2012 Excellence of Operating Health Clubs

1. IHRSA – LA, 2012
Excellence of Operating Quality, Profitable Clubs”

2. “Welcome”

3. Redefine or Reframe
The Issue…

4. Sometimes it seems to be getting harder…

5. Session Objectives
• A look at the industry
• People + Product + Position =
Revenue/Success

8. Or Not…

10. Millions of Fitness Participants
120
100
80
60 Series1
40
20
0
Spinning Elliptical Electronic Running / Treadmill Walking
Bike Jogging Outdoor
Outdoor

11. HAVE – DO – BE
OR
GET – DO - SEE
HAVE
GET
DO
BE
SEE

12. Be – Do – Have
OR
See – Do - Get
BE
SEE
DO
HAVE
GET

13. Be Clear - Be Honest & Open – Be The Best
Humility &
Clarity of Openness to Operate As
Direction Learn, Adapt If You Are
& Grow The Best

14. “The secret of success is constancy to
purpose”
Benjamin Disraeli

15. Leadership Truths
• People Determine the Potential of Our Team
• Relationships Determine the Morale of Our Team
• Structure Determines the Size of Our Team
• Vision Determines the Direction of Our Team
• Leadership Determines the Success of Our Team

16. Team Learnings
• What are their Strengths and Weaknesses?
• What are their TRIGGERS?
 What gets them going?
 What inhibits them?
• What is their style of Learning?
 Analyzing
 Doing
 Watching

17. One Key Point of Great
Managers
GREAT MANAGERS SPEND 50% OF THEIR TIME (OR MORE)
ON THE FLOOR WITH THEIR TEAM.

18. Four (4) Basic Requirements of
Great Management
1. Select good People
2. Define clear expectations
 What do you get paid to do?
3. Praise and Recognize in Public and Highlight Behaviors/Results the
Organization Values
4. Care for/about your People….do not take care of them
 “You can‟t ask for their hand until you show them your heart”

19. Management
• Management delivers consistent results
• Management begins with the individual and his/her strengths and talent
• Great managers capitalize on what is UNIQUE about each person
• Great managers RELEASE the POTENTIAL of their employees and TEAM

20. People Performance
V
A
L
U
E
S
PERFORMANCE

21. Simple Review Process
What we
What I like
want to see
Mastery of
Your Drive program
offerings
Quality &
Sales
accuracy of
Performance
paperwork

22. Staff Coaching
Relationship
Goals Train
Building
Monitor
Motivate Feedback
Performance

23. 15 Techniques That Build Loyal
Followers
Leadershipfreak.wordpress.com by Dan Rockwell, July 23, 2011
1. Enable other‟s success
2. Leverage other‟s strengths
3. Improve others performance
4. Adopt high standards
5. Correct & discipline
6. Answer public challenges publicly
7. Give meaning to tasks
8. Stand behind people when they screw up
9. Admit when you are wrong
10. Be emotionally steady
11. Clearly describe what you want
12. Model behaviors you expect
13. Share the spotlight
14. Don‟t„ be a buddy
15. Make it easy to get things done

24. Hassle Map
“Demand”
What is the member‟s “hassle” with regard
to your product?
Reducing the hassle for the member
creates a WIN for everyone!

25. New Paradigm with
Information Consumption
PUSH
PULL Just
There

26. “Experiential Product”
Operating Model
Every Thing You Do – Every Touch Point
Support / Intervention
Enrollment On-Boarding Connection
Of At Risk Members
Community Loyalty

27. I Don‟t Want To Go To
The Club Today!
I stop coming

28. Life Can Be Hard…
Stuff gets in
the way

29. Kids Play – Adults Work
Area of play
is important

30. Happiness Is Good
Engagement

31. You Helped Me Get
Results!
I feel good

32. There Are People Like
Me Here
I‟ve made friends and connections with like minded people

33. Your People Care And
Are Great
They helped me, supported me
and I appreciate them

34. I Belong To This
Community

35. This Is MY Place
I belong and I don‟t want
to leave

36. Others Really Have Got
To Experience This
I‟m a Promoter,
Raving Fan,
Brand Ambassador,
Supporter.
I‟m your best customer

37. Relationships
STRANGER
Casual/Cordial
Friends Committed &
Loyal

38. Goodbye!
Product
Other Interests Move Die
Dissatisfaction
3% 1%
5% 14%
Competition
9%
Attitude -
Indifference by
Employees
68%
US News & World Report

39. Do You Care?
Can I Trust You?

40. Value Proposition
Useful
Value Creation
Usable Desirable

41. Lewin‟s Equation
• B = Behavior
• f = Function Of
• P = Person
• E = Environment
• B = f (P,E)
Behavior is a function of the Person
in his/her Environment

42. What Areas Need To Be Designed
(Or Re-Designed)?
?
?
?
?
? ?
?
? ? ?
? ? ?
?

43. Designing The Experience
Food
Pro
Sales Service
Shop
Tennis
Fitness Aquatics
Dance
Operations Pilates Group
Fitness
R-Ball Child Small
Youth
Care Group Training
Programs

45. What Am I Thinking?
• Time
• Need
• Desire
• Facility
• Significant Other
• Money (affordability or value)

46. What is Sales?
An exchange where both parties win

47. Take Sales As An Example…
Show
Call / TI Appointment Set (Guest Registration Card / Interest Profile)
(Computer Entry) (Confirm Appointment) (Thank You Email Sent)
Presentation of Membership
Needs Analysis Tour Trial close
(Presentation Sheet)
Enrollment Paperwork Additional Services Presentation Referral Presentation
(New Member Packet) (Orientation & Intro Services) (Referral Sheet)
Orientation Program Design
(Enter into computer Schedule it!) (Enter into computer)
Computer Update Thank You Sent Follow-up
(CRM)

49. How people buy… Comparison
• Alignable Differences
• Nonalignable Differences
Alignable Differences carry a lot more weight with
consumers
The process of comparing tends to focus on alignable (it‟s
easier)
Unique properties are hard to evaluate

50. What you can do to help people
buy… (knowing how comparisons play a role)
• Communicate what‟s in common with competitors. Find ways help
consumers find comparable elements that turn what seem like nonalignable
into alignable differences
• Convince the consumer that the unique feature is critical. Help them
understand the unique feature‟s role
• Familiarize customers with new features. Encourage individual evaluation
instead of comparison evaluation
Knowing more about how people make comparisons can help you make better
decisions and influence the way you encourage customers to evaluate you
-Harvard Business Review, Art Markman (research with Dedre Gentner, Doug
Medin and Shi Zhang (posted July 21, 2011)

51. 2 or 3 Choices seems to be
Ideal
• Offering 1
• Offering 2
• Offering 3
The power of comparison – “Predictably Irrational”
Financial Times Example
Print Only Print
Print and Online ------
Online Only Online

52. Prospect Identity
• More and more research says personal identification –
being (noun) versus doing (verb) has a greater impact on
behavior and triggers play a significant role
• Questionnaire about voting versus voter
• Civic minded citizen versus letting us put a sign in your
yard
As a health minded exerciser… versus someone doing a
program, joining….

53. Brand Emotions
• Friendly & Nice
• Warm & Accepting
• Comforting & Supporting
• Considerate of You and your circumstance
• Happy
• Safe
• Authentic / “Real Deal”

54. Painkiller, Vitamin or Drug?
1. Painkillers are products that address existing needs/pain points (addictive)
2. Vitamins are products that don‟t necessarily address an immediately apparent need.
The solution makes the prospect‟s life better – yet they might not realize it
3. Drugs are like Vitamins. You must sell a prospect that it will make life better but
unlike vitamins it is addictive. It has:
1. Accruing Benefit – the more you use the better it gets
2. Mounting Loss – the longer you use the more you rely on it. Going cold turkey is
hard
3. Product-Market Fit – drugs are vitamins with product-market fit. How
disappointed would you be if you couldn‟t use it anymore
– Women2.org / by Angie / By Sarah Tavel (Senior Associate, Bessemer Venture
Partners) hat tip to Greg Duffy at Dropcam for inspiring post

55. Your Position Is Communicated By…
? ?
? ?
? ?
? ?
?
? ?

56. Position Communication
Staff Offering &
Members Direct Mail
Program
In-Club Website & Value
Signage
Materials Online Proposition
Presence
Advertising
Physical ?
Plant

57. Marketing Approach
Appropriate
Specific
Solutions
Results
Connection
Friendliness
Welcoming
Programs
and People
Facilities
Features
Based
*Marketing/Branding Path

58. What Is The Story Here…
• Tell the story of your club
• What is the “elevator” description?
• Why is it interesting?
• What is different about it?
• What emotions do you want to generate?

60. Your Position

61. Review Sharing on Yelp.com

62. • Spark conversation and prompt dialogue between members to help
build connection and communities
• Engage in the conversation; interact with members to congratulate,
encourage and immediately address concerns or negative feedback
• Provides a forum for fans to share their experiences with the Club
One brand
• Using Facebook Places (tracks check-ins and allows users to share
current location with friends) as well as Facebook Deals (rewards
check-ins and provides special offers)
• Hosting monthly “Ask the Expert” discussion forums
• Share exclusive offers to fans – incentives return visits to Club
One‟s Facebook fan page

63. Positive Interactions

64. • Provides quick
updates,
maintenance
alerts, and
topical
information to
our members
• Re-tweet
articles and
bit.lys

65. • 667 sold in
San Jose
• $22,011 in
revenue share
• San Francisco
& San Diego up
next

66. Yelp Daily Deals
•Massive subscriber list
•Paid lead generator with
high conversion to
memberships

67. Dedicated YouTube Channel
Post “How To” videos,
success stories, meet a
Club One expert and
behind the scenes sneak
peeks for new programs
Share the Club One
experience – view what a
real class looks like from
the comfort of your home

68. Continuing Advocate Identification
• Sent to Member Survey non-responders
• Net promoter question will help us continue to
identify even more advocates

69. Optimal
The WOW Factor, Optimization of member Member
experience
Experience
1st impression, Friendliness, Training,
Membership Services, Service Desk Efficiency
People
Group Fitness, Personal Training, One
Start
Programs
Specialty/fee-based programs
Cleanliness; Upkeep, Housekeeping Facilities
Amenities, Maintenance, Equipment

70. Net Promoter results
100% Average For All
Industries = 16
90%
Optimal
80%
80% of total score
70% Member
are intangibles 60% Experience
50%
People
19 26 32 39 38 50 40%
50%
30%
Programs
45%
40%
35%
30%
20%
25%
NP
20%
15%
10%
10%
Facilities
5%
0% 0%
2005 2006 2007 2008 2009 2010

71. Top 3 “Take A-Ways”
1. ________________________________
2. ________________________________
3. ________________________________

72. “Were you listening…?”

73. “We hope this was helpful”

74. Contact Information
Bill McBride
President & Chief Operating Officer
Club One, Inc.
Bill.McBride@ClubOne.com
Bill_McBride@Comcast.net
(Bill underscore McBride@Comcast.net)

75. Top 10
1. Have integrity in everything you do. Your word is your bond.
Follow through on your commitments. Your name and our name
are our best assets
2. Everyone is responsible for creating a safe environment for our
members and associates
3. Everyone‟s job is to GET and KEEP members. Sales and
Retention are not departments but a way of operating. We all
have to sell the benefits of our brand
4. Operate towards a unified goal not a job description – innovative
ways to get the job done are the norm – all hands on all required
tasks
5. If it‟s in your control, you must control it. If you receive or become
aware of a problem, it‟s your job to fix it. If it‟s not in your control,
you must adapt. This includes expense management, payroll and
system compliance

76. Top 10
6. We run pristine clubs – cleanliness, maintenance and the small
nice touches are to be focused on and delivered
7. We create Wow by delighting our members and giving them more
than they pay for. We seek happiness and fun in our work
8. We treat each other with appreciation and respect as together we
can accomplish exponentially more
9. Know your markets (prospects) – Know your members – Serve
them. Know our product. Use the system
10. Be good neighbors – give to your community – Be the place &
source for health, wellness & fitness. Expand the brand