them! Do you remember Julie Roberts in Pretty Woman? What is the lifetime value of your customer?

The 11 Basics Make a difference in somebody’s life – everyday Aim your smile Ask yourself a question – does every member know your name? Work the floor and do it well Be the host of a party If you get it wrong . . . admit it . . . put it right Look for ways to go the extra mile Learn empathy . . . use it

The 11 Basics Look for opportunities to solve problems Say “Good bye” the same way you say “Hello” Take an individual responsibility to creating ‘raving fans’

Retention Strategies British Fitness Industry Study 2001 of 67,000 members: 57% of members trained once or less than once a week in their first calendar month of membership. Increase visits to once a week or more could increase retention by up to 40% 12 months later.

Retention Strategies to Create Magnetism 1. Programming strategies 2. Exercise adherence programs 3. Educational webinars, seminars, hand outs & emails 4. Social activities 5. Personal Training Branded touch at 7 or 14 days & then at 30, 60 & even 90 days Results Thank you and Birthday cards Suggestion boxes and answers

Retention Strategies to Create Magnetism 10. Acknowledgment to say ‘Well Done’ Member recognition Staff selection, empowerment and retention 13. Joining fees Cleanliness Pricing consistency 16. Names 17. Know the difference between loyalty & satisfaction 18. Not getting over-crowded

“ Members will quit a gym any and every day, but they won’t quit a relationship.”

From Patagonia clothing: Gives employees up to 2 months per year with full pay, to volunteer with an environmental cause of their choice. Offers “Brain Food Classes” on surfing, yoga, time management, business communication, even European history! The Container Store They have a ‘Fun Committee’ Training: 241 hours of training in year one compared with 7 as the industry standard and then 160 hours each year thereafter. Google: “ 20% Time” – employees can spend 20% of their time at work working on individual projects. This has lead to new company offerings!

Identifying the top performers from the innital call to interview

Accountability for their responsibilities. Positive reinforcement of positive performance. Management consistency. Buy in to the goals for the business. Training.

I know what’s expected of me at work. I have the materials and equipment I need to do my work right. Do I have the opportunity to do what I do best, every day. In the last seven days I received praise or recognition for good work. My supervisor or someone at work seems to care about me as a person. Someone at work encourages my development. At work, my opinions seem to count. The mission/purpose of my organization makes me feel that my work is important My coworkers are committed to doing quality work. I have a best friend at work. In the last six months have I talked to someone about my progress at work. I have opportunity to learn and grow at work. I have been fully open and honest in my responses to these statements.

Top 4 To Do’s Why would someone want to work for you? What is the type of person you want working for you? Core beliefs? Develop questions and exercises for them to show you these beliefs. Develop a ‘holding pen’ strategy.

Where to Now? “There are those who travel and those who are going somewhere. They are different and yet they are the same. The successor has this over his rivals: he knows where is going.” Mark Caine “The purpose of goals is to focus our attention. The mind will not reach toward achievement until it has clear objectives. The magic begins when we set goals. It is then that the switch is turned on, the current begins to flow, and the power to accomplish becomes a reality.” Annon

Justin Tamsett B.Ed (Phys & Health Education) Feel free to contact JT: [email_address] or 0438 015 677 Follow JT on Twitter: @JTActiveMgmt To read JT’s blog: www.justintamsett.com Become an Active Management Fan on Facebook: www.facebook.com/activemanagement And for more information on Active Management helping your business go to: www.activemgmt.com.au "What you leave behind is not what is engraved in stone monuments, but what is woven into the lives of others." Pericles

Filex 2010 management training day slides

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Filex 2010 management training day slides