|
Tracy Minnoch-Nuku had reached the limit of her patience. The Regional Group Exercise Manager for Fitness First Asia was determined to show Group Fit was more than a fantastic retention tool. Ready to stake her reputation on proving that GF was a huge business opportunity, Tracy had a plan to deliver regular profits to the Asian bottom line directly from Group Fit initiatives.
It took two years to achieve the extraordinary sales success the region currently enjoys through staging 6 monthly Mega Relaunches. These events are held in each of the chain’s 34 clubs in Malaysia, Singapore, Philippines and Thailand on consecutive days. Every Relaunch has made money but now the numbers are startling. Circa 50% of leads regularly convert to event attendance and there is often greater than a 70% conversion rate for guest attendees signing up to become members!
Payback
A typical example of payback is genuinely staggering: in Malaysia in 2005, 10 clubs spent a total of approximately USD 3,000 on wages, food, decorations and unifiorms to secure 210 memberships at one Mega-Relaunch. This generated monthly revenue of USD 9,500 and annualized turnover of circa USD 111,000. The ROI is off the charts. |
- Regular substantial revenues from GF
- 6 monthly Mega Relaunches in 34 Asian clubs
- 50% leads convert to event attendance
- 70% of attendees become members
- ROI off the charts
- In club hype everywhere to promote Mega Relaunch
- Members can attend if bring a friend
- Total focus on in-club promotion
- Sales team work side-by-side with GF
- Sales tours 2 weeks before event and 1 week after
- All clubs themed to make a fun experience
- Relaunches always made money from day 1
- Took 2 years to achieve huge scale of success
|
So we took a factor of 10 and applied it to the lower regional costs of the Mega Relaunch for the all the 10 clubs, to see what effect that would have on the numbers! The revised investment in wages etc would be circa USD 30,000. On this adjusted basis, payback still occurs in just over 3 months and there is a payback of around 3.7 times over a year. Whatever the cost differentials between countries, it’s clear that Mega Relaunches offer club managers a BIG revenue opportunity to enjoy.
Returns from Mega-Relaunches sky-rocketed when the sales teams understood the potential to max out their commission every 6 months. It took 2 Mega Relaunches for the sales team to ‘see the light’, yet now every sales team member works on Relaunch Day, even if it’s supposed to be their day off! They ride on the back of a clever and low-cost marketing strategy. ……..
Marketing & sales
It’s all about building anticipation and the desire to be one of the first to experience a new quarterly release. Timing is everything. Mega Relaunch takes place promptly 3 weeks after receipt of the new release by Fitness First Asia. So promotion kicks in a month in advance of Mega Relaunch, with each club’s monthly newsletter announcing Mega-Relaunch Day and profiling the timetable of the 7 programmes to be showcased. Add to that, the latest Group Fit marketing material is all over the clubs with a singular message:
Members can only attend the same number of classes as the number of non-member guests they invite to the Mega-Relaunch. In other words, if a member signs up one friend, they can attend say, BodyPump. If the member signs up two friends, they can register for say, BodyPump and BodyJam. This means that members cannot attend without handing over the contact details of invitees. Fueled by the consistent in-club hype, the ‘must bring a friend’ strategy creates ongoing urgency around confirming your space. Even better it drives non-member attendance without the need for external marketing!
The sales team systematically feed off member excitement and phone or email invitees to enjoy a club tour during the two weeks prior to Mega Relaunch or one week after the event. The team is well scripted about both Group Fit and the highlights of the Mega Relaunch. The sales people are also armed with a great promotional offer for non-members, with the joining fee being waived, worth circa USD 135. Relaunch sales activity is then ruthlessly tracked when new members note their reasons for joining in the standard membership documentation. With this ammunition, GF’s revenue becomes irrefutable.
Themed events
The events themselves are rigorously planned day-long experiences. Each of the 34 facilities showcase one class of each of the 7 Les Mills Programmes. Every club is themed e.g. super-heroes with competitions for zany things like dressing up or being loud, to make it fun for all. In Malaysia, clubs sell event specific clothing, modeled on stage by the Instructors and they always sell out. With energy and enthusiasm running high, entrance to all studios is firmly policed. In fact, attendees turn up 15 minutes before a class to register against bookings. Cunningly, non-members are given a badge which means Instructors can identify who needs extra coaching in class. This in turns enhances guests’ experiences and helps the sales team to convert!
With loud applause we recognise Tracy’s consistent and determined approach which has seen GF participation grow from 35% - 45% of total club attendances over 4 years in Fitness First Asia.
Tracy attributes GF wins to the wider team. All GF Managers spend a minimum of 30 hours per week running GF. Due to strong local management, Instructors enjoy hands-on recognition for their contribution to club success. They receive uniforms, CDs and are even paid a full hourly rate for team teaching at Mega Relaunches after which there is a HUGE team party. And the sales team now love working closely with GF. Management sets a clear target – 25 new members per club and 200 new members per country per Mega Relaunch. Bring it on!
Believe it - clarity, persistence and cross club teamwork are producing remarkable results.
Fitness First Asia is part of the global Fitness First Chain
Phillip says….
Truly awe-inspiring. Tracy has combined leadership and determination to create a remarkable phenomenon. Her example as a Group Fitness Manager shows what is possible when driving revenue directly from Group Fit. She is a role model for Key Element 8 in the Group Fitness Management System, “Appoint or Be a World Class GF Manager”. Her willingness to put herself on the line to change the way Fitness First Asia perceived Group Fit took both guts and vision.
Tracy’s commitment to increasing success over time has allowed Mega Relaunch to keep beating previous attendance and revenue milestones. By forging strong relationships with Sales and working together on Relaunches, Tracy created a powerful formula for GF driven new member acquisition. It’s obvious that Tracy has achieved mastery of Key Element 6 of the Group Fitness Management System. “Create a Group Fitness Marketing Plan” where relaunches are a core GF marketing tool.
Superb work from a top performer.