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Group Fit Profit

Owners back GF Manager to build retention machine from scratch

Dan Foley and Matt Sale took a leap of faith.  In April 2004, they backed their GF Manager, Megan Peterson, to create a GF hub in their newly acquired franchise, BodyPlex in Woodstock, Georgia.   Within 2 years Megan has transformed her bosses from passive GF supporters to full GF advocates and regular attendees!  And you can see why….

Their 30,000 ft² facility offers 1 * 3,000 ft² GF studio delivering an average of 40 classes per week in peak morning and late afternoon slots.  Since March 2006, Megan and her team have attracted 37% of club attendances to GF and in key classes, like BodyJam, the 75 capacity studio is spilling over.

  • 1,500 members
  • 30,000 ft² facility
  • Two years in operation
  • 37% of club visits are in GF
  • 1 GF studio of 3,000 ft²
  • Retention of 60%
  • Top end pricing of USD 40 per month
  • Middle- lower income area
  • 15% male attendance in BodyPump and RPM
  • World class instructors
  • Instructors have other roles in the club
  • Relaunches every quarter for existing members

Starting out in a very competitive market

Starting GF from scratch offered Megan both challenges and opportunities.  The local market is very competitive with 12 gyms within an 8 - 12 mile radius, including national chains and independents.  It’s worth noting that one competitor has all 7 Les Mills programmes in the local area.  Even more intriguing is that BodyPlex is at the top end of the price band in a rural town that is dominated by middle – lower income earners.  BodyPlex charges an average price of USD 40 per month with a USD 50 enrolment fee, selling top customer service coupled with great fitness experiences to deliver sustained growth. 

So, Megan designed her GF machine.  One week after opening in April 04, BodyPlex offered 4 Les Mills programmes to members.

Top Instructors with multiple club roles

As a full time GF Manager, Megan concentrated on securing extraordinary instructors who would be well networked outside the GF studio.  Within her team of 23 Instructors she attracted 5 national trainers with her passion and vision for creating a stand-out GF destination.  Most Instructors teach more than one programme, which increases their exposure to cross sell attendees into different classes.  Further, her Instructors typically have another role within the club, which increases their income and the general commitment beyond the studios to introduce new people to GF. 

For example, many Instructors are also Personal Trainers, which has a two way upside.  Firstly, their clients are encouraged to try out GF as part of their tailored programmes. Secondly, the PT/Instructors get paid to teach classes where they forge connections with potential new PT clients who are also GF attendees.  One Instructor also works on reception and is pivotal to spreading the word on what’s hot in the club. 
 
Target marketing members to build GF growth

Megan is widening the target market for GF by actively targeting male members to try out classes.  BodyPlex’s membership mix is 60% women and 40% men.  Of the 37% of visits to GF, circa 15% are men and it’s growing.  The GF Team has achieved this by actively promoting BodyPump and RPM as the entry classes for GF, as these two programmes appeal more strongly to men, based on independent research.  Attendees are soon encouraged to compliment their cardio workouts with BodyAttack and Instructors regularly go out onto the cardio floor and invite members to ‘try out’ a class, even if it’s just for 20 minutes. Pretty much without fail – people get hooked and keep coming back.

Quarterly relaunches for existing members

Once members are enjoying GF, BodyPlex makes sure it stays fresh and exciting by relaunching all 7 Les Mills programmes in a day-long event every quarter.  These are funded mainly with ‘trade-outs’.  So each event is paid for with 3-month short term memberships for local companies and it’s proved to be a win-win.  Members and their children enjoy the massages, food, drink, games, clown, face painting and class give-aways provided by those local companies.  Simultaneously, BodyPlex gets some new short term members who 9 times out 10 convert to long term membership and spread the word about BodyPlex through their businesses’ own customer bases.  BodyPlex’s owners are now so convinced that relaunches are a vital component of their business, that they offer Megan help with relaunches before she has a chance to ask!

Dan and Matt view GF as a critical contributor to BodyPlex’s ongoing success.  Being two years old with 1,500 members they are focussed on continuing to drive strong, steady growth.  These owners believe that the experience a member has in the first 30 days of membership is critical to retention. Consequently, GF is prioritised as a vital component to member interaction and membership longevity from day 1 of joining. With retention* at the end of year 2 of 60%, Dan, Matt and Megan have created a solid formula for retaining members and building club success. 

BodyPlex, Woodstock is a privately owned franchise in Woodstock, Georgia, USA and has 7 Les Mills Programmes

*Retention has been calculated using the IHRSA formula of [1-(Aggregate dropped memberships for 12 months/12 month average beginning memberships) *100%]


Phillip says……

Full credit is due to the owners of BodyPlex for recognising Megan was up to the challenge of building Group Fit from a zero base.  Megan also deserves recognition for her willingness to put herself on the line and lead her team to success in a challenging competitive environment.

 Megan already lives Key Element 8 in the Group Fitness Management System – “Appoint or be a Great GFM” and shows excellent skills in attracting and keeping superb Instructors as explored in Key Element 3, “Recruit World Class Instructors and Keep Them”.  With Instructors having multiple income streams from the club, the in-house cross selling shows itself to be especially effective, without the friction that can sometimes occur between different parts of facility management.

We look forward to watching BodyPlex Woodstock’s growth and staying in touch with Megan’s insatiable drive to deliver extraordinary Group Fitness experiences to her community.

Published Thursday, June 01, 2006 1:25 AM by lesmills
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