Post on 15-Apr-2017
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Industry Trends, Research & Benchmarking
Bill McBride, Founder, President & CEO Active Wellness & BMC3
Melissa Rodriguez, Senior Research Manager
IHRSA
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Objectives
• Discuss the latest health club consumer trends
• Examine recent benchmarks
• Review available resources for research and trends
• Learn how to apply research findings to differentiate your business
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Trends
² More specialization ² Studios, SGT, HIIT, “Boutique”, Segmentation ² Specialized Variety
² Continuation of consumer demand for “ease of use” ² Relevant Simplification
² Further “comfort” of members becoming expressive on social media and the importance of online brand
² Continuation of emergence of “quantified self ” ² Will increase HR Training growth
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Trends
² Women / Group Fitness growth will continue
² Physical space choices becoming critical ² Traditional strength equipment under “attack” ² Open “functional training” spaces a must
² Accountable Care Organizations (ACO) emerging as big opportunity ² Health Insurance Portability and Accountability Act (HIPAA)
precautions
² Customer Engagement
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The Global Health Club Industry A Snapshot
Global
² Members: 144.7 million
² Revenue: US$84.3 billion
² Clubs: 183,919
U.S.
² Members: 54 million
² Revenue: US$24.2 billion
² Clubs: 34,460
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Fitness & Health Club Industry Trends
² Business Transactions ² USA ² Europe
² Anticipated Growth ² Latin America
² Asia-Pacific
² Obesity Rates ² United States: 35%
² Mexico: 32% ² UK: 25% ² EU Average: 17%
Sources: IHRSA Global Report; OECD; HSCIC UK
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New Models Emergence
² Increase in franchise clubs
² Decrease in “accidental middle” clubs
² Consolidation
² Residential, corporate, multi-tenant locations on an increase
² Public Access fitness will continue to grow
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What Won’t Change?
² People will always need credible expertise
² People are social creatures and will want to be around other like-minded people (groups / energetic environments)
² People need accountability – no one can push themselves like they can with a coach, trainer, supporter, friend, etc.
² People will pay for results and life-style enhancements
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Health Club Benchmarks
Industry Data Survey
• Club operating benchmarks
• Membership growth & traffic
• Club prices
• Payroll & staffing
• Profit center analysis
• Financial statement data
ihrsa.org/profiles
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Health Club Benchmarks
Benchmark All Clubs Multipurpose Fitness-only
Revenue Growth 5.0% 2.6% 6.5%
Net Membership Growth
4.0% 0.8% 6.2%
Non-dues as a % of Revenue
31.7%
34.0% 31.0%
Revenue per member
$793.40 $843.70 $700
Source: IHRSA Profiles of Success
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Growth Coming From Different Sources
² Multipurpose seeing challenging net membership growth
² Non-dues revenue continues to grow for multipurpose ² Necessity is the mother of invention
² People are paying for programs that they identify with and that deliver habits and results
² Multipurpose is now focusing on programming ² Historic facility and sales myopic approach
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Member Retention Measures IHRSA One Million Strong
Member Retention Study
• Conducted by Dr. Paul Bedford
• 1.5 million member records
• U.S. & Canada
• Retention
• Membership Duration
• Retention Impact on Revenue
ihrsa.org/one-million-strong
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IHRSA One Million Strong Retention Results
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Member Retention – Lifetime Value IHRSA One Million Strong
ihrsa.org/one-million-strong
Generate +$93,924
in 24 months
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Retention
² Enrolling (Selling) the right way is critical – relationship not transaction (Enrollment)
² Getting someone past 3 months is critical (Member On-Boarding)
² Getting them plugged into areas of interest (Connection)
² Catching them when they fall/fail (Intervention)
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Retention
² 360 degree feedback loop – Member Engagement ² Listen, Respond, Act – Repeat
² Measure / Operationalize Feedback – Use Software
² Build Loyalty
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Life Time Value
² We all know that it is more cost effective to keep a member than get a member
² Focus member acquisition and retention efforts on keeping your “best” members
² Life Time Value (LTV) of membership should be measured and focused upon
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Health Club Consumer Research
Annual Health Club Consumer Survey: - 19,240 online interviews
from a nationwide sample of individuals and households in the U.S
- Weighted and compiled to analyze results and subgroups
ihrsa.org/consumer-report
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11%
21%
15%
19%
9% 8%
6% 6% 6%
3% 2%
22%
26%
19% 18%
14%
10% 8%
7% 7% 7% 7%
4% 3%
U.S. Health/Fitness Club Members Activity Participation (Percent of Total Members)
2013 2014
Source: IHRSA Health Club Consumer Report
®#IHRSAIns)tute Source: IHRSA Health Club Consumer Report
42%
36%
28% 27%
21%
29%
21% 21%
16%
12%
7%
42%
36% 36%
30%
33%
28%
23% 22%
17% 15%
8%
U.S. Health/Fitness Club Members Equipment Usage (Percent of Total Members)
2013 2014
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Knowledge Is Power
² Knowing what people are enjoying and participating in is very important
² Notice increase in Calisthenics and Stretching ² These require open spaces inside and outside of your club
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Knowledge Is Power
² Notice increase in hand weights, dumbbells and barbells ² All functional training type activities
² Balance traditional and functional equipment needs ² Treadmills, resistance machines remain Top 2
² Rowing, cardio cross trainers show increase in popularity
®#IHRSAIns)tute Source: IHRSA Health Club Consumer Report
19%
31%
21%
27%
6% 5% 6% 5% 4%
3% 3%
22%
29%
21%
26%
6% 4%
15%
9%
7%
4% 4% 3%
U.S. Health/Fitness Clubs Membership by Club/Studio Type
2013 2014
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84.1%
72.9%
80.3% 80.5%
70.4%
60.3%
15.9%
28.3%
21.5% 23.9%
31.8%
44.0%
Industry Overall Commercial Multipurpose
Commercial Fitness-Only
YMCA/YWCA/JCC Not for Profit Corporate/Business
U.S. Health/Fitness Clubs Members Single Club Compared to Multiple Club Membership
% One Facility 2014 % > One Facility 2014
®#IHRSAIns)tute Source: IHRSA Health Club Consumer Report
84.1%
35.9%
26.1%
20.5%
13.7% 9.0%
22.3%
15.9%
64.1%
73.9%
79.5%
86.3% 91.0%
77.7%
Industry Overall Personal Training/Small Group
Training
Yoga/Pilates/Barre Indoor Cycling/Rowing
Boot Camp/Cross Training
Boxing/Martial Arts/MMA
Sports Specific
U.S. Health/Fitness Studio Members Single Club Compared to Multiple Club Membership
% One Facility 2014 % > One Facility 2014
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Knowledge Is Power
² Notice studio and specialization growth
² Consumers have diverse interests and fitness goals
² Opportunities for multipurpose and fitness-only clubs to create a targeted/studio-like experience within their facility
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Knowledge Is Power
² Many members, possibly as many as 40% or more belong to multipurpose and specialized offerings
² New offerings are also increasing participation for all ² Class Pass as an example
² Members reserving classes in both studios and clubs
² Members reserving “work-out” time at clubs
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Questions
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Contact Details
Bill McBride Founder, President & CEO
Active Sports Clubs & BMC3 +1 415 299 9482
bill.mcbride@activesportsclubs.com activesportsclubs.com
BMC3.com
Melissa Rodriguez IHRSA Senior Research Manager
+1 617 951 0055 mr@ihrsa.org
ihrsa.org/research