LES MILLS GRIT® SERIES

DRIVING ATTENDANCE AND MEMBERSHIP

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Thompson, Walter R. ACSM's Health & Fitness Journal. 17(6):10-20, November/December 2013.

1. HIGH INTENSITY INTERVAL TRAINING

2. BODY WEIGHT TRAINING3. EDU/CERTIFIED & EXPERIENCED FITNESS PROFESSIONALS4. STRENGTH TRAINING5. EXERCISE AND WEIGHT LOSS

6. PERSONAL TRAINING

7. FITNESS PROGRAMS FOR OLDER ADULTS8. FUNCTIONAL FITNESS

9. SMALL GROUP TEAM TRAINING

10. YOGA

2014 TOP HEALTH & FITNESS TRENDS

1. ON TREND

2. INCREASE MEMBER ENGAGEMENT

3. PROVIDE ACCESSIBLE PT

4. DRIVE ASSISTED EXERCISE ATTENDANCE

8 REASONS WHY SMALL GROUP TEAM TRAINING WORKS

5. ATTRACT MILLENNIALS

6. DIFFERENTIATE OFFERING

7. DELIVER RESULTS FOR YOUR MEMBERS

8. GREATER REVENUE

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PERSONAL TRAINING

SMALL GROUP

TRAINING

GROUP EXERCISE

POSITIONING IS KEY

• Small Group Team Training is a feeder to both Personal Training and Group Exercise

• Assisted exercise creates both member to staff and member to member engagement

• Research shows there is a positive correlation between facilities with a higher level of assisted exercise on overallgym attendance and retention.

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REVENUE STREAMS

SGTT CREATES A NEW REVENUE STREAM

UNASSISTED EXERCISE

PERSONALTRAINING

SMALL GROUP TEAM TRAINING

GROUP EXERCISE

• SGTT provides an affordable PT option for members

• In case studies with existing customers, early indications suggest PT revenue is greater at facilitieswith successful SGTT

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DELIVERS FASTER RESULTS WITH SHORTER WORKOUTS

SUPPORTS LEAN MUSCLE & FAT LOSS THROUGH HIGHER HGH PRODUCTION

IMPROVES AEROBIC CAPACITY

HIGH INTENSITY INTERVAL TRAINING CONSIDERATIONS FOR SGTT

SIGNIFICANTLY INCREASES METABOLISM

BURNS MORE FAT

PROMOTES HORMONE PRODUCTION

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HIIT IMPACT ON SGTT PROGRAMING

BOOTCAMPS STRENGTH TRAINING

WEIGHT LOSS

CORE TRAINING

FUNCTIONAL TRAINING

CROSS TRAINING

HIGH INTENSITY INTERVAL TRAINING

MARTIAL ARTS

EQUIPMENT BASED

SKILLS BASED

RESULTS BASED

• High Intensity Interval Training (HIIT) as the number 1 trend for 2014

• Source ACSM

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LES MILLS GRIT ® Series will push your members to the max and beyond. The workouts are designed to give members up close and personal attention – assisted exercise, leading to increased motivation and results.

• Three unique programs offering fitness results, fast.

• 30 minutes of intense challenge to set training routines.

• Explosive music to send energy levels through the roof.

• Highly-charged certified trainers giving one-on-one attention.

SMALL GROUP TEAM TRAINING

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10VIDEOS http://www.youtube.com/user/lesmillsgroupfitness

“We are unbelievably happy with the results

we’ve seen since launching LES MILLS GRIT®!

We wanted to create value for our members with

these packages, and create a stronger connection

between them and our club. We’ve certainly done

that! In just 6 months we’ve made enough profit to

build a new small group training studio – and a

cycle studio – which will help us to build on the

success we’ve already seen from LES MILLS

GRIT™. This has been a game-changer for our

members, our coaches and our business!”

Lydia Haskell, Owner

The Fitness Rave, Baltimore

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KEY TO SUCCESS BEST PRACTICE

TRENDS MATTER1. Be on top of lasting trend, avoid fads Re-engage members

GREAT PROGRAMMING

Aim for a range of relevant programs that are motivating

NAIL THE BUSINESS MODEL

GET EVERYONE ON BOARD

RECRUIT & TRAIN THE RIGHT PEOPLE

GET THE WORD OUT

Set a clear goal and choose a model that supports.

In-depth Program knowledge Educate staff on benefits

Qualified professionals Find new talent and support growth

Have awesome marketing material Use all avenues to promote

DIFFERERENTIATE FROM GROUP FITNESS Have a solid implementation plan in place

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• October 2013 Market Research to assess club success and best practice

– 55 of 112 sites surveyed

– 4 week research

– 2-5 appointments each day

LES MILLS GRIT® SERIES

US Best Practice Research

13* December 2013 - 162 licensed GRIT facilities nationally

7 KEYS

1. Establishing a Business Model

2. Pay Structure

3. Value Adds

4. Marketing Message

5. GRIT Coaches

6. Online Booking System

7. Location of Workouts within the Facility

DRIVERS FOR SUCCESS

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• Over 95% of facilities using ancillary revenue models

• Drop In and Block Course are the most popular models

• EFT models used in over a third of facilities

Drop In PackageBlock

SessionsMonthly

UnlimitedMonthly Limited

Not Charging

Auto RenewPackage

Auto RenewMonthly

Facility TypeChain 13 9 12 1 5 4 1Single Site 5 2 8 2 2PT/GF Studios 5 2 3 3 2 1 1Non Profit 8 4 2 2 2 1Total Facilities 31 17 25 8 7 2 5 5% of Facilities 56% 31% 45% 15% 13% 4% 9% 9%

1. ESTABLISHING A BIZ MODEL

Membership Model Analysis

1. ESTABLISHING A BIZ MODEL

Price Point Analysis

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AVERAGES

• All Clubs: $12.50/workout

• Top Performing Facilities $14.50/workout

• Worst Performing Facilities $11.70/workout

• Top Full Service Facilities (no studios) $11.75/workout

• Worst Full Service Facilities (no studios) $9/workout

1. ESTABLISHING A BIZ MODEL

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• Average session rate $12.50

• Average session cost $44

• Target session attendance 10 people/workout

• Target sessions per week 6-9 /week

• Break Even at 100% capacity $4

• Break Even at 50% capacity $9

Break Even Analysis

Universal Athletic Club

Premium Membership$120/month Unlimited AccessLMG, Boxing, CROSSFIT BundlePay: $15 base + $2/head9 LM GRIT workouts per weekTeam Training Studio

$7000 gross/$3800 net

The Fitness Rave

8 week limited Block$279 per 8 week blockSeparate: TRX, P90XPay: Bonus $1600 - $650/block2 LM GRIT workouts per coachTeam Training Studio

$8000 gross/$3200 net

ACAC West Chester

4 week auto-renew block$13/workout or $99/8 workout block10 LM GRIT workouts per week40% commission incentivized leadTeam Training Studio

$4000 revenue increase

MOVE Club

Concession/bulk$25/session or $20 with Auto-RenewSeparate: TRX9 LM GRIT workouts per week$7 per head. Minimum $20Group Exercise studio

%10 PT revenue increase

1. ESTABLISHING A BIZ MODELOptions For Success

2. PAY STRUCTURE

Majority of Facilities Use Incentives

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• There are three primary pay models

• Two thirds of the facilities offer incentive based pay

Facility Type Flat Rate Base+/Head % Sales

Chains 11 16

Single Site 6 4 3

PT/GF Studios 4 3 2

Non Profit 9

Total 19 18 21% of Total Facilities Contacted 33% 31% 36%

2. PAY STRUCTURE

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• Flat rates trend toward poor performance• Incentivized rates trend toward strong performance• Incentivized rates drive sustainable margins• Auto-renew processes makes success easier• Top performing facilities incentivized someone at

management level to help drive sales

Best Practice

2. PAY STRUCTURE

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• Incentivized pay rates can still yield a +50% profit margin• 8 week block, 2 workouts per week, $12.50 per workout• Target 10 people over 9 workouts per week• Incentivized pay = $15 base + $3 per head• GRIT Leader pay = 2%

Monthly Annual

Gross Revenue $5412.5 $64,950

Net Revenue $2847.5 $34,170

Profit Margin 53% 53%

Best Practice Example

3. LES MILLS GRIT VALUE ADDSAssessment and Measurement

Time Test

5-10 min Body composition, waist,

hip, weight

5 -10 min Push up test

5 -10 min Vertical leap test

5 -20 min Anaerobic threshold test

3. LES MILLS GRIT VALUE ADDSGRIT Challenge

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3. LES MILLS GRIT VALUE ADDSNutrition Tips and Cooking Recipes

3. LES MILLS GRIT VALUE ADDSSocial Media

4. MARKETING MESSAGE

Research Builds Credibility

4. MARKETING MESSAGE

Results Campaigns Are Most Effective

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4. MARKETING MESSAGE

New Member Prescription

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POINT OF SALE

6 WEEK INTRO

GET FIT PHASE3-6

60 minute sessions a week

IntroduceHIIT/LES

MILLS GRIT®

Getting Fit Together plan

Steadily familiarize to exercise. Build fitness to 3-4 moderate intensity cardio sessions. Maximize your “free” offering take on.

Ready to replace 1 cardio with 2 HIIT Sessions

4. MARKETING MESSAGE

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Get More Results From Your Mix

GET FIT PHASE GRIT PHASE

4. MARKETING MESSAGE

Infographics for Millenials

5. GRIT COACHES

Best Practice

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Hybrids are the best Coaches

PTs buy-in when they are incentivized and see the prospecting opportunity

GF instructors need more sales training than PTs

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6. ONLINE BOOKING SOLUTIONSBest Practice

6. ONLINE BOOKING SOLUTIONS

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EVENT BRITE No monthly fees Credit card processing fee of 3% +

Convenience Fee/transaction of 2.5% + .99 cents. Option to add the convenience fees to the ticket price or absorb and include in the ticket price.

Compatible with PayPal and Google Checkout – integrate with other aspects of business if these accounts already exist.

Ability to post schedule online Can have participants choose sessions

as part of ‘ticket’ No option for auto-renew, but ability to

mass email via RSS feed when new events are posted

MIND BODY As low as $75/month Additional credit card processing fees not

listed on site – setup through private merchant account

Ability to post schedule online Participants can register for specific

sessions to control attendance Option to setup for auto-renewal when all

sessions in a package are used Training sessions and online videos and

tutorials available Reporting functions to analyze business

success and manage metrics

Pros And Cons

7. LOCATION OF WORKOUTBest Practice

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7. LOCATION OF WORKOUTBranding

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7. WORKOUT SPACE TOOLSBranded Equipment