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Closing the Distance Between What We Know, and

What We Do!

Grant Gamble

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Reduce the gap between what you know and what you do . . .

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. . . and help reduce the gap between what the average Australian knows and does!

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Most people’s view of life . . .

HEALTHY

DEAD45 76

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. . but for 95% of us it can look like this

45 90

HEALTHY

DEAD

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Interesting Fact:Interesting Fact:

Australians are better educated on Australians are better educated on the benefits of fitness and wellness the benefits of fitness and wellness today than at any point in history . . .today than at any point in history . . .

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Interesting Fact:Interesting Fact:

YetYet 83% 83% of the Australian population of the Australian population are not doing enough exercise to are not doing enough exercise to significantly improve their healthsignificantly improve their health

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Question:Question:

Why is the gap so great between Why is the gap so great between what the average Australian knows what the average Australian knows and does?and does?

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. . . when. . . when

Exercise options aboundExercise options abound Our climate makes outdoor activities ‘easy’Our climate makes outdoor activities ‘easy’ People are exposed to the benefits of People are exposed to the benefits of

exercise at bus stops, on billboards, on exercise at bus stops, on billboards, on TV, in the tabloids and beyond . . .TV, in the tabloids and beyond . . .

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AND, closer to home . . .AND, closer to home . . .

Prices for ‘fitness’ continue to drop or remain Prices for ‘fitness’ continue to drop or remain frozen in many cases*frozen in many cases*

Personal Trainers are proliferatingPersonal Trainers are proliferating Studios are popping up on every street cornerStudios are popping up on every street corner Express Clubs are springing up everywhereExpress Clubs are springing up everywhere

*On average 70% of clubs polled in the AFIS2010 intend to freeze or reduce *On average 70% of clubs polled in the AFIS2010 intend to freeze or reduce rates in the coming 12 months – courtesy of EzyPayrates in the coming 12 months – courtesy of EzyPay

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So with all these things in our So with all these things in our collective favour why are we fighting collective favour why are we fighting harder today than ever for a slice of harder today than ever for a slice of

the seemingly ‘fixed’ active the seemingly ‘fixed’ active exercisers discretionary spend?exercisers discretionary spend?

1313PERCEIVED COSTS PERCEIVED BENEFITS

NOTPERCEIVEDTO BE THE

SOCIALNORM

IT’S HARD

TO KEEP

TRACK

LONG TERM

HEALTHBENEFITS

LOOK & FEELBETTER

SHORT TERM

IT’S A LOW

PERSONALPRIORITY

I’M NOT

AT RISKIT’S TOOMUCH

EFFORT

REQUIRESTOO MUCH

DEPRIVATION

PURSUINGA HEALTHYLIFESTYLE

Perceived Costs versus Benefits of Perceived Costs versus Benefits of Pursuing a Healthy LifestylePursuing a Healthy Lifestyle

1414PERCEIVED RISKS PERCEIVED BENEFITS

THERE WON’T BE

ANYBODY INMY SITUATION

IF I DON’T

ATTEND

THEY DON’T

CARE

LONG TERM

HEALTHBENEFITS

LOOK & FEELBETTER

SHORT TERM

I’LL BESURROUNDEDBY BEAUTIFUL

PEOPLE

I’M JUSTA NUMBER

AT THE GYM

I’M NOT

GOOD AT

EXERCISE

I’LL BE LOCKEDINTO ANONEROUS CONTRACT

JOINING A CLUB

Perceived Fears of Clubs versus Perceived Fears of Clubs versus Benefits of JoiningBenefits of Joining

WHAT IFI SIGN UP

AND THE CLUBCLOSES?

I DON’T WANT TO

DEAL WITH THE

‘HARD SELL’

1515DOWNSIDE UPSIDE

THERE WON’T BE

ANYBODY INMY SITUATION

IF I DON’T

ATTEND

THEY DON’T

CARE

LONG TERM

HEALTHBENEFITS

LOOK & FEELBETTER

SHORT TERM

I’LL BESURROUNDEDBY BEAUTIFUL

PEOPLE

I’M JUSTA NUMBER

AT THE GYM

I’M NOT

GOOD AT

EXERCISE

I’LL BE LOCKEDINTO ANONEROUS CONTRACT

GETTING ACTIVE

WHAT IFI SIGN UP

AND THE CLUBCLOSES?

I DON’T WANT TO

DEAL WITH THE

‘HARD SELL’ NOTPERCEIVEDTO BE THE

SOCIALNORM

IT’S HARD

TO KEEP

TRACK

IT’S A LOW

PERSONALPRIORITY

I’M NOT

AT RISK

IT’S

TOO

MUCH

EFFORT

REQUIRESTOO MUCH

DEPRIVATION

Progression of attitudes, andProgression of attitudes, andthe ‘Stages of Change’the ‘Stages of Change’

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And because we do not And because we do not effectively help people effectively help people

move through these stages move through these stages we end up ‘fighting’ over a we end up ‘fighting’ over a

very finite number of very finite number of participants each year!participants each year!

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Add to this the fact that . . .Add to this the fact that . . .

Today we are competing with . . . • Narrow margins• Discounting driven by major players, growing competition, and market demand• Diversifying populations• More marketing mediums than we ever imagined• Increasing resistance from consumers*

* 64% of expired members said they would never rejoin – AFIS2010 Courtesy of EzyPay

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Compounded by . . .Compounded by . . .• Spiraling costs• Ever increasing options for discretionary spending• Poor overall industry image • And ‘the great outdoors’

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How has this paradox occurred?How has this paradox occurred? Gym closuresGym closures Inflexible contractsInflexible contracts Overstated careOverstated care Under performanceUnder performance Hard sellHard sell The ‘projected image’ of the gym userThe ‘projected image’ of the gym user Lack of ‘entry type programs’Lack of ‘entry type programs’ Lack of industry cohesionLack of industry cohesion

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Commoditization!Commoditization!

And possibly the most problematic of all . . .And possibly the most problematic of all . . .

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So what is the answer . . . ?So what is the answer . . . ?

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. . . there is no ‘Magic Pill’, . . . there is no ‘Magic Pill’, but there are a myriad of but there are a myriad of ways for us to shift our ways for us to shift our

thinking, and ultimately our thinking, and ultimately our outcomes.outcomes.

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‘‘SIMPLE’ SOLUTIONS SIMPLE’ SOLUTIONS (raise your hand if one peeks your interest)(raise your hand if one peeks your interest)

• Raise pricesRaise prices• Form a co-operativeForm a co-operative• Niche your clubNiche your club• Outperform consumer expectationsOutperform consumer expectations• Reduce costsReduce costs• Diversify offeringsDiversify offerings• Create ‘clubs’ within the clubCreate ‘clubs’ within the club• Clubs without wallsClubs without walls

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INCREASE THE # OF POTENTIAL INCREASE THE # OF POTENTIAL PARTICIPANTSPARTICIPANTS

(raise your hand if one peeks your interest)(raise your hand if one peeks your interest)

• Decrease the intimidation factor at your Decrease the intimidation factor at your clubclub

• Make it ‘easy’ for beginnersMake it ‘easy’ for beginners• No contract optionsNo contract options• Offer ‘low usage’ membershipsOffer ‘low usage’ memberships• Enlist partners, e.g. physiciansEnlist partners, e.g. physicians• Support a national marketing campaignSupport a national marketing campaign

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JOIN THE ‘REALITY BUZZ’ JOIN THE ‘REALITY BUZZ’ (raise your hand if one peeks your interest)(raise your hand if one peeks your interest)

• Get on the social media bandwagon* Get on the social media bandwagon* Have live video of elements of the clubHave live video of elements of the club Have live video of elements of the clubHave live video of elements of the club Stream PT sessions to the webStream PT sessions to the web Create vignettes for the webCreate vignettes for the web Stream group exercise classesStream group exercise classes Send video messages to clientsSend video messages to clients

* 3.5% of Clubs reported success through Social Media in 2009 – * 3.5% of Clubs reported success through Social Media in 2009 – AFIS2010 – Courtesy of EzyPayAFIS2010 – Courtesy of EzyPay

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INCREASE YOUR ‘FLEX-ABILITY’ INCREASE YOUR ‘FLEX-ABILITY’ (raise your hand if one peeks your interest)(raise your hand if one peeks your interest)

• Provide custom memberships, e.g.Provide custom memberships, e.g.• ‘‘No frills’ through toNo frills’ through to• All the ‘bells and whistlesAll the ‘bells and whistles• Time ‘loaded’ membershipsTime ‘loaded’ memberships

• Enhance your online presenceEnhance your online presence• Allow account access onlineAllow account access online• Encourage bookings onlineEncourage bookings online• Sign-ups onlineSign-ups online

• Use email to enhance your communications*Use email to enhance your communications*

*58.3% of members prefer email communications – AFIS2010 Courtesy of *58.3% of members prefer email communications – AFIS2010 Courtesy of EzyPayEzyPay

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BROADEN YOUR OFFERINGS BROADEN YOUR OFFERINGS (raise your hand if one peeks your interest)(raise your hand if one peeks your interest)

• Introduce ‘Discover Programs’Introduce ‘Discover Programs’• Add ‘retreats’ to your offeringsAdd ‘retreats’ to your offerings• Partner for ‘Exercise Holidays’Partner for ‘Exercise Holidays’• Make ‘Short Term Programs’ a LT Make ‘Short Term Programs’ a LT

strategystrategy• ‘‘Senior Centric’ classesSenior Centric’ classes• ‘‘Kid Centric’ programsKid Centric’ programs

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BROADEN YOUR OFFERINGS BROADEN YOUR OFFERINGS (raise your hand if one peeks your interest)(raise your hand if one peeks your interest)

• Go ‘Low Tech’ (Outdoor and Urban training)*Go ‘Low Tech’ (Outdoor and Urban training)*• Go 24 . . .**Go 24 . . .**• Leverage the Group Training ‘opportunity’***Leverage the Group Training ‘opportunity’***• No contract terms****No contract terms****

* 39.4% Club Owners AND Members saw this as a major growth area – * 39.4% Club Owners AND Members saw this as a major growth area – AFIS2010 – Courtesy of EzyPayAFIS2010 – Courtesy of EzyPay

** 31.4% of Club Owners and Members saw 24hr Club as a significant growth ** 31.4% of Club Owners and Members saw 24hr Club as a significant growth area – AFIS2010 - Courtesy of EzyPayarea – AFIS2010 - Courtesy of EzyPay

*** 40.8% of Club Owners and Members saw Group Training as a significant *** 40.8% of Club Owners and Members saw Group Training as a significant growth area – AFIS2010 - Courtesy of EzyPaygrowth area – AFIS2010 - Courtesy of EzyPay

**** 46.3% of Club Owners and Members saw No Contract Terms as a **** 46.3% of Club Owners and Members saw No Contract Terms as a significant growth area – AFIS2010 - Courtesy of EzyPaysignificant growth area – AFIS2010 - Courtesy of EzyPay

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SHAPE YOUR STRATEGIES SHAPE YOUR STRATEGIES (raise your hand if one peeks your interest)(raise your hand if one peeks your interest)

• Rejoin on a NO Contract Membership*Rejoin on a NO Contract Membership*• Cross-train your Fitness Team to do Cross-train your Fitness Team to do

tours/sales**tours/sales**• Utilise your space more effectivelyUtilise your space more effectively

* 51.5% of Ex-Members said they would rejoin on a No Contract Terms * 51.5% of Ex-Members said they would rejoin on a No Contract Terms basis as opposed to 7.6% on basis of rejoining at the same rate basis as opposed to 7.6% on basis of rejoining at the same rate as they left – AFIS2010 - Courtesy of EzyPayas they left – AFIS2010 - Courtesy of EzyPay

** 49.5% of members/ex-members would prefer a Trainer to tour them ** 49.5% of members/ex-members would prefer a Trainer to tour them over 2.2% by a Sales Consultant – AFIS2010 – Courtesy of over 2.2% by a Sales Consultant – AFIS2010 – Courtesy of EzyPayEzyPay

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Is there a solution amongst Is there a solution amongst those very simple ideas?those very simple ideas?

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What are you going to do What are you going to do to differentiate yourself?to differentiate yourself?

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To stand out from the To stand out from the crowd?crowd?

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Or create a new market Or create a new market outside of the ‘Red Ocean’ outside of the ‘Red Ocean’

we compete in today?we compete in today?

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BibliographyBibliography The 10 Top Consumer Trends Impacting the The 10 Top Consumer Trends Impacting the

Fitness Industry in 2010 Fitness Industry in 2010 – Celeste Kirby-Brown & – Celeste Kirby-Brown & Simon HallSimon Hall

Australian Fitness Industry Survey Australian Fitness Industry Survey – EzyPay – EzyPay Celeste Kirby-Brown & Simon HallCeleste Kirby-Brown & Simon Hall

ABHI Segmentation ReportABHI Segmentation Report - GfK Blue Moon - GfK Blue Moon Australian Better Health InitiativeAustralian Better Health Initiative - GfK Blue Moon - GfK Blue Moon ABHI – Phase I Campaign Evaluation -ABHI – Phase I Campaign Evaluation - GfK Blue GfK Blue

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