Community

 

Group Fit Profit

Cost per head halved while the number of Group Fit classes doubled in 2 years

As the newly appointed Regional Group Fitness Director in February 2004, Helen Healey gave herself a couple of months to establish the status quo at Goodlife Health Clubs (‘GL’).  She spotted that Morningside club was averaging only 10 attendances per class, which was less than 30% of capacity usage in its 22 classes per week.  Also, unlike the other 3 clubs in this privately owned chain, the timetable offered 100% freestyle classes.  Helen knew it was time to make some changes. 

A turn-around in a tough environment

Two years later GL Morningside offers 45 classes per week and has a timetable mix of 65% Les Mills programmes and 35% freestyle classes.  The club’s 15 Instructors attract 30% of total club attendances into their main GF studio and RPM room.  Today, average capacity usage of the studios stands at circa 67% causing cost per head to have decreased by circa 50%.  This remarkable turn around occurred in a highly competitive environment, with major chains operating at similar membership prices of circa AUD 850 per annum, which also offered Les Mills classes.  Add to that, GL Morningside had to compete to attract Instructors to teach in the club, as there was, and still is, a shortage of Instructors in the area. 

  • 2.5 years ago GF was in decline
  • 100% freestyle timetable
  • Classes at < 30% capacity usage with 10 attendees
  • Pre- choreography introduced 2 years ago 
  • Successful freestyle classes maintained
  • Instructors guaranteed work if they retrained
  • Very competitive local environment
  • GF now provides > 30% of attendances
  • 2,500 members
  • Part of privately owned chain of 9 sites
  • Savvy promotional tactics
  • Sales team fully informed about GF

Initially, the biggest challenge was changing the culture among members and Instructors to welcome pre-choreography, in addition to freestyle group exercise classes.  While less than 10% of members were using the GF facilities in February 2004, Helen wanted to get them on board with the change. 

Beginning the culture change

First she had to explain to the Instructors what was going to happen.  Helen used her attendance numbers to explain that GL Morningside had to transform GF’s performance.  To that end, she announced that the club would introduce Les Mills programmes, which would co-exist alongside well-attended freestyle classes.  Helen also made it clear that, with the goal of getting as many people in the GF rooms as possible, underperforming freestyle classes would be deleted from the timetable. 

While this was a big shock, GL Morningside also made the commitment that if Instructors certified with Les Mills they were certain of having work at GL Morningside.  So Helen encouraged them to attend Les Mills classes at other GL clubs, gave them DVD’s to watch of the different programmes and highlighted that having Les Mills certification in the area would give them more career choices to enhance their freestyle options.

The result was that of 10 freestyle Instructors, 6 chose to ‘convert’ to pre-choreography, while 4 remained as very successful freestyle Instructors, who continue to work within GL.  Since then a further 5 Instructors have come on board to deliver the growing number of Les Mills classes offered to members.
 

Getting the members behind the change to pre-choreography

The second task was to inspire the members to accept major timetable changes. So Helen wrote to members noting that GL wanted to improve Group Fitness with a major re-programming initiative and invited members to a “Super Sampler” on a Saturday.  At the Super Sampler, they could check out the programmes, give feedback to GL staff verbally or in writing and enjoy some free food and drink in a fun, informal atmosphere. 

Involving members in this way proved extremely successful, so that the new timetable was trialed for one month and by July 2004 was already fully accepted.  The change in attendances was dramatic.  For example, BODYSTEP® jumped from an average attendance of 5 people before the new timetable was introduced, to a minimum of 30 people on Monday evening in the 5.30pm class!   

GL continues to use their success in communicating with members to help maximize attendances across their timetable.  Any classes that have less than 10 attendances come quickly to Helen’s attention. Members are notified on the GF notice board if a class is struggling.  Instructors are encouraged to take ownership of classes and helped by Helen and the local GF Co-ordinator, with ideas to grow members e.g. handing out free passes, inviting people to class off the cardio floor, ringing up sporadic attendees to boost numbers.  If a class is still struggling 4-6 weeks on, the class is deleted from the timetable.

Regular promotional strategies to drive attendance

GL Morningside excites interest in GF consistently using varied promotional tactics.  Every quarter, each of the 4 Les Mills programmes is relaunched to existing members.  Prizes and ‘goody bags’ are free to the club, as local business offer products to give to relaunch attendees such as drinks, food, clothes etc. 

The club also operates a very popular “Fit Track” competition.  Each visit to the club earns 100 points and members’ names are placed on a Fit Track board in the club to see who has the most points.  Every second week a specific GF programme is promoted for members to attend as part of the Fit Track system.  Prizes are awarded at 2,500, 5,000 and 10,000 points.  Members really go for it and celebrate when the winners receive their prizes which range from travel to branded clothing and nutrition packs.

Once a year GL Morningside runs a GF promotion in their quieter season – winter – where they give members 1 month to do 20 classes to be eligible to enter a competition.  Members can complete as many cards as they want.  Every card of 20 attendances enters them into a draw for a trip for two for a weekend to a resort either on the busy Gold or more relaxed Sunshine Coast. 

Helen also recognized it was critical that sales understood what GF had to offer members.  So she presents to all new sales people and each sales person must attend a minimum of one of each GF class in the first month of employment.  Sales staff are always aware of what GF promotions are coming up, which helps them with securing new membership targets.  Overall, building awareness of GF outside the studios has proved very effective.

Keeping Instructors happy

In an environment where Instructors can pick and choose where they want to work, GL has been very successful in keeping part-time Instructors loyal and committed.  In addition to be well paid, Instructors particularly enjoy the Instructor award, which occurs as and when someone deserves recognition.  The winner is presented with a certificate and a prize, which can be anything from a music voucher, having a workshop paid for or sports clothing.  This recognition of Instructor contribution helps Instructors feel they are part of a cohesive team.  Assessments occur formally once per annum for established Instructors and every 6 months for less experienced team members.  Instructors welcome assessments as the team sees them as a critical tool to achieve their potential to deliver life-changing experiences every time they teach.

GL’s overall growth is testament to their success in successful club management techniques.  In February 2004 the private chain had 4 clubs; 2.5 years later it has 9 facilities in the area and expects to expand inter-state by the end of the year.  Each new club has GF as a critical success factor to help drive growth and profits.  We wish you every success with your continued expansion!

Goodlife is a privately owned chain of clubs in Brisbane, Australia and had 5 Les Mills programmes

Phillip says….

Full credit is due to Helen for taking on a big challenge of effecting a culture change in the club, so that pre-choreography and freestyle work effectively side-by-side.  With Helen’s willingness to handle the communication with members so convincingly and her commitment to giving work to re-trained incumbent Instructors, she created a powerful formula to re-build GF’s fortunes with the Morningside.

This case study illustrates the vision and flexibility required by successful GF Managers, as explored in Key Element 8 of the Group Fitness Management System, “Be or Hire a Great GF Manager”.  Helen’s ability to recruit and retain a strong Instructor team in a competitive environment highlights the need for Instructors to feel like they are playing on an A-team, where continuous improvement is welcomed.  These strategies for Instructor management are noted as critical in Key Elements 3 and 4 of the Group Fitness Management System, “Recruit World Class Instructors and Keep Them” and “Organise Great Instructor Training.”  Top work from a top GF Manager – well done.

Published Friday, September 01, 2006 9:49 PM by lesmills
Filed under:
Anonymous comments are disabled