Shaping  the  Industry:  An  In-­‐Depth  Explora9on  on  Member  Behavior  

Mike  Hills,  Global  General  Manager  Phil  Bonomo,  Director  North  America  

The  Reten9on  People    

@TRPNews    

Most  was  the  most  useful  stat  from  today?    

What  ques9on  would  you  ask  10,000  members?    

#trp10000  

•  Who  are  The  Reten9on  People  (TRP)?  •  Why  must  operators  of  fitness  facili9es  understand  member  behavior?  

•  The  IHRSA/TRP  North  American  Member  Loyalty  Study  breaks  100,000  responses!  

•  TRP  10,000  (UK)-­‐  the  industry’s  first  longitudinal  study  on  member  behavior  

•  IHRSA/TRP  10,000?  50,000?  100,000?-­‐  studying  health  club  member  behavior  in  the  North  American  Market  (launching  Q2,  2015)  

•  How  you  can  get  involved.  

Today,  we  will  cover:  

•  Emphasise  fun  and  friendliness  

•  Understand  mo9va9ons  and  be  realis9c  

•  Ensure  members  enjoy  themselves  

•  Priori9se  fun  and  friendship  over  fitness  and  thinness  

The  Reten9on  People  

Research.  So_ware  Development.  Training  and  Consultancy  1000  sites  worldwide.

Why  must  we  understand    member  behavior?  

 Predic've  analysis.  Measure  twice…  

Evolve                

Predic9ve  Analysis  

Measure  twice  

Or  miss  member  expecta9ons!  

Evolve

“Retention is not simply one more operating

statistic, it is a central gauge that integrates all dimensions of a business and measures how well

the firm is creating value for its customers…

... it is the single indicator for measuring

sustainable growth.”

Frederick F Reichheld, The Loyalty Effect

“Running a business on numbers is like playing basketball while watching the scoreboard instead of the ball!”

Ken Blanchard/Sheldon Bowles, Gung Ho!

IHRSA  /TRP  North  American  Member  Loyalty  Study

g

Net  Promoter  Score®  (NPS)  

How likely is it that you would refer [our company] to a friend or colleague?

Not Extremely Likely Likely 0 1 2 3 4 5 6 7 8 9 10

Net  Promoter  Score®  (NPS)  

2=20% 4 4=40%

40% - 20% = NPS of 20%

2014  NPS  ®  Benchmark Leaders   Peter Welch’s Gym - Fitness- 89% USAA - Financial Services = 81% USAA - Banking = 81% Apple - Laptop = 72% Apple - iPhone = 67% Apple - iPad = 66% Amazon - Online shopping = 64% Southwest – Airline = 62% Westin – Hotel = 59% Pandora – online service = 56% TracPhone – mobile service = 39% DirecTV - cable/satellite = 34% Brighthouse Networks – ISP = 20%

Current  North  American  Member  Loyalty  Benchmark

102,787  responses  Overall  average  score-­‐  43%  Highest  score  (OOSS)  -­‐  89%  Lowest  score  (PRC,  unit)  -­‐    -­‐37%  Average  (OOSS)  -­‐  53%  Average  (OOMS)  -­‐  34%    Average  (LC)  -­‐14%    

Fitness   Social  

Appearance   Enjoyment  

Progress  

Factor   Rank  I  made  new  friends   1  I  ajended  the  club  as  o_en  as  planned   2  

Factor   Rank  I  made  new  friends   1  

Mo9va9on  Factor   Rank  I  made  new  friends   1  I  ajended  the  club  as  o_en  as  planned   2  I  am  healthier   3  I  improved  my  muscle  tone   4  I  have  enjoyed  exercise   5  I  lost  weight   6  I  feel  fijer   7  I  improved  my  appearance   8  I  have  more  energy   8  I  feel  happier   8  

Factor   Rank  I  made  new  friends   1  I  ajended  the  club  as  o_en  as  planned   2  I  am  healthier   3  I  improved  my  muscle  tone   4  I  have  enjoyed  exercise   5  I  lost  weight   6  I  feel  fijer   7  

Disappointed  Op9mists  

•  Emphasise  fun  and  friendliness  over  fitness  and  thinness  

•  Understand  mo9va9ons  and  be  realis9c    

Make  Friends  and  Set  Realis9c  Goals!  

Group  Exercise  

•  How  do  you  encourage  new  members  into  group  exercise?  

•  How  do  you  encourage  young  males  into  group  exercise?    

Group  Exercise  

Don’t  hassle  me!  

72%  higher  

80%  higher  

??  

Delight  me!  

Do  you  measure  your  SALES  process?  

REWARDS  AND  CONSEQUENCES  

 

 Enquiries  

 

 %  converted  to    

 

 Tour/Visit  

 

%  converted  to      

Member    

Members  who  report  not  being  spoken  with  by  either  fitness  or  recep9on  staff  are  more  than  twice  as  likely  to  cancel  *  

 *  controlling  for  all  other  factors

Do  you  measures  your  CONVERSATION  process?  

REWARDS  AND  CONSEQUENCES  

 

 Visitors  

 

 %  converted  to    

 

 ConversaFon  

 

%  converted  to      

Another  visit    

    IHRSA  /TRP  10,000  50,000?    100,000?  

The  first  of  its  kind  North  American    health  club  member  longitudinal  study  

A  longitudinal  survey  is  a  correla'onal  research  study  that  involves  repeated  observa'ons  of  the  same  variables  over  long  periods  of  'me  —  o@en  many  decades.  It  is  a  type  of  observa'onal  study.  

•   Membership  history  •   Reasons  for  choosing  current  club  •   Frequency  of  club  usage  and  ac9vi9es  •   Recent  progress  •   Use  and  reasons  for  personal  training  •   Use  and  reasons  for  group/small  group  exercise  •   Club  communica9on  strategies    and  how  members  value  them  •   Mo9va9on  for  exercise  •   Fitness  staff  ac9vity  •   Club  posi9ves  and  nega9ve  •   Net  Promoter  Score®  

 

Research  Topics  

•   Open  to  all  IHRSA  member  facili9es  •   Facili9es  provide  member  list  •   Members  +16  years  •   Ajended  facility  at  least  once  in  the  past  month  •   Survey  deployed  online  •   Target  4%  response  (i.e.  UK  study  deployed  approximately  250,000  surveys  to  yield    approximately  10,000  responses)  •   Par9cipa9ng  facili9es  can  access  results  •   Par9cipa9ng  facili9es  invited  to  TRP  management  forums  

 

Methodology  

•   Look  for  launch  announcements,    Q2  2015  •   What  ques9ons  would  YOU  like  to  ask?  •   Provide  contact  details  today  for  early  invita9on    

How  to  get  involved  

Join  the  Discussion…  

Our  weekly  blog  and  presentaFon  slides:      

hjp://thereten9onpeople.com/blog/      

AVAILABLE  NOW!!    

Ques9ons?  Answers!