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In 2003 Liikuntakeskus Hukka (Hukka) was an old fashioned, family owned, tennis and squash facility with a small weight room in Oulu, Finland.  90 % of members were men and the business had a turnover of € 600,000 and was in decline. Yet in December 2006, Hukka has1,300 members, revenues of € 1.2 million, 5 GF studios, retention* of 87% and a gender mix of 50% men and 50% women.

The transformation began when Hukka’s owner, Johanna Riihijäarvi, visited one of the leading fitness clubs in Finland during 2003 – Wasa.  There she met consultant Jalle Söderlund. “It was a real eye opener for me,” says Johanna. “I understood what a modern fitness club was all about, and what the potential was.”

Having witnessed the huge impact of GF on club success at Wasa, Johanna knew group exercise would be a vital factor in changing Hukka’s fortunes.  Aiming to build GF as a source of social energy and a competitive advantage, she committed to building studios “where people want to spend time”.  Johanna expands, “we just don’t compete with other sport activities, we compete with all other leisure activities.” Today Hukka enjoys 27% of its weekly 4,500 visits from GF, with only 9% of the facility floor area dedicated to group exercise in this 10,000m2 (107,500 ft2), multi-use facility. Overall member interaction is extraordinary with average weekly visits of 3.46 times, which far exceeds IHRSA’s average weekly member attendances of 1.75 times!

The keys to Hukka’s GF success

Johanna says the main drivers to their GF success today are friendly, motivated instructors and beautiful, clean and well-maintained studios. Their focus on excellent GF experiences has helped them to grow rapidly and successfully compete with other clubs in the area, despite their ‘top end’ membership fees of  € 700 per year.  Competitors range in size and pricing and offer annual membership fees from € 350 - € 700.   

 “We don’t do discounts”. And it’s interesting that Hukka hardly advertises. “Our members bring their friends. Most of our sales come through word of mouth,” Johanna states.

Investing in GF studios
 
Investing €120 000 during 7 months, Hukka transformed a number of squash courts into five GF studios offering 63 classes per week. Two studios are for women only (one multiuse and one for elliptical GF classes), a dedicated cycling studio with 60 bikes, a Mind Body room and lastly, a main GF studio for BODYPUMP™, BODYJAM™, BODYCOMBAT™ and freestyle classes.  “We hired an interior designer recommended by our consultant, Jalle Söderlund. A big focus was on lighting and creating a great atmosphere. Colors were coordinated throughout the studios and harmonized in warm orange, yellow and brown.”

Sound system is a vital investment

Johanna believes great sound is critical to a superb GF experience. Consequently 16% of the total studio budget (€20 000), was invested in the sound system.  “We appointed a local stereo company who optimized the system for each one of the studios. Music is so important for motivation; it helps you enjoy the class and gives you energy. The company made sure the sound levels was the same no matter where you where located in the room, avoiding the inconsistency and inconvenience of volume being too high or low.” 

Attention to functional and experiential priorities

Committed to “exertainment” two big side screens were set up permanently either side of the stage in the largest studio - “Big Hukka.” The screens display the instructor so the participants get the feeling of being at a rock concert. Not to mention the disco bulbs in the ceiling!

In the cycle room, they have also enhanced member experience by projecting inspirational scenery from New Zealand onto wall mounted screens which was recorded by one of their instructors when she was travelling.

Ventilation was another area Johanna managed carefully. Their ventilation system measures carbon dioxide precisely and pushes more oxygen through as required.  It’s effective because it works studio-by-studio and also adjusts to minimum levels when there are no classes.

Storage systems are placed in the back of the studios so they look organized and clean at all times. Entrances are at the back or on one side, so that people can “sneak” into class if they are a little late!
 
Maintenance is well managed with a 24-hour policy in place to fix any problems in the studios. And Hukka has contingency plans in place to make sure classes always run to schedule eg there is an extra sound system in all studios!

Instructors feel valued

Hukka’s investment in state-of-the-art studios attracted both members and instructors. CVs poured in according to Johanna, despite Oulu being a competitive environment for hiring teachers. When she looks for staff and instructors in particular, she prioritizes people who are social and like to interact with others. “We want to be our members’ friends” Johanna explains.

“We provide instructors with the best possible equipment to help them be great. Another upside is that when they have the best possible working environment, they feel valued, and stay motivated.”  It’s noteworthy that the instructor team is very loyal, despite Hukka paying instructors marginally below market average, offering € 20 - € 25 per class.

Hukka also motivates instructors with more than money. For example, Hukka paid the trip and attendance fee for 15 instructors to go to a recent Les Mills’ Super Saturday convention in Stockholm, Sweden, which is 2000 km (1,250 miles) from Oulu. And each week the instructors receive an email newsletter outlining what is going on in the club so that they feel connected and involved.

Booking system helps to build relationships and track performance

Hukka’s booking and counting system helps instructors get to know their attendees.  When members come to the front desk, they swipe their membership card and get a ticket for the class they want to attend. The instructor collects the ticket and greets all the participants. The ticket also states the members’ name, so the instructors gradually learn participants’ names. Additionally, the booking system provides Johanna and Sirpa Antikainen, Hukka’s full time GF Manager with all the class numbers they need to see trends and to make timetable decisions. They also use the information to follow up on members if their attendance drops!

Helping new members get the most out of GF

Sirpa organizes the timetable, leads the team of instructors and teaches 6-8 classes per week. She also runs the introductory classes for new members interested in GF. “We want the thresholds to be low for new members and so schedule a number of beginner classes at peak hours” Johanna explains. Hukka also has a special ‘beginners course’ where a group meets Sirpa twice per week during one month to guide them through the classes they want to try.  This ensures they really enjoy full classes from their first experience and has proved very effective in creating participants who are GF fanatics.

Today Hukka has 1,200 GF visits per week and Johanna and Sirpa believe they are well on their way to reaching their goal of being a top GF club in Finland. Turn it up!

Liikuntakeskus Hukka is a privately owned facility in Oulu, Finland and has 5 Les Mills programs

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

Phillip says…

I applaud Johanna’s commitment to investing in her studios to help attract members to Hukka.  It is great that her willingness to refurbish her facility and transform her business has paid off, with revenues doubling in less than 2 years.  Her vision has created a business with retention* levels which are truly impressive at 87% while competing at the top end of the pricing market.  Her example as an independent owner operator is inspirational.

Johanna’s success in making her studio ‘a destination’ with attention to both functional and experience enhancing design factors, shows Johanna to be very skilled at Key Element 5 of the Group Fitness Management System – “Develop The Best Studio You Can Afford.” The benefits for this have been substantial with instructors being more easily sourced in a competitive market and members coming to work out for a world-class average of 3.46 time per week.  Congratulations!