Drive ROI With World Class Group Fitness
How World Class Group Fitness Can Impact Your Bottom Line
Polar's Cardio GX & Les Mills' - Return on Investment
Competition among fitness and wellness facilities is intense. A key aspect of success in this environment is retaining existing members while continuing to acquire new ones.
This executive summary will show how the simple strategy of getting people to more frequently visit a facility, particularly through the delivery of engaging group fitness, is a very effective, if not the most effective, means of impacting the bottom line.
Think of it, improving annual retention by just 5% and member acquisition by another 5% in a typical 1,500 member facility will generate over $75,000 a year in enhanced cash flow! By helping facilities deliver these outcomes, LES MILLS™ has become a popular solution for many facility managers.
Cardio GX
Cardio GX is profitable service concept centered around heart rate-based group exercise that sustains enthusiasm for working out by educating members on the benefits of heart rate training. Training within appropriate heart rate zones helps members perform at the right intensity to maximize their workout. This individual guidance, based on live heart rate data, makes group exercise personal and helps members quickly see results. Members will crave the one-one-one guidance they receive during their favorite class, which translates into a steady influx of revenue for your club and:
- Added personal training sessions
- A surge in heart rate monitor and strap sales
- Boosted popularity of cardio group exercise classes
- Increased member retention and satisfaction
Group Programs and Visitation
The strategy is fairly straight forward and research substantiates it. Members who frequently visit a facility are much more likely to be satisfied with their membership and less likely to quit. This has a substantial impact on membership retention rates. An AC Nielsen survey confirmed that Les Mills’ participants work out an average of 2.9 times per week in Group Fitness (“GF”) classes or 150 days per year, exceeding IHRSA’s estimate of average club attendance by 65%. IHRSA research identified that members go to their clubs on 91 days a year – or just 1.75 times a week on average.
Specific responses also showed that 39% of members attend LES MILLS™ classes at least 4 times per week, while 90% come to work out specifically in LES MILLS™ classes 2 times each week. Yet retention is only the beginning of the opportunities that frequent member visits offer.
Member Acquisition
When members have a strong involvement with their club they let others know about it. Their experience encourages discussion with family, friends and colleagues, which is the most effective form of advertising available.
Word of mouth promotion by happy members offers the added upside of being both trusted and personal. It also takes some pressure of facilities limited marketing budgets which can suffer from the investment required to get noticed in a competitive market.
AC Neilsen research also benchmarked word of mouth and retention factors and concluded that 92% of respondents would “definitely” recommend LES MILLS™ programs to their friends and 75% agreed they might change clubs if their club stopped offering LES MILLS™ programs.
In the medium term, higher retention increases the capacity for clubs to incrementally raise membership fees and increase profits per member.
Program Re-launches to Bolster Acquisition
Facilities that enjoy a high frequency of weekly GF visits keep group exercise fresh and exciting for members by holding quarterly re-launches of programs. Many clubs hold these events for the retention upside they offer as well. A select number have gone to the next level. They hold up to 2 re-launches per year focused on new member acquisition with extraordinary returns on investment. Case studies are available for your review.
Building & Creating Successful Group Fitness
Commonly, the ability of facilities to deliver the type of group programming that drives the results described herein is limited. Achieving these benefits requires investment in GF resources with a strong commitment to excellence when recruiting talented GF Management, world-class instructors, maintaining quality programming and employing quality marketing strategies. This is where the LES MILLS™ solutions can deliver outstanding value.
LES MILLS™ Fitness Formulas deliver programming, management and marketing resources that help facilities realize the benefits that world class group fitness offers. What's best is how affordable the solutions are. For far less than replacing a typical treadmill, LES MILLS™ formulas can deliver on-going solutions that impact retention and acquisition.
To learn more visit www.getlesmills.com or www.cardiogx.com
