STRATEGY IS DYING 2 Mags Govender MD of GO Health Club Group - PowerPoint PPT Presentation

1 A BRIEF DISCUSSION INTO THE IMPORTANCE OF SALES AND MARKETING IN YOUR BUSINESS, YOUR SALES WITHOUT COMING ACROSS AS A SALES DRIVEN BUSINESS STRATEGY IS DYING

2 Mags Govender MD of GO Health Club Group Experience in developing Sales, Marketing and Operational strategies Career History: Qualified and practiced as a Jnr Architect Salesperson / Club manager with Sharper Image Partnership in gym group – Players Gyms – KZN Salesperson / Manager – Health and Racquet group Head of Sales – Virgin Active SA Owner ladies only club – Ladyfit Owner advertising agency – Creative Inc Partner- Quickfire Kickboxing Partner- Lighterbeing Executive Roles-Telecoms and Recruitment

3 AGENDA • History of gyms • Current fitness industry stats and reasons to choose fitness as a business • Market needs and wants • History of gym sales and current challenges • Current market trends and the impact on selling • Adapting a sales and marketing strategy to match • Summary

4 The word 'gymnasium' originated from the Greek word “ gymnos ,” which translates to naked. Gyms at that time were usually a place for the education of young men (it will be a while until we get to women in the In the gym), which included physical education along with educational pursuits along with beginning… bathing. The ancient Greek's designed these public gymnasiums for athletes to train for open games such as the Olympics. Fitness and care of body was part of the overall philosophy of the ancient Greeks along with education.

5 The first commercial gym is typically credited to French gymnast and vaudeville-strongman Hippolyte Triat. He opened his first club in Brussels and then added a second in Paris in the late 1840s. The French Founded in 1844 in London England, The YMCA would eventually lead the Connection way for fitness for many men At the end of the 19th century, another gym was established by an entrepreneurial strongman Eugene Sandow. In 1939, fitness legend Jack LaLanne opened what is believed to be the first U.S. health club in Oakland, Calif.

6 The birth of Gold’s Gym in Venice, Calif. in 1965 signalled the beginning of the rise of a new big-box concept for health and fitness that could, and would be recreated to open the doors to the masses. Joe Gold followed his success with Gold’s Where there's gym by founding the World Gym chain in 1977 Gold… The adrenaline-and-big-hair-fueled 80s gave rise to an increasing number of gym chains including 24 Hour Fitness (1983) and LA Fitness (1984), as Jack LaLanne’s European Health Spas topped more than 200, before licensing them to Bally Company.

7 The mega-chains continue to this day, but as with many things, today’s consumers are looking for a more personal and intimate experience. Smaller owner run health clubs, personal training, and mind-body studios along with specialty exercise facilities that cater to more of the personal touch have There's space began opening. Today, women make up more than half of for everyone the gym-going population. The success of Jane Fonda’s exercise video drove many women through the doors of these clubs to lift light weights and do aerobic dance classes. The evolution of exercise resulting in this proportion growing steadily.

8 Fitness Dollars 162 million gym members globally 200 000 gym $83 billion dollars facilities globally revenue annually Supplement Fitness apps Apparal and retail industry and wearable technology SA- 700 gym SA- R12 billion rands facilities annually SA-1,2 million gym members

9 20% 10% SO ITS REALLY ABOUT HOW MUCH OF THE PIE YOU WANT 30% 40%

10 THE FUTURE OF FITNESS Based on current stats the future of the fitness industry looks assured. Are you ready to to address the needs and want of the market 02 03 01 Market Need Market Need Market Need As lifestyle diseases continue As millennials increasingly Innovation and creating an to rise, the industry will play drive consumer spending, offering that is appealing to a an increasingly important role providing services that appeal broad number of clients. The in the health of global to their values will be crucial. range of services and But that doesn’t mean that populations. Fitness facilities play a significant role businesses that adapt to other generations should be in not only attracting meet this challenge should neglected at their expense. members but keeping them find security over the long- engaged in their personal term. fitness goals.

11 THE FUTURE OF FITNESS Based on current stats the future of the fitness industry looks assured. Are you ready to to address the needs and want of the market 05 06 04 Market Need Market Need Market Need Clients are seeking high More clients are seeking data Trends show clients are touch service offerings with and ability to offer them seeking holistic run facilities authentic engagement. As metric measurements. Be it with multi dimensional much as technology plays a through owned devices or offerings. Further to that massive part in the new elementary tracking systems clients are also seeking out generation of fitness clients are seeking feedback. specialized services and personalized service is also a This in turn leads to products that improve specific high demand competitive behaviour and needs. community building

12 The outlook of the health club industry is bright and promising. As leading economies Conclusion from continue to improve, the industry is expected to thrive in the global Statistics marketplace, serving consumers with a variety of health and fitness needs. Offering access to fitness amenities, instructors, trainers and coaches, club operators are well-positioned to lead a healthier world

13 The passion for helping people lead a healthy lifestyle drives many gym owners For the love of into the business. However, as with most entrepreneurs, they realize that the day-to- it day issues they face require time, money, and specialized business skills. Sales and Marketing being a primary skill that is desperately lacking.

14 What keeps you up at night 87% off business’s have no specific objectives in growth or revenue targets. Neither the owners, shareholders, nor staff, have clear targets of where and how to grow the business. Further to this they have no sales and marketing strategy on how to achieve any significant growth.

Strategy 15 Product / service Solutions Staff /Culture Insurance Education Retention Stuff youre not good at Vision / Mission Mentoring

16 Why sales matters? How sales is changing? How our buyers are changing? How we should be approaching sales for your business to create the best possible outcomes for your prospects? Creating a sales and marketing strategy and what elements should be included in it.

17 BUSINESS GROWTH If you want your business and revenue to grow, you have to focus on and build a well crafted sales and marketing strategy. Relevance of Sales and MARC CUBAN Marketing Sales is the most important aspect of your company, which in turn is about how well you treat your customers and stay ahead of Strategies your customers requirements. Its not just about bringing a new member through the door, its about what you do after that, what your relationship with them is like, what their experience is like, how do you keep them constantly delighted.

18 Radio stations, journalists all report on and mock the gym sales tactics and sign up A bad rap…. process. We are getting a bad reputation for our health club practices of salesmanship. People feel that they are being dupped, conned, sold too…. And they are taking to social media and other platforms to express their sentiments.

19 • High staff turnover • No relationships being built • Call centre agents deemed as pesky • Prospects feel they are being harassed The result…. at the shopping centres • People hardly take flyers at robots anymore • Trend of people not answering their phones from unknown numbers • Facebook and other marketing is becoming noisy and loud • We don’t see the marketing anymore • Tired of the marketing noise

20 WHAT CUSTOMERS WANT…. NOT!!!!!! +Second +First +Third They want sleeezy sales They want to feel like people who are just after the they’ve been sold to . They want to be harassed with commission phone calls and messages pressurizing them to buy

ELEMENTS OF A STRONG SALES 21 AND MARKETING STRATEGY Retention Effecient Marketing / PR Staff Selection,Training Processes and & Culture Systems Partnerships Effective Mission / Vision Raving Fans Communication Tools

22 People are walking into a health club facility to make perhaps one of the most important decisions of their life – whether or not to join a club and begin living the benefits of a regular exercise program In the new world of sales, you need to ask WELCOME the right questions, rather than the right sales pitch. Its about how well you can MESSAGE connect with your prospect. Its about the identity of your business, and making it purposeful. Buyer expectations are changing. People GOOGLE you first. They find out about you before making contact. Its about your online identity. You no longer make the first impression in person. You make they first impression online on social platforms. What does that profile talk about you.