les mills international relaunch, retention, acquisition
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Les Mills InternationalRelaunch, Retention, Acquisition
The value proposition for the Les Mills system is that clubs owners can increase the profit they make from group fitness within their clubs by using it and three calculators have been created to demonstrate these benefits to each club owner across three different areas
• The Les Mills system has been shown to impact on the likelihood of existing members to recommend a club to prospective members, which is shown by IHRSA and FIA research to be a reason members join a particular club
• The Les Mills system has been shown to impact on the frequency that members attend a club which in turn is demonstrated by IHRSA and FIA research to increase retention
• Experience of clubs using the Les Mills system shows that relaunching programs within a club drives an increase in membership
Acquisition Retention Relaunch
Each calculator takes research from IHRSA and FIA as well as Les Mills’ research and experience to demonstrate the financial benefit of the system
IHRSA Research
FIA Research
Les Mills Research
Les Mills Case Studies
Club’s own metrics e.g.•Membership fee•Retention rate
• Increase in membership
• Increase in revenue
Theoretical Foundation Input Statistics Output Statistics
Research findings from a reputable source…
… in order to calculate the benefits in both number and financial terms to each club
…are combined with the clubs own details…
4
Increased Acquisition Through Les Mills Group Fitness (1) (2)
The acquisition calculator is based on research which shows what people join clubs for and why they choose a particular club
1,000
500
132
16 15
Median Club Size Average Number of NewMembers
Average Number of NewMembers that w ill Participate in
Group Fitness
Number of Group FitnessMembers Who Join Based on
a Recommendation
Proportion that w ould Receivea Positive Recommendation
Source: (1)IHRSA (2) AC Nielsen
In 2006 new members totaled
50% of opening club membership (1)
According to IHRSA 26.4% of new members
join to do group exercise (1)
12% of members rely on a
recommendation to choose their
club (1)
92% of members that do Les Mills programs would
recommend them (2)
The retention benefit calculator is based on research that shows increasing weekly attendance by members increases retention by 3%
Average Weekly Attendance Rate per Member Impact on Median Sized club
2.9
0.9
Les Mills US Clubs Other US Clubs
30Clubs with the Les Mills system have a
significantly higher average weekly attendance
rate and can expect a higher retention rate
Given the difference in average weekly
attendance rate, an average club could expect
an increase in average weekly attendance of 1
additional attendance per week per member, which
equates to 3% improvement in retention
or 30 members in a median sized club
Note: (1) Source: IHRSA, FIA, AC Nielsen, Aclaro Analysis
Case study analysis shows that there is a relationship between spend on a relaunch and the acquisition of additional members which the relaunch benefit calculator measures
Relationship Between Relaunch and Additional Members Acquired
20
200 Relaunch Event Spend
Additional Members
Minimum spend
Expected minimum additional members per event
Expected average additional members gained per event
given spend
Upper and lower limits of the range of expected additional
members per event
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