Fitness Sector Defies Gravity – David Minton discusses the performance of the Fitness Industry

The impact of the ongoing recessionary pressures are reported in the 2011 FIA State of the Fitness Industry Report now published  and has been compiled through the only comprehensive annual review of the UK fitness industry. 
The performance of the fitness industry has defied gravity for many years and compared to some industries fitness has done it again, by producing, overall, yet another better than expected performance. The statistics confirm that the industry has maintained a position of overall growth since the financial crisis kicked in during 2008.
The combined private and public sectors total market value has been sustained at 2010 levels - £3.81 billion -with a small but anticipated drop in membership levels (0.3%) and only a small net loss of facilities, down from 5,885 to 5,852.  However since the start of the recession, in 2008, the fitness industry has grown its total market value by 4%, increased the member base by 2%, while the number of fitness facilities has grown by a further 1.7%. 
The fitness industry’s ‘flat’ performance this year compares well to other leisure sectors.  Visa’s Consumer Expenditure Index revealed a 5.1% reduction in spending in the first quarter of 2011 on Recreation and Culture, the third consecutive quarterly decline. 

Solid Performance from Public Sector

The strong performance for our industry has been driven by public sector operators who are to be congratulated on their solid efforts.  The public sector saw growth in all three of the key performance indicators: more sites open, up from 2,686 to 2,706; 2% growth in membership and an impressive growth in market value. Attractive and clever marketing is now packaging a wide range of the additional facilities traditionally seen at leisure centres within the gym membership. This can position the offering very well between the low-cost offering and the middle market, so an average monthly fee of around £30 is proving good value for almost 3 million people.

The devil, as always, is in the detail and the detail of the new 2011 FIA State of the Fitness Industry Report shows who are the winners and losers and the differing performances of the various market segments.  To order your copy click here.

Gym for Heroes Setting High Targets for 2011

Gym for Heroes will be challenging the public once again, to take part in UK’s largest physical activity based endurance contest, all in support of Help for Heroes.  In partnership for the first time this year with the Fitness Industry Association, the organisers have set the target of 1000 operators to take part between 9th to 22nd July.
Gym for Heroes is an endurance challenge which can take place in any gym or military facility. Participants can sign up individually, or in groups of 3-4. The challenge is either 3 hours or 12 hours and can include 3 pieces of any CV equipment or a swimming pool. New for 2011 is Junior Gym for Heroes, encouraging school children of all ages to take up the gym challenge and do their bit to raise funds and awareness for Help for Heroes.
Last year’s event was a massive success, attracting 1000 participants and raising £100k in support of Help for Heroes. From the pensioner who lost a family member in active combat, to soldiers on the front line in Afghanistan, participants stepped up to the plate for our wounded servicemen and women.
“Gym for Heroes is a wonderful example of people having a good idea, rallying support and having a great deal of fun while they raise money for a worthy cause. We hope this year’s event is even better and as many people as possible take part and raise some serious money for some very special people indeed." Bryn Parry OBE & Emma Parry OBE, Co-Founders of Help for Heroes
Gym for Heroes was created by Alan Haresign, an ex Army Officer who wanted to do his bit and raise awareness and funds for Help for Heroes on a national scale.
To sign up or for more information about this year’s Gym for Heroes event, visit www.gymforheroes.co.uk.

Attract New Swimmers and Increase Your Swimming Revenues with Splashpath – the new iPhone app & website

If you’ve not already registered your pool with Splashpath then do so today: Operator register.

Here are 7 great reasons why your pool should be fully promoted via Splashpath, the new web and mobile phone app which helps consumers find out where and when they can swim locally, connect with other swimmers and join in the fun swimming challenges to stay motivated.

Reason 1 - New Swimmers : Over 16,000 people have registered with Splashpath and 400 plus swimmers are registering each week!

Reason 2 – Stay Ahead : 95 operators are now using Splashpath to publish details of pools, their timetables and sessions.  Splashpath neatly synchronises with the pools’ own websites making updating session and timetable information seamless and easy. 

Reason 3 – The Big Picture : Be part of campaigns like the Big Splash promoted by the BBC and British Swimming using Splashpath technology and benefit from the national publicity.

Reason 4 – FREE Mobile Presence : Free promotion on this popular mobile platform! Apple have given Splashpath two ‘favourite’ accolades already.

Reason 5 - Social Media : Operators using Splashpath are reaching people who are searching online for swimming venues, times and activities.  With new features being added all the time, Splashpath is a great step into social media for operators.  One of the latest additions is the highly popular ‘post to Facebook’ feature.

Reason 6 – Fantastic Tools For Easy Updating : Splashpath also creates great looking timetables to print and to embed on operator’s websites plus a management tool to keep the information up-to-date easily.

Reason 7 – A Marketer’s Dream : Cathy Fletcher, Marketing Manager, Halo Leisure Services Ltd said, "Splashpath, is a marketer’s dream.  As any professional involved with promoting swimming timetables, pre-Splashpath, will tell you – it’s a nightmare! Sessions and timings are constantly changing, making printed literature out of date as soon as you produce it.  Embedding Splashpath into your organisation’s website allows the individual pools to update their information, meaning the customer always has access to live information. Swimming timetables are often difficult to read due to the amount of detail displayed, but with Splashpath information presented is very easy on the eye and customers can view aquatic activities on a day-by-day basis."

Register your pool here for Splashpath.

Chasing Commercial Opportunities in Sport and Leisure

– is the title of the new IMSPA seminar to be held on Thursday 16 June 2011 at the Middleton Arena, Manchester M24 1AG. Dr Paul Bedford of The Leisure Database Company will speak on ‘Cash cows and culture change – maintaining community responsibility whilst maximising
commercial opportunities’.  Paul’s presentation will discuss how setting the right culture for leisure centre operations will ensure the commercial success and community focus.

Other speakers include: Sean Holt, CEO, IMSPA, Rob Bailey, Principal Advisor, APSE and Chris Coleman and Craig Boniface from Link4Life.

The seminar will review:
• The future of the new single professional body for the sector in the UK
• Commercial management opportunities for catering facilities and franchise arrangements
• The power of organisational culture change on business growth
• Innovation in health and fitness activities in the sector

The seminar is open to both IMSPA members and non members at just £35!  And is ideal for Chief Executives, Heads of Services, Sports Facility, Duty and Development Managers, Policy Officers, Commercial Managers amongst others. 
For more details call IMSPA on 01509 226474.

Dr. Paul Bedford speaks about Customer Retention in Challenging Times

With consumers tightening their purse strings and seeking cheaper alternatives, one of the best ways for operators to maintain income is to focus on customer retention and the reduction of attrition.
Customer retention is probably the most effective insurance policy in an economic downturn. In fact, by building strong bonds with customers not only can businesses tide over economic difficulties, but also make the most of the good times.
Why is customer-retention so important? It’s the Lifetime Value of a customer. Every customer represents the potential for cumulative sales, long-term sales and new-customer referrals.
Remember that no matter how much your customers like you, they’re really buying the solutions you offer.  Your product or service must be of some benefit to them and make their lives easier and/or more enjoyable and potentially relieve some of their pain.
Businesses often don’t realise the gold mine of existing customers - a 1% increase in customer retention can generate a 7% increase in profits.
With the growth of budget gyms - now 1% of the total number of facilities in the UK and growing - traditional operators will need a strategy that justifies their current pricing and encourages customers to stay with them.

Customers leaving to try budget clubs might very well return to their former clubs, so the key action for both traditional and low cost operators is to develop customer relationships that really engage.

Engage through understanding who new and existing customers are then encourage people of similar demographic profile to walk in the door.  

1.    If some new customers are already walking in the door the operator can look at who they are, what they are like and where they are from. This will allow them to select ‘lookalikes’ for prospect campaigns.
2.    Understanding the new customer better enables strategies for retention to be developed. This might be as simple as adding new product offers or creating incentive barriers to keep them attracted to that operator.
Evidence from other industries has seen retailers like Tesco introduce a range of discount brands aimed at discouraging shoppers from going to value alternatives such as Lidl and Aldi; in the run-up to Christmas M&S held two one-day sales slashing prices in store by 20%; and Waitrose has recently started a direct mail drive to promote its latest in-store promotions.
Where facility management systems can identify individuals and purchasing behaviours
transactional analysis, is valuable.  This can be used to drive campaigns to recruit similar kinds of people and add additional service and products to further enhance the customer’s loyalty and lifetime value.
Additionally operators should keep in touch with lapsed customers throughout this difficult period in a bid to draw them back again when consumer confidence returns. So, both ends of the fitness market have their work cut out for them over the ensuing months as value and premium operators fight for customer share and aim to keep or win back customers when the recession is over.
Email Dr. Paul Bedford paul@theleisuredatabase.com or call 07956 311899.
Dr Paul Bedford will be speaking at IMSPA’s seminar on Thursday 16th June at the Middleton Arena, Manchester.