TRENDS TO WATCH FITNESS INDUSTRY - FEBRUARY 2021 - Questex

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TRENDS TO WATCH FITNESS INDUSTRY - FEBRUARY 2021 - Questex
FEBRUARY 2021

FITNESS INDUSTRY
TRENDS TO WATCH
              IN 2021
TRENDS TO WATCH FITNESS INDUSTRY - FEBRUARY 2021 - Questex
TABLE OF CONTENTS
3    2021: A WHOLE NEW BALLGAME FOR THE FITNESS INDUSTRY
     By Pamela Kufahl, director of content, Club Industry

4    A YEAR IN FLUX: 2021 POSES CHALLENGES FOR THE HEALTH CLUB INDUSTRY
     By Rick Caro, president, Management Vision

6    SURVIVAL IN 2021 REQUIRES GETTING DONE THE JOB OF MEETING CONSUMERS’
     NEW DEMANDS
     By Emmett Williams, CEO Asia Pacific, Myzone

8    BOOST MEMBER ENGAGEMENT WITH THE NETFLIX EFFECT IN 2021
     By Jeff Esswein, vice-president of strategic accounts and digital content, Freemotion Fitness

10   FOUR TRENDS THAT WILL AFFECT THE FUTURE OF THE HVLP MARKET IN 2021
     By Art Curtis, president, Curtis Club Advisors LLC

12   DIGITAL FITNESS TRENDS FOR THE NEXT DECADE
     By Hannah Campbell, content producer, Les Mills

14   THE TRENDS IN PRICING DIGITAL FITNESS IN 2021
     By Ashley Podoll, CMO, Intelivideo

16   A EUROPEAN PERSPECTIVE ON WHAT’S COMING IN 2021 AND WHERE TO FOCUS YOUR
     EFFORTS
     By Jennifer Halsall-de Wit, board member, Europe Active, and COO, Women in Fitness Association

18   DIGITAL FITNESS ACCELERATED IN 2020 – NOW WHAT?
     By Sharad Mohan, co-founder and managing director, Trainerize powered by ABC

20   THE FUTURE IS HYBRID: HOW TO LEVEL UP YOUR VIRTUAL OFFERING
     By Clint Gehde, co-founder and head coach, Exer

22   SALES AND MARKETING TRENDS IN A NEW ERA OF THE FITNESS INDUSTRY
     By Bill McBride, CEO, Active Wellness, and CEO, BMC3 Consulting

24   RESHAPING AND SUPERCHARGING THE MEMBER EXPERIENCE IN 2021
     By Andrew Evenson, senior director operations and brand strategy, Fitness OnDemand

26   FORECASTING STRONG MARKET GROWTH IN 2021 FOR THE RIGHT FITNESS CONCEPTS
     By Rick Mayo, founder and CEO, Alloy Personal Training

28   IN 2021 GYMS MUST CAPTURE MEMBERS WHO LOVE TO ‘PLAY OUTSIDE’
     By Chris Frankel, head of performance, BeaverFit USA

30   FOUR SOFTWARE AND BILLING TIPS TO HELP YOU THROUGH 2021
     By Carole Oat, national sales manager, Twin Oaks Software

32   30 VIEWS ON HEALTH AND WELLNESS INDUSTRY TRENDS TO WATCH IN 2021

                                                                                                      FEBRUARY 2021
TRENDS TO WATCH FITNESS INDUSTRY - FEBRUARY 2021 - Questex
EDITOR’S LETTER

2021: A WHOLE NEW                                                       685 Third Ave., 21st Floor
                                                                          New York, NY 10017
BALLGAME FOR THE                                                        DIRECTOR OF CONTENT
FITNESS INDUSTRY                                                            Pamela Kufahl

                                                                        MANAGING DIRECTOR

E   ach year’s trends are always impacted by what happened the             Marty McCallen
    year prior, but 2021’s trajectory has been defined by the un-
                                                                         INTEGRATED MEDIA
usual and challenging circumstances of 2020, which makes 2021              ACCOUNT REP
a different ballgame. Many of the trends we are experiencing                Crystal Wheeler
were already percolating prior to 2020, but the challenges of the
year pushed many of them further and faster than they might             MARKETING MANAGER
have gone in any “normal” year. So during the first quarter of              Tina Beebe
the new year, Club Industry has asked a variety of people in the           ART DIRECTOR
fitness industry to share their thoughts on trends to watch in           Jordino De Los Santos
2021.
   Club Industry gathered insights from industry consultants Rick          SENIOR DIGITAL
Caro of Management Vision, Art Curtis of Curtis Club Advisors          ADVERTISING SPECIALIST
                                                                            Taylor Gleason
and Bill McBride of BMC3 Consulting (and CEO of Active Man-
agement) as well as Jennifer Halsall-de Wit, board member of             www.clubindustry.com
Europe Active and COO of Women in Fitness Association, and
Rick Mayo, founder of Alloy Personal Training. Each of these
individuals share their thoughts in the first stories of the report,
interspersed with insights from the report sponsors.                     PHOTOGRAPHY: GETTY IMAGES

   The last story offers insights from 30 individuals representing
commercial clubs, studios, YMCAs, parks and rec facilities and          This report is sponsored by:
other segments of the industry. Those individuals include Mel
Kleist, executive director of East Bank Club; Raj Kumar, execu-
tive vice president, international of Self Esteem Brands; Rebecca
Lee, vice president of membership & wellness at YMCA of Metro
Dallas; Sarah Luna, president of Xponential Fitness; Todd Maga-
zine, CEO of Blink Fitness; JoAnna Masloski, COO of Wellbridge;
David Rachal III, founder and CEO of Healthefit: Greta Wagner,
executive director/executive vice president of Chelsea Piers; and
Omar Yunes, CEO of 54D.
   So sit back, relax and check out these insights to see if they
match up with your thoughts on where the fitness industry is
headed in 2021.

                             Sincerely,

                             Pamela Kufahl
                             Director of Content
                             Club Industry

                             www.clubindustry.com

                                                    3                               FEBRUARY 2021
TRENDS TO WATCH FITNESS INDUSTRY - FEBRUARY 2021 - Questex
A YEAR IN FLUX: 2021 POSES CHALLENGES
    FOR THE HEALTH CLUB INDUSTRY
     Coming off its most devastating year ever, the health club industry is facing challenges in
           2021 that will require a marathon effort and forward thinking to overcome.
                            BY RICK CARO, PRESIDENT, MANAGEMENT VISION

I n 2020, the fitness industry had the most
  devastating year in its history. Clubs were
shuttered, sometimes more than once with no
                                                      freeze. Many indicated they will return after they
                                                      receive both doses of the two-dose vaccine. Many
                                                      adults were told to work from home, and children
clear guidance on timing. When allowed to operate,    attended school virtually at home. Many people
some state and local restrictions were devastating    struggled financially. While at home, many people
and even prevented clubs from actually                                                  invested in home
reopening properly. The image of the health club                                        fitness equipment
industry was challenged as clubs were labeled         “And the positioning of the       and sought digital
as “super spreaders of COVID-19” and included                                           fitness solutions.
as part of the overall indoor spaces (including
                                                      club as a necessary part            No one is
bars and restaurants, casinos and indoor sports       of one’s lifestyle will take      expecting the
arenas) rather than being universally viewed as                                         workforce to
part of the healthcare continuum. Club owners         time to win the day.”             resume full-time
came together, including with fellow local                                              office use for most
competitors, to create state alliances and join in                                      of 2021. Until next
the messaging, research, lobbying and funding to      fall, youths are still mostly or entirely at home.
tell the full industry story.                         Governments are likely to maintain the same level
                                                      of restrictions even while more people gain access
Club Challenges                                       to the vaccine. And the positioning of the club as
Suddenly, the pandemic affected the viability of      a necessary part of one’s lifestyle will take time to
clubs globally. Governments closed clubs. When        win the day.
allowed to reopen, they did so with restrictions on
capacity permitted, distancing measures in place      Business Challenges
and required use of masks, often causing many         Clubs are facing liquidity challenges. Membership
existing members to cancel or go on “freeze.”         levels, depending on the segment, are often at 50
Clubs today still have large percentages of           percent to 60 percent of last March’s totals. A huge
members from the closures of last March still on      percentage of members remain on freeze with no

                                                      4                                   FEBRUARY 2021
TRENDS TO WATCH FITNESS INDUSTRY - FEBRUARY 2021 - Questex
committed return date. Nondues revenue                The question is what that direction looks like
categories are often at 25 percent to 30 percent of   post-pandemic. Many assume that clubs will need
a year ago. Even with severe cost-cutting measures,   an omnichannel approach to offer a pure brick-
clubs are struggling to break even. So, liquidity     and-mortar offer, a digital-only membership and
is a major force affecting all clubs. Negotiations    a combined one. This could lead to increasing the
with landlords have often yielded                                     overall industry membership as a
revised rental arrangements,                                          whole.
pushing out the missed payments
to formulas for future years. Few
                                     “The club industry is              The club industry is not likely to
                                                                      return to previous levels until the
landlords have forgiven missed       not likely to return to          fourth quarter 2021. And it still may
payments. Banks have also been
willing to re-do amortization
                                     previous levels until the        be less than 100 percent at that
                                                                      juncture. It will need to get more
schedules. Government assistance     fourth quarter 2021. And it      medical advisors to give credence
in the form of PPP loans on Main
Street bank loans has helped, but
                                     still may be less than 100       to the club experience, do more
                                                                      research to prove clubs are safe, do
it is a temporary fix.               percent at that juncture. ”      better public relations and overall
   About 17 percent of all U.S.
                                                                      messaging, ensure compliance
clubs have closed permanently.
                                                      with all regulations, create regular state alliances,
Those with access to capital may be able to obtain
                                                      support IHRSA’s new lobbying efforts for the
attractive deals to acquire some of these. The
                                                      industry and connect to its local communities
studio component is struggling with the local
                                                      in deeper ways. It will be a proverbial marathon
distancing requirements for member usage.
                                                      effort to come back in the near future.
Until those are eased—or even eliminated—these
businesses cannot operate even at break-even in
terms of basic operating costs. The larger clubs,
                                                                          BIO
                                                                           Rick Caro is president of
especially those with outdoor components, have
cleverly developed regular outdoor usage under                             consulting firm Management
tents and temporary pavilions. The HVLP (high-                             Vision Inc., which provides
volume, low-price) segment is recovering faster                            management expertise to
than most but is heavily weighted to returning 20-                         clubs, real estate developers,
to 40-year-old members. Development of new clubs                           hospitals, hotels, resorts and
has slowed and is tied to available capital levels.                        appraisers. He also serves
   Franchises are getting solid support from          as an expert witness. He does feasibility studies,
franchisors and are likely to survive overall.        business plans, loan proposals, valuation of the
The mid-tier clubs are sensitive to their             worth of clubs, assistance in the buying and selling
previous challenge of positioning and need for        of clubs, operational analyses of existing clubs and
differentiation. Even the largest companies in this   financial acumen. Caro has more than 40 years
space are reviewing their future options.             of experience in the fitness industry, previously
                                                      running his own health clubs. He is one of the
New Influences                                        founders of IHRSA and served as president and
New challenges have arisen from digital content       director of the trade association for commercial
and at-home fitness—both growing meteorically.        club operators.

                                                      5                                   FEBRUARY 2021
TRENDS TO WATCH FITNESS INDUSTRY - FEBRUARY 2021 - Questex
SPONSOR: MYZONE

          SURVIVAL IN 2021 REQUIRES
       GETTING DONE THE JOB OF MEETING
           CONSUMERS’ NEW DEMAND
      Whether you are supporting your members in achieving their goals in-person or virtually,
                      your health club must stick to the core job to be done.
                             BY EMMETT WILLIAMS, CEO ASIA PACIFIC, MYZONE

A     s we settle into 2021, some things are clear:
      17 percent to 25 percent of clubs are never
coming back into operation after pandemic-related
                                                          immunity. Whatever the goal, you can help build and
                                                          sustain an exercise routine to achieve it.
                                                            Doing so can take several forms. You could require
restrictions. About 60 percent to 75 percent of           members to book classes via a scheduler because
members are returning to clubs, covering operating        then they must make a commitment. A calendar
expenses but leaving profit margins dry. Big tech         reminder would then trigger them to follow through.
companies are attempting to substitute for what           Classes where members join and follow along
clubs offer, and the market cap of digital fitness        are easier and reduce resistance. During class,
players such as Apple, Google and Amazon is equal         acknowledge members by name to recognize their
to that of the GDP of Japan.                              efforts and build community. Commitment to a
   We also have vaccines on the way to returning us       behavior, triggers for an easy action and rewards are
to “normal” life and a population hyperaware of their     powerful components of sustained routine.
general health and immunity to infection. The forces        As you offer virtual products, stick to your core job
are pushing and pulling in a complex way.                 to be done. Book members into virtual workouts for
   If your business has survived, it is time to capture   a formal commitment, then remind them to check
the commercial treasure on the other side. Not just       in. Leverage live video coaching to allow the coach
to return to 2019 levels but to capitalize on excess
                                                          to interact, recognize and reward. Then, overlay
demand in the wake of club closures. Consumers’
                                                          gamification so a workout at home and a workout at
fresh new demand is to help them improve their
                                                          the gym matter the same. Lastly, position your brand
immune system. If you miss helping them meet
                                                          as the big tent of fitness in a member’s life. Product
this demand, you’ll miss the biggest tailwind in our
                                                          offerings change with the times, but the core “jobs
industry’s history.
   Some operators argue that hybridization will be        to be done” remain the same.
the macro theme of 2021; others say that strategy
was just a 2020 quick fix. I am in the former camp        BIO
and believe hybridization will be the key trend, but      Emmett Williams has worked worldwide in the
why? And how to address it?                               fitness industry, returning recently to Australia after
   If you are unfamiliar with Clay Christensen’s “jobs    nine years in the United States. Having built and
to be done” theory, check out this short video on         owned gyms on one side of the ledger, to having
YouTube; it is as relevant now as it was before the       owned and grown international sales and marketing
pandemic. The theory suggests we are never selling        company CFM on the other side of the ledger,
a product to a consumer. Rather, the consumer hires       Williams now allocates most of his time as partner
us to get a job done, and the trick is establishing       in wearable technology company Myzone. He has
what that job is. Products change, but jobs often         been named to Fitness Australia’s prestigious Roll of
remain the same.                                          Honor for excellence in leadership, and he accepted
   Ask yourself and your members: what is the job         IHRSA’s Supplier of the Year award on behalf of
to be done? Your job is to help build and sustain an      Myzone. Williams is on the board of IHRSA’s Industry
exercise routine so members can “fill in the blank”       Partner Council as well as the Global Health and
-- for example, lose weight, reduce stress, build         Fitness Alliance.

                                                          6                                    FEBRUARY 2021
TRENDS TO WATCH FITNESS INDUSTRY - FEBRUARY 2021 - Questex
Digital
d ne right.
Your class experience enjoyed by
everyone, at the same time.

In the gym, at home or
outside, with MZ-Remote
we're stronger together.

myzone.org/mz-remote               7   FEBRUARY 2021
TRENDS TO WATCH FITNESS INDUSTRY - FEBRUARY 2021 - Questex
SPONSOR: FREEMOTION

            BOOST MEMBER ENGAGEMENT
          WITH THE NETFLIX EFFECT IN 2021
      That sense of accomplishment people get after binge-watching a series on Netflix can be
           replicated for your members with their workouts if you apply these principles.
                       BY JEFF ESSWEIN, VICE-PRESIDENT OF STRATEGIC ACCOUNTS
                              AND DIGITAL CONTENT, FREEMOTION FITNESS

T     iger King. The Last Dance. Ozark. The Queen’s
      Gambit. These are just some of the blockbuster
Netflix series you may have marathon-watched over
                                                           your excitement after viewing the much-anticipated
                                                           final episode.
                                                             Stoke an intense level of engagement with
the past year.                                             immersive digital content that builds a bond
   Not only has Netflix revolutionized the way we          between the member and their coach. Build a library
watch movies and shows, but it also has created            of progressive, coach-led and studio workouts
a new phenomenon: the Netflix effect. That “can’t          that members can work through to achieve their
stop, won’t stop” feeling you get when you reach the       next fitness goal. When a member is supported
end of an episode and click to start the next one.         in developing a lasting fitness habit, the operator
   Why does this happen? What’s so addictive about         benefits from an engaged, enthusiastic member.
Netflix that we neglect sleep, household duties and          A progressive workout series doesn’t just mean
more in a bid to uncover the secrets of a series we’re     giving members multiple workouts in a row. Enable
desperate to complete?                                     gym-goers to build up their fitness and confidence
   Much of the reason we consume a Netflix series          levels over time, in the same way a TV series unveils
like we have no time to lose comes down to the             the story piece by piece with each episode. This is
pleasure principle, as explained by Harvard Health.        what makes the fitness experience more addictive.
When we complete an episode or an entire series,             Engage with club members via social channels
we feel a sense of accomplishment. This, in turn,
                                                           and encourage them to share their experiences,
triggers a surge of dopamine in our brains.
                                                           generating that all-important word of mouth that
   It’s this dopamine hit—and the desire to keep that
                                                           boosts member referrals. Prompt members to review
feeling going—that motivates us to continue seeking
                                                           and recommend your club’s streaming offerings and
out the pleasure source (e.g., the next episode). A
                                                           suggest additional fitness content that may interest
behavior loop is formed that compels us to do more
                                                           them.
of that activity, whatever it may be.
   If the Netflix effect can keep people hooked on           When you succeed in bringing the Netflix effect
TV, how can we create the Netflix effect in fitness to     to the commercial fitness sector, members will
keep members coming back?                                  eagerly swap an evening watching TV for an evening
   To make fitness something that members can’t get        working out with a favorite coach. Once a member
enough of, apply some of the principles that Netflix       experiences just how incredible a progressive series
uses. Why give members an amazing, on-demand               is, they want to continue until they reach the end.
fitness experience in your facility only to end it after   Then—and here’s the crucial part—they’ll want to click
a single workout? Instead, provide a progressive           “next,” which creates a retention magnet for the
workout series that draws members in with the first        facility.
session, then gradually feed their appetite with
more great content—enabling them to continue their         BIO
journey over several days or months.                       Jeff Esswein is vice-president of strategic accounts
   When people reach the end of a series, that’s           and digital content for Freemotion Fitness. He has
when they receive that dopamine rush, making them          experience as a club operator, as president of a
hungry for more and enhancing their attendance,            sports and entertainment business for an investment
engagement and retention. Consider the many times          firm, as COO of Velocity World Media, and as founder
you compared notes with a friend, colleague or             and EVP of ClubCom. Click here to learn more about
family member on what episode you’re on, or shared         the revolutionary iFit-powered 22 SERIES.

                                                           8                                    FEBRUARY 2021
TRENDS TO WATCH FITNESS INDUSTRY - FEBRUARY 2021 - Questex
Moab, Utah
                                Mount Kilimanjaro
                                Scottish Highlands
                                Venice
Today’s Workout Destination

                                Iceland
                                Hawaii
                                Easter Island
                                Antarctica
                                Patagonia
                                Bora Bora
                                New Zealand
                                Egypt
                                Machu Picchu
                                Paris
                                Swiss Alps
                                Grand Canyon
                                Rome
                                Glen Coe WORKOUTS
                              INTERACTIVE
                                Kenya
                              Workout in breathtaking locations with world-renowned coaches
                              who auto-adjust the incline, decline, speed, and resistance of your
                              machine to create an immersive experience.
                                Swiss Alps
                                                                             9                      F R E E M O T I OFEBRUARY
                                                                                                                      N F I T N E S 2021
                                                                                                                                    S.COM
TRENDS TO WATCH FITNESS INDUSTRY - FEBRUARY 2021 - Questex
FOUR TRENDS THAT WILL AFFECT THE
     FUTURE OF THE HVLP MARKET IN 2021
            Despite the downturn in the fitness business due to the COVID-19 pandemic,
          well-run high-volume, low-price health clubs have the ability to grow during 2021,
                             based on these four trends in this market.
                          BY ART CURTIS, PRESIDENT, CURTIS CLUB ADVISORS LLC

C    ongratulations to those or you whose gyms
     have survived the pandemic thus far. You have
probably taken decisive actions to manage your
                                                          Adjusting the cost structure to the new
                                                          revenue realities will be critical and
                                                          challenging. The original thesis for the HVLP
cash, restructure debt in some cases, renegotiated        model was predicated on the assumption that in the
leases, received PPP funds when eligible, perhaps                                         typical multi-purpose
cleaned up a weak balance sheet, reduced costs                                            clubs most people
wherever possible, implemented stringent new
safety and sanitation protocols, all while trying to
                                                          “Operating in 2021 will         used relatively little
                                                                                          of the club. The early
keep your gym staffs and management teams in              continue to revolve             HVLPs scaled down
place. Unfortunately, operating in 2021 will continue                                     the club to include
to revolve around the ability of club companies,          around the ability of club      only the basic
including high-volume, low price clubs (HVLPs),
to adapt and operate in an environment shaped
                                                          companies to adapt and          elements that were
                                                                                          used most often
by the uncertain course of the virus until there is       operate in an environment       by most members.
widespread vaccination over at least the next 12                                          The gyms required
months. Until then, it is likely that we will continue    shaped by the uncertain         lower capital,
to have to operate in an environment where we
will have substantially lower membership levels
                                                          course of the virus…”           occupancy and
                                                                                          operating costs. They
resulting in substantially less revenue.                                                  were targeted to
  Here are four trends to look for in the HVLP            the masses at a low price point and produced high
market in 2021.                                           operating margins. Fast forward to the last five years

                                                         10                                    FEBRUARY 2021
where many HVLPs have added back many of the               of their digital options, such as low-cost digital
amenities, such as group exercise (cycling, HIIT, etc.),   memberships as an alternative to cancellations/
cardio theater, childcare, even court sports and pools     freezes, or as part of an upgraded membership.
in some cases. The boxes have gotten bigger while          Several companies have already started and/or are
capital, occupancy and operating costs have gone           considering adding virtual personal training to their
up, requiring higher revenues from both dues and           offering.
profit centers. Look for operators to revisit some of
their assumptions and take a much harder look at           Out of crisis comes opportunity, especially
the profitability of the larger format HVLP models         for the strongest of the HVLP companies.
with more amenities and potentially scale back to          As a result of the large number of business
the biggest profit contributors.                           failures resulting from the pandemic, there will be
                                                           a surplus of available space with lower rents that
Safety has moved to the forefront along with               should persist for several years in many markets,
convincing the public and government that                  making new development attractive. There are also
gyms are safe. Gym safety has taken on a whole             acquisition opportunities as some companies choose
new meaning since the start of the pandemic. Today,        to leave certain markets or franchisees who wish to
we are as likely to talk to members                                         exit. These favorable dynamics will
and prospects about our sanitizing                                          likely lead to additional new capital
and cleaning protocols, mask             “In 2021 you are likely to         being invested into the sector’s
requirements, ventilation systems                                           best operators. Although many
and social distancing practices as       see some HVLPs testing             companies will need to take a pause
we are about our equipment and                                              or at least slow their growth until
programs. The newly released             the monetization of their          their cash positions are stronger,
IHRSA Commitment to Active &
Safe Pledge will further reinforce
                                         digital options…”                  the HVLP companies with relatively
                                                                            strong balance sheets and good
this messaging and hopefully                                                access to growth capital will have
reassure policymakers and public health officials          substantial opportunities for growth, both within
that gyms are safe and should not be shut down             franchised systems as well as company-owned multi-
during the pandemic without evidence of being              unit businesses. The next 12 to 24 months will see
a major source of COVID-19 transmission. HVLPs             the strongest operators further strengthen their
will widely commit to the active and safe pledge in        competitive position.
2021 and continue to emphasize their commitment
to member safety in member communications and                                   BIO
promotions to prospects.                                                        Art Curtis is president of
                                                                                Curtis Club Advisors LLC.
If you are not thinking about your digital                                      He also is a member of the
strategy, you are not thinking. The pandemic                                    board of directors for Austin
has served as a catalyst that has supercharged the                              Fitness Group LLC, which does
development and implementation of a variety of                                  business as Orangetheory
digital tools. Members have been kept engaged by                                Fitness in multiple markets.
providing valued content on various topics related                              Curtis has more than 30 years
to exercise, health and wellness as well as with on-       of experience as a CEO and COO of several leading
demand exercise programs for at-home use. HVLPs            health club and spa companies, including Millennium
that offer group exercise will continue to offer on-       Partners Sports Club Management LLC (dba Sports
demand classes as well as live streaming of classes        Club/LA and Reebok Sports Club/NY), Stonewater,
as an alternative solution when their gyms are shut        Wellbridge, Columbia Association and U.S. Health
down or capacities reduced or for members who are          Inc. He also served as a member of IHRSA’s board
not comfortable going to their gyms. In 2021 you are       of directors for seven years, including one year as
likely to see some HVLPs testing the monetization          chairman of the board.

                                                       11                                       FEBRUARY 2021
SPONSOR: LES MILLS

                      DIGITAL FITNESS TRENDS
                       FOR THE NEXT DECADE
                       Club operators will have to adapt to these five trends that
                          will affect the fitness industry for the next decade.
                         BY HANNAH CAMPBELL, CONTENT PRODUCER, LES MILLS

T   he fitness market has felt the impact of the
    COVID-19 epidemic, and what happens in 2021
largely depends on the speed and scale of a global
                                                          creating a competitive environment that can help
                                                          clubs attract and retain members.
                                                            Pandemic restrictions also brought an opportunity
vaccine rollout. As clubs look forward, exciting new      for instructors to upskill and adapt to this new digital
ideas and technology have emerged. These key              age. Expect more talented instructors who have
digital fitness trends will shape the next decade:        taken time to develop skills and are eager to teach
                                                          as restrictions ease.
A fully integrated fitness experience.
Consumers expect a seamless digital fitness               Tech-savvy clientele. The fitness industry grew
experience that fits their lifestyle, with a              up with baby boomers and Gen X, but the game
combination of classes that are live, virtual in-club     has changed and so must the approach of clubs.
and on-demand. Successful clubs will offer a range        Research shows that millennials and Gen Z now
of workouts and a wide variety of fitness options         make up 80 percent of health club members and
online and offline. Tracking changes and trends           account for 89 percent of total users of online or
for seasonality and class popularity is also vital to     app-based workouts. Members of Generation Active
keeping schedules fresh. One asset that no big tech       have different tastes from their predecessors and
players can replicate is the community built into the     expect technology as standard to enhance their
club environment. Member outreach and driving this        workout experience. They prefer working out in
community-centric culture across social media will        groups, instructors with substance over style and
be crucial in member retention.                           smart integration of technology, which clubs must be
  During the next decade, expect to see clubs             able to offer to win their business during the coming
working toward these goals, as those that bridge the      decade.
gap between the digital and physical world to offer          By evaluating and developing your digital fitness
seamlessly integrated fitness experiences will be the     portfolio, you can reaffirm your position in the
big winners in the 2020s.                                 fitness industry in this exciting new era. Although
                                                          there will be challenges, evidence suggests that this
Innovation. The response to COVID-19 restrictions         integrated approach is bringing more people into
fast-tracked fitness innovation. As digital fitness       the fitness world, especially to virtual group fitness
becomes the new norm, the biggest determinant of a        classes. By bringing the club experience into people’s
club’s success will be quality of content they provide.   homes, operators have the opportunity to reach
YouTube and other sites are overflowing with free         the huge untapped market of those who wouldn’t
and often mediocre content, so a club’s offering          typically visit a club, and help them start their fitness
needs to be world-class to retain a paying audience.      journey.
  In the short term, expect more innovative
virtual and live experiences, including holographic       BIO
technology. Longer term, the hope is to create an         Les Mills is a New Zealand-based fitness company
interactive, augmented reality workout that touches       aimed at creating a fitter planet. Its 140,000
on multiple senses, allowing the participant to be        instructors across more than 100 countries offer
completely immersed.                                      a world-class group fitness experience every day.
                                                          Hannah Campbell is part of the Les Mills New Zealand
Instructors adapting. As the demand for digital           team and helps bring the company’s content to life.
fitness grows, inspirational individuals remain a         For more information about Les Mills, visit
unique selling point that rivals can’t copy. High-        www.lesmills.com/us/clubs-and-facilities or email
quality instructors are more in-demand than ever,         them at support.usa@lesmills.com.

                                                       12                                        FEBRUARY 2021
THE ULTIMATE GROUP
          FITNESS SOLUTION
          LIVE — STREAMING — CONTENT — VIRTUAL

                                 +18 MORE WORLD CLASS WORKOUTS

                                   LIVE — deliver live workouts in club
                   STREAM — stream your instructors teaching Les Mills classes
                           VIRTUAL — screen virtual Les Mills classes in club
            LES MILLS CONTENT — stream Les Mills content from your app or website

INCREDIBLE OFFERS IN 2021!                            13
 C O N T A C T U S F O R D E T A I L S : L E S M I L L S . C O M / U S / U L T I M A T E — T E L : 8 4 4 - L E S -FEBRUARY
                                                                                                                  MILLS    2021
SPONSOR: INTELIVIDEO

                        THE TRENDS IN PRICING
                        DIGITAL FITNESS IN 2021
                     As more health club operators offer online fitness, the need to
                     set appropriate pricing for those offerings takes center stage.
                                   BY ASHLEY PODOLL, CMO, INTELIVIDEO

A     fter a volatile year in fitness, as digital
      exploration and integration continue to
accelerate, appropriate pricing is on operators’
                                                           On-demand. On-demand workout content reigns
                                                           supreme. Although certain members appreciate the
                                                           structure and accountability of livestream, most
minds. To understand your business’s best pricing,         online fitness enthusiasts prefer the flexibility and
it’s important to understand where you fit in the          convenience of on-demand workouts.
overall digital fitness market.                              On-demand memberships for many stand-alone
   Digital fitness is an approximately $1 billion market   brands are $15 to $30 per month depending on
today and is expected to grow to $10 billion to $15        the workout library’s size and, again, a one- to
billion, suggesting only a 7 percent to 10 percent         two-month discount for annual plans. A sweet spot
penetration to date. A recent report by L.E.K.             for audio, video and even some integrated fitness
Consulting noted that nearly 60 percent of digital         memberships is $20 per month. On-demand price
fitness subscribers who are also commercial gym            points have changed little during the past few years.
members increased time spent at the gym as a result
of consuming digital fitness products. A Mindbody          Bundled Pricing
survey found that 46 percent of respondents plan           Depending on your offerings, you most likely want
to make virtual fitness classes a regular part of          to bundle your membership. Whether you include
their routine, and 40 percent are trying new studios       digital fitness within established price points or
they’ve never physically attended.                         charge more depends on factors such as the volume
   The data supports adopting a hybrid fitness model.      of workouts in your library, how often new content is
Digital will be a complement to in-person options          released and app functionality.
(versus a substitution) as well as a potential stand-         Gyms have two common approaches: bundle digital
alone product that leads to member acquisition.            fitness with existing in-club memberships for slightly
A product plan and pricing structure that allows           higher membership rates or offer digital fitness plans
subscribers to benefit from combining digital with an      as an add-on option. Many clubs adopting a hybrid
in-person experience or as a stand-alone product will      model offer both. Prices range from $4.99 to $14.99
serve you best.                                            for add-on memberships, while bundled rates either
   There are two options for product plan and pricing      remain the same for all-access members or increase
structures: stand-alone pricing and bundled pricing.       between $4.99 to $9.99 per plan.
                                                              Ultimately, 2021 will be another critical year with
Stand-Alone Pricing                                        fitness clubs, gyms and studios evolving to engage
Two content delivery options exist for stand-alone         members in innovative ways. A long-term digital
pricing: livestream and on-demand.                         strategy is essential to capture more of the market
Livestream. In 2020, livestreaming was an                  demand. Digital content sparks engagement in your
immediate solution to replace revenue, provide             in-club business, serving to extend memberships
workouts and create community. Although many               in addition to attracting new members. Price
clubs initially offered free workouts, pricing evolved     accordingly.
to offer monthly or annual subscriptions, or paying
per class. Leveraging both offerings works well in         BIO
hybrid models.                                             Ashley Podoll is CMO at Intelivideo, a digital video
  Monthly livestream memberships began at $20              platform that enables fitness operators to transform
but quickly increased to as much as $60 per month          their business into a hybrid model. In her role as
for niche studio offerings. Annual memberships             a leading marketing executive, Podoll works with
usually discount one or two months to incentivize          international and national fitness franchises, social
longer-term commitments. Pay-per-class rates               media influencers, gyms and health clubs, boutique
began at $20 per class but are trending down               fitness studios and coaching businesses to build a
toward a $10 to $15 fee.                                   healthy, sustainable digital fitness offering.

                                                       14                                       FEBRUARY 2021
GLOBAL LEADER
IN DIGITAL
FITNESS
EXPERIENCES
Intelivideo is a digital video
plaaorm enabling fitness
operators to transform
their business into a
hybrid fitness model.

          TECHNOLOGY

          SERVICES

          CONTENT                15                   FEBRUARY 2021
                                      VISIT US AT WWW.INTELIVIDEO.COM
A EUROPEAN PERSPECTIVE ON
        WHAT’S COMING IN 2021 AND WHERE
            TO FOCUS YOUR EFFORTS
           Four factors will drive trends in 2021: health, digital, community and standards.
                    BY JENNIFER HALSALL-DE WIT, BOARD MEMBER, EUROPE ACTIVE,
                             AND COO, WOMEN IN FITNESS ASSOCIATION

W     e have either started to surf the waves in the
      constant tide of change or we have gotten
caught in the undertow. So, what has changed and is
                                                         looking for more integrated solutions to manage
                                                         their greater health strategies.
                                                            What’s coming:
changing for our sector now and in the near future?      • Better communication with the medical community
Everything and nothing.                                  • Cooperative initiatives with insurance companies
  The trends that were in place are still there, just    • New fitness profession profiles will emerge, such as
accelerated to a pace that we never previously           fitness and health specialist
would have thought possible. For our sector, looking     • New services should be added to the club
through the eyes of our members is the most              operator’s product roadmap, such as wellness,
important key to predict our future. Keeping a good      coaching, nutrition, stress management, meditation
balance of looking outwards and reflecting inwards
will help us to maintain our perspective as we move      Digital. If COVID-19 never happened, we would be
forward.                                                 stuck with the early adopters slowly trickling toward
  The four interlocking domains that will drive the      our digital service offerings. A global lockdown
trends for 2021 and beyond are also the four areas of    forced customers to find new ways to get their
focus and commitment for Europe Active.                  exercise. Many fitness professionals and companies
                                                         raced to launch online options, compounding the
Health. The factors that increased the risk of not       messaging about the availability of this service. Our
surviving COVID reinforced the importance of being       members tried our services, and we reached new
healthy and the fact that being healthy is to a large    audiences because our ability to scale our service.
extent under a person’s control. Health and wellness     For many members, the digital service will never
will become a bigger driver than fitness alone.          replace their in-person experience, but they are
Fitness will become part of the bigger whole but no      enjoying the flexibility of the added options.
longer a stand-alone solution. Our members will be         What’s coming:

                                                        16                                    FEBRUARY 2021
• Using digital fitness services to access hard-        look for and ask about when it comes to signing up
to-reach markets: people with disabilities, new to      for a service or hiring a coach or trainer. Medical
fitness, children, people with medical conditions       professionals will need trust in our service before
• Seamless integration of online/offline services—      they will refer patients to us.
think NIKE in-store/app experience                         The COVID crisis has shown us just how important
• Sharing customers nicely by understanding that        it is to prove that our facilities are safe places and
customers will often try different wellness services    are not contributing to the spread of infectious
together and playing nicely in the sandbox together     outbreaks. To this end, the CEN work that is already
• Europe Active’s Digital Council will play a key       being done on health and safety standards will be
role in sharing trends, learnings and best                          expanded and extended to protect our
practices from all different sectors to ours                        sector from scrutiny and unnecessary
                                               “A health check      closures. This work and focus on these
Community. For many of our members                                  measures will continue to raise our
and customers, being cut off from their        is coming for        credibility.
                                                                      This is the part of our future that is
community was the heaviest burden to
bear. Because of the huge digital leaps
                                               many sectors,        truly in our hands at this moment. Making
that were made, some communities               including ours.”     a commitment to the standards of our
were successfully preserved in new                                  sector can help us accelerate our step
channels. The importance of the in-person                           from fitness to health and wellness as
experience has been a void for many of us for many      quickly as we were able to make the digital pivot
months, and it will be a huge opportunity for club      during the COVID crisis.
operators to focus on their in-club experience when        To help more people to be more active more often
our doors are open again for good.                      we must make a commitment to our standards.
  A health check is coming for many sectors,               What’s coming:
including ours. This health check will look at what     • An ISO-CEN Technical Specification providing
unifies our communities. Inclusivity is a cornerstone   guidelines on how our sector can stay open during
for community. Diversity, equality and inclusion        an infectious outbreak.
(DEI) will be at the heart of our sector’s community    • Continued work on an ISO-CEN Health and
strategy for both members and employees alike.          Safety Standard for the fitness sector that will
The second community health check will look at our      define requirements for staffing and fitness club
commitment to our world and will inspect our efforts    supervision
and initiatives to help make it a better place.         • Thousands more fitness professionals seeking
  What’s coming:                                        accredited education and joining the E-REPS register
• More gender balance in our sector in senior
leadership roles                                                             BIO
• Global action towards DEI awareness and                                     Jennifer Halsall-de Wit is chief
initiatives such as Europe Active’s Sectoral Charter                          operating officer of Women
on Inclusivity, Anti-Discrimination and Equal-                                in Fitness Association by day
Treatment                                                                     and is a Europe Active board
• More open dialogue, training and development for                            member for many of the hours
our leaders and employees on this topic                                       in between. About 20 years
                                                                              ago, she started her career
Standards. Standards are invisible to many of           as a personal trainer and turned her passion into
our members, but this has to change in order to         a career by leading two of the Canadian market’s
make impactful steps for the coming years. We           largest personal training departments (Bally Total
can no longer afford to operate in a place where        Fitness and GoodLife Fitness). She joined Basic-Fit
anyone can call themselves a fitness professional.      in 2011 where she led the product team at HealthCity
If we really want to be a part of the greater health    and Basic-Fit as well as the member retention
strategy, this will start with our commitment to the    department before leaving to join WIFA. At WIFA,
professionalization of our sector. Our existing and     she is co-creator of the WIFA L.E.A.D. Program
potential customers need to know where to go for        (Leadership through Elevation Awareness and
trusted information. They need to know what to          Discovery) program.

                                                       17                                    FEBRUARY 2021
SPONSOR: ABC FITNESS SOLUTIONS

               DIGITAL FITNESS ACCELERATED
                    IN 2020 – NOW WHAT?
 Today’s health club members demand more from their workout experience, and forward-thinking club
operators will need to take a more holistic approach to deliver a personalized and memorable experience.
      BY SHARAD MOHAN, CO-FOUNDER AND MANAGING DIRECTOR, TRAINERIZE POWERED BY ABC

T   he pre-pandemic tailwinds that accelerated digital
    fitness are the same trends now driving members’
expectations. Clubs recognized long ago that operating
                                                          a virtual group class, you are limited only by your
                                                          creativity.

without club management and billing technology would      Keep Adding Tech?
not produce the results members wanted. Forward-          If you are delivering value to members but putting
thinking clubs created offerings to meet the demand       hours of work on your front desk and back office to
for digital exercise and found themselves ahead in        manage, maintain, secure and reconcile data from a
2020. The competition is catching up and addressing       handful of disparate software solutions, you’re creating
more holistic services through digital, including         undue strain on your club.
habit and nutrition coaching. What’s next? In 2021, a        The good news? Software ecosystems continually
comprehensive approach to digitally delivering unique     increase their level of sophistication and integration,
value is a necessity.                                     but not all are created equal. Forward-thinking club
                                                          operators will take a more holistic view of their
Hit the Reset Button                                      technology stack’s impact on the bottom line and their
When you first thought about adding digital to your       ability to deliver an incredible member experience.
club as a value-add or a new paid package, you likely        To meet evolved member demands in 2021 and
started with the member journey and experience.           beyond, clubs must:
Members are savvy to digital-only fitness through         • Consider which digital engagement solutions truly
options from Apple Fitness+ and Peloton to free           bring value to members
YouTube videos. Expectations in 2021 are far higher       • Learn how and where to implement technology to
than previous years.                                      maximize staff effectiveness
  Consider if your additions reflect your brand and       • Look critically at the technology ecosystem to find
have made a difference to member loyalty. Do your         efficient solutions
members respond to personalized interactions and             Above all, be a core part of members’ daily fitness
accountability? Should you focus on in-club tech and      journeys from the moment they wake up. Drive this
adding value for your personal training team? Your        with a branded mobile fitness app, tied to consumer
competitors also are assessing this, and you need to      wearables and devices, to give members daily
stand out.                                                motivation to be active, inspire healthy food choices
                                                          and influence positive behavioral change. Imagine if a
The Year of Force Multipliers                             club member wakes up, and the first thing their Apple
Members crave a personalized experience, which            Watch (with your brand!) tells them is: “Remember to
hinges on a staff hyperaware of member needs. This        have that first glass of water.” This builds an emotional
is tough when staff turnover is at 50-70 percent, with    connection to your brand. Embrace optionality—beyond
the pandemic pushing many above that average. Your        the ways you are a part of your members’ choices
team is working with less bandwidth, while members        today, consider how to influence when and through
have more fitness options. Are your digital options a     what channels they engage with those choices.
force multiplier helping every team member be more
effective?                                                BIO
   Your members believe in health and wellness, and       Sharad Mohan is the co-founder and managing director
community breeds engagement and accountability.           of Trainerize powered by ABC and the driving force
Contrast this with their experience with their at-home    behind its mission to make fitness accessible. As part of
stationary bike or an on-demand fitness class. Consider   the ABC Fitness Solutions team, Mohan helps fitness
ways you can connect with them throughout their           businesses leverage technology to stay relevant in the
fitness journey and which digital programs deliver        digital age and engage people in new ways using mobile
fitness and boost motivation. Whether through hosted      and wearable devices. Connect with Mohan and stay
challenges in an app, nutrition tips or an e-mail after   up to speed with fitness industry innovation.

                                                        18                                       FEBRUARY 2021
19   FEBRUARY 2021
SPONSOR: EXER

                         THE FUTURE IS HYBRID:
                           HOW TO LEVEL UP
                        YOUR VIRTUAL OFFERING
                      To succeed in a new digital fitness world, health club operators
                     must craft digital fitness experiences that deliver the same value
                         of in-person classes. These three keys will help you do so.
                            BY CLINT GEHDE, CO-FOUNDER AND HEAD COACH, EXER

T   he $94 billion fitness industry is undergoing a
    digital transformation, with the digital fitness sector
alone forecast to reach $27.4 billion in 2022. Brands
                                                              use data-powered tools to enhance the experience.

                                                              2. Evolve into a creative streaming professional, and
are capitalizing on the opportunity, as seen in Apple’s       hone that craft to stay ahead of the competition. Pay
recent introduction of Fitness+, Lululemon’s acquisition      attention to all the details that go into streaming a pro-
of Mirror, and the rise of smart home gyms such as            style workout: choosing locations and backgrounds,
Tempo and Tonal.                                              and optimizing lighting, music selection and audio
  Consumer preferences are changing, with exploding           broadcast levels. Live workouts can be broadcast to
interest in livestreamed workouts, new fitness apps and       multiple social platforms at once, and real-time timer
wearable technology. Since March 2020, 85 percent             visuals can delineate segment lengths and indicate
of Mindbody consumers have attended livestreamed              what exercises are coming next. Breakout rooms,
classes weekly versus 7 percent in 2019. As a result of       athlete spotlights and group competitions offer novel
pandemic-related restrictions worldwide, people can           ways to engage participants.
work out more frequently from the comfort of their
homes. With 46 percent of participants intending to           3. Leverage artificial intelligence to simulate the
make virtual classes part of their weekly routine even        in-person studio experience and enhance your ability
after studios reopen, a virtual arm will be essential for     to connect with your community. AI-powered tools
gyms and studios to thrive.                                   can enhance virtual workouts by providing real-time
  In a hybrid world, fitness professionals and gym/
                                                              metrics that coaches can use to personalize every
studio owners must build a virtual side of their business
                                                              athlete’s experience, deliver accountability and
that complements the in-person experience. This will
                                                              feedback, and monitor progress over time. AI can give
help retain current members, but it is also how growth
                                                              you a second set of eyes on every athlete in your group
will happen: A recent Mindbody survey revealed that
                                                              sessions, and it can even augment the experience with
40 percent of consumers are booking virtual workouts
                                                              automatic rep counting and real-time form correction.
with studios they have never physically visited, allowing
those businesses to reach “digital-first” clients. Taking        Ultimately, the coaches who will thrive in our
virtual fitness seriously gives businesses the concrete       increasingly hybridized world will be those who
advantage of reaching consumers where they make               leverage the tools at their disposal. These platforms,
buying decisions.                                             tools and innovations can engage and strengthen
  To truly succeed, coaches need to craft digital fitness     fitness communities and enhance the virtual
experiences that deliver the same value that in-person        experience, leading to a strong and growing business.
classes gave consumers in the past. This is possible by
leveraging the right toolset—one that includes best-of-       BIO
breed streaming platforms and artificial intelligence-        Clint Gehde is the co-founder and head coach at
powered engagement enhancements.                              Exer, a fitness AI startup building tools to empower
  The three keys to driving success are:                      coaches and practitioners. Exer’s Studio app delivers
                                                              motion tracking, accountability and engagement
1. Deliver a virtual coaching experience that meets           tools to virtual fitness workouts using the devices
consumer expectations formed in person. A coach               people already own. Exer’s PT app (in beta testing)
must bring energy, draw out motivation from athletes          enhances patient sessions, both in and out of
and monitor progress over time. Coaches are a critical        the clinic, to increase adherence to protocol and
source of accountability, and they will need to become        maximize positive patient outcomes. For more
fluent in livestreaming and on-demand platforms and           information, email hello@exerstudio.com.

                                                         20                                           FEBRUARY 2021
21   FEBRUARY 2021
SALES AND MARKETING TRENDS IN A NEW
    ERA OF THE FITNESS INDUSTRY
       Sales and marketing are even more vital for the fitness industry as COVID-19 continues
           to impact the industry and make people hesitant to join or rejoin health clubs.
                BY BILL MCBRIDE, CEO, ACTIVE WELLNESS, AND CEO, BMC3 CONSULTING

I n 2021, the fitness industry will need to focus on
  sales and marketing for an evolved consumer.
  Consumers always evolve in how they process,
                                                          Benefits are specific to the individual. For some,
                                                       it is feeling safe (or at least safer than just about
                                                       any other place). For others, it is getting their
analyze and decide on the products they buy.           desired health and fitness results or boosting
Some things remain the same:                                           immunity. For yet others, it is having
emotion is what triggers buying;                                       fun and enjoying social engagement.
logic justifies decisions to buy or not   “Emotion is what               Many operators view membership
to buy.
  We have to revisit our core
                                          triggers buying; logic       sales as a part of the service desk,
                                                                       MOD and other staff responsibilities.
features, advantages and benefits         justifies decisions to       Consumers are more educated than
paradigm within our industry.
  Features now include cleaning,          buy or not to buy. ”         ever. They typically have researched
                                                                       us online, may have talked to other
sanitizing and disinfecting;                                           members and fundamentally know
transparency; equipment spacing;                       about us before they visit for a tour.
member social distancing; professionalism;                We need to treat them with the intellectual respect
outdoor fitness areas; personal training spaces/       they deserve and not “sell.” We are buyers’ helpers,
pods and events, etc.                                  coaches, influencers and friends who are creating win-
  Advantages include reduction of risk, knowledge      win relationships. I’m not advocating eliminating your
to make personal decisions, trust, comfort,            sales team; I’m talking about augmenting dedicated
confidence, expectation of results and human           membership sales functions and evolving into overall
energy.                                                team approaches to deliver for our consumers.

                                                   22                                       FEBRUARY 2021
Selling is Solving. Selling is Serving.               members what to expect. Highlight member
We have to have a team approach to getting and        testimonials about your facility’s attention to
keeping members. This is a revisit to the roots       detail and professionalism. Videos and testimonials
or our industry. We all have two jobs. Part of        tell a compelling story, but they must be short and
keeping members is making sure they get results.      to the point at about 30 to 90 seconds each.
Programs that benefit our consumers are equally         I’m a big believer in the voice of the customer,
important. Consider ancillary revenue programs        member experience management and utilizing
for member results.                                   data for profitability. Find a system that gives you
  The old school membership                                           a daily pulse on your facilities with
sales approach is no longer valid.                                    regard to net promoter scores,
Our membership enrollment            “Our messaging must              those likely to quit, those you
process has to evolve to our
consumers’ current, evolved
                                     change to be more                should target for ancillary revenue
                                                                      and real-time feedback that you
needs and requirements.              professional, safe,              can operationalize. It also should
  The foundational system of                                          give you the ability within the
membership sales is a solid          trustworthy or credible.”        portal to get your net promoters to
sales CRM. Look for a program                                         review you on Google with high star
that helps manage leads and                                           ratings and the ability for your net
prospects A-Z while also having a social input feed   promoters to refer members directly with a special
that allows you to see your prospect’s social media   VIP guest membership trial offer.
profile before they show up, giving you additional      I love sales and marketing technologies that
valuable information. This also ties into your        generate revenue.
marketing outbound initiatives and measurement          My point is that in 2021, you will need to use
for marketing ROI.                                    systems to convert information to data and data to
                                                      profitability.
Marketing
Our messaging must change to be more                                      BIO
professional, safe, trustworthy or credible. At the                        Bill McBride is co-founder,
core they must focus on fitness, health, wellness                          president and CEO of Active
and social.                                                                Wellness, and he is founder,
  We have to rely less on promotion and more on                            president and CEO of BMC3
value. For years, the industry has preached that                           Consulting. He has served
you need a “hook” to get people to act—I agree.                            as the chairman of the
But what that hook is may have changed. Today,                             board of directors for IHRSA
we need an emotional hook. Promotions are                                  and MACMA (Mid-Atlantic
valuable and still relevant, but they shouldn’t be    Club Management Association) and has been a
the dominant message. They should be a value-add      board member on ACE’s Industry Advisory Panel
to the dominant marketing message of:                 and an editor for ACSM’s Facility Standards &
• Here’s why                                          Guidelines 5th Edition. He is an international
• Here’s why us                                       presenter and industry recognized expert in sales,
• Here’s why now (promotion or sense of urgency)      sales management, marketing, retention, club
• Here’s how – easily                                 operations, customer service, member experience
  Additionally, marketing in materials and on your    and leadership. McBride has presented at IHRSA,
website should contain current realities—masks,       IHRSA Institute, IHRSA Profitability Conference,
social distancing, cleaning protocols, etc. And not   IHRSA Asia-Pacific Forum, IHRSA European
just on the cover pages, but in the depth of the      Conference, FitLife, CCD, NEHRSA, Club Industry,
site. Videos are more important than ever, showing    FILEX, Russian Fitness Festival, FIA & ChinaFit.

                                                 23                                       FEBRUARY 2021
SPONSOR: FITNESSONDEMAND

     RESHAPING AND SUPERCHARGING THE
        MEMBER EXPERIENCE IN 2021
           To create a better member experience in 2021, you will need to keep these four
                                    important things in mind.
                        BY ANDREW EVENSON, SENIOR DIRECTOR OPERATIONS AND
                                BRAND STRATEGY, FITNESS ON DEMAND

2   020 was a year of problem solving, as club
    operators pivoted operations during mandated
shutdowns and weathered financial challenges
                                                          Indoor/outdoor workout experiences. We will
                                                          see growing member interest in an indoor/outdoor
                                                          club experience. First, member engagement in club-
totaling $15 billion in industry losses. 2021 is quite    organized outdoor running and walking clubs will
different. A primary goal for club operators now is to    return, blending opportunities to socialize with other
reshape and supercharge the member experience in          runners with pre-and post-run club facilities and
a rapidly evolving fitness landscape that has shifted     instructor-led runs. Second, the outdoor group classes
member expectations.                                      and workout spaces that many clubs experimented
  Here are four important things for operators to         with during the pandemic created ongoing interest
consider:                                                 in an indoor-outdoor club model. Take advantage of
Parity between in-club and at-home                        flexible club areas that open to the outside, converted
experience. Working out at home and accessing             exterior parking lots and other spaces that enable
club fitness content on a device cannot be treated as     outdoor group fitness or solo workouts.
a secondary option or as an offering of lesser value
than an in-club offering. If the pandemic taught us
                                                          Socialized experiences. Members are eager to
anything, it’s that members have an appetite for
                                                          re-establish routines of working out and engaging
streaming content from their club, and streaming
                                                          with their club communities. Club operators must
offers many ways to serve members. As clubs have
                                                          recognize and encourage this need for connection.
reopened after mandated shutdowns, at-home
                                                          Share highly usable content via email and social
streaming numbers have not significantly diminished.
                                                          channels: nutrition tips, diet plans, workouts from
  In 2021, club success will increasingly come down
                                                          instructors, classes to stream at home, promotion
to the adoption of a truly hybrid model of operations,
                                                          of new classes and club updates. Going forward, it
ensuring that members who stream a class at home
                                                          is important to integrate all virtual, social and in-
feel the same quality experience or intense workout
that they do in an instructor-led class at the club.      club opportunities for members to engage with your
Total experiential parity means investing the same        staff, instructors and others in a truly 360-degree
resources, time and care into on-premises and on-the-     experiential environment.
go member offerings.
                                                          BIO
Focus on small group experiences. Large group             Andrew Evenson is senior director operations
fitness classes may be slow to return to pre-pandemic     and brand strategy at FitnessOnDemand, a world
levels. Expect both a continued focus on small group      leader in curated fitness content. FitnessOnDemand
training as well as a surge in members returning to       partners with world-leading fitness brands, content
gain access to cardio equipment, machines and free        creators and specialist instructors to bring the best
weights unavailable at home. The six- to 10-person        in HIIT, core strength, cycling, specialty and other
in-studio group classes necessary during pandemic         fitness classes to managers of clubs and fitness
restrictions will continue to be popular, with members    facilities across the world. FitnessOnDemand is
appreciating the personalized attention that a small      available in studio, on any club display system and
class size enables. This will have an impact on class     via FLEX by FitnessOnDemand, streaming to member
scheduling, instructor bookings and availability, with    smartphones, tablets and other devices in club, at
an ultimate need for more classes to cater to demand.     home or on the go. For more information visit
Plan for increased interest in both on-site and virtual   www.fitnessondemand247.com or email aevenson@
instructor training for one-on-one sessions.              fitnessondemand247.com.

                                                         24                                    FEBRUARY 2021
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