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4 years ago Don Munro was headhunted. The community fitness centre – AMI Health and Fitness (“AMI”) - was in decline. Freestyle Group Fit was delivering a sad average attendance of 5 or 6 people per class, with available studio capacity for 140 people. Don agreed to come and lead a revival for the centre using pre-choreographed Group Fit (“GF”) as the major draw-card. In 2002 there were only 90 members and today there are 800 with GF delivering 32% of over 6,000 monthly visits.
With a local council goal of maximizing usage within a very strict budget, the Les Mills System was chosen, due to its proven service and easy-to-monitor monthly costs. Being a part time GF Manager working 5-10 hours per week, Don is very savvy about driving growth with efficiency. Using a triad of tools, he applies timetabling techniques to increase GF visits, Instructor incentives to drive busier classes and specific marketing promotions to enlarge GF’s audience.
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- Today 800 members
- 4 years ago, 90 members
- The facility was in decline
- 4 years ago GF used 13% of class capacity
- Strict budgetary constraints in place
- Aggressive attendance growth required
- GF used as key driver to turn attendance around
- Now 78% of capacity used in GF
- GF delivers 32% of total facility attendances
- Instructors take ownership for class numbers
- Instructors rewarded for commitment
- Objective class counts done by reception
- Counts are public to all Instructors
- Consistent GF initiatives to drive growth
- Rigorous system for any struggling classes
- Investing in RPM™ to continue attendance increases
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Designing a timetable for the dynamics of the local community
Creating attendance growth has sometimes been challenging for Don and his team. AMI currently provides 24 classes per week across 4 timeslots, which are in the morning and early evening. Don has tried adding shoulders slots at the beginning and end of the day plus introducing lunchtime options for classes. Every attempt to add to the timeslots offered, met with an initial burst of interest and then tailed off to deliver disappointing results, despite internal promotion and Instructor encouragement to members.
On further analysis the GF team noted that Mums dominated classes held in the morning and workers only came to evening classes. Don has concluded after several experiments that the local community has a very specific rhythm of when it likes to work out! Hence he looks to grow attendance within that framework.
So Don decided to take advantage of a couple of seasonal variations he had identified, to further add to GF attendances. So AMI re-introduces BODYJAM® in summer when it’s more popular. A further summer addition is a select number of 45-minute lunchtime class formats, which also enjoy far greater popularity in the warmer months.
Adding RPM™ as an additional programme later this year, is also expected to deliver significant attendance growth by offering class alternatives across the timetable. Don believes that cycling ‘in a pack’ at the gym will be very popular in this close kit community. The bikes will live in Studio 2, which currently only holds circuit classes, and leave Studio 1 to host the rest of the Les Mills programmes. GF space will be more effectively utilized while attendances can increase. It’s worth mentioning the willingness of the local council to back this initiative, despite the up-front investment required in RPM™. It’s a testament to how GF has helped to turn this facility around with such success.
Cost effective GF relaunches every quarter
AMI uses mainly local newspaper advertising to drive awareness of the facility and its GF services. The facility invests circa NZD 800 in each quarterly GF relaunch to celebrate new programme releases. Approximately NZD 600 of this is spent on advertising and the rest on Instructor wages for the event. Instructors are paid NZD 15 each, if 3 of them team-teach and NZD 20 each, if there are two Instructors performing on stage together.
With an eye on the budget, giveaways are financed two ways: AMI secures local sponsorship for events e.g. Coca-Cola provides free bottles of Pump (water) to give to attendees. Also, the club has a system where they rent out wall space in the facility, allowing local businesses to advertise inside the gym. These businesses also promote themselves at relaunches by offering prizes such as a free coffee and muffin at a local café or a makeover at a nearby beautician. Lastly, members are always encouraged to bring-a-friend so that all round, each relaunch is both budget friendly and an action packed event for everyone involved.
Monitoring success and growth initiatives
Don and his Instructor team always keep an eye on attendance trends. Objective counts are critical, so reception staff always count the classes and weekly statistics are public to all the team. In the event a class is experiencing less than 30% capacity, Don takes action swiftly. Members are surveyed for suggestions (8-10 questions), Instructors canvass class attendees to bring a friend and Instructors also call ‘lapsed’ GF attendees to invite them back to class. Lastly, members are informed on the notice board that there are up to 6 weeks to change the attendance level in class or it will be removed. Don finds that this level of member communication fosters minimal complaints, as they have had the opportunity to contribute to turning the class around.
GF also adds to it attendee based by being included in club-wide growth initiatives. A recent AMI initiative includes a newly advertised “The Biggest Loser” contest, which builds on the popularity of the reality TV series worldwide. AMI advertised the promotion in the local paper, which is read by 95% of the 15,000 local residents. The programme for the Biggest Loser including GF classes and so Don anticipates more people will experience GF as the initiative unfolds.
Don also looks at how to ‘recruit’ GF devotees via outreach activities. AMI provides a local school with a Physical Education option for high school students via GF classes. Don mentions how the kids love it and go mad with energy and ‘volume’ doing BODYCOMBAT®. Many of the kids who attend are not in the school teams but love the group experience in class, which bodes well for future possible memberships!
Instructors take responsibility for class numbers
By giving Instructors ownership for the growth of their classes, Don enjoys an ever- increasing commitment to excellence and the goal of increasing visits to GF. This behaviour is backed up by a bonus system that rewards Instructors each month for outstanding efforts. The monthly award creates extra pay for each class an Instructor taught in the previous month of between NZD 1 – NZD 3. Everyone knows who the winner is each month and the 9-strong team of Instructors enjoy the friendly competition to be the monthly champion.
Instructors are also well paid in the region receiving between NZD 30 – NZD 37 per class, depending on their level of experience and the number of programmes they teach. Additionally, AMI pays for half their Module fee when they certify and provides free club membership for them as recognition of their importance to the facility. Instructors also invest in themselves and pay for every quarterly releases and buy branded clothing as they love the professional look and feel this offers.
Instructors encouraged to fulfill potential
Continuous improvement is maintained with an annual formal assessment backed up with random ‘drop-ins’ by Don to classes, to evaluate how Instructors can improve. A key area for motivation and improvement is Don’s emphasis on attending each quarterly workshop. Every 3 months Instructors and a select number of very keen members, head off to the quarterly workshop 30 km away. To make it even more fun, they stop on the way, have breakfast together and have a few wines on the way back. By bringing a social aspect to this training event, the Instructor team has even greater buy-in to attending each quarterly workshop and being able to offer better and better class experiences.
Four years on from bringing Les Mills to AMI, Don can’t wait to see the growth delivered by bringing RPM™ to members. May the race begin….
AMI Fitness and Health Centre is a community owned facility in Rangiora, New Zealand with 5 Les Mills programmes
Phillip says…..
This is a great turnaround story. Due to Don’s leadership AMI had a clear path to changing the destiny of GF in the facility, transforming it from an underperforming service to a vital competitive advantage.
Don demonstrates key attributes of it what it takes to be a top GF Manager as noted in Key Element 8 of the GF Management System, “Hire or Be a Great GF Manager”. As a part-time leader he empowers his Instructors to take responsibility for the success of their classes and the results speak for themselves. His approach to both attendance growth and timetable design illustrate the learnings of Key Element 2, “Maximise your Timetable” and Key Element 6, “Create a GF Marketing Plan”. It will be great to hear about the next raft of successes, once RPM™ is embedded at AMI.