Yesterday I presented at the UK Fitness Directors Summit, hosted by Lifetime Training. These slides present my thoughts around the current state of the fitness industry with best case scenarios; where we at Wexer believe its heading, how people are using digital based off our research, and finally my advice for creating a digital strategy.
3. NE W
OPPORTUNITIES
TO INCREASE
RETENTION:
Increase upselling
opportunities
Offer members an
incentive to stay
Support members inside &
outside the gym
INCREASE REVENUE
Wearables
Tracking
Streaming
Online exercise programs
THE FOUR WALLS
ARE UNDER
ATTACK:
4. WHAT WE BELIEVE:
THE FUTURE:
Purely brick and
mortar
Brick and
mortar with a
digital extension
Purely digital
5. WE ALSO BELIEVE:
Service will be more individualised through digital Interaction
Fitness will be more social (again)
Gyms must be relevant outside of their 4 walls 24h a day
Technology will intensify and change competition by
enabling different service models
8. But, how do you know your members are making progress?
9. THE BIGGEST UNMET NEED IS SUPPORT
Give me feedback on
my fitness
performance
Give me workouts
designed for me
Flexible membership
that works for me
DRIVERS OF CANCELLATION:
10. MEMBER SEGMENTATION: THE CURRENT LANDSCAPE
Virtual training
Eliminates intimidation for these
members
Beginner classes
Bridging the gap between at home
fitness and in club experiences
Wexer App
Live streaming
Workout Builder
Planner, Tracking & Metrics
Instructional videos
Wexer App:
Live streaming
Flexible training times
Workout Builder
800 exercises in app
New workout feed
Virtual training:
Virtual variety
Enhancing live experience
Wexer App
Live streaming
Create your workout
Leader boards, Challenges, Planner
Social sharing
Tracking and metrics
Virtual training
Habitual exercise routines through
scheduled classes
Choose the intensity
Flexibility when live classes arent
convenient for their schedule.
12. DEMOGRAPHICS & SURVEY FINDINGS
More than 30% of digital users are millennials and
this segment is growing year on year
71% of digital users are women, opposed
To 29% male. There has been an increase in male users
since 2014.
Attendance of virtual classes has more than doubled in
the last year
18. DIGITAL WHERE IT IS HEADING
Monetizing the system through
advertising revenue
Delivering content throughout the
club
I.E. Gym floor
Enhancing your current programming
and being a first mover with industry
trends
Delivering content outside the 4
walls
(skinable streaming)
22. @Paul_B_Bowman
Wexer
1. Review your customer journey
critically
2. Evaluate where and how you
should use technology
3. Focus on relevance and
customer experience: 24/7 in
& outside the gym
4. Test small and fast: include
existing members and potential
members
5. Use existing solutions: fully or
in parts
MY ADVICE:
#3: 1. Background
2. I understand the operation issues you face day to day and that is one of the big reasons why I moved in digital to solve the ongoing demands from your members
#4: The progression in technology in other industries is staggering Magic leap is a company with a mission to get rid of the cell phone and turn our world into augmented reality
The rate of innovation other the last 5 years has been amazing - We need to ask ourselves how this will impact our industry and how we embrace it as an opportunity or a threat TAKEAWAY No 2
#5: 1. None of these business have bricks and mortar but control industry as they have ability to reach mass markets
2. Imagine if class pass offered live streaming through their platform how would this effect the bricks and morta business
#7: None of these business have bricks and mortar but control industry
#8: Break down the barriers
Imagine alerts to your phone saying classes will start in 5 minutes
Ensuring you are consistently engaging with your customers 24/7
Operators are breaking down service components to offer a better member journey TAKEAWAY NO 1 Customer Journey
#9: Well talk you through the clubs experience and journey with integrating digital into their member journey
Framing: We set out to research how digital can best serve member journey. We research digital fitness members i.e. people working out on apps and current members
#10: 1.Example of how gyms have become to technical Members to have clear outcome to programme that they can understand and measure (Weight lose programme)
2. Operators need to be the aggregator of programming
Today, fitness technology mostly focuses the measurement of output rather than focusing on whats important; the measurement of outcome.
Output is what we track - calories, distance, visits, time, speed etc. The quantified self/
Outcome however, is how we feel and the benefits it provides us in life. How has this helped me. Do I feel better, how am I perceive by others, do I belong..
#11: Mirrors are not the answer we need to provide better platforms and metrics for members to understand their results.
I am sure you can all think of digital platforms that you use in your everyday life (Fitbit etc)
How do members currently track progress
In the end, outcome is something people want to feel and see.
Although not consciously recorded, sub consciously the mirror tracks our self-esteem.
Being fit helps us to feel a belonging to a group of the fitness and health community; the winners, the beautiful, the determined, the people who make progress as opposed to those people who dont or dont want to.
#13: We wanted to understand what our technological platforms gave the different segments
6 behavioural segments
But broadly broken down to two different categories
The gym daunted - low confidence
The gym bold - high confidence
It is likely that these two broad persona types are formed by an awareness of each other
The confidence seekers
Dont feel that they belong in the world of fitness
See exercise as a chore and admit they dont work hard at it
Feel intimidated and consider themselves to be unfit
The learners
Have specific goals and keen to track their progress via technology
Do see exercise as a chore so are most likely to show interest in using a PT
Are unhappy with their body shape
The neutrals
Going to the gym tends to be a low priority
Know that exercising does make them feel better
Dont use apps or other monitoring technologies
The free spirits
Exercise is all about feeling good & enjoying a variety of activities
Happy exercising & with their body shape
Do not track or set goals at all and do not use technology to monitor progress
The achievers
Belong in the world of fitness, its their world - their gym is their home from home and working out is nevera chore!
Like tracking their achievements & goals using technology
Very happy with their body shape their motivation is their wellbeing
The focused
Motivated to exercise and consider they belong in the world of fitness
Dont track any goals or use technology because I know what Im doing works
Main reason for using gym is to lose weight and improve my appearance
Core Group
Defined - members who want to see progress over time
Easier to retain
Fits with our proposition
61% of all global gym considers or gym goers fit one of the core groups
Core group is less expensive to maintain and recruit
#15: Millennials now expect digitial experiences in the club
#18: Data is King and through technology you can better understand and serve different segments as you understand what
Example,
We can see what is the most popular piece of equipment in peak times
Also we know if we send workouts to members with the treadmill as the first exercise people are 22% more likely to do the workout. Add new equipment example
#19: The app becomes a major part of your marketing and communications strategy and becomes a lead generator TAKEAWAY 3 (CUSTOMER EXPERINCIE and its relevance)
Prove the value to members before going to the physical locations
Build specific member profiles and identify similar profiles via social platforms
Custom marketing to engage target profiles online
#22: Example: Your equipment will communicate and give members more individualised experiences
#23: Relates to the speakings before and mention Operators need to choose where you want to be on the innovation model
#24: Now you know where you want to be in the adoption of innovation you need to create your digital ecosystem