18. “The Purpose Of Business Is To Create
And Keep A Customer”
Peter Drucker
19. Tony Hsieh
pronounced“shay”
Its All About
Customer
Experience
Author & CEO
Friday March 18 - 8:30 - 9:30
Happiness A Path To Profits, Passion & Purpose
20. "We are massively
underestimating this culture
shift... We are in the era of the
humanization of business. We're
living by small town rules again."
Business Is
Changing
21. CONTEXT
CUSTOMER
trendwatching.com is one of the
world’s leading consumer trends
firm, relying on a global network
of hundreds of spotters. Our
trends, examples and insights are
delivered to 160,000 business
professionals in more than 180
countries
21
22. INTERESTING 2011
CONSUMER TRENDS
WWW.TRENDWATCHING.COM
When it comes to the mega trend
of GENERATION G (that's G for
Generosity, not Greed), there’s no
better way for a brand to put its
money where its mouth (or heart)
is than engaging in Random Acts
of Kindness (R.A.K.). Consumers'
cravings for realness, for the
human touch, ensure that
everything from brands randomly
picking up the tab to sending a
surprise gift will be one of the
most effective ways to connect
with (potential) customers in
2011.
22
23. INTERESTING 2011
CONSUMER TRENDS
WWW.TRENDWATCHING.COM
Urbanization remains one of the
absolute mega trends for the
coming decade. Here's just one
telling stat: “Today, half the
world’s population – 3 billion
people – lives in urban areas.
Close to 180,000 people move
into cities daily, adding roughly
60 million new urban dwellers
each year.” (Source: Intuit,
October 2010) 100 cities comprise
30% of the global economy. urban
consumers tend to be more daring,
more liberal, more tolerant, more
experienced, more prone to trying
out new products and services.
23
24. INTERESTING 2011
CONSUMER TRENDS
More consumers are constantly WWW.TRENDWATCHING.COM
connected, and when they hear
about new deals online can
quickly and easily spread them
through their social networks.
Increasingly, consumers will be
part of exclusive networks or
groups to either receive special
deals or demand them.
Mobile devices increasingly
enable consumers to find or
receive dynamic deals right at the
point of sale, or to compare prices
online. Case in point:
Amazon.com just released an
iPhone app that allows users to
compare prices by scanning the
product's barcode, photographing
it or saying its name.
24
25. INTERESTING 2011
Online culture still is the culture, and
CONSUMER TRENDS
WWW.TRENDWATCHING.COM
thus we'll see a rise in online status
symbols in the next 12 months (after
all, status symbols reflect the
zeitgeist like nothing else). What
started with showing off the number
of visitors to one's Flickr pages or
blog now also encompasses the
number of one's Facebook friends
(or any other social network),
Twitter followers, Foursquare check-
ins and a host of other metrics that
indicate one's 'wiredness'. In the
next 12 months, you can’t go wrong
supplying your (online-loving)
customers with any kind of symbol,
virtual or 'real world' that helps them
display to peers their online
contributions, interestingness,
creations or popularity.
25
26. INTERESTING 2011
CONSUMER TRENDS
WWW.TRENDWATCHING.COM
73% of US consumers consider being
physically fit important to being
‘well’(Source: The Hartman Group,
August 2010)
500 million people worldwide are
expected to be using mobile
healthcare applications by 2015.
(Source: Reasearch2Guidance,
November 2010)
There were nearly 17,000 health apps
available in major app stores in
November 2010, with 57% of them
being aimed at consumers rather than
health care professionals. (Source:
Reasearch2Guidance, November
2010)
26
27. INTERESTING 2011
CONSUMER TRENDS
WWW.TRENDWATCHING.COM
Expect a rise in ECO-SUPERIOR
products: products that are not
only eco-friendly, but superior to
polluting incumbents in every
possible way. Think a
combination of eco-friendly yet
superior functionality, superior
design, and/or superior savings.
27
28. INTERESTING 2011
*According to Jeff Jonas at IBM, CONSUMER TRENDS
mobile devices in the US are WWW.TRENDWATCHING.COM
creating approximately 600 billion
geo-spatially tagged 'transactions'
a day (that's every call and text,
not just web connected
smartphones!)
For consumers, knowing where
they are and what's / who's around
them is the key to PLANNED
SPONTANEITY. That's about to
get a whole lot easier, as geo-
location becomes a key feature of
social networks and web apps
(from existing providers adding
location information, such as
Facebook's Places, Twitter's
locator, and Google's Hotpot, to
dedicated services like
Foursquare, Gowalla and
Brightkite)
28
29. INTERESTING CONSUMER
TRENDS
WWW.TRENDWATCHING.COM
Traditional ownership implies a
certain level of responsibility,
cost and commitment. Consumers
looking for convenience and
collecting as many experiences as
possible want none of these
things.
Fractional ownership and leasing
lifestyle businesses offer the
possibility of perpetual upgrades
to the latest and greatest, the
ability to maximize the number
and variety of experiences, and
allow consumers to access
otherwise out-of-reach luxuries.
Owning bulky, irregularly used
items is both expensive and
unsustainable,
29
35. “The World Has Changed. Power Has
Shifted To The Customer. They Don’t
Tr u s t A d v e r t i s i n g . T h e y Wa n t
Authenticity. They Want Engagement.
T h e y Wa n t Va l u e . T h e y Wa n t
Connection.”
Bryan O’Rourke
37. Do YOU Believe This ?
“The Purpose Of Business Is To Create
And Keep A Customer”
Peter Drucker
38. what is
DRIVING
consumer
change ?
5 Important
Technology Trends
For 2011
for more visit www.bryankorourke.com
38
39. “If GM had kept up with technology like
the computer industry has, we would all
be driving $25 cars that got 1000 MPG”
Bill Gates
40. 1 INTERESTING 2011
TECHNOLOGY TRENDS
WWW.BRYANKOROURKE.COM
CLOUD more computing power
software as a service
COMPUTING
greater functionality
better ROI
less costly
40
42. INTERESTING 2011
2 TECHNOLOGY TRENDS
WWW.BRYANKOROURKE.COM
whenever wherever
location based
functional
social
MOBILITY
42
43. 3 INTERESTING 2011
TECHNOLOGY TRENDS
WWW.BRYANKOROURKE.COM
SOCIALIZATION
1) Era of Social Relationships
2) Era of Social Functionality
3) Era of Social Colonization
OF THE WEB 4) Era of Social Context
5) Era of Social Commerce
43
44. 4 INTERESTING 2011
TECHNOLOGY TRENDS
WWW.BRYANKOROURKE.COM
APPS
new functionality
highly specialized
inexpensive
fun
44
45. 5
4 INTERESTING 2011
TECHNOLOGY TRENDS
WWW.BRYANKOROURKE.COM
digitization of all experience
virtual shadow of physical
CONTENT
smaller more frequent
growing the pie
CONSUMPTION
45
46. “Organizations Must Accept A New
Paradigm; One Based On Collaboration
With Their Employees And Customers.
You Must Either Embrace This New
Approach Or Become Irrelevant. ”
Bryan O’Rourke
55. CONTEXT:
THE RIGHT
NUMBERS
Billy Beane, general manager
of MLB's Oakland A's and
protagonist of Michael
Lewis's Moneyball, had a
problem: how to win in the
Major Leagues with a
budget that's smaller than
that of nearly every other
team.
55
58. What Do YOU Think Is The
#1 Challenge For Health
Clubs Today ?
THE KPI
59. THE KPI
Attrition & Engagement
• Attrition: Nearly 10.5 million people
joined a health club in the U.S. in
2009, while 10.7 million dropped their
memberships, producing a “churn” or
attrition rate of 24%.
• Core members: “Core” users
remain members of their club for
approximately 21.5 months longer
than casual users. Assuming average
monthly dues of $41.47, converting
one member to a “core” user would
therefore generate nearly $900 in
extra revenues.
59
61. HOW MANY OF US THINK ABOUT
ATTRITION-RETENTION IS WRONG
1. The attrition percentage is heavily
influenced by the number of membership
sales. Between June and July the attrition
% fell (from 5.0% to 4.9%), yet the
number of cancellations increased (from
126 to 129)! It is clear in this example
that the reduction in attrition was caused
by a large amount of new joiners in June
and not by any improvement in the
retention of existing members.
2. The attrition percentage does not take
into account HOW LONG A MEMBER
HAS BEEN RETAINED. It is possible to
see huge variances in the membership
duration of each member that cancels.
THE KPI
61
62. HOW MOST OF US THINK ABOUT
ATTRITION-RETENTION IS WRONG
In order to understand how to improve
retention operators need to measure:
1. THE RETENTION RATE defined as:
The proportion of members who stay for
a predefined period of time e.g. 3, 6, 12
months etc.
2. LIFETIME VALUE defined as:
The average length of time members stay
and therefore how much they pay in
membership fees.
THE KPI
62
63. all members are NOT
the same
Segmentation - changes how we manage
market and engage members
63
64. THE KPI
The Health Club Business
Know your customers and analyze
the right numbers.
1. Retain Members By Making Them Happy
2. Intelligently Manage Costs
64
67. What Billy Beane, knew about baseball we know about
the health club business.
67
THE KPI
68. Dr. Paul Bedford
Working with the UK YMCA in 2006- 2007 and as part of his PhD.
research, Dr. Paul Bedford applied his behavioural change strategies at
the Central YMCA . With resulting increases in average membership
length from 7 months to 13 months, and reduction in cancellations
from an average of 77 per 1,000 members per month to 23 per
1,000 per month.
4:00 pm Wednesday March 16, 2011
Talk’s Cheap - Applying The Psychology Of
Persuasion And Influence In Sales
68
74. “What Are Or Is Your Club’s
Technology Platform(s) ?”
remember the “cloud”,
intelligently managing costs
and consumer trends?
75. “What Are Or Is Your Club’s
Technology Platform(s) ?”
can you.....
segment member types and behaviors ?
engage via email, text and social networks ?
engage by member types and behaviors ?
deliver customized web content to users ?
provide on line bookings and memberships ?
you need to ...
76. Upgrade Your Website - Online Membership
Make it social
enable on line registration
customize user content
77. Create A Mobile Application
Make it social
customize user content
location services
78. Mobile And RFID Technologies Emerging
better data modeling
micro transactions - membership tracking
enables unbundling of memberships
79. Rick Stollymeyer 2:00 pm Wednesday March 16, 2011
The Future Is Technology
Get Your Club Connected
80. “Do You Understand Why
Members Are Coming And
Going ?”
remember consumer trends
and retention challenge?
81. “Why Are Different Members
Coming and Going?”
are you.....
tracking RELEVANT data around joins and cancels ?
looking at the “life cycle” of your membership ?
creating a predictor model ?
engaging members around the model ?
you need to ...
82. Aspirations Mapping
Where
Member
Segmentation,
Programming
& Engagement
Align
85. “How & Where Are You
Investing Your Marketing?”
remember engagement and
intelligently managing costs ?
86. “How And Where Are You
Investing Your Marketing?”
are you.....
shifting funds away from traditional media ?
trying to make digital engagement work ?
tracking ROI of campaigns ?
sharing targeted and relevant engaging content ?
you need to ...
88. Mike Bannan 4:00 pm Wednesday March 16, 2011
Growing Membership With Yelp, Google Places &
IDEA Fitness Connect
Steve Groves 11 am Wednesday March 16, 2011
Release Your Inner Geek: Social Media For Fitness Professionals