2014 u.s. health club technology survey report

Are Clubs Adopting New Technologies ?

2014 US Health Club Technology Survey Report14 Questions On Key Trends

Fitness Industry Technology Council 2014 | www.fittechcouncil.org

2014 US Health Club Technology Survey Report

Greetings,

Thanks for reviewing the 2014 U.S. Health Club Technology Survey Report. The Fitness Industry Technology Council, with the help of Michael Scudder’s Fitness Business Council, and promotional support from IHRSA, received survey responses from 746 U.S. based health clubs that addressed key questions on the adoption of technology. From how health clubs are leveraging mobile trends to the adoption of social media marketing and more, you’ll find some interesting details inside.

Technology is revolutionizing health and fitness. A variety of technologies are enabling ways of doing things that a few years ago were impossible. However costs are impeding wider adoption and many technologies in clubs are not interoperable. Therefore big opportunities exist for the future.

We wish to thank the many leading industry participants who are part of the fitness industry technology council and ask you to join us. We are entering a new era. The industry must prepare for the implications of these new technologies and work towards standards that enable us to be a larger part of this transformative period where primary prevention becomes increasingly relevant.

Wishing you a wonderful 2014.

BRYAN K. O’ROURKE, Presidentwww.fittechcouncil.org

2US Health Club Technology Survey | January 2014 | Fitness Industry Technology Council | www.fittechcouncil.org


Survey RecapDeployment Dates: November 13-27, 2013 | Total Facilities Responded: 746Respondent Make Up: 89% Were Owners, Partners Or General ManagersRespondents By Monthly Membership Fees:$100+ : 15% | $75 - $99 : 18% | $50 - $74 : 10% | $30 - $49 : 31% | Under $30 : 26%

Survey Questions1. Is your web site configured for mobile devices ?2. Are you buying ads that display on smartphones ?3. What are your primary methods of advertising ?4. Can consumers join your club onlne ?5. Can members access their account online ?6. Does your club have a Facebook page ?7. Does your club purchase Facebook ads ?8. Does your club use Google+ ?9. Does your club use Linkedin ?10. Does your club use Twitter ?11. Does your club’s leader use Twitter ?12. Does your club have a mobile app ?13. Does your club have interactive smartphone capabilities ?14. Is cost a barrier to technology use in your club ?

US Health Club Technology Survey | January 2014 | Fitness Industry Technology Council | www.fittechcouncil.org 3


US Health Club Technology Survey | January 2014 | Fitness Industry Technology Council | www.fittechcouncil.org

The Fitness Industry Technology Council is a group of professionals representing leading organizations in the fitness industry. The council seeks to grow the industry, improve user experience and mature the collection of real-time wellness data through the creation of interoperability standards for equipment and devices. Thanks go to our partners for their contributions. Please join us today www.fittechcouncil.org - Bryan O’Rourke, CEO

4

Please join us. We need your voice and your c o n t r i b u t i o n s . A s a 501.3(c) our annual dues are very affordable and our work will help create a bright future for the industry.

Thank you

Fitness Industry Technology Council January 2014 U.S. Health Club Industry Technology Survey

IS YOUR CLUB’S WEB SITE MOBILE-DEVICE CONFIGURED?

DOES YOUR CLUB BUY ADS THAT DISPLAY ON SMART PHONES?

Yes 26% Yes 15% Yes 23% Yes 12% Yes 30%

100+:$75-$99:$50-$74: $30-$49: Under $30:

100+:$75-$99:$50-$74: $30-$49: Under $30:

100+:$75-$99:$50-$74: $30-$49: Under $30:

100+:$75-$99:$50-$74: $30-$49: Under $30:

100+:$75-$99:$50-$74: $30-$49: Under $30:

100+:$75-$99:$50-$74: $30-$49: Under $30:

100+:$75-$99:$50-$74: $30-$49: Under $30:






CAN MEMBERS ACCESS THEIR“ACCOUNTS” ONLINE?

CAN CONSUMERS JOIN YOUR FACILITY ONLINE?

IS IT IMPORTANT TO YOU THAT YOUR FITNESS EQUIPMENT HAVE INTER-OPERABILITY

CAPABILITIES (I.E. “TALK” WITH SOFTWARE OR OTHER TECHNOLOGICAL COMMUNICATION)?

WEB SITE

SOCIAL MEDIA PAGES

MEMBER REFERRAL CAMPAIGNS

EMAIL MARKETING

FLYERS

DIRECTMAIL

BROCHURES

INTERNET KEYWORD TRACKING

NEWSPAPER

RADIO/TV

BLOGS

LANDING PAGES

CALLS TO ACTION

MOBILE ADVERTISING

CRM INTEGRATION

MONTHLY MEMBERSHIP(SINGLE MEMBER) FEES

NUMBER OF RESPONDING CLUBS REPRESENTED & PERCENTAGE OF TOTAL.

$100+ $75-$99 $50-$74 $30-$49Under

$30

11315%

13318%

7710%

23131%

19226%

90%

82%

74%

72%

64%

49%

49%

41%

44%

33%

31%

26%

26%

18%

15%

95%

90%

80%

75%

65%

60%

50%

45%

45%

35%

25%

25%

10%

10%

10%

94%

81%

79%

68%

55%

51%

49%

47%

43%

38%

23%

23%

21%

19%

17%

89%

84%

74%

69%

61%

56%

51%

49%

41%

40%

23%

20%

18%

13%

12%

84%

77%

68%

64%

57%

48%

36%

30%

30%

25%

23%

20%

14%

11%

7%

89%

83%

74%

68%

55%

54%

47%

43%

42%

31%

29%

23%

19%

15%

14%

WHAT ARE YOUR PRIMARY METHODS OF ADVERTISING? $100+: $75-$99: $50-$74: $30-$49: < $30: ALL FACILITIES:


FACILITIES:ALLYES 20%







(This is a count of Pink [negative 10% or greater] and Blue marks [positive 10% or greater] from “All Facilities” numbers.

$100+: $75-$99:$50-$74: $30-$49: Under $30:

Blue 11Blue 5Blue 6Blue 3Blue 2

Pink 1Pink 5Pink 5Pink 7Pink 8

Net Score: 19Net Score: 0Net Score: 1Net Score: -4 Net Score: -6

Ranking: #1Ranking: #3Ranking: #2Ranking: #4Ranking: #5

100+:$75-$99:$50-$74: $30-$49: Under $30:



DOES YOUR CLUB HAVE INTERACTIVE SMART PHONE CAPABILITIES

FOR MEMBERS?

DOES YOUR FACILITY USE A MOBILE APP?

OVERALL “SCORE” BY PRICE SEGMENT:

IS COST A BARRIER TO TECHNOLOGICAL USE FOR YOUR FACILITY?

100+:$75-$99:$50-$74: $30-$49: Under $30:

100+:$75-$99:$50-$74: $30-$49: Under $30:





DOES YOUR FACILITY USE GOOGLE+?

DOES YOUR FACILITY HAVE A FACEBOOK PAGE?



100+:$75-$99:$50-$74: $30-$49: Under $30:



100+:$75-$99:$50-$74: $30-$49: Under $30:


100+:$75-$99:$50-$74: $30-$49: Under $30:


FACILITIES:ALLYES 27%100+:$75-$99:$50-$74: $30-$49: Under $30:


DOES YOUR CLUB’S LEADER USE TWITTER?

DOES YOUR FACILITY USE LINKEDIN?

DOES YOUR FACILITY USE FACEBOOK ADS?

DOES YOUR FACILITY USE TWITTER?

HEALTH CLUBSBY

ADOPTION OF TECHNOLOGY

A Non-Profit Consortium Of Leading Fitness & Technology BrandsObtain the Complete Report & Join Us www.Fittechcouncil.org

LET’S CONNECT

Join The @FittechcouncilToday #FutureOfFitness

#INFOGRAPHIC

5

SURVEY

Is Your Web Site Configured For Mobile Devices ?


Monthly Dues Percentage Yes

$100+ 77%

$75 - $99 35%

$50 - $74 68%

$30 - $49 64%

Under $30 48%

60Percentage Of All Club Facilities With Mobile Configured Web Sites

According to comScore, in 2014 there will be more mobile Internet users than desktop users globally.

U.S. adults already spend more time on mobile than they do on desktop browsing, according to eMarketer.

According to Adobe, more than 45% of U.S. businesses do not have a mobile-friendly site.

Are You Buying Ads That Display On Smartphones ?

7


$100+ 26%

$75 - $99 15%

$50 - $74 23%

$30 - $49 12%

Under $30 30%

20Percentage Of All Club

Facilities BuyingMobile Ads

According to Google, 84 percent of smartphone shoppers use their phones while in a physical store.

In the first half of 2013 mobile advertising increased 145% to $3 billion, doubling its share of digital advertising spend.


What Are Your Primary Advertising Methods ?

8

Monthly Dues Use SM For Advertising

$100+ 82%

$75 - $99 95%

$50 - $74 81%

$30 - $49 84%

Under $30 77%

83Percentage Of All Clubs

Use Social MediaAs A Key Ad Method

Web sites and social media were the first and second most popular advertising methods used by clubs in the survey.

Only 42% of all clubs use Newspaper and 54% use Direct Mail, while Email marketing is the 4th most popular advertising method comprising 68% of surveyed clubs.

Integrating CRM with advertising, to provide targeted marketing, is used by only 14% of clubs.


Social Media As Primary Advertising Method

Can Consumers Join Your Health Club Online ?

9


$100+ 46%

$75 - $99 55%

$50 - $74 15%

$30 - $49 26%

Under $30 32%


Allowing Online Memberships

Cisco’s IBSG study found that a majority of consumers have advanced beyond the capabilities of most retailers. Cisco’s Customer Experience Report found that consumers prefer more automated and personalized digital buying experiences.

A huge opportunity exists between what most clubs are offering in the way of high quality self service buying and what consumers are expecting.


Can Members Access Their Accounts Online ?

10


$100+ 72%

$75 - $99 50%

$50 - $74 28%

$30 - $49 32%

Under $30 34%


Providing Online AccountAccess

61% of global consumers prefer to shop in an omni-channel, self-service and automated way according to Cisco’s Customer Experience Report.

According to Forrester Research, organizations will differentiate themselves by delivering consistent and customizable customer experiences digitally. A clear opportunity in online service exists in the Club market.


Does Your Club Have A Facebook Page ?

11


$100+ 100%

$75 - $99 100%

$50 - $74 96%

$30 - $49 96%

Under $30 95%


Have A FacebookPage

There are over 25 Million active small business Facebook Pages today globally.

128 million people in the U.S. use Facebook daily and 78% of those are Mobile Users.

A recent Pew Research study showed that 57% of Facebook users are 50-64, 73% are 30-49, and 86% are 18-29 years of age.


Does Your Club Use Facebook Ads ?

12


$100+ 26%

$75 - $99 35%

$50 - $74 36%

$30 - $49 36%

Under $30 27%


Use Facebook AdsAbout 5% of Facebook Page users purchase Facebook ads today, significantly lower than the surveyed club showing 32% using paid Facebook ads.

A recent CMO Council-Nielsen report reflected confusion among brand leaders who want “improved clarity around the actual return on advertising investments”. A 2013 Forrester survey observed that “marketers have struggled to keep up with consumers.”

The ability to target groups and geographies with a large user base makes this a very attractive tool.


Does Your Club Use Google+ ?

13


$100+ 28%

$75 - $99 30%

$50 - $74 34%

$30 - $49 33%

Under $30 27%


Using Google+

A 2013 report found while Google+ boasted 500 million users, businesses were not seeing it as a platform worth participating in at this point.

Using the Google+ platform enhances Google Search via something called “Social Search” which offers results based on friends connected via the platform.

Expect Google+ to continue to build its relevance.


Does Your Club Use Linkedin ?

14


$100+ 67%

$75 - $99 40%

$50 - $74 34%

$30 - $49 27%

Under $30 36%


Using Linkedin

In 2013 43% of marketers found a customer on Linkedin according to a recent study.

The Company page profile on Linkedin is an effective platform that enables recommendations, product and service displays, and other content.

41% of business owners in a recent WSJ survey cited Linkedin as beneficial to their company.


Does Your Club Use Twitter ?

15


$100+ 69%

$75 - $99 70%

$50 - $74 43%

$30 - $49 40%

Under $30 48%


Using Twitter

Around 15% of online adults are Twitter users, much lower than Facebook.

Twitter is an open platform which allows users to monitor conversations by geography and terms.

Twitter, which recently conducted an IPO, is experiementing with paid ads for small businesses.


Does Your Club’s Key Leader Use Twitter ?

16


$100+ 36%

$75 - $99 35%

$50 - $74 19%

$30 - $49 21%

Under $30 39%

27Percentage Of All Clubs With Key Leader Using

Twitter

Influence marketing can drive brand awareness and increase social influence. 90% of consumers trust the recommendation of peers. Some of the worlds most important leaders communicate on twitter.

@ChuckRunyon, @MeredithPoppler @RobertDyer @SarahRobbOh and @Sfable are some of the many active twitter participants who are successful leaders in key health club brands and organizations.


Does Your Club Have A Mobile App ?

17


$100+ 56%

$75 - $99 30%

$50 - $74 36%

$30 - $49 20%

Under $30 25%


With A Mobile App

One out of 10 Starbucks transactions are now made via their mobile app; that is 3 million weekly transactions. Mobile commerce is here to stay and growing fast.

According to a recent Adobe report only 7% of businesses have a mobile app. The report shared that check-in rewards and advertising promotions including QR codes were effective for those that do. Health clubs have a much higher adoption than most industries.


Do You Have Interactive Smartphone Capability ?

18


$100+ 46%

$75 - $99 5%

$50 - $74 38%

$30 - $49 23%

Under $30 27%


With InteractiveSPhone Capability

More than 70% of exercisers use technology while working out according to a recent industry survey.

57% of members bring a smartphone or tablet to the gym but only 32% of gyms have equipment that interacts with their devices.

Creating a better user experience across a variety of platforms, equipment and devices is important to the future and is what the Fitness Industry Technology Council is hoping to help do.


Is Interoperability Important To You ?

19


$100+ 44%

$75 - $99 20%

$50 - $74 49%

$30 - $49 30%

Under $30 23%


Who Think InteroperabilityIs ImportantInteroperability is the ability of equipment, software and

devices to work together within and across organizational and brand boundaries in order to advance the effective delivery of fitness and wellness for individuals and communities.

Industr ies l ike comput ing, automot ive, and communications, among others, have created standards to enable interoperability. There has historically been to little cooperation in the fitness and health club industry to foster interoperability. Fit-C believes interoperability is essential to the future of the health club industry.


Is Cost A Barrier For Technology Use In Your Club ?

20


$100+ 46%

$75 - $99 75%

$50 - $74 60%

$30 - $49 70%

Under $30 55%


Say Cost Is ABarrier

Smartphone prices are expected to fall in the next three years at an annual rate of 7%. This will spur continued double digit growth for the devices globally.

Increasingly wide spread adoption of mobile, Internet and other digital platforms and services will continue to as prices fall and the barrier to adoption is lowered.



Thanks For Reading The Fit-C Survey Report.

As you can see, many areas of technology are being widely adopted by health club operators. Methods of advertising and service are being increasingly delivered using new technologies. Given that the cost of these technologies are dropping, adoption will likely continue to increase.

A significant opportunity exists with respect to the creation of interoperability standards. We must realize that competition for fitness and wellness services is rapidly emerging outside of the bricks and mortar health club industry. Therefore, to remain relevant in the arena of primary prevention, we must think in terms of the customer and what they will increasingly expect. Their experience should not be dampened by our being unable to create intperoperability standards which makes it easier for customers to use technology in clubs and become more satisfied with the experience.

We’d love you to become a part of www.fittechcouncil.org . Membership is very affordable and as a 501.3(c) tax deductible. The fitness industry technology council is looking to help our industry realize the need to move forward with new technology standards. We thank our members and encourage you to share this report with your friends and colleagues.

Wishing you a wonderful 2014.

BRYAN K. O’ROURKE, Presidentwww.fittechcouncil.org


Join Us At www.fittechcouncil.org


22

14 Questions On Key Trends

Fitness Industry Technology Council 2014 - all rights reserved

Thanks For Reading The ReportPlease Share This Content In Your Social Networks

Join Us @Fittechcouncil

2014 u.s. health club technology survey report

Business

technology use

adoption of technology

club onlne

club use twitter

club use google

club use linkedin

survey questions

survey responses